ACWA consortium wins Red Sea Project utilities contract

ACWA consortium wins Red Sea Project utilities contract
Energy at the Red Sea Project will be generated via solar panels and wind turbines to meet an initial demand of 210MW with the ability to expand in line with the development.
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Updated 18 November 2020

ACWA consortium wins Red Sea Project utilities contract

ACWA consortium wins Red Sea Project utilities contract

The Red Sea Development Company (TRSDC), the developer behind the world’s most ambitious regenerative tourism project, has awarded its highest-value contract to date to a consortium led by ACWA Power to design, build, operate and transfer the Red Sea Project’s utilities infrastructure.

The contract marks a significant step forward for the project, establishing it as the region’s first tourism destination powered solely by renewable energy. A tourism project of this size, powered solely by renewable energy, has never been achieved on this scale anywhere in the world.

“This is a pivotal moment for us as we seek to build a new kind of tourism destination in Saudi Arabia, aligned with Vision 2030. We’re committed to pushing the boundaries of what it means to be sustainable and investing heavily in renewables is helping us to set new global standards in regenerative tourism,” said John Pagano, CEO of TRSDC.

“This contract also signifies a noteworthy step change for us as the consortium brings foreign investment to the project, demonstrating international support and confidence for the vision that is becoming a reality along the Red Sea coast. At the same time, we are delighted to partner with a consortium leader that has its roots in the Kingdom and shares our ambition to accelerate the energy transition locally,” said Pagano.

All of the utilities will be delivered under a single agreement, unique for a contract of this kind, which includes the provision of renewable power, potable water, wastewater treatment, solid waste management and district cooling for the 16 hotels, international airport and infrastructure that make up Phase 1 of the Red Sea Project.

Mohammad Abunayyan, chairman of ACWA Power, said: “The Red Sea Project is a vital undertaking under the Saudi Vision 2030 and aims to be a global showcase of the Kingdom’s ability to develop ambitious giga-projects. Being selected to support this project marks another milestone in our impressive bid win trajectory, and we are honored and proud to support TRSDC’s ambition to deliver a tourist destination that limits the environmental impact through the provision of zero-carbon emitting and zero-waste generating utility services.”

Energy will be generated via solar panels and wind turbines to meet an initial demand of 210MW with the ability to expand in line with the development.

The agreement expects to generate up to 650,000 MWh of 100 percent renewable energy to supply the destination and other utility systems, whilst emitting zero CO2. The resulting saving in CO2 emissions to the atmosphere is equivalent to nearly half-a-million tons each year.

The ACWA Power consortium is financed by Saudi and international banks, including the UK’s Standard Chartered Bank and China’s Silk Road Fund, and marks a new stage for the development, in terms of securing external investment.


Mawani launches new shipping route from Jeddah port

Mawani launches new shipping route from Jeddah port
Updated 21 January 2021

Mawani launches new shipping route from Jeddah port

Mawani launches new shipping route from Jeddah port

Saudi Ports Authority (Mawani) has announced the launch of a new shipping service from Jeddah Islamic Port, complementing its strategic partnerships with some of the largest shipping companies in the world, such as Hapag Lloyd, CMA CGM, COSCO and ONE. The introduction of the new service reflects the confidence of global shipping lines in Mawani’s capabilities and the prominent position of Jeddah Islamic Port in global trade through the Red Sea, connecting the Middle East to Europe and North Africa, the Mediterranean and the Indian subcontinent, and covering key ports like Port Tanger in Morocco and Algeciras in Spain.

The new shipping line is a major step forward by Mawani, taken as part of its initiatives launched under the National Industrial Development and Logistics Program (NIDLP), building on its achievements during the past year with the support of the Saudi logistics sector and the guidance of Saudi Minister of Transport Saleh Al-Jasser. The effort has been to enhance the international connectivity of ports and attract major shipping companies in line with the strategic objectives of Vision 2030 to enhance the Kingdom’s position in the investment and logistics arena.

The new line (IO3) will link Jeddah Islamic Port with the Indian Ocean and northern European ports. The service will consist of seven vessels with a capacity equivalent to 8,500 standard containers per vessel, approximately 48 vessels per year, which will allow a greater cargo capacity. 

Through the launch of the new line, Mawani aims to enhance the status of Jeddah Islamic Port as a direct point of connectivity between the ports of the East and the West, enabling the port to benefit from its strategic location between three key continents. It will also help strengthen the Kingdom’s position as a leading hub for logistics services and a facilitator of global supply chains, contributing to increased transshipment levels and attracting the largest number of ships operating on the Red Sea coast. Besides, it will make available additional shipping lines for local and international importers and exporters, raising the competitiveness of Saudi ports services and improving their operations. The new line will also help establish attractive logistics centers for investors in the ports sector.

Jeddah Islamic Port has gained historical significance due to the fact that Jeddah is the main gateway to the holy cities of Makkah and Madinah. It is the largest port in terms of volume and cargo handling capacity, as it handles more than 65 percent of all cargoes imported through Saudi ports. The port covers an area of 12.5 square kilometers.