JEDDAH, 6 April 2008 — Emaar, The Economic City, the Tadawul-listed company developing King Abdullah Economic City (KAEC), and global marine terminal operator DP World yesterday signed a Memorandum of Understanding (MoU) for developing and operating the sea port of KAEC.
Transport Minister Dr. Jabarah Al-Seraisry oversaw the signing ceremony which was hosted by SAGIA Governor Amr Al-Dabbagh at King Abdullah Economic City in Rabigh.
Also present on the occasion were Mohamed Ali Alabbar, chairman, Emaar.E.C.; Sultan Ahmed ibn Sulayem, chairman, Dubai World and DP World; Fahd Al-Rasheed, chief executive officer, Emaar.E.C., and other Saudi government officials and entrepreneurs.
One of the six key components of the 168 million sq meter KAEC, the Sea Port will be the largest in the Red Sea and one of the top 10 ports in the world with a capacity to handle 20 million TEU (twenty foot equivalent container units). A multipurpose cargo terminal is scheduled to be operational by end of 2010 and a 1.6 million TEU container terminal by mid-2011 after which the capacity of the port will be increased in several phases.
Once all the phases are complete, the port will be creating 15,000 direct and indirect jobs. Besides, it is expected to contribute an average SR10 billion to the Kingdom’s GDP annually.
Extending over 14 sq km, the KAEC Sea Port will be equipped to receive the new generation mega-vessels, with a nominal capacity of around 10,000 TEU and more, and will utilize global positioning technologies, advanced information management systems and automated processes.
The KAEC Sea Port will contribute to the total transportation and port network of Saudi Arabia, and seeks to capitalize on the untapped opportunities by leveraging on its strategic location on the Red Sea, which is one of the most important sea routes between the East and West. The Sea Port will be integrated with the Industrial Zone and logistics hub to provide a seamless logistics operation within KAEC that will further promote regional trade.
KAEC has six zones: The Sea Port, Industrial Zone, Central Business District (including financial district), Educational Zone, Resort District and Residential Communities. Work is progressing on schedule on the first phase of the project including the Sea Port, Industrial Zone, Resort District and Residential Communities.
Al-Dabbagh said: “SAGIA (Saudi Arabian General Investment Authority) is committed to the Kingdom’s vision to make the Saudi economy one of the top 10 competitive economies in the world by the turn of this decade.
To achieve our goal, we encourage major local, regional and international companies to invest in the infrastructure to augment investment in high-growth strategic sectors, most importantly the transport sector, and thus enhance the competitiveness of these sectors, which contribute to overall economic development.”
Sulayem said: “We are pleased to be involved in this exciting project and welcome the opportunity to bring our expertise in developing and operating ports globally to this pioneering development. Our ports are a vital link in the global supply chain, enhancing efficiency and the growth of economies in the communities in which we operate. We look forward to working with Emaar and SAGIA in coming months to explore the next steps in creating a KAEC sea port of the highest international standards, connected to markets around the world.”
Al-Rasheed explained: “The KAEC Sea Port will provide a qualitative and quantitative leap to the marine transportation and logistic services sector of Saudi Arabia that will boost the Kingdom’s global competitive advantage.”
