KAP signs SR2.7bn agreement with SABB, ANB for expansion

KAP signs SR2.7bn agreement with SABB, ANB for expansion
The financial agreement aims to move forward with the development and expansion of the King Abdullah Port's facilities, thus meeting the growing demand for its services as a regional and international strategic gateway.
Updated 07 September 2016

KAP signs SR2.7bn agreement with SABB, ANB for expansion

KAP signs SR2.7bn agreement with SABB, ANB for expansion

The Ports Development Company (PDC), owner and developer of the King Abdullah Port (KAP) — the region’s first privately owned port — has announced the signing of a financial agreement with SABB and the Arab National Bank (ANB) worth SR2.7 billion.
The agreement aims to move forward with the development and expansion of the port’s facilities, thus meeting the growing demand for its services as a regional and international strategic gateway.
Through this agreement, the PDC will work to provide proper financing for the next phase of expansion and development for the port’s southern basin, which includes an additional container terminal, a ro-ro terminal and a bulk cargo terminal. This marks an important milestone as it will increase the port’s total capacity to 6 million TEU’s annually.
This comes alongside the development of the ro-ro terminal with an annual storage capacity of 600,000 vehicles, and the bulk cargo terminal, which has the capacity of handling up to 3 million tons annually. Furthermore, part of this funding will be dedicated to the development of logistical support spaces inside the port.
Abdullah bin Muhammed Hameedadin, MD, PDC, explained that the KAP has become a major gateway for import and export operations, as well as a main outlet to access new markets.
He highlighted that the port significantly contributes to boosting intra-trade activities between the Kingdom and global markets, not to mention the port’s significance in the activation of the maritime shipping industry and enforcing its role within the general transportation system as well as restoring the Kingdom’s fair share of regional and international maritime shipping taken previously by other neighboring ports.
In addition to its strategic location, the KAP is characterized by its application of the latest state-of-the-art technology in port operation, including the smart gate system, which will launch by the end of 2016.