The Saudi Port Authority signs $170 million deals to build new berths in Jeddah’s Islamic Port
RIYADH: The Saudi Port Authority, known as Mawani, has signed two deals totaling SR 642 million (US$170 million) to deepen and establish new berths in Jeddah’s Islamic port.
The two contracts were signed with contractors PC Marine Services and Modern Building Leaders, the latter in a consortium with Huta Hegerfeld Saudia, according to a statement.
In line with the objectives of the National Transport and Logistics Strategy, this is being done as part of the Authority’s growth in the maritime transport and logistics industry.
It will also support a transformative shift in port operations through the implementation of over 160 projects to position Saudi Arabia as a global logistics hub connecting three major continents.
The contract with MBL in collaboration with Huta Hegerfeld Saudia aims to develop the credentials of the Islamic Port of Jeddah as a logistics destination.
This will be done by deepening port access channels, turning basins, waterways and the South Terminal basin.
The upgrades will allow for the arrival of huge ships with a capacity of up to 24,000 20ft containers, improving the port’s competitiveness and attracting new global shipping lines to local shores.
The contract with PC Marine Services includes new berths 16 meters deep and 1,100 meters long to accommodate large grain carriers and accommodate larger vessels to meet local market demand.
This is part of an effort to secure the kingdom’s strategic grain reserves through increased imports and improve overall food security through the Islamic port of Jeddah.
In June 2021, Saudi Arabia’s Crown Prince Mohammed bin Salman launched the country’s national transport and logistics strategy.
The comprehensive program aims to position the Kingdom as a global logistics hub connecting three continents and enhance all transportation services in support of the Saudi Vision 2030.
A variety of groundbreaking projects are planned to help achieve the strategy’s economic and social goals, along with improved governance to improve the work of the organizations involved. It also reflects the renaming of the Ministry of Transport to the Ministry of Transport and Logistics Services.
“This strategy will strengthen the human and technical skills in the transport and logistics sector in the kingdom,” the crown prince said at the presentation.
“It will improve connection with the world economy and allow our country to invest its geographic position in the middle of three continents in diversifying our economy by building an advanced logistics service industry, building high quality service systems and applying competitive business models to increase the productivity and sustainability in the logistics industry,” he added.