Saudi Ports Authority and DP World Jeddah start construction on the expansion and modernisation of the South Container Terminal at Jeddah Islamic Port
The Saudi Ports Authority (Mawani) and DP World Jeddah has announced the start of construction on the expansion and modernisation of the South Container Terminal at Jeddah Islamic Port.
The revamp of the facility is part of Saudi Arabia’s strategy to develop ports infrastructure to unlock the kingdom’s maritime logistics and transportation potential.
A ground breaking ceremony took place on Thursday to mark the start of the first phase of construction.
The development is part of the new concession agreement Mawani signed with DP World Jeddah in April 2020 to continue operating and managing the facility for the next 30 years.
The company has committed to a total investment of $800 million to modernise the terminal.
The new overhaul project, which will take place over four phases and is set to be completed by 2024, will see infrastructural upgrades, including the broadening of draft depth and quay, and the installation of advanced equipment and technologies.
When complete, the revamped terminal will double Jeddah Islamic Port’s container handling capacity from 2.4 million TEUs to 4 million by 2024 and solidify Jeddah’s standing as a major trade and logistics centre on the Red Sea coast.
Omar Hariri, president of Mawani, said: “The continuing development of our national ports through public-private partnerships is a priority for us at Mawani as part of our long-term strategy to drive growth in Saudi Arabia’s ports sector and bolster the Kingdom’s pre-eminent position as a global logistics hub connecting three continents as envisaged in Vision 2030.”
Mohammad Alshaikh, CEO DP World Jeddah and country head Saudi Arabia, said: “Our strategy as a smart trade enabler is to modernise the facility, expand its capacity and diversify the range of smart logistics services on offer at the South Container Terminal. This will help in improving the quality of the service for our current customers and assist our efforts towards attracting new business to the port.”
The development plans include extending the length of the quay and deepening the draft, which will enable the terminal to service five vessels simultaneously and handle the largest container vessels in operation today and in the future.
Since 1999, DP World Jeddah has been operating the South Container Terminal at Jeddah Islamic Port as a concession partner.
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