DP World lands concession for Jeddah South Container Terminal in Saudi Arabia
DP World has been awarded a 30-year build-operate-transfer (BOT) concession to manage and develop the South Container Terminal at Jeddah Islamic port in Saudi Arabia
DP World has been awarded a 30-year build-operate-transfer (BOT) concession to manage and develop the South Container Terminal at Jeddah Islamic port in Saudi Arabia.
Under the terms of the agreement with the Saudi Ports Authority (Mawani), DP World will invest up to US$500 million to improve and modernise the Jeddah Islamic port, involving major infrastructure development to enable the port to serve mega containerships.
Jeddah Islamic port on the Red Sea currently handles six million TEU annually, equivalent to 60 per cent of Saudi Arabia's sea imports, making it a strategic hub that connects east-west cargo.
Developing Jeddah Islamic port will contribute to achieving Saudi Vision 2030 as the project is considered a key milestone towards achieving the targets of The National Industrial Development and Logistics Vision Realization Programme.
As the main trade destination for Saudi Arabia and one of the kingdom's major port privatisation projects, the new terminal's capacity will be increased to 3.6 million TEU up from 2.4 million TEU, to meet the expected future demand growth and provide 1,400 jobs.
DP World Group CEO Sultan Ahmed Bin Sulayem said: 'We have committed to investing significantly to modernise the Jeddah South Container Terminal, which will not only result in greater direct and indirect job creation but also deliver best-in-class efficiency and productivity to the port's operations.'
Mr Bin Sulayem added: 'Beyond the terminal, our ambition is to develop inland connectivity across the Arabian Peninsula between Jeddah and Jebel Ali port in Dubai, as well as to Saudi Arabia's cities through smart technology-led logistics, which should support further growth in this strategic hub that connects east to west.'
In line with DP World's mission to transform container terminal operations through technology driven innovation, the South Container Terminal will have advanced infrastructure and smart services to ensure transparency of transactions and facilitate the smooth flow of trade.