DP World and the Saudi Ports Authority (MAWANI) have commenced construction of a new SAR900 million ($240 million) logistics park at Jeddah Islamic Port.
The project is set to provide new storage and distribution facilities, as well as boost trade in the Kingdom of Saudi Arabia and the wider region.
The 415,000 square-metre greenfield facility will feature 185,000 square metres of warehousing space and a sprawling multi-purpose storage yard, reportedly making it the largest integrated logistics park in the Kingdom.
Established in 2022 as part of a 30-year concession, Jeddah Logistics Park will be developed in two phases with a planned opening in Q2 2025. The facility will have a rooftop solar plant in the warehouse that will generate 20 megawatts (MW) of renewable energy, according to DP World.
The collaboration between Mawani and DP World also includes the management of the South Container Terminal through a separate 30-year concession signed in 2020. The terminal is currently in the final phase of a comprehensive modernisation project, scheduled for completion in Q4 2024, which will see the handling capacity being ramped up to 5 million TEU.
Altogether, the two DP World projects represent a combined investment of close to SAR4 billion ($1 billion).
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Sultan Ahmed bin Sulayem, Chairman and CEO of DP World, said: “Saudi Arabia has always been a deeply important market for DP World and this milestone represents our ongoing commitment to the Kingdom.
“Jeddah Logistics Park, strategically located on the vital Asia-Europe shipping route, will provide world-class multimodal connectivity and market access for our customers while supporting the ambitious aims of Saudi Vision 2030. This investment marks a significant step as we mark 25 years of operations in Jeddah and underscores our enduring commitment to facilitating the flow of trade.”
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The President of MAWANI, Omar Bin Talal Hariri, said: “This new logistics area will be connected to DP World’s South Container Terminal at Jeddah Islamic Port, facilitating growth, and increasing the number of containers handled at the terminal.
“The project is part of Mawani’s broader efforts to expand the number of logistics centres in Saudi ports, in partnership with major national and international companies, and in line with the objectives of the National Transport and Logistics Strategy and Vision 2030.”
Just recently, DP World announced the development of its Australian activities with the inauguration of a new rail service at Stockland’s Yennora Intermodal Terminal.
