Dubai-based port and terminal operator DP World has been awarded a 30-year build-operate-transfer (BOT) concession by the Saudi Ports Authority (Mawani) for the management and development of the Jeddah South Container Terminal at the multipurpose Jeddah Islamic Port.
The BOT concession was signed in Jeddah on December 23, 2019.
Under the agreement, DP World will invest up to USD 500 million to improve and modernize the Jeddah Islamic Port, including major infrastructure development to enable the port to serve ultra large container vessels (ULCVs).
With annual volumes of over 6 million TEUs, the Jeddah Islamic Port handles about 60% of Saudi Arabia’s sea imports and is a strategic hub connecting east-west cargo. Developing the port is said to be in line with Saudi Vision 2030 as the project is considered a key milestone towards achieving the targets of the National Industrial Development and Logistics Vision Realization Program, one of the vision’s major initiatives.
DP World, which has operated the South Container Terminal on a lease agreement for more than 20 years, said that the new concession will facilitate the smooth and efficient movement of cargo and enable greater access to local and international markets.
As the main trade destination for Saudi Arabia and one of the Kingdom’s major port privatization projects, the new terminal will also have an upgraded capacity of 3.6 million TEU, up from 2.4 million TEU, to meet the future growth demand.
“DP World is honoured to support the Kingdom’s 2030 growth vision through this new concession to transform the country into a global logistics hub,” Ahmed Bin Sulayem, DP World Group Chairman and CEO, commented.
“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,” he added.
DP World has a portfolio of over 150 operations in over 45 countries around the world.