Saudi Arabia readies to privatize ports
Saudi Arabia plans to create an independent firm that will manage the kingdom's eight ports under a gradual privatisation process, Reuters reported.
The state-run Saudi Ports Authority has completed privatisation studies of the ports, which will lead to the inception of the independent managing entity, its head Khaled Bubshait said.
While Bubshait did not say when this entity would be set up, his remarks reactivate a process that has been frozen since late-1997.
A royal decree in 1997 allowed private firms to operate and maintain berths and equipment owned by the Ports Authority on a commercial basis, while keeping the ports and their facilities under government ownership. The move was aimed at raising efficiency and creating more jobs for Saudi nationals.
The bidding process then was on the basis of the share of terminal revenues the government would get. In late 1997, the Ports Authority started passing port terminals to the private sector on a terminal-by-terminal basis.
Bubshait also said the body plans to raise the kingdom's container handling capacity to 15 million TEUs by 2020. The overall handling capacity of the ports stands at about nine million TEUs.
The state-run Saudi Ports Authority has completed privatisation studies of the ports, which will lead to the inception of the independent managing entity, its head Khaled Bubshait said.
While Bubshait did not say when this entity would be set up, his remarks reactivate a process that has been frozen since late-1997.
A royal decree in 1997 allowed private firms to operate and maintain berths and equipment owned by the Ports Authority on a commercial basis, while keeping the ports and their facilities under government ownership. The move was aimed at raising efficiency and creating more jobs for Saudi nationals.
The bidding process then was on the basis of the share of terminal revenues the government would get. In late 1997, the Ports Authority started passing port terminals to the private sector on a terminal-by-terminal basis.
Bubshait also said the body plans to raise the kingdom's container handling capacity to 15 million TEUs by 2020. The overall handling capacity of the ports stands at about nine million TEUs.