The Saudi Seaports Authority (SSA) has launched a US$140 million development programme for Jeddah Islamic Port. The scheme was introduced to combat an increasing amount of traffic congestion at the port, which has result from growing cargo volumes in the region. Recent reports suggest that shipping companies were attempting to avoid the congestion by skipping Jeddah Islamic Port and unloading their consignments at alternative facilities.
In addition, companies had expressed their concerns about the fines - approximately $80,000 a day - that were levied on container ships forced to wait for up to three days before being allowed to berth.
However, the claims were denied by Khaled Boubasheet, president of SSA, who claimed that only a single ship had skipped the port and the rise in traffic was largely dependent on the time of year.
The port usually experiences hectic activities between the beginning of Ramadan and the ending of Haj season," he said. "This year it has increased considerably because of the unprecedented economic development in the country, together with the regular peak season."
As part of the $140 million development programme, three additional wharfs will be constructed in the northern container terminal and facilities will be enhanced to speed the cargo handling process.
In addition, companies had expressed their concerns about the fines - approximately $80,000 a day - that were levied on container ships forced to wait for up to three days before being allowed to berth.
However, the claims were denied by Khaled Boubasheet, president of SSA, who claimed that only a single ship had skipped the port and the rise in traffic was largely dependent on the time of year.
The port usually experiences hectic activities between the beginning of Ramadan and the ending of Haj season," he said. "This year it has increased considerably because of the unprecedented economic development in the country, together with the regular peak season."
As part of the $140 million development programme, three additional wharfs will be constructed in the northern container terminal and facilities will be enhanced to speed the cargo handling process.