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2023 October 23   12:26

Mawani and SGP sign a contract agreement to establish a fully integrated logistics park

The Saudi Ports Authority (Mawani) and Saudi Global Ports (SGP) have inked a deal to build A Fully Logistics Park spanning over 1 million square meters at King Abdulaziz Port in Dammam, with an investment nearing one billion Saudi Riyals. 

The objective of these investments is to establish multiple high-performance logistics zones that will enhance the efficiency of the logistics sector, improve service quality, increase handling numbers, and generate additional job opportunities. This initiative is expected to strengthen the role of the logistics sector in supporting the national economy and reinforce the Kingdom's position as a global logistics hub connecting three continents. This aligns with the National Strategy for Transport and Logistics Services and Vision 2030. 

This expansion is expected to elevate the Kingdom's position in the global logistics services performance index from its current 38th place to the 10th. Furthermore, it will solidify its regional leadership in logistics. The park is designed to offer comprehensive logistics services and innovative solutions, with a strong focus on sustainable practices and systems. It includes warehouses and yards equipped to store and handle all types of dry and refrigerated goods. Additionally, the park features a bonded and re-export area specifically dedicated to sorting, distribution operations, and other value-added services. 

The 'Saudi Global Ports Company' operates two container terminals at King Abdulaziz Port in Dammam, which is a joint venture between the 'Saudi Public Investment Fund', the Singaporean 'PSA International Company', and Al Balagaa Group'. Importantly, 'Mawani' succeeded in attracting national and international investments and major logistics companies through signing several agreements to establish 11 logistics zones. These zones will be strategically located in the Jeddah Islamic Port, King Abdulaziz Port in Dammam, and King Fahd Industrial Port in Yanbu. The total investment for these initiatives is nearing 4.2 billion riyals. This significant investment will not only lead to the creation of over 13,000 direct and indirect jobs within the logistics sector, but it is also expected to trigger a major economic revival. These initiatives are expected to bolster the gross domestic product, enhance international trade relations, improve multimodal transport connections, and foster growth in the logistics services industry.

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