Emaar Economic City (Emaar EC) has signed an agreement with the Dubai-based DP World Limited, a global marine terminal operator, to develop and operate the port at King Abdullah Economic City (KAEC) in Saudi Arabia that would be the largest on the Red Sea.
The port, which will be the first in the kingdom to be financed completely by the private sector, would become one of the world's 10 largest ports with a capacity to handle 20 million 20-foot containers a year, said Emaar EC, the Saudi Arabia unit of Dubai's Emaar Properties PJSC, in a Press statement yesterday.
"With its strategic location on the Red Sea, the KAEC Sea Port will create a regional logistics hub that will further stimulate the Saudi economy through new job and investment opportunities," said Mohamed Ali Alabbar, chairman of Emaar EC.
The statement said that a multi-purpose cargo terminal is set to be operational by the end of 2010 and a separate terminal capable of handling 1.6 million TEU, or 20-foot equivalent container units, will operate by mid-2011. Afterwards the port's capacity will be increased on several phases.
It added that the port, set to extend over 14 square kilometres, would create 15,000 jobs and contribute an average of Dh9.8 billion (SR10 billion) to Saudi Arabia's annual gross domestic product upon completion of the all the work phases.
Governor Amr Al Dabbagh, of the Saudi Arabian General Investment Authority (SAGIA), expressed his office's commitment to help transform Saudi Arabia into one of the world's 10 most competitive economies by 2010.
"To achieve our goal, we encourage major local, regional and international companies to invest in the infrastructure to augment investment in high-growth strategic sectors, which contribute to overall economic development," he said.
The statement said the KAEC Sea Port would be integrated into the industrial zone and logistics hub to provide "a seamless logistics operation" within the economic city and promote regional trade further. The port's location is one of the most important sea routes between the East and the West.
Sultan Ahmed bin Sulayem, Chairman of DP World and Dubai World, the holding company that manages the businesses and projects of the Dubai government, said the project is a good opportunity for DP World to make use of its expertise in marine terminal operation.
"Our ports are a vital link in the global supply chain, enhancing efficiency and the growth of economies in the communities in which we operate," he added.
The chief executive of Emaar EC, Fahd Al Rasheed, stressed that creating a world-class seaport is the key to building a robust economy because logistics is one of the fastest growing sectors worldwide.
"Our partnership with DP World reiterates our commitment to work with the best and offer world-class standards to our clients," he said.
DP World, the world's fourth-largest marine port operator, has a portfolio of 43 terminals and 13 new developments across 28 countries. It designs, builds and operates ports as well as provides logistics, infrastructure development and consultancy services.
The port, which will be the first in the kingdom to be financed completely by the private sector, would become one of the world's 10 largest ports with a capacity to handle 20 million 20-foot containers a year, said Emaar EC, the Saudi Arabia unit of Dubai's Emaar Properties PJSC, in a Press statement yesterday.
"With its strategic location on the Red Sea, the KAEC Sea Port will create a regional logistics hub that will further stimulate the Saudi economy through new job and investment opportunities," said Mohamed Ali Alabbar, chairman of Emaar EC.
The statement said that a multi-purpose cargo terminal is set to be operational by the end of 2010 and a separate terminal capable of handling 1.6 million TEU, or 20-foot equivalent container units, will operate by mid-2011. Afterwards the port's capacity will be increased on several phases.
It added that the port, set to extend over 14 square kilometres, would create 15,000 jobs and contribute an average of Dh9.8 billion (SR10 billion) to Saudi Arabia's annual gross domestic product upon completion of the all the work phases.
Governor Amr Al Dabbagh, of the Saudi Arabian General Investment Authority (SAGIA), expressed his office's commitment to help transform Saudi Arabia into one of the world's 10 most competitive economies by 2010.
"To achieve our goal, we encourage major local, regional and international companies to invest in the infrastructure to augment investment in high-growth strategic sectors, which contribute to overall economic development," he said.
The statement said the KAEC Sea Port would be integrated into the industrial zone and logistics hub to provide "a seamless logistics operation" within the economic city and promote regional trade further. The port's location is one of the most important sea routes between the East and the West.
Sultan Ahmed bin Sulayem, Chairman of DP World and Dubai World, the holding company that manages the businesses and projects of the Dubai government, said the project is a good opportunity for DP World to make use of its expertise in marine terminal operation.
"Our ports are a vital link in the global supply chain, enhancing efficiency and the growth of economies in the communities in which we operate," he added.
The chief executive of Emaar EC, Fahd Al Rasheed, stressed that creating a world-class seaport is the key to building a robust economy because logistics is one of the fastest growing sectors worldwide.
"Our partnership with DP World reiterates our commitment to work with the best and offer world-class standards to our clients," he said.
DP World, the world's fourth-largest marine port operator, has a portfolio of 43 terminals and 13 new developments across 28 countries. It designs, builds and operates ports as well as provides logistics, infrastructure development and consultancy services.