Dubai-based totally port and terminal operator DP World has been presented a 30-year build-operate-transfer (BOT) concession with the aid of the Saudi Ports Authority (Mawani) for the management and improvement of the Jeddah South Container Terminal on the multipurpose Jeddah Islamic Port.
The BOT concession was signed in Jeddah on December 23, 2019.
Under the settlement, DP World will make investments as much as USD 500 million to enhance and modernize the Jeddah Islamic Port, including predominant infrastructure improvement to enable the port to serve ultra huge field 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 shipment. Developing the port is said to be in keeping with Saudi Vision 2030 as the project is considered a key milestone closer to attaining the goals of the National Industrial Development and Logistics Vision Realization Program, one of the imaginative and prescient’s predominant initiatives.
DP World, which has operated the South Container Terminal on a lease settlement for greater than 20 years, said that the brand new concession will facilitate the easy and efficient movement of shipment and permit more get right of entry to to local and global markets.
As the main alternate vacation spot for Saudi Arabia and one of the Kingdom’s predominant port privatization projects, the brand new terminal will also have an upgraded ability of 3.6 million TEU, up from 2.four million TEU, to satisfy the future increase demand.
“DP World is honoured to aid the Kingdom’s 2030 increase vision via this new concession to transform the us of a into a global logistics hub,” Ahmed Bin Sulayem, DP World Group Chairman and CEO, commented.
“Beyond the terminal, our ambition is to increase inland connectivity throughout the Arabian Peninsula between Jeddah and Jebel Ali Port in Dubai, as well as to Saudi Arabia’s towns via smart technology-led logistics, which must assist further growth in this strategic hub that connects East-to-West,” he added.
DP World has a portfolio of over one hundred fifty operations in over 45 countries across the world.
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