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Saudi Arabia Grows its Network of Ports, Linking East with West

The King Abdulaziz Port in Dammam in eastern Saudi Arabia. (Asharq Al-Awsat)
The King Abdulaziz Port in Dammam in eastern Saudi Arabia. (Asharq Al-Awsat)
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Saudi Arabia Grows its Network of Ports, Linking East with West

The King Abdulaziz Port in Dammam in eastern Saudi Arabia. (Asharq Al-Awsat)
The King Abdulaziz Port in Dammam in eastern Saudi Arabia. (Asharq Al-Awsat)

The Saudi Ports Authority (Mawani) has added 20 new shipping services to Jeddah Islamic Port, King Abdulaziz Port in Dammam, and Jubail Commercial Port, during the first half of 2023.

The government is seeking to achieve the objectives of the National Strategy for Transport and Logistics Services, with the aim of consolidating the Kingdom’s position as a global hub, linking east with west and reaching a capacity of more than 40 million containers annually.

Logistics expert Nashmi Al-Harbi told Asharq Al-Awsat that Saudi Arabia has advanced its position in the World Bank’s Global Logistics Performance Index (LPI) by a substantial 17 places, and reaped many awards in the efficiency and speed of handling, highlighting the great development witnessed by the sector.

Mawani announced on Sunday new shipping services across Jeddah Islamic Port, King Abdulaziz Port in Dammam and Jubail Commercial Port to link the Kingdom with other global ports while facilitating trade and export.

In a statement, the authority said the first half of 2023 witnessed an increase in the number of standard containers handled at Mawani’s ports by 15.12 percent to reach 4.08 million, compared to 3.55 million in the same period last year.

The number of transshipment containers also rose by 12.19 percent to reach 1.56 million compared to 1.39 million in the corresponding period of 2022.

Moreover, ship traffic increased by 10.6 percent to reach 5,918 vessels, compared to 5,347 in the same period last year.

Meanwhile, the UNCTAD report for the second quarter of 2023 showed that the Kingdom achieved new progress in the maritime navigation network connectivity index, by scoring 76.16 points, which represents an increase of 4.83 points over the same period last year.

As part of efforts to consolidate the Kingdom’s position as a global logistics center, Mawani signed an agreement with the United Electronics Company, eXtra, to establish a logistics center at King Abdulaziz Port in Dammam on an area of 32,000 square meters, at a value of about SAR 35 million ($9.3 million).

An agreement was also signed with the Jeddah Chamber of Commerce to establish an integrated logistics area in Al Khomrah, south of Jeddah, with an investment value of about one billion riyals ($266 million) and a total area of 3 million square meters.

Mawani and Maersk laid the foundation stone for the company’s largest integrated logistics area in the Middle East at Jeddah Islamic Port, with an area of 225,000 square meters, and investments amounting to 1.3 billion riyals ($346.6 million).

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Business

Spirit Airlines Shuts Down, Industry’s First Iran War Casualty

A Spirit Airlines self bag-drop counter at Orlando International Airport, as the airline announced it was ceasing operations early Saturday morning following an impasse in talks with some creditors on a $500 million government bailout plan, in Orlando, Florida, US, May 2, 2026. (Reuters)
A Spirit Airlines self bag-drop counter at Orlando International Airport, as the airline announced it was ceasing operations early Saturday morning following an impasse in talks with some creditors on a $500 million government bailout plan, in Orlando, Florida, US, May 2, 2026. (Reuters)
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Spirit Airlines Shuts Down, Industry’s First Iran War Casualty

A Spirit Airlines self bag-drop counter at Orlando International Airport, as the airline announced it was ceasing operations early Saturday morning following an impasse in talks with some creditors on a $500 million government bailout plan, in Orlando, Florida, US, May 2, 2026. (Reuters)
A Spirit Airlines self bag-drop counter at Orlando International Airport, as the airline announced it was ceasing operations early Saturday morning following an impasse in talks with some creditors on a $500 million government bailout plan, in Orlando, Florida, US, May 2, 2026. (Reuters)

Bankrupt discount carrier Spirit Airlines ceased operations on Saturday, the industry's first casualty linked to the Iran war, after failing to secure creditor support for a US government bailout plan.

The collapse of the first carrier due to a doubling in jet fuel prices during the two-month-old Iran war will cost thousands of jobs. It is a blow to President Donald Trump, who had proposed $500 million to save Spirit despite opposition from some of his closest advisers and many Republicans in Congress.

No US carrier of Spirit's size - it accounted for 5% of US flights at one point - has liquidated in two decades. Spirit helped keep fares lower in markets where it competed against major carriers.

ALL FLIGHTS CANCELED, RIVALS TO BENEFIT

A Spirit board meeting had ended without an agreement to rescue the company, a person close to the discussions told Reuters late on Friday.

"Unfortunately, despite the Company's ‌efforts, the recent material ‌increase in oil prices and other pressures on the business have significantly impacted Spirit's financial outlook," Spirit ‌said ⁠in a statement ⁠announcing "an orderly wind-down of operations."

All flights have been canceled, the statement said, asking passengers not to go to the airport.

Spirit had 4,119 domestic flights scheduled between May 1 and May 15, offering 809,638 seats, according to data from aviation analytics firm Cirium.

A spokesperson said Spirit had notified the Federal Aviation Administration before halting operations, declining to comment further.

Global carriers are contending with surging jet fuel prices after the US-Israeli strikes on Iran disrupted traffic through the Strait of Hormuz. Spirit was already struggling to turn a profit before the fuel shock.

Spirit built its brand around affordable fares for budget-conscious travelers ready to eschew add-ons like checked bags and seat assignments.

That demand tapered off quickly after the COVID-19 pandemic, as passengers preferred to opt for comfort and experience-based travel, leaving ⁠ultra-low-cost carriers struggling to adapt.

Spirit's shutdown will benefit its rivals like JetBlue Airways and Frontier Airlines, ‌who themselves are reeling from the cost shock. Spirit's volatile over-the-counter stock plunged 25% on Friday, ‌while Frontier rose 10% and JetBlue gained 4%.

Trump said on Friday that the White House had given Spirit and its creditors a final rescue proposal, ‌after talks hit an impasse over a $500 million financing package that would have helped the airline keep operating through bankruptcy.

"If we can help ‌them, we will, but we have to come first," Trump told reporters. "If we could do it, we'd do it, but only if it's a good deal."

FUEL-PRICE SHOCK THREATENS WEAKER AIRLINES

The collapse shows how the Iran war's fuel-price shock has exposed weaker airlines.

Spirit's restructuring plan assumed jet fuel costs of about $2.24 a gallon in 2026 and $2.14 in 2027, but prices had climbed to around $4.51 a gallon by the end of April, leaving the carrier unable to survive without fresh ‌financing.

Transportation Secretary Sean Duffy told Reuters he had tried to get many airlines to buy Spirit but found no takers. "What would someone buy?" Duffy asked. "If no one else wants to buy them, ⁠why would we buy them?"

A ⁠creditor close to the deal said, "The Trump administration made an extraordinary effort to try and save Spirit, but you can’t breathe life into a corpse. Given that, the company should make its intentions clear for the sake of its customers and employees."

Spirit had reached a deal with its lenders that would have helped it emerge from its second bankruptcy by late spring or early summer. But those plans derailed after the war triggered a spike in jet fuel prices, upending Spirit's cost projections and complicating its bankruptcy exit.

The airline flew around 1.7 million US domestic passengers in February, with a 3.9% market share, down from 5.1% last year, Cirium data showed.

After Spirit's announcement, major US carriers rolled out rescue-fare options for affected passengers. Frontier announced systemwide discounts and plans to add summer routes, JetBlue offered $99 fares through Wednesday, Southwest introduced special fares, United capped prices on one-way tickets and American added rescue fares while reviewing options to boost capacity on key routes.

Last month Trump said his administration was looking to buy the embattled carrier at the "right price."

Sources said that the administration had proposed $500 million in financing in exchange for warrants equivalent to 90% of Spirit's equity.

There had been disagreements inside the Trump administration over whether and how to fund the bailout, the Wall Street Journal reported, citing people familiar with the matter.

Business

China’s Railway Hit New Single-Day Passenger Record on May Day

Passengers prepare to board trains at Shanghai Hongqiao Railway Station in Shanghai on April 30, 2026, ahead of the Labour Day holiday which starts on May 1. (AFP)
Passengers prepare to board trains at Shanghai Hongqiao Railway Station in Shanghai on April 30, 2026, ahead of the Labour Day holiday which starts on May 1. (AFP)
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China’s Railway Hit New Single-Day Passenger Record on May Day

Passengers prepare to board trains at Shanghai Hongqiao Railway Station in Shanghai on April 30, 2026, ahead of the Labour Day holiday which starts on May 1. (AFP)
Passengers prepare to board trains at Shanghai Hongqiao Railway Station in Shanghai on April 30, 2026, ahead of the Labour Day holiday which starts on May 1. (AFP)

China's railway network transported 24.8 million passengers on May 1, setting a new single-day record, according to data from the China State Railway Group.

A report ‌on Saturday ‌in the official ‌Xinhua ⁠news agency said the ⁠national railway system is also expected to transport 19.7 million passengers on May 2.

Some ⁠lines had to ‌add ‌new trains to handle ‌the holiday passengers, Xinhua ‌reported.

The Zhengzhou line added 140 passenger trains, and the Chengdu line ‌added 184, Xinhua said.

China's tourism market ⁠is ⁠a bright spot in domestic demand, injecting momentum into a national economy facing pressure from weak consumption and a prolonged property downturn.

Business

Japan’s Taiyo Oil to Receive Cargo of Oil from Russia’s Sakhalin-2, Mainichi Says

A general view of the liquefied natural gas plant operated by Sakhalin Energy at Prigorodnoye on the Pacific island of Sakhalin, Russia July 15, 2021. (Reuters)
A general view of the liquefied natural gas plant operated by Sakhalin Energy at Prigorodnoye on the Pacific island of Sakhalin, Russia July 15, 2021. (Reuters)
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Japan’s Taiyo Oil to Receive Cargo of Oil from Russia’s Sakhalin-2, Mainichi Says

A general view of the liquefied natural gas plant operated by Sakhalin Energy at Prigorodnoye on the Pacific island of Sakhalin, Russia July 15, 2021. (Reuters)
A general view of the liquefied natural gas plant operated by Sakhalin Energy at Prigorodnoye on the Pacific island of Sakhalin, Russia July 15, 2021. (Reuters)

Japan's Taiyo Oil is set to receive a cargo of crude oil from Russia's Sakhalin-2 project, the Mainichi daily reported on Saturday, citing Japan's Ministry of Economy, Trade and Industry.

Japan has largely suspended purchases of oil from Russia after Moscow's invasion of Ukraine in ‌2022. A ‌US exemption for oil sales ‌from ⁠the Sakhalin-2 project, ⁠which largely produces the liquefied natural gas, runs until June 18.

The move comes as Japan seeks to secure alternative oil supplies after the US-Israeli war with Iran ⁠has largely cut off imports ‌from the ‌Gulf, Tokyo's main oil source before the Middle ‌East conflict broke out in ‌late February.

Russian state gas company Gazprom is a controlling shareholder in the Sakhalin-2 oil and gas project, in ‌which Japanese trading houses Mitsui and Mitsubishi also hold stakes.

Mainichi, citing ⁠a ⁠METI official, said that cargo is set to arrive to the Ehime Prefecture in western Japan. Japan has also secured supplies from the US and from destinations bypassing the largely closed Strait of Hormuz, among other sources.

Taiyo Oil and METI did not immediately reply to Reuters request for a comment.