Morocco's Tanger Med Port Expects to Exceed Nominal Container Capacity

A view of cargo and tankers ships sailing in the Strait of Gibraltar, located between the Musa mountain of Morocco and the coast of Spain, pictured from a tourist lookout in Tarifa, southern Spain, June 4, 2024. REUTERS/Jon Nazca
A view of cargo and tankers ships sailing in the Strait of Gibraltar, located between the Musa mountain of Morocco and the coast of Spain, pictured from a tourist lookout in Tarifa, southern Spain, June 4, 2024. REUTERS/Jon Nazca
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Morocco's Tanger Med Port Expects to Exceed Nominal Container Capacity

A view of cargo and tankers ships sailing in the Strait of Gibraltar, located between the Musa mountain of Morocco and the coast of Spain, pictured from a tourist lookout in Tarifa, southern Spain, June 4, 2024. REUTERS/Jon Nazca
A view of cargo and tankers ships sailing in the Strait of Gibraltar, located between the Musa mountain of Morocco and the coast of Spain, pictured from a tourist lookout in Tarifa, southern Spain, June 4, 2024. REUTERS/Jon Nazca

Morocco's Tanger Med port expects to top its nominal processing capacity of nine million containers this year, the port's deputy managing director told Reuters, adding security problems in the Red Sea had had little impact on traffic growth.
Last year, the port maintained its position as the largest in the Mediterranean, handling 8.61 million 20-foot equivalent units (TEUs), up 13.4% on 2022.
In the first quarter this year, tonnage rose 14.9% to 33.3 million metric ton, while revenue increased 18.3% to 1 billion dirhams ($100 mln), official figures showed.
"We also grew by a certain percentage in terms of containers," Rachid Houari told Reuters, saying that the exact figure was for year's end.
"Now each terminal is doing a little bit more in traffic than the theoretical capacity, that is why I think we will do a little bit better than nine million containers," he said, in an office overlooking an export terminal full of Morocco-made cars.
"We want our port to function to its maximum best productivity," he said, noting terminal TC1 run by APM TT which processed 2.5 million TEUs last year, compared with its nominal capacity of 1.5 million TEUs.
The port's growth drivers are its location at the entry of the busy Mediterranean, its connection with 180 ports, and its partnerships with big shipowners and terminal operators such as Maersk, Hapag Loyd and CMA CGM, Houari said.
The port has often been mentioned as benefiting from the re-routing of container ships around Africa to avoid attacks by Iran-aligned Houthi militants in the Red Sea.
Containers crossing the Red Sea represented only 25% of the port's traffic, with many vessels still crossing the Suez Canal despite disruptions, Houari said, noting the bulk of the port's traffic is with Africa, Europe and the Americas.
The port is backed by industrial zones that are home to 1,200 companies that employ 110,000 people, generating exports worth $15 billion last year, or 20% of overall Moroccan exports.
It plans to expand its industrial zones from 2,500 hectares to 5,000 hectares to attract more investors in high added-value industries, Houari said.



Saudi Crown Prince Announces 'King Salman Automotive Cluster' in KAEC

Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud. Asharq Al-Awsat
Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud. Asharq Al-Awsat
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Saudi Crown Prince Announces 'King Salman Automotive Cluster' in KAEC

Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud. Asharq Al-Awsat
Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud. Asharq Al-Awsat

Prince Mohammed bin Salman bin Abdulaziz Al Saud, Saudi Crown Prince and Prime Minister, has designated “King Salman Automotive Cluster" as the official name of the cluster for automotive manufacturing activities, located within King Abdullah Economic City (KAEC).
The hub will be a crucial step in Saudi Arabia’s economic diversification and will be an enabler for the automotive sector and sustainable transportation, contributing to raising non-oil GDP and increasing exports. The cluster enhances the automotive sector in Saudi Arabia by accelerating the growth of local capacity in manufacturing and sector-related research and development, and by making supply chains to serve regional and international markets more efficient.
King Salman Automotive Cluster will be a major center for the automotive sector and will have headquarters and factories for local and international companies. Notable companies include Ceer, the first Saudi electric car brand, and Lucid Motors, which opened its first international factory in KAEC in 2023. It will also host several PIF joint projects with global manufacturers, including Hyundai Motor – establishing a highly automated factory for manufacturing cars in Saudi Arabia – and a joint venture agreement with Pirelli to establish a tire factory locally.
The cluster aims to create optimal investment opportunities for the private sector to develop promising sectors in Saudi Arabia. It is expected that the cumulative GDP contribution from companies operating in King Salman Automotive Cluster will reach approximately SAR 92 billion by 2035. The cluster will also contribute to the creation of many direct and indirect jobs, support the local manufacturing sector, and increase Saudi exports to regional and global markets, which will positively impact the national balance of payments.
King Salman Automotive Cluster will leverage the supportive environment and investment incentives provided by KAEC, including its logistical infrastructure, and its proximity to a highly developed port in a vital location for global trade. These factors will provide opportunities for the local private sector and international companies to engage as partners, suppliers, and investors in the automotive sector and its related services.
The new King Salman Automotive Cluster will contribute to achieving Saudi Vision 2030, which aims to diversify the economy and achieve sustainable growth. The cluster will also be a major contributor to fulfilling the aims of the National Industrial Development and Logistics Program, which seeks to position Saudi Arabia as a leading industrial nation and a global logistics center by developing high-growth sectors locally and attracting foreign investment. This is in addition to supporting the objectives of national strategies for industry, transport and logistics.
Automotive and mobility is one of PIF’s strategic investment sectors, highlighted by partnerships with the private sector. PIF’s portfolio has several investments with the aim of enhancing the industry’s infrastructure and developing the sector’s local supply chain capacity. PIF is also contributing to enhancing local expertise and technology through joint ventures with major international manufacturers.