Saudi Ports Authority (Mawani) signed an agreement with Maersk, a global integrator of container logistics, committing to an investment of $136 million over 25 years to set up an Integrated Logistics Park at Jeddah Islamic Port.
The signing took place in the presence of the Minister of Transport and Logistics, Chairman of Mawani Board, Saleh al-Jasser, and Managing Director of Maersk West & Central Asia Richard Morgan.
Mawani President Omar Hariri and Managing Director of Maersk Saudi Arabia Mohammad Shihab co-signed the agreement.
Jasser said that the agreement established the goals of the National Transport and Logistics Strategy (NTLS). It enhances Saudi Arabia's strategic location to build its role as an integral driver of international trade connecting Africa, Asia, and Europe.
Jasser noted that the new Logistic Park aims to triple the share of non-oil exports from Saudi Arabia from its current levels, to reach 50 percent of total exports.
The project is expected to create more than 2,500 direct and indirect jobs in Saudi Arabia.
"We are pleased to enter into this agreement today, which represents another remarkable milestone in strengthening Saudi Arabia's position on the regional and global stage," he said.
The Minister reiterated that the development of the new Integrated Logistics Park would further enhance the capabilities of Jeddah Islamic Port and contribute to consolidating the Kingdom's position as a leading global hub for maritime transport and logistics services.
"We, in the transport and logistics system, with the support of Crown Prince, are continuing to establish multiple logistic areas in accordance with a high development methodology that contributes to transforming Saudi Arabia into a leading global center in the economics of transport and logistics industry."
Hariri said that this partnership will significantly enhance the distinguished operational capabilities of Jeddah Islamic Port, adding that the agreement is an important step to achieve the ambition for the Port to become among the top ten ports in the world by 2030
The logistics zone will provide multiple and diverse services, including storage, sorting, assembly, e-commerce supplies, value-added services, distribution, and customs transit, said Hariri.
He reported that the storage and distribution centers have an area of 55,000 square meters, in addition to a petrochemical assembly center with an area of 55,000 square meters and a transshipment area of 23,000 square meters.
Mawani moved up to a distinguished spot on the global maritime transport map, according to the annual review of Lloyd's Register for the year 2021. The report measures the yearly production capacity of container handling.
The Kingdom recorded progress in UNCTAD liner shipping connectivity indexes for the third quarter of 2021, issued by the United Nations Conference on Trade and Development.
