UAE’s DP World has been awarded a 30-year Build-Operate-Transfer (BOT) concession for the management and development of the Jeddah South Container Terminal at the multi-purpose Jeddah Islamic Port.
The project has been awarded by the Saudi Ports Authority (Mawani).
As per the agreement, DP World will invest up to $500 million to improve and modernize the Jeddah Islamic Port.
This will include major infrastructure development to enable the Port to serve the ultra-large container carriers (ULCC’s), which are considered the world’s largest mega containerships.
The signing ceremony was attended by Makkah’s Acting Governor, HRH Prince Badr bin Sultan bin Abdul Aziz Al Saud, H.E Engineer Saleh bin Naser Al Jasser, Minister of Transport and Mawani’s Chairman of the Board, H.E Bandar Alkhorayef, Minister of Industry and Mineral Resources, HE Saad Al Khalb, President of Mawani and HE Sheikh Shakbout bin Nahyan Al Nahyan, UAE Ambassador to KSA.
Established in 1976, the Jeddah Islamic Port is on the red sea and the largest port in the Kingdom of Saudi Arabia with annual volumes of over 6 million TEU’s (twenty-foot equivalent units)
As a crucial link on the world’s busy east-west trade route and the Kingdom’s main commercial centers, the Port currently handles approximately 60% of the country’s sea-imports and is a strategic hub that connects East-West cargo.
The concession will also be instrumental in facilitating the smooth and efficient movement of cargo and greater access to local and international markets. DP World has operated the South Container Terminal on a lease agreement for more than 20 years.
As the main trade destination for Saudi Arabia and one of the Kingdom’s major port privatisation projects, the new terminal will also have an upgraded capacity of 3.6mn TEU up from 2.4mn TEU, to meet the expected growth demands of the future, and will provide 1,400 jobs.
