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Home Port News DP World, Mawani ink partnership deal for Jeddah logistics park

DP World, Mawani ink partnership deal for Jeddah logistics park

DP World and the Saudi Ports Authority (Mawani) signed a 30-year agreement with an investment value of more than US$133.33 million to build a port-centric logistics park at the Jeddah Islamic Port.

The two parties aim to establish a logistics park which spans over 415,000 m², with an inland container depot capacity of approximately 250,000 TEU and warehousing storage space of 100,000 m², while future expansions could increase the storage space to 200,000 m².

DP World believes the facility will bolster its footprint in the region and will bring pioneering multi-modal logistics solutions to Saudi Arabia.

The new logistics park is expected to boost Jeddah Islamic Port’s re-export activities, reducing the time and cost of logistics for importers and exporters, alike. According to a statement, “the park will provide an integrated platform of services that link port operations with last-mile activities, providing temperature-controlled storage for cargo, in addition to its processing, labelling, fulfilment, consolidation and de-consolidation.”

Sultan Ahmed Bin Sulayem, chairman and CEO of DP World, commented, “We are committed to enhancing the role and the status of Jeddah’s Islamic port, which is strategically located on the Red Sea and has historically played a pivotal role in facilitating the movement of trade between the East and the West. A key part of our strategy as an end-to-end supply chain solutions provider, is to package logistical services for our customers and bridge any existing gaps in the market. Facilities like these will enable us to make deeper inroads into the Kingdom, by extending our collaboration with leading logistical service providers.”

It is important to note that DP World signed a new concession agreement with Mawani in April 2020 to continue operating and managing the South Container Terminal at the Jeddah Islamic Port for the next 30 years, committing to invest a total of more than US$800 million to expand and modernise the terminal. When the project is complete, the revamped terminal will increase Jeddah Islamic Port’s container handling capacity from 2.5 million to 4 million TEU.





Antonis Karamalegkos
Managing Editor

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