Saudi Global Ports (SGP), one of PSA International’s subsidiaries, and Saudi Ports Authority (Mawani) sealed a new build, operate and transfer (BOT) agreement for the First and Second Container Terminals in the King Abdulaziz Port in Dammam after a virtual signing ceremony, making SGP the sole container terminal operator of the port.
Upon assuming the responsibility of managing both container terminals, SGP will embark on a development and modernisation programme to transform the King Abdulaziz Port into a mega container hub and increase the port’s capacity to an estimated annual handling capacity of 7.5 million TEU when the planned expansion works are fully completed.
The total estimated investment of more than US$2.6 billion is expected to be the largest seaport investment by a single operator under a public private partnership.
This agreement is one of the key National Industrial Development & Logistics Program (NIDLP) initiatives within the Saudi Vision 2030 framework.
Under the terms of this agreement, SGP will invest and develop key infrastructure such as berths and container handling equipment, and will more than double the existing container handling capacity of the port and investing in environmentally friendly and technologically sophisticated systems, including automation to develop a modern Saudi workforce, said a port spokesman.
