Sunday 16 June 2024

DP World, Mawani break ground on $250m Jeddah logistics park

JEDDAH, 20 days ago

DP World, a leading provider of smart end-to-end supply chain solutions, has joined hands with Saudi Ports Authority (Mawani) to break ground on a new logistics park which will come up on a 415,000-sq-m area in Jeddah port.
The greenfield facility, being set up at a total investment of SAR900 million ($250 million), will feature 185,000 sq m of warehousing space and a sprawling multipurpose storage yard, thus making it the largest integrated logistics park in the kingdom. 
It will have the capacity for more than 390,000 pallet positions, offering customers an efficient platform for the seamless flow of goods to and from Jeddah.
According to DP World, the new facility will provide modern storage and distribution facilities, as well as help boost trade in the Kingdom of Saudi Arabia and the wider region.
Established in 2022 as part of a 30-year concession, Jeddah Logistics Park will be developed in two phases with a planned opening in Q2 next year. 
The facility will have a rooftop solar plant on the warehouse that will generate 20MW of renewable energy, contributing to its sustainable design.
The collaboration between Mawani and DP World also includes the management of South Container Terminal through a separate 30-year concession signed in 2020. 
The terminal is currently in the final phase of a comprehensive modernisation project, set for completion in Q4 2024, which will see the handling capacity being ramped up to five million twenty-foot equivalent units (TEUs).
Altogether, the two DP World projects represent a combined investment of close to 4 billion SAR ($1 billion).
Speaking at the groundbreaking ceremony, Chairman and CEO Sultan Ahmed bin Sulayem said: "Saudi Arabia has always been a deeply important market for DP World and this milestone represents our ongoing commitment to the kingdom. Jeddah Logistics Park, strategically located on the vital Asia-Europe shipping route, will provide world-class multimodal connectivity and market access for our customers while supporting the ambitious aims of Saudi Vision 2030."
"This investment marks a significant step as we mark 25 years of operations in Jeddah and underscores our enduring commitment to facilitating the flow of trade," he stated.
President of Mawani Omar Bin Talal Hariri said this new logistics area will be connected to DP World’s South Container Terminal at Jeddah Islamic Port, facilitating growth and increasing the number of containers handled at the terminal.
"The project is part of Mawani’s broader efforts to expand the number of logistics centres in Saudi ports, in partnership with major national and international companies, and in line with the objectives of the National Transport and Logistics Strategy and Vision 2030," he stated.
The groundbreaking follows on the heels of the opening of freight forwarding offices in Dammam, Jeddah and Riyadh, expanding the logistics footprint of DP World and strengthening end-to-end supply chains in the Kingdom of Saudi Arabia and beyond.
It was attended by senior officials including Mohammad Alshaikh, DP World Country Head, KSA, Nasser Huwaiden Thaiban Ali AlKetbi, the UAE Consul General to Jeddah as well as members of DP World’s leadership team.-TradeArabia News Service


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