Saudi Ports Authority, known as Mawani, has inked two contracts worth $169.9 (SAR 642 million) with PC Marine Services and Modern Building Leaders (MBL) to build new berths and allow giant vessels to arrive at the Jeddah Islamic Port.
The deal with MBL, through a consortium with HutaHegerfeld Saudia, will allow giant vessels that hold a capacity of up to 24,000 twenty-foot equivalent units (TEUs) to arrive at its port. This will enhance the port’s competitive capability and attract new global shipping lines to local shores, the company said in a statement.
The new development aims to make Jeddah Islamic Port "a pioneering logistics destination through the deepening of harbor approach channels, turning basins, waterways, and the South Terminal basin," the statement said.
Meanwhile, the contract with PC Marine Services will allow new berths, which measure 16 meters deep and 1,100 meters long, to be developed.
According to the statement, the berths will be built at the multi-cargo terminals to receive large bulk grain carriers, and accommodate larger vessels to cover the local market demand.
Its development will also secure the kingdom’s strategic grain reserves through higher imports, and boost overall food security through Jeddah Islamic Port, the statement said.
Mawani ports The signed deals are in line with positioning Saudi Arabia as a global logistics hub connecting three major continents in line with the objectives of the National Transport and Logistics Strategy (NTLS).
The new agreement is part of the authority's efforts to boost maritime transport and logistics industry growth, the company said, as well as drive a transformative shift in port operations by implementing over 160 projects, and develop a sustainable maritime sector.
The port is the largest in Saudi Arabia in terms of volume and cargo handling capability, covering an area of 12.5 square kilometers. It manages more than 65% of all goods imported through Saudi ports. Mawani ranked third on the 10 Biggest Logistics Companies In MENA list of Forbes Middle East.
In September, Mawani struck seven deals worth more than $239 million (SAR 900 million) with the public and private sectors to boost operational and logistical support at ports in Saudi Arabia
In 2020, Mawani inked a 30-year agreement with Dubai-based DP World to continue managing and operating the South Container Terminal at Jeddah Islamic Port with an investment of more than $800 million.
Saudi ports are a key engine of economic development and play a major role in developing regional and global trade.
Saudi ports secured top positions among 370 ports with King Abdullah Port grabbing the first spot, followed by Jeddah Islamic Port at the eighth spot and King Abdulaziz Port in Dammam at the 14th position, the statement said, citing the World Bank’s Container Port Performance Index (CPPI) for 2021.
