DP World will manage and develop the Jeddah South Container Terminal under a BOT Concession
DP World has been awarded a 30-year Build-Operate-Transfer (BOT) concession by the Saudi Ports Authority (Mawani), for the management and development of the Jeddah South Container Terminal at the multi-purpose Jeddah Islamic Port, the global trade enabler revealed in a press communiqué.
Under the agreement, DP World will invest up to US$ 500mn to improve and modernise the Jeddah Islamic Port, including major infrastructure development to enable the Port to serve the ultra-large container carriers (ULCCs), which are considered the world’s largest mega containerships.
Established in 1976, the Jeddah Islamic Port located on the western Red Sea coast is the largest port in the Kingdom of Saudi Arabia with annual volumes of over 6 million TEUs.
As a crucial link on the world’s busy east-west trade route and the Kingdom’s main commercial centres, the Port currently handles approximately 60% of the country’s sea-imports and is a strategic hub that connects East-West cargo.
Developing Jeddah Islamic Port will contribute to achieving Saudi Vision 2030 as the project is considered a key milestone towards achieving the targets of ‘The National National Industrial Development and Logistics Vision Realization Programme’, one of the Vision’s major initiatives.
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.
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.
DP World has committed to investing significantly to modernise the Jeddah South Container terminal, which will not only result in greater direct and indirect job creation but also deliver best-in-class efficiency and productivity to the Port’s operations,” affirmed Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO.
DP World Group Chairman and CEO held a recent signing ceremony of the BOT Concession at the Jeddah Islamic Port. In attendance were Makkah Acting Governor, HRH Prince Badr Bin Sultan Bin Abdul Aziz Al Saud; HE Engineer Saleh Bin Naser Al Jasser, Saudi Minister of Transport and Mawani’s Chairman of the Board; HE 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 Saudi Arabia.
