These contracts will expand the partnership with the private sector
Under the patronage of HRH Prince Saud Bin Nayef Bin Abdulaziz, the Governor of the Eastern Province, and the presence HE Eng. Saleh Bin Nasser Al-Jasser, Minister of Transport and Logistic Services and Chairman of the Saudi Ports Authority, a ceremony was recently held in King Abdulaziz Port in Dammam.
Here Mawani (Saudi Ports Authority-SPA) signed 4 contracts to provide maritime services with investments by the private sector exceeding SAR 1bn US$ 267mn), with Zamil Marine Services and Naghi Marine Co. to provide a range of maritime services at 8 ports of Mawani, in cooperation with the Ministry of Transport and Logistic Services, and the National Centre for Privatization.
HRH The Governor emphasized that the Kingdom’s Government is keen on supporting projects that make Saudi ports attractive to trade and occupy a leading global position in line with the objectives of the national transport and logistics strategy by providing a strong network of ports and offering efficient and highly competent integrated logistics services in accordance with the best global practices.
HE The Minister of Transport and Logistic Services explained that these contracts will expand the partnership with the private sector, support the competitive capabilities of the logistics sector and Saudi ports, enhance operational efficiency and performance of Saudi maritime services in ports, and renew the fleet of operational assets and maritime units through investment in 44 new maritime units, contributing to the support and growth of supply chain and supporting economic growth.
HE Al-Jasser confirmed that these contracts also aim to empower the private sector in transportation and logistics projects and initiatives, as the private sector’s participation in the sector through privatization projects during the first half of 2023 exceeded SAR 17bn (US$ 4.532bn).
He added that the transportation and logistics system will continue to increase investment opportunities with all components of the private sector and enhance the contribution of local content in system projects, achieving the targets of the national transportation and logistics strategy and the Saudi Vision 2030, and to solidify the Kingdom’s position as a global logistics hub.
Enhancing competitiveness
On his part, HE Omar Hariri, President, SPA, pointed out that these contracts aim to enhance the regional and global competitiveness of the Kingdom by utilizing the potential of the ports in value-added investment projects. He also highlighted the role of maritime services contracts in empowering the maritime transport sector, diversifying the Kingdom’s economy, developing logistic services, and raising the Kingdom’s classification in international performance indicators.
“We are currently working on presenting 200 vital projects, which in turn will contribute to improving the quality of the services provided and the operational efficiency of government assets,” concluded Mohanad Basudan, CEO, National Center for Privatization.
The contracts aim to add 27 new tugboats and 17 other new maritime pieces, attracting new shipping lines, and to promote the ports sector according to the highest international standards. This also includes improving one of the most important performance indicators, which is the time of assistance operations for towing by 45% across the eight ports.
The marine services contracts are distributed among eight ports, where Zamil Marine Services Company is responsible for providing marine services at the Jeddah Islamic Port, the Jazan Port, the Ras Al Khair Port, King Fahd Industrial Port in Jubail, and Jubail Commercial Port, while Naghi Marine Co. will be responsible for providing marine services at King Abdulaziz Port in Dammam, Yanbu Commercial Port, and the King Fahd Industrial Port in Yanbu.
