JEDDAH, 1 February — In the framework of creating a free trade zone in Jeddah Islamic Port, the Saudi Maintenance Company (Siyanco) and Saudi Trade and Export Development Company (Tusdeer) have signed a contract for operating the Bonded and Re-export Zone at Jeddah Islamic Port.
Abdul Wahab Abdul Malik, a manager at Saudi Industrial Services Co., told Arab News by telephone that the amount of the contract would be determined by the volume of containers entering the zone. This contract is part of the four-phase plan which Tusdeer has agreed with Jeddah Islamic Port management.
The Saudi government has recently permitted the new pattern of trading to exploit growing business opportunities with neighboring countries.
According to the contract, Tusdeer has leased land from the Seaports Authority for a period of 20 years to build and operate the free-trade zone at Jeddah port. The first and second phases of the project were completed last year and are now operational. The remaining two phases will be completed by the end of this year.
Musaid Al-Usaimy, general manger of Siyanco, also responsible for operating the storage facilities for containers, said that his company dealt with more than one million containers in the southern part of Jeddah Islamic Port last year -- an increase of 13 percent in export cargo and 8 percent in imports compared with the previous year.
He added that the storage area was an additional opportunity for shipping lines calling at Jeddah Islamic Port to create a regional center for their activities and to make use of the benefits and services of the Bonded and Re-export Zone.
Al-Usaimy added that lately Saudi ports had shown their increased potential and the re-export zone was expected to serve as a new impetus for Saudi foreign trade generating import business, stimulating non-oil exports and developing new trade links with neighboring countries.
Trade experts believe that if the trade sector succeeds in developing business through overseas marketing efforts and the customs authorities choose to adopt flexible policies, then the Saudi ports have the potential to emerge as the major Afro-Asian re-export centers of the 21st century.
It is important to note that the Bonded and Re-export Zone is an important part for any free trade zone. It allows the storage of products without paying any custom duties until the goods enter the Saudi market, or no duties at all if they are re-shipped outside the country.
