https://arab.news/g5rkr
RIYADH: Investments in Saudi Arabia’s maritime sector have exceeded SR25 billion ($6.66 billion) thanks to successful collaborations between the Saudi Ports Authority and private sector partners.
Omar Hariri, president of the Saudi Ports Authority, shared these details during the inauguration of a new logistics zone at the Jeddah Islamic Port.
Hariri highlighted that significant investments have been made over the past four years through partnerships with both national and international companies.
He said that these partnerships have led to the execution of major projects across various Saudi ports with both national and international companies, involving a total investment exceeding SR25 billion.
“These projects included signing and operating container terminal contracts, establishing logistics zones, and providing a range of maritime services, which collectively boost capacity, operational efficiency, and logistics capabilities in Saudi ports,” Hariri added.
Saudi Arabia’s logistics sector has undergone a transformation driven by Vision 2030 and the National Industrial Strategy. With a population of 36 million and a gross domestic product of $1.81 trillion, the Kingdom offers substantial opportunities for global logistics players and stands as a crucial hub on major trade routes, supported by top-notch infrastructure.
During the ceremony, Hariri also celebrated a significant strategic partnership with logistics and shipping giant Maersk.
The company has made its largest global investment at Jeddah Port, totaling SR1.3 billion. This investment underscores the port’s attractiveness as a major regional hub and reinforces Saudi Arabia’s role as a key global logistics center linking Europe, Africa, and Asia.
Hariri further announced the addition of 47 new shipping routes, bringing the total number of navigational services at Saudi ports to 115, thus solidifying the Kingdom’s position in global maritime connectivity.
Mohammad Shihab, CEO of Maersk Saudi Arabia, noted that the company’s investment has infused $250 million into the local economy and is expected to attract an additional $340 million in investments. This move is set to provide enhanced logistical services for importers and exporters and will serve as a re-export hub to key markets.
Hariri also revealed that there are currently 17 logistics zones under development at the ports of Jeddah and Dammam, highlighting ongoing efforts to advance the Kingdom’s maritime infrastructure and capabilities.
Prince Khaled bin Faisal attended the event in the presence of Prince Saud Bin Mishal Al-Saud and Minister of Transport and Logistic Services Saleh Al-Jasser. Several leaders from the Kingdom’s logistics and maritime sectors also attended the gathering.
Al-Jasser highlighted the significant support provided to the transport and logistics system by the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince, noting that the Saudi ports sector is witnessing unprecedented leaps in operational efficiency and achieving record figures in international indicators.
He pointed out that there has been notable growth in maritime lines and increased marine connectivity with global markets, making the logistics and port sectors in Saudi Arabia attractive platforms for major international companies and foreign and local capital investment.
Investments in this sector have exceeded SR10 billion, contributing to economic growth, knowledge transfer, and the creation of more than 10,000 direct and indirect jobs, reinforcing the Kingdom’s position as a global logistics hub.
The minister further stated that the new logistics zone at Jeddah Islamic Port will contribute to the Kingdom’s economic activities by providing highly efficient logistics services to support trade and export activities to foreign markets and enhance supply chain operations.
He added that the transport and logistics system, with the support of the crown prince, will continue to achieve ambitious goals in line with the National Transport and Logistics Strategy under Vision 2030.
In his remarks, the president of the Saudi Ports Authority said that the new logistics zone is an extension of the multiple strategic partnerships that Mawani has established with leading global and national companies.
Mawani said in a press release that the logistics zone covers 225,000 sq. meters and includes a storehouse for general cargo, refrigerated food areas, a re-export and shipping area for small loads, and an e-commerce center with high-density storage and advanced mechanical solutions.
The zone also features an in-house women’s academy that provides specialized training programs, with Maersk aiming to create job opportunities for Saudi women in its facilities to make a tangible impact on gender diversity in the workplace.
The zone operates under an advanced warehouse management system that applies modern digital solutions to efficiently manage inventory, in addition to implementing the latest security technologies to ensure the safety of the zone, its workers, and customers’ goods.