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DP World and Mawani break ground on SAR900 million logistics park at Jeddah Islamic Port

DP World and Saudi Ports Authority (Mawani) have commenced construction of a new SAR900 million ($250 million) logistics park at Jeddah Islamic Port, set to provide state of the art storage and distribution facilities, as well as boost trade in the Kingdom of Saudi Arabia and the wider region.

The 415,000 sq m greenfield facility will feature 185,000 sq m of warehousing space and a sprawling multi-purpose storage yard, making it the largest integrated logistics park in the Kingdom. It will have the capacity for more than 390,000 pallet positions, offering customers an efficient platform for the seamless flow of goods to and from Jeddah.

Established in 2022 as part of a 30-year concession, Jeddah Logistics Park will be developed in two phases with a planned opening in Q2 2025. The facility will have a rooftop solar plant on the warehouse that will generate 20MW of renewable energy, contributing to its sustainable design.

The collaboration between Mawani and DP World also includes the management of South Container Terminal through a separate 30-year concession signed in 2020. The terminal is currently in the final phase of a comprehensive modernisation project, scheduled for completion in Q4 2024, which will see the handling capacity being ramped up to five million twenty-foot equivalent units (TEUs).

Altogether, the two DP World projects represent a combined investment of close to 4 billion SAR ($1 billion).

Speaking at the event, His Excellency Sultan Ahmed bin Sulayem, Chairman and CEO of DP World, said: “Saudi Arabia has always been a deeply important market for DP World and this milestone represents our ongoing commitment to the Kingdom. Jeddah Logistics Park, strategically located on the vital Asia-Europe shipping route, will provide world-class multimodal connectivity and market access for our customers while supporting the ambitious aims of Saudi Vision 2030. This investment marks a significant step as we mark 25 years of operations in Jeddah and underscores our enduring commitment to facilitating the flow of trade.”

President of Saudi Ports Authority (Mawani), Omar Bin Talal Hariri, said “this new logistics area will be connected to DP World’s South Container Terminal at Jeddah Islamic Port, facilitating growth and increasing the number of containers handled at the terminal. The project is part of Mawani’s broader efforts to expand the number of logistics centres in Saudi ports, in partnership with major national and international companies, and in line with the objectives of the National Transport and Logistics Strategy and Vision 2030.”

Mohammad Alshaikh, DP World Country Head, KSA, delivered details on the comprehensive project to attendees at the groundbreaking including the UAE Consul General to Jeddah, His Excellency Nasser Huwaiden Thaiban Ali AlKetbi, and senior Saudi government representatives and members of DP World’s leadership team.

Aligning closely with Saudi Vision 2030, Jeddah Logistics Park represents a major development for DP World at Jeddah Islamic Port. This state-of-the-art facility will optimise the logistics processes for both importers and exporters, providing an integrated platform for trade and logistics. Customers will be able to benefit from efficient services that link port operations to last-mile activities, as well as bonded and unbonded zones, world-class temperature-controlled storage, import and export consolidation centres and other value-added services.

The groundbreaking follows on the heels of the opening of freight forwarding offices in Dammam, Jeddah and Riyadh, expanding the logistics footprint of DP World and strengthening end-to-end supply chains in the Kingdom of Saudi Arabia and beyond.