Arab News, Thu, Mar 21, 2024 | Ramadan 11, 1445
Saudi Arabia’s Jeddah Islamic Port to get $46m integrated logistics zone
Saudi Arabia:
Jeddah will soon get an integrated logistics zone, as the Saudi Ports Authority
and MEDLOG have signed an agreement for the project.
The government agency, known as Mawani, has joined
with the logistics arm of the Mediterranean Shipping Co. to develop the
integrated zone, which will have an investment value of up to SR175 million
($46.6 million), according to a statement.
The project includes an integrated services site
to maintain and inspect containers, and will also provide 400 direct and
indirect job opportunities as well as qualify national staff in the logistics
services sector.
In addition, the zone will contribute to
preserving the safety of the port environment through the use of alternative
energy in an attempt to reduce carbon emissions.
The new undertaking will contribute to increasing
the operational efficiency of the facility, enhancing commercial movement, and
ensuring robust supply chains.
This falls in line with the objectives of the
National Transport and Logistics Strategy, which is to consolidate the Kingdom’s
position as a global supply chain management center and the meeting point of
three continents.
The region also aims to raise the level of
logistical services provided on the Red Sea coast.
Additionally, it will work on providing
comprehensive and integrated services, thereby facilitating the needs of
beneficiaries as well as meeting the requirements of the local market in terms
of transporting and handling goods with high operational capabilities.
In December it was announced that King Abdulaziz
Port in Dammam was also set to receive an integrated logistics zone as Mawani
and MEDLOG laid the foundation stone for the project.
The new undertaking was set to be built with an
investment value exceeding SR150 million, the Saudi Press Agency reported at the
time.
Speaking in December Omar Hariri, chairman of
Mawani, said laying the foundation stone of the new logistics zone aligned with
the authority’s goal to develop a sustainable and prosperous maritime sector.
The SPA report also added that the new zone will
be built in an area of over 100,000 sq. m., with a capacity of handling 300,000
containers per year.
Given its sustained efforts, Saudi Arabia achieved
significant progress on the World Bank’s Logistics Performance Index, jumping 17
places to reach the 38th position in 2023.