June 22, 2024

MAWANI announces agreement with Maersk Saudi Arabia for Logistics Park at Jeddah Port


Saudi Ports Authority (MAWANI) recently announced agreement signing with the global shipping firm A. P. Moller – Maersk for establishment of integrated Logistics Park at the Jeddah’s Islamic Port in Saudi Arabia, as per the statement released by the authority.

As per the firm’s report, the suggested committed investment is slated to be adjudged 136 million USD (510 million SAR) over a period of 25 years for the project that is spread over area of 205,000 sq. m offering its clients extensive infrastructure for warehousing & distribution, cold storage, e-commerce, also a hub for transshipments, petrochemical consolidation, air freight, LCL (Less than Container Load) cargo.

The firm also stated that the mutual signing contract, took place within the presence of His Excellency the Minister of Transport, Logistics, Chairman of the Board of Directors of Saudi Ports Authority, Engineer Saleh bin Nasser Al-Jasser, as well as Richard Morgan, Managing Director Maersk West, Central Asia, together with several officials from related sectors.

The agreement was signed by His Excellency, the President of the Saudi Ports Authority, Mr. Omar bin Talal Hariri, as well as the Managing Director of Maersk Saudi Arabia, Mr. Mohammad Shihab.

As per the firm’s reports, The Greenfield Project, spread over 2,05,000 Sq.m, will be initial kind at Jeddah’s Islamic Port offering, array of solutions with the goal of connection, simplifying the supply chains of importers, exporters in the Kingdom.

Maersk will also be investing heavily in renewable energy to power the facility and eventually achieve carbon-neutrality. The project is anticipated to build up in excess of 2,500 direct, indirect employment in Saudi Arabia.

A Futuristic Vision

As per the statement released by the firm, Saudi Arabia’s Vision 2030 lays huge vitality in capitalizing on the Kingdom’s strategic location to create its role as integral driver of globalized trade connecting the Africa, Asia, European continents.

Vision 2030 objectives to more than triple the share of non-oil exports from Saudi Arabia from its current levels, to influence 50% of total exports. It also pursues to substantially promotion of the Kingdom’s global ranking in the Logistics Performance Index to confirm that Saudi Arabia becomes the provincial leader in logistics.

Statement from Saleh bin Nasser Al-Jasser, His Excellency the Minister of Transport

Commenting on the signing of the agreement, His Excellency the Minister of Transport, Saleh bin Nasser Al-Jasser, stated, “We are pleased to enter into this agreement today, which represents another remarkable milestone in strengthening Saudi Arabia’s position on the regional and global stage. The development of the new Integrated Logistics Park will further enhance the capabilities of Jeddah Islamic Port and contribute to consolidating the Kingdom’s position as a leading global hub for maritime transport and logistics services.”

Statement from Richard Morgan, Managing Director, Maersk West, and Central Asia

Richard Morgan, Managing Director, Maersk West, and Central Asia stated out that, “We are building an innovative, digital and technologically-advanced logistics infrastructure on the foundations of our strong network of global shipping and logistics services to create value for customers in the region. Our ambition is not only to connect and simplify our customers’ supply chains, but also be a catalyst in the growth of trade and economies through our customer-centric solutions”.

Statement from Omar bin Talal Hariri, President of the Saudi Ports Authority

His Excellency Omar bin Talal Hariri, President of the Saudi Ports Authority, stated, “The strategic partnership between the authority and Maersk is an important step to achieve our ambition for Jeddah Islamic Port to become among the top ten ports in the world by 2030. I am confident that this partnership will greatly enhance the distinguished operational capabilities of Jeddah Islamic Port, which ranks first among the Red Sea ports due to its strategic location linking the international shipping route between East and West.” He added, “MAWANI’s new strategy enables the authority to continue developing a sustainable and prosperous maritime transport ecosystem that supports the Kingdom’s social and economic ambitions and contributes to achieving the ambitious goals of Vision 2030.”

A truly integrated logistics solution

As per the firm’s resources, the bonded and non-bonded Warehousing, Distribution (W&D) facility will cover more than 70% of the total area, while the remaining part will act as a hub for transhipment, air freight, LCL cargo.

The firm also announced that, the W&D facility will feature numerous sections to accommodate general warehousing (food & beverages, furniture, automobiles, chemicals, textile & apparel, and machinery, appliances & electronics), cold chain storage (fruits & vegetables, protein, and confectionary & consumables).

It also added out that for catering out to the speedy penetration of eCommerce in Saudi Arabia, the capacity will also have a steadfast eCommerce fulfilment centre. The Integrated Logistics Park will be able to handle annual volumes close to 200,000 TEUs across diverse merchandize.

Mohamad Shihab, Managing Director, Maersk Saudi Arabia, stated out that, “The vision for the Kingdom to diversify its economy beyond the oil sector is an important one to enable long-term growth for Saudi Arabia. At Maersk, we not only believe in this vision, but are also committed to play a role by upgrading the logistics infrastructure through our integrated offering, thus opening more avenues for traders in Saudi Arabia.”

Future-proofing via Advanced technology, Renewable power

Maersk announced that it will arrange a state-of-the-art warehouse management system that devices modern technologies, digital solutions for efficient inventory management, track-trace at unit-level, offering rich dashboards for sophisticated visibility, deeper insights. These systems will benefit in cultivating efficiencies, build a cost competitive edge for Maersk’s clients. Maersk announces also that it will be charting its path to eventually make the facility carbon-neutral.

The warehouses, cold storages, office building will all be powered with renewable solar energy. Even the yard machinery comprises of the forklifts, reach stackers, empty container handlers, trucks and other vehicles positioned for the movement of cargo will be electric.

Press Release received on Mail



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