DP World and Saudi Ports Authority (Mawani) have announced the commencement of construction of a new SAR900 million ($250 million) logistics park at Jeddah Islamic Port to provide state-of-the-art storage and distribution facilities and 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 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 a platform for the seamless flow of goods to and from Jeddah, according to a press release from DP World.

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.

The collaboration between Mawani and DP World also includes the management of the 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 TEUs.

The DP World projects represent a combined investment of close to SAR4 billion ($1 billion), says the release.

Sultan Ahmed bin Sulayem, Chairman and CEO, DP World, says: “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.”

Omar Bin Talal Hariri, President, Saudi Ports Authority (Mawani), adds: “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.”

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