Maersk signed an agreement with Saudi Ports Authority “Mawani” in order to set up an Integrated Logistics Park at the Jeddah Islamic Port in Saudi Arabia.
Under their collaboration, Maersk’s Integrated Logistics Park will offer customers an extensive infrastructure for warehousing & distribution, cold storage, e-commerce and serve as a hub for transhipments, petrochemical consolidation, air freight and LCL (less than container load) cargo.
As informed, the greenfield project spread over an area of 205,000 sq. m. will be the first of its kind at the Jeddah Islamic Port offering an array of solutions with an aim to connect and simplify the supply chains of importers and exporters in the Kingdom.
Maersk will also be investing heavily in renewable energy to power this facility and eventually achieve carbon-neutrality. The project is expected to create more than 2,500 direct and indirect jobs in Saudi Arabia.
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.
…as Richard Morgan Managing Director, Maersk West & Central Asia noted.
For the records, the agreement was signed by His Excellency the President of the Saudi Ports Authority, Mr. Omar bin Talal Hariri, and the Managing Director of Maersk Saudi Arabia, Mr. Mohammad Shihab.
What is more, 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 and LCL cargo.
The W&D part will have several different sections to accommodate general warehousing (food & beverages, furniture, automobiles, chemicals, textile & apparel and machinery, appliances & electronics) and cold chain storage (fruits & vegetables, protein and confectionary & consumables). To cater to the rapid penetration of eCommerce in Saudi Arabia, the facility will also have a dedicated eCommerce fulfilment centre. The Integrated Logistics Park will be able to handle annual volumes close to 200,000 TEUs across different products.
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, with the volume of container handling reaching 18 million TEUs. 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, with its strategic location on the Red Sea coast linking the international shipping route between East and West.
…as Omar bin Talal Hariri, President of the Saudi Ports Authority concluded.
