Saudi Global Ports (SGP), one of PSA International’s subsidiaries and Saudi Ports Authority (Mawani) came in an agreement in order to construct two container terminals at the King Abdulaziz Port in Dammam.
In fact, both sides sealed a new Build, Operate and Transfer (BOT) agreement during a virtual signing ceremony on Monday 13 April, which was witnessed online by Singapore’s Transport Minister Khaw Boon Wan.
During the project, SGP will focus on a development and modernization program to transform the King Abdulaziz Port into a mega container hub. Once the expansion is completed, port’s annual handling capacity is expected at 7.5 million Twenty-foot Equivalent Units (TEUs).
Under this agreement, SGP will invest and develop key infrastructure such as berths and container handling equipment, and will more than double the existing container handling
capacity of King Abdulaziz Port in Dammam. The investments will focus on environmentally friendly and technologically sophisticated systems, including the adoption of automation to develop a modern Saudi workforce.
…said Mawani president H.E Eng. Saad Abdul Aziz Al-Khalb.
For the records, the total investment of the joint venture’s development and expansion is estimated at $1.87bn.
Under the terms of the deal, SGP will be the only container terminal operator of the Saudi Arabian port.
Moreover, the agreement is one of the key NIDLP initiatives within the Saudi Vision 2030 framework. SGP’s development of large-scale, efficient and modern container terminal operations in Dammam Port is an important element of the Kingdom’s objective of developing the necessary logistics infrastructure to facilitate and promote the diversification of the Kingdom’s economy into a leading industrial powerhouse.
