Danish shipping giant Maersk has signed an agreement with the Saudi “Mawani” Port Authority to set up an Integrated Logistics Park at the Islamic Port of Jeddah in Saudi Arabia.
The agreement commits Maersk to a $136 million investment over a 25-year period for warehousing and distribution infrastructure, cold storage, e-commerce and to serve as a hub for transshipment, petrochemical consolidation, airfreight and LCL (less than container load) cargo.
The project will be spread over an area of 205,000 square meters and will be the first of its kind at the Islamic Port of Jeddah, offering a range of solutions aimed at connecting and simplifying the supply chains of Saudi Arabian importers and exporters. Maersk will also invest heavily in renewable energy to power the facility and ultimately achieve carbon neutrality. The project is expected to create more than 2,500 direct and indirect jobs in Saudi Arabia.
“We are pleased today at the signing of this agreement, which will be a remarkable milestone in strengthening the Kingdom’s position regionally and globally and will contribute to transforming the Kingdom into a leading global hub in the field of transportation and logistics services,” said H.E. Minister of Transport, Engineer Saleh bin Nasser Al-Jasser. “The authority’s new strategy supports the Kingdom’s maritime transport journey and enables the authority to continue to develop a sustainable and prosperous maritime transport system that supports the Kingdom’s social and economic ambitions and contributes to achieving the ambitious goals of Vision 2030.”
Saudi Arabia’s Vision 2030 aims to make the Kingdom an integral engine of international trade connecting the continents of Africa, Asia and Europe. It aims to more than triple Saudi Arabia’s share of non-oil exports from its current levels to 50% of its total exports.
The Islamic port of Jeddah in Saudi Arabia is strategically located on the Red Sea coast, connecting the international sea route between East and West. With more than 5 million TEUs of containers entering and leaving Jeddah Islamic Port, it is the largest port in terms of cargo volume and handling in Saudi Arabia and the second largest in the GCC (Gulf Cooperation Council) countries.
“We are building an innovative, digital and technologically advanced logistics infrastructure on the foundation of our strong global shipping and logistics & services network to create value for customers in the region,” said Maersk West & Central Asia CEO Richard Morgan. “Our ambition is to not only connect and simplify our customers’ supply chains, but also to be a catalyst in growing trade and economies through our customer-centric solutions.”