DP World And Mawani Break Ground On $250M Logistics Park At Jeddah Islamic Port

The commencement of construction on a new $250 million logistics park at Jeddah Islamic Port marks a significant stride in enhancing the Kingdom of Saudi Arabia's trade capabilities. This collaboration between DP World and the Saudi Ports Authority (Mawani) is set to establish the largest integrated logistics park in the Kingdom, stretching over 415,000 sq m. With an anticipated opening in Q2 2025, this greenfield facility aims to streamline the flow of goods to and from Jeddah, bolstering the region's trade infrastructure.

The Jeddah Logistics Park, initiated as part of a 30-year concession agreement in 2022, promises to offer extensive warehousing and storage solutions. Featuring 185,000 sq m of warehousing space and a multipurpose storage yard, the park is designed to accommodate more than 390,000 pallet positions. This initiative not only represents a substantial investment of close to 4 billion SAR ($1 billion) in conjunction with DP World's other projects but also underscores DP World's 25-year operational legacy in Jeddah.

In alignment with global sustainability goals, the logistics park will be equipped with a rooftop solar plant capable of generating 20MW of renewable energy. This initiative is in sync with the broader objectives of Saudi Vision 2030, aiming to create a sustainable and diversified economy. Furthermore, the South Container Terminal at Jeddah Islamic Port, also managed by DP World under a separate 30-year concession signed in 2020, is undergoing a comprehensive modernisation effort. Expected to complete in Q4 2024, this project will enhance the terminal's handling capacity to five million twenty-foot equivalent units (TEUs).

Strategic Importance and Vision 2030 Alignment

Sultan Ahmed bin Sulayem, Chairman and CEO of DP World, emphasized the strategic significance of the Jeddah Logistics Park, noting its pivotal location on the Asia-Europe shipping route. He highlighted the facility's role in providing multimodal connectivity and supporting the ambitious aims of Saudi Vision 2030. Omar Bin Talal Hariri, President of Mawani, echoed this sentiment, pointing out the logistical park's connection to the South Container Terminal and its contribution to the expansion of logistics centres across Saudi ports, in harmony with the National Transport and Logistics Strategy.

The groundbreaking ceremony, attended by key figures including the UAE Consul General to Jeddah and senior Saudi government representatives, serves as a testament to the collaborative efforts between DP World and Saudi authorities. This partnership not only aims to enhance Jeddah's role as a major logistical hub but also to fortify the Kingdom's position in the global trade landscape.

DP World's recent expansion of freight forwarding offices in Dammam, Jeddah, and Riyadh further solidifies its commitment to strengthening the supply chains within the Kingdom and beyond. As the Jeddah Logistics Park progresses towards its completion, it promises to deliver an integrated platform for trade and logistics, featuring advanced services such as bonded and unbonded zones, temperature-controlled storage, and import and export consolidation centres.