Saudi Arabia Initiates Privatisation Of Cargo Terminals At Eight Ports With Over SAR 2.2 Billion Investment

In a significant move toward modernising its maritime and logistics sectors, Saudi Arabia has initiated a project to privatize multipurpose cargo terminals across eight of its ports. This initiative, led by the Saudi Ports Authority (Mawani) in conjunction with the National Center for Privatization, involves partnerships with key national entities, Saudi Global Ports and Red Sea Gateway Terminal Company.

This collaboration, underpinned by a 20-year Build-Operate-Transfer (BOT) model, heralds private sector investments surpassing SAR 2.2 billion. During the signing ceremony, which saw the attendance of Eng. Saleh bin Nasser Al-Jasser, Minister of Transport and Logistic Services, and other high-ranking officials, emphasis was laid on the transformative potential of this venture. The privatisation aligns with Saudi Vision 2030 and the National Transport and Logistics Strategy, aiming to elevate the Kingdom's global logistics status and diversify its economy.

Eng. Al-Jasser highlighted the significant traction Saudi ports and the logistics sector have gained, attributing this to the robust support from the Kingdom's leadership and substantial investments from major global and national logistics firms. These investments have notably enhanced the ports' operational efficiency, cargo handling capabilities, and maritime connectivity, benchmarking against international standards.

Moreover, this initiative is set to bolster Saudi Arabia's maritime transport sector through strategic partnerships, marking a continuation of Mawani's engagement with leading national and international companies. It underscores the Kingdom's commitment to leveraging private sector dynamism to fortify its transport and logistics ecosystem, thereby securing its ambition to become a leading global logistics hub.

The role of the National Center for Privatization, as outlined by its CEO, Mohannad bin Ahmed Basodan, is pivotal in driving the privatization agenda forward. The center's vision focuses on empowering the private sector to enhance public services and operational efficiencies. By signing these contracts, the initiative is poised to introduce advanced maritime services that adhere to the highest global standards, fostering economic growth and operational excellence.

Saudi Global Ports has been entrusted with the development, management, and operation of multipurpose terminals at four ports in the Eastern Province, including King Abdulaziz Port in Dammam and Jubail Commercial Port. On the other hand, Red Sea Gateway Terminal will oversee the development and operations of multipurpose terminals at four ports located in the Western Province, such as Jeddah Islamic Port and Yanbu Commercial Port.

One of the notable aspects of this privatisation effort involves the expansion of container handling capabilities at King Fahd Industrial Port in Yanbu. The introduction of advanced equipment like STS and RTG cranes, alongside efforts to reduce truck turnaround times and vessel berth stays, is expected to significantly enhance operational efficiency.

The facilitation of these privatization contracts follows approval from the Supervisory Committee for Privatization in the Transport and Logistics Sector. Led by Eng. Al-Jasser, the committee's endorsement signals a concerted push towards augmenting the competitiveness of Saudi ports, expanding their operational capacity, and fostering sustainable economic development.

This initiative not only aims to strengthen the nation's transport and logistics infrastructure but also to catalyse broad-based socio-economic growth, aligning with the broader objectives of Saudi Vision 2030.