New Logistics Park To Boost Jeddah Islamic Port's Capacity, Mawani And MEDLOG Collaborate

The Saudi Ports Authority (Mawani) has entered into a strategic partnership with MEDLOG, the logistics division of the Mediterranean Shipping Co. (MSC), to develop an integrated logistics park at Jeddah Islamic Port. This initiative, valued at SAR175 million, aims to bolster the Kingdom's position as a pivotal logistics hub connecting Asia, Africa, and Europe. The logistics park will span 100,000 square meters and is designed to enhance the efficiency of container handling and trade movement within the region.

The agreement was formalized in a ceremony attended by Mawani's President Omar Hariri and MEDLOG Saudi Arabia CEO Hisham Al-Ansari. This collaboration is set to significantly increase the capacity for container handling at Jeddah Islamic Port, aligning with the objectives of the National Transport and Logistics Strategy (NTLS). The strategy seeks to elevate Saudi Arabia's status in the global logistics sector, ensuring robust supply chains that cater to the dynamic demands of international trade.

Furthermore, the logistics park will feature a comprehensive service area dedicated to the maintenance and inspection of both empty and full containers. This facility is expected to generate 400 direct and indirect employment opportunities, tapping into the national workforce skilled in logistics services. An emphasis on sustainable practices is also a key component of this project, with initiatives aimed at reducing carbon emissions through the adoption of alternative energy sources.

One of the park's primary goals is to enhance connectivity between the western and southern regions of Saudi Arabia, facilitating smoother export processes through King Abdullah Port in Rabigh province. This endeavor will provide high-quality, integrated logistics services tailored to meet the evolving needs of local and international markets, ensuring efficient transportation and handling of goods.

In 2023 alone, Mawani has been proactive in expanding its logistics infrastructure, signing agreements for nine logistics parks and centers across strategic locations including Jeddah Islamic Port, King Abdul Aziz Port in Dammam, and King Fahd Industrial Port in Yanbu. With investments surpassing SAR6 billion, these initiatives are poised to elevate the service standards for investors and stakeholders while enhancing the logistical capabilities of Saudi ports.

This series of developments underscores Saudi Arabia's commitment to reinforcing its logistical framework, a move that is anticipated to have a profound impact on its trade dynamics and economic growth. By fostering a more efficient and sustainable logistics sector, the Kingdom aims to solidify its role as a central hub in global trade routes.

With inputs from SPA