DUBAI, UAE: DP World has signed a 30-year build-operate-transfer (BOT) concession worth $500 million with the Saudi Ports Authority (Mawani) for the management and expansion of the multi-purpose port at Jeddah South Container Terminal in Saudi Arabia.
As part of the new agreement DP World is investing up to $500 million to modernise the infrastructure in order to serve the ultra large container carriers (ULCC’s). The new terminal will also have an upgraded capacity of 3.6mn TEU up from 2.4mn TEU to meet the expected growth demands of the future.
Established in 1976, the Jeddah Islamic port is on the red sea and the largest port in the Kingdom of Saudi Arabia with annual volumes of over 6 million TEU’s. The port currently handles approximately 60% of the country’s sea-imports and is a strategic hub that connects East-West cargo.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “We are delighted to extend our concession in Jeddah, a port that we have a long history with as it was DP World’s first international expansion project. We are also honoured to support the Kingdom’s 2030 growth vision to transform the country into a global logistics hub. We have committed to investing significantly to modernise the Jeddah South Container terminal, which will not only result in greater job creation but also deliver best-in-class efficiency and productivity. Beyond the terminal, our ambition is to develop the inland connectivity through smart technology led logistics solutions, which should support further growth in this strategic hub that connects East-to-West. We look forward to our Jeddah terminal providing value for all our stakeholders in the coming years”.