DP World, a leading UAE-based multinational logistics company, has announced a substantial SR900 million (approximately $250 million) investment to establish a distribution park at the Jeddah Islamic Port. This initiative is set to expand the firm’s operational efficiency and deliver more sophisticated services to its clientele.
The construction of this ambitious project, announced on a recent Sunday, is slated to commence in two phases, with expectations to become operational by the second quarter of 2025.
Upon completion, the park will feature an in-land container depot with the capacity to handle 250,000 twenty-foot equivalent units (TEUs) and provide 100,000 square meters of warehouse space, as per an official press statement.
Integrating with the 30-year concession granted for the South Container Terminal, this advanced facility will elevate Saudi Arabia’s trade capabilities, aligning with its objective to emerge as an economic leader by 2030.
In June 2022, DP World and the Saudi Ports Authority (Mawani) entered into a 30-year agreement, pledging an investment surpassing SR500 million, to develop a modern logistics park centered around the port in Jeddah.
The development will span 415,000 square meters, housing an in-land container depot and offering up to 100,000 square meters of warehousing space. Future expansions could potentially double the warehousing capacity to 200,000 square meters.
Under the guidance of Saudi Minister of Transport and Logistic Services Saleh Al-Jasser, who also chairs the Saudi Ports Authority, the agreement was formalized.
As detailed by the Dubai government’s media office, the logistics park is positioned to be the largest of its kind in the Kingdom, comprising 185,000 square meters of warehouse space and an extensive storage yard, designed to accommodate over 390,000 pallet positions and facilitate the seamless transit of goods in and around Jeddah.
Mawani’s partnership with DP World also extends to the management of the South Container Terminal, a commitment cemented in a separate 30-year concession established in 2020.
The terminal is nearing the completion of an extensive modernization initiative, expected to conclude in late 2024, which will notably increase its handling capacity to 5 million TEUs.
“Saudi Arabia has always been a deeply important market for DP World, and this milestone underscores our sustained commitment to the Kingdom,” remarked Sultan Ahmed bin Sulayem, DP World’s chairman and CEO.
Sulayem emphasized that the strategically positioned Jeddah Logistics Park will not only offer superior multimodal connectivity and market access for customers but also bolster the ambitious goals outlined in Saudi Vision 2030.
“This investment represents a significant milestone as we commemorate 25 years of Jeddah operations, reaffirming our dedication to promoting trade,” Sulayem stated.
Conversely, Mawani President Omar bin Talal Hariri expressed that the new logistics zone will be seamlessly integrated with DP World’s South Container Terminal, propelling growth and amplifying container throughput at the terminal.
“This project is a key component of Mawani’s strategy to augment the number of logistics centers in Saudi ports, fostering partnerships with prominent national and international enterprises, and is in harmony with the goals of the National Transport and Logistics Strategy and Vision 2030,” Hariri concluded.
