DP World, a leading UAE-based multinational logistics firm, is set to expand the Saudi Arabian logistics sector with a substantial SR900 million ($250 million) investment aimed at developing a distribution park at the Jeddah Islamic Port.
With this venture, the company aims to enhance its service efficiency and operational capabilities, delivering more robust and comprehensive options to its clientele.
The project’s commencement was announced on a Sunday, laying out plans for the park to be established in two stages. It is anticipated to commence operations in the second quarter of 2025.
The facility is designed to include an in-land container depot with a 250,000 twenty-foot equivalent units (TEU) capacity and 100,000 square meters of warehouse space, according to a press statement.
This modern logistics hub will complement the recently secured 30-year agreement to manage the South Container Terminal, significantly enhancing trade activities and supporting Saudi Arabia’s ambitious goal to transform into an economic leader by 2030.
In mid-2022, an alliance was formed between DP World and the Saudi Ports Authority (Mawani), involving over SR500 million investment to construct an advanced, port-centric logistics park in Jeddah. The park, sprawling across 415,000 square meters, will potentially expand its warehousing capability to 200,000 square meters.
The collaboration received blessings from the Saudi Minister of Transport and Logistic Services Saleh Al-Jasser, who also serves as the chairman of Mawani’s board.
A Dubai government media office’s statement revealed that the park would constitute 185,000 square meters of warehousing area and a substantial multi-purpose storage yard, positioning it as the Kingdom’s largest integrated logistics center.
The facility is expected to house over 390,000 pallet positions, offering a streamlined platform for the movement of goods in and out of Jeddah.
Mawani and DP World’s partnership extends to the administration of the South Container Terminal under a separate 30-year concession from 2020. A significant modernization initiative of the terminal is on track for completion in late 2024, aiming to increase its capacity to 5 million TEU.
DP World’s chairman and CEO Sultan Ahmed bin Sulayem expressed the company’s strong commitment to the Saudi market, with the Jeddah Logistics Park playing a strategic role in the Asia-Europe trade route and in realizing the objectives of Saudi Vision 2030.
On the other spectrum, Mawani President Omar bin Talal Hariri emphasized the project’s significance in fostering growth and multiplying the throughput at the terminal, aligning with the National Transport and Logistics Strategy and the broader Vision 2030 framework.
