DP World, in partnership with the Saudi Ports Authority (Mawani), has initiated the building of a new logistics park at the Jeddah Islamic Port, with an estimated cost of SR900 million (approximately $250 million). This hub is poised to enhance storage and distribution capabilities while stimulating trade within the Kingdom of Saudi Arabia and its neighboring regions.
The 415,000-square-meter site will incorporate a vast 185,000 square meters of warehousing space alongside a functional multi-purpose storage yard, establishing it as the largest integrated logistics park in Saudi Arabia. With the ability to accommodate over 390,000 pallet positions, the park is designed to facilitate an efficient and smooth transit of goods in and out of Jeddah.
The project, which stems from a 30-year concession agreement signed in 2022, is set to unfold in two stages, with expectations to commence operations by the second quarter of 2025. The logistics park will also boast a rooftop solar plant on its warehouse, capable of generating 20 MW of green energy, in alignment with its sustainable framework.
Apart from this venture, Mawani and DP World have also engaged in managing the South Container Terminal under a separate 30-year concession established in 2020. The terminal is on the brink of concluding a sweeping modernization initiative by the fourth quarter of 2024, which will amplify its capacity to handle up to 5 million 20-foot equivalent units.
The combined investments of DP World’s two projects are approaching a total of near SR4 billion.
At the commencement ceremony, Sultan Ahmed bin Sulayem, chairman and CEO of DP World, remarked on the significance of the Saudi market to the company, emphasizing the strategic location of Jeddah Logistics Park on the key Asia-Europe trade route. Sulayem highlighted the project’s alignment with Saudi Vision 2030’s objectives and its role in providing top-tier multimodal connectivity and accessibility to customers, marking a milestone in DP World’s 25-year presence in Jeddah.
Omar bin Talal Hariri, president of Mawani, underscored the logistics park’s integration with DP World’s South Container Terminal at Jeddah Islamic Port, foreseeing a rise in container throughput and reiterating Mawani’s dedication to expanding logistics infrastructures in Saudi ports, in line with the National Transport and Logistics Strategy.
Mohammad Alshaikh, Saudi Arabia’s country head for DP World, outlined the project’s extensive details to the attendees, including senior Saudi government officials and members of the DP World leadership team.
The Jeddah Logistics Park is expected to revolutionize DP World’s operations at the Jeddah Islamic Port, optimizing logistics for both importers and exporters with a comprehensive platform for trade and logistics. Customers will benefit from integrated services linking port procedures to final distribution phases, as well as from special zones for bonded and non-bonded storage, world-class temperature control, and other added value services.
Following the inauguration of new freight forwarding offices in Dammam, Jeddah, and Riyadh, DP World continues to expand its logistical reach, enhancing the robustness of end-to-end supply chains within the Kingdom and beyond.
