Bid & Tender


Mawani Signs Deal with DP World to Build New Smart Logistics Park in Jeddah

The Saudi Ports Authority (Mawani) has signed an agreement yesterday (19 June) with DP World, a world leader in global supply chain solutions, for the establishment of a new fully-integrated smart logistics park in Jeddah Islamic Port at an investment of over SR 500 million ($133 million).


This is Mawani's fifth such deal following a series of agreements signed with local and global leading companies in maritime transport and logistics including Maersk, CMA CGM, LogiPoint and Bahri.


The agreement was signed by President of the Saudi Ports Authority Omar bin Talal Hariri and Group Chairman and CEO of DP World and Sultan Ahmed Bin Sulayem, in the presence of Minister of Transport and Logistic Services and Chairman of Mawani Engineer Saleh Al Jasser and several other leaders from the transport and logistics entity.


Eng Al Jasser emphasized that this agreement aligns with the National Transport and Logistics Strategy (NTLS) objectives of positioning Saudi Arabia as a global logistics hub, and supports the growth of the logistic services industry on the Red Sea coast.


"With the support from Saudi King Salman and HRH the Crown Prince, the transport and logistics services entity continues to achieve the development objectives in line with Saudi Vision 2030, by establishing logistics parks that enable the transport and supply chains, following a thorough developmental plan, and strengthening the strategic partnership with the private sector, aiming to increase the attractiveness of investment opportunities in Saudi ports and the maritime transport sector," stated the minister.


He also commended the remarkable achievement by Saudi ports in the Container Port Performance Index 2021.


The minister pointed out how the Saudi ports have become a prominent location on the global maritime transport map, as they have accomplished a lot of operational and developmental achievements, which contribute to reaching developmental and economic sustainability, enabling trade and investment, along with strengthening the economic growth.


Mawani had recently signed a number of strategic agreements with local and international partners to set up integrated logistics parks, with over SR 2 billion ($532 million) worth of investments, in bid to turn Saudi ports into a preferred destination for global investments and trade, as well as achieving the economic ambitions.


This move will also help in supporting the GDP and inter-trade between Saudi Arabia and countries around world, he stated.


"All of this will help achieve the strategic objectives and the integration with transport entity, in order to position the Kingdom as an eminent logistics hub internationally," noted Al Jasser.


Hariri said the agreement was aimed at building a logistics park over a total area of 415,000 sq m, with a capacity of 250,000 TEU in addition to 100,000 sq m of warehouses area, as it will provide advanced and eco-friendly e-services, and integrate the operations of the south container terminal with the logistics park.


This, he stated, comes as part of the authority’s continuous efforts of providing integrated logistics parks to enhance the competitiveness of Jeddah Islamic Port, and increase the volumes of transshipment cargoes, in line with the objectives of NTLS.


According to Hariri, this partnership will connect the Saudi port’s operations with the logistics park, which will allow for providing integrated logistics services with high level of operational efficiency, as well as expanding cooperation with the largest logistic services providers, and strengthen the re-exports operations, in order to deliver the best services for customers and investors.


On the deal, Bin Sulayem said: "We are proud and honoured to contribute effectively towards the achievement of Saudi Vision 2030, which includes the development of a prosperous and sustainable maritime transportation ecosystem that supports the kingdom’s socio-economic ambitions and consolidate its status as a global logistics hub."


"We reiterate our commitment to invest in the modernization of this facility by providing highest standards of logistics services and technology-enabled trade solutions. We are confident that today’s milestone will contribute to increasing efficiency and productivity levels and creating new jobs," he stated.


"We are committed to enhancing the role and the status of Jeddah’s Islamic port, which is strategically located on the Red Sea and has historically played a pivotal role in facilitating the movement of trade between the East and the West," he added.


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