King Salman Energy Park (Spark) has reached an agreement with Hutchison Ports to set up a joint venture that will manage and operate the dry port and bonded logistics zone within the energy industrial city.
Designed to ensure ease of access to global markets, the 3-sq-km dry port will enable the future joint venture to capture the growing demand for logistics services for energy-related products in the Middle East and beyond while also serving the neighbouring industrial cities.
A first-of-its-kind, the dry port will connect the region’s fully integrated energy hub to the world.
Spanning over a 50 sq km area, Spark is a sustainable, global energy hub in Saudi Arabia’s Eastern Province. It is a manufacturing, service center and logistics unit for the energy sectors and an integral part of the Saudi Vision 2030.
On completion, Spark will create significant employment, further diversify the economy, and attract additional foreign investment into the kingdom.
Chairman Mohammed Y. Al Qahtani summarised the significance of the agreement: "We are so proud to give investors another reason to do business at Spark. Hutchison is a world class ports and terminal operator, and the step we take together today will give Spark’s investors ease of access to local and global markets."
"Furthermore, the logistic hubs will also serve the eastern region and its industrial cities. It will also help us fulfil our IKTVA promise to the Kingdom of Saudi Arabia and the world by giving local manufacturers the physical infrastructure they need," he added.
Hutchison Ports Group Managing Director Eric Ip said: "Saudi Arabia is an important market and we are very excited to participate in this ambitious, game-changing mega project. As the world’s leading port group, we will leverage our logistics expertise to create value and competitiveness for the tenants of Spark."
The Saudi energy park's first phase is divided into a number of clusters: logistics zone, industrial hub, business district, digital hub, and residential and commercial areas.
The dedicated dry port and logistics zone will include warehouses and storage facilities, a bonded area and on-site customs clearance, he added.
President and CEO Saif Al Qahtani said: "Our partnership with Hutchison Ports marks an important milestone in the ongoing development of Spark. The dry port and logistics zone will be the key to unlocking the potential of our strategic location in the Eastern Province, a region which is known for its unmatched oil and gas resources."
"We are tremendously excited to work with Hutchison Ports to help connect our investors to the world, allowing them to operate efficiently and save on transport times and costs," he added.
