PSA’s SGP to invest $267 million for Port Dammam logistics zone
The signing took place in tandem with Singapore Prime Minister Lee Hsien Loong’s official visit to Saudi Arabia.
Saudi Global Ports (SGP) and Saudi Ports Authority (Mawani) signed an agreement to establish a 1 million square meters integrated logistics zone at King Abdulaziz Port Dammam (KAPD).
Under the agreement, SGP is slated to invest about SAR 1 billion (USD 267 million) to develop the integrated logistics zone and is studying the options for bonded warehouses and modern cold store capabilities. There are also plans to incorporate sustainability elements such as hybrid and electric equipment and solar panels into the development.
The development of the integrated logistics zone builds on SGP’s continuing partnership with Mawani on its Vision 2030 roadmap to transform Saudi Arabia into a global logistics centre and hub connecting Asia, Africa and Europe. As the operator of the container terminals at KAPD, the Riyadh Dry Port Ecosystem and the future integrated logistics zone, SGP will become well- positioned as a supply chain orchestrator, realising its vision to become the national champion for resilient and sustainable logistics in Saudi Arabia.
SGP had also signed an MOU with the Ministry of Investment at the 3 rd Saudi-Singapore Joint Committee Meeting (SSJC) to jointly identify investment opportunities in the supply chain and logistics sector, including in the training and development of the workforce and port-ancillary services. The SSJC was co-chaired by Minister Saleh Al Jasser and Minister Tan See Leng on 17 October 2023 in Riyadh, Saudi Arabia.
President of Mawani, Omar bin Talal Hariri affirmed that the new integrated logistics park will be part of the Mawani’s initiative to expand the number of logistics parks within Saudi Arabia ports to 12. The expansion is expected to elevate the Kingdom’s position in the global logistics services performance index from its current 38 th place to the 10th place. Furthermore, it will solidify Saudi Arabia’s regional leadership in logistics.
Chairman of the board for Saudi Global Ports, Abdulla Zamil expressed SGP’s appreciation for the support and trust of Mawani and the Ministry of Investment which have allowed SGP to provide integrated, resilient, and sustainable supply chain solutions in Saudi Arabia. He added that SGP, through its technical partner PSA’s global network of ports, will also help to spur the growth of the Kingdom’s role as the regional and global hub for logistics.
Regional CEO of Middle East and South Asia and head of group business development for PSA International, Vincent Ng said, “PSA is excited to be part of the dynamic growth in the transport and logistics services sector in the Kingdom. We remain committed to being alongside Saudi Arabia’s Vision 2030 journey and stand ready to support with PSA’s expertise and experience in supply chain orchestration and the development of logistics zones.”