Maersk to invest $136 million for 205,000 sq m logistics park in Saudi
A. P. Moller - Maersk signed an agreement with Saudi Ports Authority “Mawani” committing to an investment of $136 million (510 million Saudi Riyals) over a period of 25 years to set up an integrated logistics park at the Jeddah Islamic Port in Saudi Arabia.
“The greenfield project spread over an area of 205,000 sq m will be the first of its kind at the Jeddah Port offering an array of solutions with an aim to connect and simplify the supply chains of importers and exporters in the Kingdom. Maersk will also be investing heavily in renewable energy to power this facility and eventually achieve carbon-neutrality. The project is expected to create more than 2,500 direct and indirect jobs in Saudi Arabia,” reads the release.
Saudi Arabia’s Vision 2030 aims at more than tripling the share of non-oil exports from Saudi Arabia from its current levels to reach 50 percent of its total exports. It aims at substantially raising the Kingdom’s global ranking to top 25 in Logistics Performance Index to ensure that Saudi Arabia becomes the regional leader in logistics.
Minister of transport, Engineer Saleh bin Nasser Al-Jasser, said, “The authority’s new strategy supports the maritime transport journey in the Kingdom and enables the authority to continue developing a sustainable and prosperous maritime transport system that supports the Kingdom’s social and economic ambitions and contributes to achieving the ambitious goals of Vision 2030.”
Richard Morgan, managing director, Maersk West & Central Asia said, “We are building an innovative, digital and technologically-advanced logistics infrastructure on the foundations of our strong network of global shipping and logistics & services to create value for customers in the region. Our ambition is not only to connect and simplify our customers’ supply chains, but also be a catalyst in the growth of trade and economies through our customer-centric solutions”.
President of the Saudi Ports Authority, Omar bin Talal Hariri said, “The strategic partnership between the authority and Maersk is an important step to achieve our ambition for Jeddah Islamic Port to become among the top ten ports in the world by 2030, with the volume of container handling reaching 18 million TEUs. I am confident that this partnership will greatly enhance the distinguished operational capabilities of Jeddah Islamic Port, which ranks first among the Red Sea ports, with its strategic location on the Red Sea coast linking the international shipping route between East and West.”
