The Saudi Ports Authority (MAWANI) and DP World Jeddah today laid the foundation stone for the expansion and modernization of the South Container Terminal at Jeddah Islamic Port. The revamp of the facility comes in line with Saudi Arabia’s strategy to develop ports infrastructure to unlock the Kingdom’s maritime logistics and transportation potential.
The ceremony to mark the start of the first phase of construction at the South Container Terminal was attended by His Excellency Omar Hariri, President of MAWANI, a delegation of senior Saudi government officials, and representatives from DP World Jeddah’s management.
The development of the South Container Terminal is part of the new concession agreement MAWANI signed with DP World Jeddah in April 2020 to continue operating and managing the facility for the next 30 years. The company has committed to a total investment of $800 million to modernize the terminal. The new overhaul project, which will take place over four phases and is set to be completed by 2024, will see infrastructural upgrades, including the broadening of draft depth and quay, and the installation of advanced equipment and technologies. When complete, the revamped terminal will double Jeddah Islamic Port’s container handling capacity from 2.4 million TEUs to 4 million by 2024 and solidify Jeddah’s standing as a major trade and logistics center on the Red Sea coast.
Commenting on the announcement, His Excellency Omar Hariri, President of MAWANI, said: “The continuing development of our national ports through public-private partnerships is a priority for us at MAWANI as part of our long-term strategy to drive growth in Saudi Arabia’s ports sector and bolster the Kingdom’s pre-eminent position as a global logistics hub connecting three continents as envisaged in Vision 2030. With its strong track record in successfully delivering on concession contracts and operating ports facilities, DP World Jeddah is a strategic partner for us in our efforts to further develop Jeddah Islamic Port. We are confident that the new expansion project will have a significant impact not only on the port but also the Kingdom’s economy and society.”
Mohammad Alshaikh, CEO DP World Jeddah and Country Head KSA, said: “We are working closely with Jeddah’s Islamic Port Authority and MAWANI to continue strengthening the port’s position as a strategic trade hub, connecting Eastern and Western trade routes. Our strategy as a smart trade enabler is to modernize the facility, expand its capacity and diversify the range of smart logistics services on offer at the South Container Terminal. This will help in improving the quality of the service for our current customers and assist our efforts towards attracting new business to the port.”
The development plans include extending the length of the quay from 1500m to 2150m and deepening the draft to 18m, which will enable the terminal to service five vessels simultaneously and handle the largest container vessels in operation today and in the future, carrying up to 26,000 TEUs (twenty-foot equivalent unit). The modernization of the terminal yard surface, enhancements to the lighting and a complete upgrade to the utilities are also planned.
Fifteen new Ship to Shore (STS) gantry cranes featuring the latest technology and 60 new electrically powered Rubber Tyred Gantry (RTGs) cranes will be added to the container yard in batches starting in 2022. This will enable DP World Jeddah to increase its annual container handling capacity from 2.4 million TEUs to 4 million by 2024. The RTG cranes will be controlled from a state-of-the-art remote-control room by Saudi operators, as part of DP World Jeddah’s focus on developing local talent.
Since 1999, DP World Jeddah has been operating the South Container Terminal at Jeddah Islamic Port as a concession partner. In close cooperation with MAWANI, the company has achieved several remarkable achievements including a significant increase in annual container handling capacity and better customer service.