Saudi Ports Authority signs nearly $267m deals for 7 logistics centers in Jeddah, Khumrah

The Saudi Ports Authority (Mawani) has signed contracts with several national and international companies to establish and expand seven logistics centers at Jeddah Islamic Port and the Khumrah area, with investments approaching SAR 1 billion ($267 million). The signing ceremony was held under the patronage of Minister of Transport and Logistics Services and Chairman of the Authority, Saleh bin Nasser Al-Jasser, and attended by the Authority's President, Suleiman bin Khalid Al-Mazroua, along with other officials.

This initiative is part of the Authority's efforts to expand its network of logistics centers at key locations along the western coast, aiming to boost the readiness of Saudi ports to handle the rapid growth in trade, support the objectives of the National Transport and Logistics Strategy, and strengthen the Kingdom's position as a global logistics hub.

The Minister of Transport and Logistics Services stated that launching and expanding these centers reflects the continuous support the transport sector receives from the Kingdom's leadership. He emphasized that developing Jeddah Islamic Port and the Khumrah area contributes to achieving the goals of the National Transport and Logistics Strategy and Saudi Vision 2030, which has made the transport and logistics sector a key driver of economic transformation by improving supply chain efficiency and enhancing the Kingdom's role in the global economy.

He added that the signed contracts will empower the private sector and provide advanced infrastructure to support the growth of commercial and logistics activities, further establishing the Kingdom as a global trade hub on the Red Sea and enhancing the role of its ports in serving regional and international trade.

For his part, the President of the Saudi Ports Authority explained that the establishment and expansion of these centers is a strategic step within Mawani's program to develop the port system and enhance its operational readiness, keeping pace with the rapid growth in trade and meeting the aspirations of the private sector.

He noted that the new projects will improve service efficiency and the ports' handling capacity, support the localization of logistics industries and services, provide a more reliable operational system, and contribute to diversifying commercial activities both within and outside the Kingdom.

He stressed that these projects reflect the transformation of Saudi ports from mere cargo transit points to pillars of economic growth and investment drivers, serving as key enablers for trade and logistics services, enhancing the Kingdom's competitiveness, and supporting sector targets.

With the signing of these new contracts, the number of logistics centers at Saudi ports rises to 34, including 17 at Jeddah Islamic Port, with total investments exceeding SAR 14 billion, as part of ongoing efforts to develop infrastructure supporting supply chains and keep pace with global trade growth.

The new centers will cover an area of more than 384,000 square meters dedicated to storage, consolidation, and re-export, supporting the creation of a smart logistics environment offering diverse services and integrated solutions. They are also expected to create over 5,000 direct and indirect jobs and boost commercial activities inside and outside the Kingdom.

These centers will also help connect value chains through an integrated logistics system and storage complexes linking ports with logistics centers, accelerating distribution operations. They will provide dedicated cargo facilities that support integration and supply chains at both national and regional levels.

The centers will offer integrated logistics solutions supported by digital platforms, enabling national and international companies to expand their operations and reach a wider customer base, in addition to operational services that improve performance quality, speed up commercial processes, and enhance customer experience.

The projects also include the expansion of the global Maersk logistics center at Jeddah Islamic Port, with the construction of future container yards and spaces covering 60,000 square meters and investments of SAR 40 million, enhancing logistics services and providing more efficient operational solutions for importers and exporters.

The Khumrah area is distinguished by its connection to a high-efficiency road network linking Jeddah Islamic Port with King Abdulaziz International Airport, as well as its proximity to the land bridge route and main highways in the Kingdom. This strengthens its role as a transport and services hub and increases its capacity to serve regional markets quickly and efficiently.