MAWANI and CMA CGM Group Announce Launch of Integrated Logistics Platform in Jeddah Port

MAWANI inaugurates first shipping route in 2021 at Jeddah Islamic Port
MAWANI inaugurates first shipping route in 2021 at Jeddah Islamic Port

The Saudi Ports Authority (Mawani) signed today an agreement with CMA CGM Group, a world leader in shipping and logistics, to build an integrated logistics platform in Jeddah Islamic Port.

The new facility will be established on 130,000 sq. meters of land leased by the port administration with the overall aim of developing an efficient sector-wide logistics mechanism and boosting the Kingdom’s profile as a global logistics hub connecting three continents.

The deal was signed by President of Mawani Omar Talal Hariri and CMA CGM Group’s Regional Director for the Middle East Gulf, Indian Subcontinent, Indian Ocean Islands, and Southern and Eastern Africa Xavier Eiglier, in the presence of senior officials from both sides and a host of leading industry executives.

MAWANI inaugurates first shipping route in 2021 at Jeddah Islamic Port
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Mawani’s President commented on this occasion: “The logistics platform represents an important milestone in the Authority’s continued endeavour to fulfil the objectives of the National Transport and Logistics Strategy (NTLS) in creating specialized logistics zones within the precincts of Saudi ports and beyond in the pursuit of positioning the Kingdom as a global logistics hub. It adds further momentum to our aspirations in building a booming and sustainable maritime sector, achieving the socioeconomic ambitions listed out in Vision 2030, and offering world class logistics services that can stimulate economic growth and enable strategic integration with the transportation ecosystem.”

For his part, Xavier Eiglier said: “ Today's ceremony confirms our strong partnership with MAWANI and affirms our commitment to contribute to the development of the logistics’ sector in the Kingdom. This project marks the Group’s first integrated logistics platform in the Middle East and will help in expanding our service offering to our Saudi and global customers to use Jeddah as a transit hub for trading across the wider region. It will also enable our Group to expand its regional shipping and logistics network, where we see a lot of growth potential.”

The CMA CGM Group pursues its development in logistics within the region with the launch of a 130,000 sq. meters facility of specialized container depots and warehouses in one of Saudi Arabia’s major ports. CMA CGM INLAND SERVICES (CCIS), the Group’s entity dedicated to inland transportation solutions development, and its logistics subsidiary CEVA collaborated closely on this project which includes a USD 130 million investment over the span of 20 years to strengthen the CMA CGM Group’s presence in the Kingdom of Saudi Arabia and the whole region.

The project aims to offer a unified logistics ecosystem leveraging CMA CGM’s ocean network with CCIS inland solutions and CEVA’s logistics services, to offer customers seamless end to end logistics solutions. The agreement will create more than 150 direct jobs and hundreds of indirect ones within the logistics sector. It will be providing a trusted logistics hub in one of the busiest trading routes serving as an instrumental part of the global maritime trade connecting Saudi Arabia to the rest of the world.

CMA CGM subsidiaries, CCIS and CEVA, will be offering unique logistics solutions including advanced hub, export hub, value added services, temperature controlled bonded storage and multimodal transport solutions to cater for all customer needs.

Jeddah Islamic Port is Saudi Arabia's top import and export destination, receiving 75% of the nation's total inbound maritime trade and transhipments. With an annual capacity of 130 million tons, the Red Sea's leading re-export hub features 62 berths and four terminals.

The port regulator's recently launched strategy is well set to realize the goals conceived by the National Transport and Logistics Strategy (NTLS) to develop a competitive and productive maritime sector that keeps pace with global trends and promotes economic prosperity.

With this major investment, the new project will strengthen Jeddah Port’s position as the hub of choice for both gateway and cross border trade in the Red Sea. It will support Jeddah Islamic Port’s growth strategy in its aim to become one of the top ten ports globally, as part of Saudi Arabia’s Vision 2030.