The largest seaport Investment Contract in Mawani Launched

The largest seaport Investment Contract in Mawani Launched

Mawani (The Saudi Ports Authority) announced the successful handover of the first terminal to Saudi Global Ports Co. (SGP), following the signing on April 13 of a 30-year build, operate, and transfer (BOT) agreement between the two bodies.

SGP’s estimated total investment of more than SAR7bn (USD1.87bn) is to be the largest seaport investment by a single operator; under a public-private partnership in the Kingdom.

When the planned expansion works are completed; KAPD’s annual container-handling capabilities will increase to an estimated 7.5 million twenty-foot equivalent units (a measure of cargo capacity).

SGP, early October, took over management control of both container terminals at King Abdul Aziz Port Dammam (KAPD); making it the dock’s sole cargo facility operator.

Since the signing of the BOT agreement, Mawani and SGP worked closely on various activities; including manpower retention, transfer of assets, engagement of the port community, and collaboration with stakeholders.

SGP has advanced the purchase and commissioning of more than 200 new items of handling equipment for both terminals.

Saudi Transport Minister and Mawani Chairman Saleh bin Nasser Al-Jasser, said the backing of the Kingdom’s leadership for the transport and logistics sector had enabled the implementation of important initiatives and investments to strengthen the country’s seaports.

Key milestone

Jasser congratulated Mawani and SGP on reaching a key milestone toward achieving the Vision 2030 goal of using Saudi Arabia’s strategic geographic location to its logistical competitive advantage in helping to diversify the economy.

Mawani’s President said: “I am confident that SGP will continue to raise the performance and customer service levels; across both terminals through its strong business practices.”

Abdullah Zamil, chairman of SGP, also said: “I would like to express my gratitude to the management and working teams from Mawani and SGP for their close partnership. The smooth transition within a short timeline under the (COVID-19) pandemic situation is phenomenal.

The positive relationship will be the catalyst to accelerate the developments to elevate the seaport and logistics capabilities of Dammam. This is also to support the industrial growth initiatives under Saudi Vision 2030.”