Saudi Ports Authority (MAWANI) and Saudi Global Ports (SGP) signed a new Build, Operate and Transfer (BOT) agreement for the Container Terminals in the King Abdulaziz Port in Dammam over a virtual signing ceremony, Saudi Ports Authority announced. Under the patronage of H.R.H. Prince Saud bin Nayef bin Abdulaziz, Governor of the Eastern Region, MAWANI has signed remotely the largest 30-year BOT Agreement in the Kingdom with SGP with investments exceeding 7 billion Saudi Riyals to develop and operate container terminals at King Abdulaziz Port in Dammam.

The remote Agreement signing took place with the participation of H.E. Eng. Saleh Al-Jasser, Minister of Transport and Chairman of the Saudi Ports Authority; Mr Khaw Boon Wan, Coordinating Minister for Infrastructure and Minister for Transport of Singapore; H.E. Eng. Saad bin Alkhalb, President of Saudi Ports Authority; and Eng. Abdullah Al-Zamil, Chairman of Saudi Global Ports. The BOT agreement represents a major step toward achieving the strategic objectives and development plan of the Saudi Ports Authority by conceding some of its services in partnership with the Ministry of Transport and with the support of the National Centre for Privatisation, as per the press release.

Upon assuming the responsibility of managing both Container Terminals, SGP will embark on a development and modernisation programme to transform King Abdulaziz Port into a mega container hub and increase the Port’s capacity to an estimated annual handling capacity of 7.5 million twenty-foot equivalent units when the planned expansion works are fully completed. The total estimated investment of more than 7 billion Saudi Riyals is expected to provide more than 4,000 job opportunities in the port and logistics sector.

It is a part of the continuous developments carried out by MAWANI in the Saudi ports. Under this agreement SGP is to invest and develop key infrastructure such as berths and container handling equipment, which will more than double the existing container handling capacity of King Abdulaziz Port in Dammam. The investments will focus on eco-friendly and technologically sophisticated systems, including the adoption of automation to develop a modern Saudi workforce.

H.E. Eng. Saleh Al-Jasser said, “The continuous developments in Saudi ports come in line with the national efforts to achieve goals and pillars of our country’s ambitious vision to promote sustainable economic development and raise competitiveness.” He also indicated the importance of the agreement to raise the operational and logistical performance level and develop the infrastructure of Saudi ports, contributing to reaching regional leadership and international competition.

Al-Jasser explained the expected economic feasibility and impact of this  new pact as it enhances logistics, raises the reliability of supply chains, supports local and international trade and contributes in raising the rank of the Kingdom at the logistics performance index to be among the 25 best countries around the world. The agreement also attracts new investments to the national economy, support local content and national industries and increase the national exports and imports that contribute to creating promising investment opportunities.

H.E. Eng. Saad Alkhalb, President of MAWANI, said the new BOT Agreement is a continuation of the pacts concluded by MAWANI last December to develop container terminals at Jeddah Islamic Port with investments exceeding SR 9 billion. He indicated that the total expected investments in Jeddah Islamic Port and King Abdulaziz Port in Dammam amount to approximately SR 17 billion. 

Eng. Abdullah Al-Zamil, Chairman of SGP, said, “Today, we are proud to sign the largest single BOT Agreement in Kingdom to develop container terminals at King Abdulaziz Port. I appreciate this successful and ambitious partnership with the Saudi Ports Authority, which reflects our commitment to achieving aspirations of our wise leadership in the Ports and Maritime Transport Sector.”