DP World and Saudi Ports Authority Begin Construction on SAR 900 Million Logistics Park at Jeddah Islamic Port

26 May 2024: DP World and the Saudi Ports Authority (Mawani) have initiated the construction of a SAR 900 million ($250 million) logistics park at Jeddah Islamic Port, aimed at enhancing storage and distribution capabilities and boosting trade within Saudi Arabia and the broader region.

This 415,000 square metre greenfield facility will include 185,000 square metres of warehousing space and a large multi-purpose storage yard, establishing it as the largest integrated logistics park in Saudi Arabia. Consequently, it has capacity to exceed 390,000 pallet positions and this would enable efficient movement of goods in and out of Jeddah.

Jeddah Logistics Park, which was established in 2022 with a 30 year concession, will undergo two phases of development and is expected to be opened in Q2 2025. The facility will feature a rooftop solar plant generating 20 MW of renewable energy, emphasising its sustainable design.

Additionally, DP World and Mawani also share another agreement, the management of the South Container Terminal, that was signed in 2020 as a separate concession contract for a 30-year period. The terminal, currently in the final stage of a major modernization project set to complete in Q4 2024, aims to increase its handling capacity to five million TEUs. Together, these DP World projects represent an investment of nearly SAR4 billion ($1 billion).

In an official press release by DP World, His Excellency Sultan Ahmed bin Sulayem, Chairman and CEO, DP World stated, “Saudi Arabia has always been a deeply important market for DP World and this milestone represents our ongoing commitment to the Kingdom. Jeddah Logistics Park, strategically located on the vital Asia-Europe shipping route, will provide world-class multimodal connectivity and market access for our customers while supporting the ambitious aims of Saudi Vision 2030. This investment marks a significant step as we mark 25 years of operations in Jeddah and underscores our enduring commitment to facilitating the flow of trade.”

Aligned with Saudi Vision 2030, Jeddah Logistics Park represents a significant development for DP World at Jeddah Islamic Port, optimising logistics processes for importers and exporters. Customers will benefit from integrated services linking port operations to last-mile activities, temperature-controlled storage, import and export consolidation centres, and other value-added services.

The collaboration between DP World and Mawani to establish the Jeddah Logistics Park signifies a transformative leap in Saudi Arabia's logistics infrastructure. Besides showing the commitment of DP World to Saudi Arabia, this investment also heralds efficiency and sustainability in global trade operations being experienced at Jeddah Islamic Port.