SPA — The Saudi Ports Authority (Mawani) signed SAR 2.2 billion privatization deals with national partners to develop and operate multi-purpose cargo terminals at eight ports across the Kingdom.
The agreements follow a Build-Operate-Transfer (BOT) model for a period of 20 years. They involve Saudi Global Ports and Red Sea Gateway Terminal as private sector partners. The signing ceremony was attended by the Minister of Transport and Logistics Services, Eng. Saleh bin Nasser Al-Jasser, Mawani’s acting CEO Mazen bin Ahmed Al-Turki, and senior executives from both companies.
Saudi Ports Authority Privatization Deals Advance Logistics Sector Growth
Speaking at the signing, Minister Al-Jasser emphasized the growing appeal of Saudi ports. He stated that significant infrastructure investments, combined with rising global interest, continue to enhance port performance. He also pointed to substantial improvements in operational efficiency, cargo handling, and maritime connectivity.
These privatization deals support Saudi Arabia’s goal to become a global logistics hub. They also showcase the importance of public-private partnerships in boosting competitiveness and ensuring long-term growth within the Kingdom’s logistics sector.
Eng. Muhannad Basudan, CEO of the National Center for Privatization, emphasized that empowering private companies remains crucial to enhancing public services. He explained that these agreements will strengthen port efficiency and help align operations with global standards.
Infrastructure Expanded Through Strategic BOT Agreements
The agreements will deliver targeted upgrades across the port network:
- Saudi Global Ports will develop and manage terminals at East Coast ports: King Abdulaziz Port (Dammam), Jubail Commercial Port, King Fahd Industrial Port (Jubail), and Ras Al Khair Port.
- Red Sea Gateway Terminal will operate terminals at West Coast ports: Jeddah Islamic Port, Yanbu Commercial Port, King Fahd Industrial Port (Yanbu), and Jazan Port.
Additionally, the contracts stipulate enhanced container handling at King Fahd Industrial Port (Yanbu). Planned upgrades include the installation of modern equipment, shorter truck turnaround times, reduced vessel berthing durations, and enhanced operational efficiency.
The transport sector’s Privatization Supervisory Committee approved the agreements. These projects aim to expand port capacity, enhance competitiveness, support economic growth, and establish a sustainable logistics network.
The Saudi Standard’s View: Private Sector Fuels Saudi Port Expansion
The latest Saudi Ports Authority privatization deals mark a significant milestone for the Kingdom’s logistics infrastructure. By engaging private operators through BOT agreements, Saudi Arabia accelerates its transformation into a world-class logistics hub.
Furthermore, these projects highlight the success of public-private partnerships in enhancing port efficiency, expanding cargo capacity, and raising global competitiveness. They also align with the National Transport and Logistics Strategy and support the broader objectives of Vision 2030.
With these investments, Saudi ports are well-positioned to attract global trade, streamline operations, and strengthen the Kingdom’s supply chain capabilities.
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