UAE's DP World, Saudi Ports Authority Mawani Begin $250M Logistics Park Construction

DP World and Saudi Ports Authority (Mawani) have started the construction of a logistics park worth $250 million (SAR900 million) at Jeddah Islamic Port.

The new construction, consisting of a 415,000-square-meter greenfield facility, will provide state-of-the-art storage and distribution facilities, and will also help increase trade in the Kingdom of Saudi Arabia and the other regions.

The logistics park will feature 185,000 square meters of warehousing space and a sprawling multipurpose storage yard, making it the largest integrated logistics park in Saudi Arabia. The park will have a capacity of more than 390,000 pallet positions, allowing customers a platform for a seamless flow of goods to and from Jeddah.

Jeddah Logistics Park, established in 2022 with a 30-year agreement, will be developed in two phases and is set to launch in Q2, 2025. It will feature a rooftop solar plant generating 20 megawatts of renewable energy, making it an eco-friendly design.

Mawani and DP World are also working together on managing the South Container Terminal under a separate 30-year agreement signed in 2020. This terminal is in the final phase and is expected to finish in Q4 2024. This will increase its handling capacity to five million twenty-foot equivalent units (TEUs).

These two DP World projects are worth nearly 4 billion SAR ($1 billion).

"Saudi Arabia has always been a deeply important market for DP World and this milestone represents our ongoing commitment to the Kingdom," Sultan Ahmed bin Sulayem, Chairman and CEO of DP World, said, according to WAM.

"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," he added.

Ahmed bin Sulayem noted that this investment hits a milestone as DP World marks 25 years of operations in Jeddah and highlights the company's commitment to facilitating the flow of trade.

Omar Bin Talal Hariri, President of Saudi Ports Authority (Mawani), said that this project is part of Mawani's broader efforts to expand the number of logistics centers in Saudi ports and aligned with the objectives of the National Transport and Logistics Strategy and Vision 2030.