Saudi Arabia’s Ports Authority Signs Agreements Worth $267M

JEDDAH: Saudi Arabia’s Ports Authority (Mawani) on Saturday signed seven agreements with national and international companies to establish and expand logistics centers at Jeddah Islamic Port and Al-Khumra Logistics Zone, with total investments approaching SR1 billion ($267 million).

The signings were overseen by Minister of Transport and Logistics and Mawani Chairman Saleh Al-Jasser, in the presence of Mawani President Sulaiman Al-Mazrou and other officials, the Saudi Press Agency reported.

The projects form part of Mawani’s strategy to expand logistics infrastructure along the Kingdom’s western coast, supporting the National Transport and Logistics Strategy and Saudi Vision 2030, which aim to position the Kingdom as a global logistics hub.

Al-Jasser said the launch and expansion of the logistics centers reflected the leadership's continued support for developing the transport and logistics sector.

He said the projects would strengthen Jeddah Islamic Port and Al-Khumra Logistics Zone, improve supply chain efficiency and reinforce Saudi Arabia's role as a regional and global trade gateway on the Red Sea.

The agreements will also encourage greater private-sector participation by providing advanced logistics infrastructure to support commercial activity and enhance the competitiveness of Saudi ports, he added.

Al-Mazrou described the projects as a strategic step in Mawani’s port development program, saying they would boost operational readiness, increase handling capacity and support the localization of logistics services and related industries.

He added that Saudi ports were evolving from transit points into investment and economic hubs that play a larger role in regional and international trade.

The latest agreements increase the number of logistics centers at Saudi ports to 34, including 17 at Jeddah Islamic Port, with cumulative investments exceeding SR14 billion.

The seven new centers will occupy more than 384,000 square meters dedicated to storage, assembly and re-export operations. Mawani said the projects are expected to create more than 5,000 direct and indirect jobs while supporting integrated logistics services and strengthening domestic and international supply chains.

The facilities will include cargo handling infrastructure and digital logistics platforms designed to improve operational efficiency, speed up distribution and support the expansion of national and international companies operating in the Kingdom.

Among the projects is the expansion of Maersk’s logistics center at Jeddah Islamic Port, which will add 60,000 square meters of container and storage yards through an investment of SR40 million. Mawani said the expansion would enhance logistics services and provide more efficient operational solutions for importers and exporters.