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Saudi Arabia’s Jeddah Islamic Port to establish $46.6 million integrated logistics zone

The new zone will boost port efficiency, improve commercial flow, and strengthen supply chains
Saudi Arabia’s Jeddah Islamic Port to establish $46.6 million integrated logistics zone
The new undertaking seeks to boost efficiency, create 400 job opportunities.

An agreement has been signed between the Saudi Ports Authority (Mawani) and MEDLOG to establish an integrated logistics zone in Jeddah. This collaboration between the government agency, Mawani, and the logistics division of the Mediterranean Shipping Co. will result in the development of the zone, which is estimated to have an investment value of up to SAR175 million ($46.66 million). According to a statement, the project encompasses a site that offers comprehensive services for container maintenance and inspection. It is expected to create 400 job opportunities, both directly and indirectly, and provide training for national staff in the logistics services sector.

Read more: Saudi ports’ container volumes increase 5.31 percent in October

The integrated logistics zone in Jeddah will not only enhance the efficiency of operations and facilitate robust supply chains but also prioritize the safety of the port environment by incorporating alternative energy sources to reduce carbon emissions. This initiative aligns with the goals of the National Transport and Logistics Strategy, which aims to position Saudi Arabia as a global center for supply chain management and a strategic hub connecting three continents. Furthermore, the project will elevate the level of logistical services on the Red Sea coast and cater to the needs of beneficiaries, meeting the demands of the local market with advanced operational capabilities for transporting and handling goods.

New logistics zone in Dammam

In a similar vein, King Abdulaziz Port in Dammam is also set to receive an integrated logistics zone, with Mawani and MEDLOG commencing construction by laying the foundation stone. This endeavor, valued at over SAR150 million, reflects Mawani’s commitment to developing a sustainable and prosperous maritime sector. Moreover, the new logistics zone in Dammam will span an area exceeding 100,000 square meters and have a capacity to handle 300,000 containers annually.

Saudi Arabia’s dedication to improving its logistics infrastructure has yielded positive results, as evidenced by its significant progress in the World Bank’s Logistics Performance Index. In 2023, the country climbed 17 places to secure the 38th position, a testament to its sustained efforts in this domain.

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