The Saudi Ports Authority (Mawani) reported an 8.26 percent rise in cargo volume at its managed ports for October, totaling 27,012,128 tons, up from 24,951,573 tons in October of 2023. Outbound containers experienced a notable 14 percent increase, reaching 254,832 containers compared to 223,434 during the same month last year. Inbound containers also saw growth, climbing by 10 percent to 248,216, up from 226,514 in the same period in 2023.
General cargo amounted to 913,642 tons, while solid bulk cargo reached 4,357,029 tons and liquid bulk cargo hit 15,123,585 tons. However, livestock imports declined by 17.3 percent, with 654,712 head of livestock recorded, down from 791,683 in October 2023.
Container handling and vessel traffic
Total container handling fell by 14.19 percent to 632,374 containers, a decrease from 736,953 in October 2023, and transshipment containers dropped significantly by 54.94 percent to 129,326, down from 287,005 last year. Vessel traffic also saw a reduction of 7.24 percent, with 987 ships recorded compared to 1,064 in October 2023. The number of passengers decreased by 21.83 percent to 48,177, and vehicle imports fell by 13.44 percent, totaling 101,212 vehicles compared to 116,930 last year.
In September 2024, Mawani noted a year-on-year increase in cargo handling of 7.82 percent, totaling 28,097,022 tons. Outbound containers rose by 9 percent to 255,606, while inbound containers grew by 18 percent to 258,007, highlighting the ongoing growth trends in Saudi Arabia’s port operations.
New logistics park announcement
In May 2024, DP World and Mawani announced the initiation of a SAR900 million ($240 million) logistics park at Jeddah Islamic Port. This facility is set to provide cutting-edge storage and distribution capabilities, enhancing trade both within the Kingdom and across the region. Spanning 415,000 square meters, the greenfield project will include 185,000 square meters of warehousing and a multipurpose storage yard, making it the largest integrated logistics park in the Kingdom. It will accommodate over 390,000 pallet positions, providing an efficient platform for the seamless movement of goods to and from Jeddah.
The partnership between Mawani and DP World also encompasses the management of the South Container Terminal through a separate 30-year concession signed in 2020. This terminal is currently undergoing a comprehensive modernization project, set for completion in Q4 2024, which will boost its handling capacity to five million twenty-foot equivalent units (TEUs). Overall, the two DP World initiatives represent a total investment nearing SAR4 billion.
Introduction of new shipping service
In March 2024, Mawani unveiled a new shipping service named “GALEX” by Emirates Shipping Line (ESL) to King Abdulaziz Port in Dammam. This service aims to enhance maritime connections between Saudi Arabia and East Asia, showcasing the port’s operational efficiency. It will connect King Abdulaziz Port to eight regional and international ports, including Shanghai, Xiamen, Dachan Bay, and Qingdao in China; Busan in Korea; Klang in Malaysia; Sohar in Oman; and Khorfakkan in the UAE. Operating weekly, the service will have a capacity of up to 3,000 TEUs. The collaborations established by Mawani with major global shipping lines are instrumental in advancing the development of the kingdom’s ports, thereby enhancing competitiveness, infrastructure, maritime transport routes, and operational efficiency.
Saudi progress in liner shipping connectivity
Saudi Arabia has made notable advancements across various global indices, particularly in container handling and logistics efficiency. The kingdom climbed eight positions in container handling, securing the 16th spot among the world’s 100 largest ports, as reported by Lloyd’s List. Additionally, in the World Bank’s Logistics Performance Index, Saudi Arabia improved its standing by 17 places, now ranking 38th out of 160 nations.
In the Liner Shipping Connectivity Index, Saudi Arabia has also achieved significant progress, with Mawani leading the regional advancements, according to a UNCTAD report. Mawani recorded a score of 79.01 points in the fourth quarter of 2023, up from 77.66 points in the previous quarter.
Further agreements
To enhance the investment appeal of Saudi ports, Mawani entered into agreements in 2023 to establish five new logistics parks and centers, with total investments surpassing SAR 4 billion. These agreements involve the development of logistics parks at King Abdulaziz Port in Dammam, an integrated logistics park at Jeddah Islamic Port, and a comprehensive bunker station at King Fahad Industrial Port in Yanbu.
Furthermore, Mawani laid the groundwork for Maersk’s largest integrated logistics complex in the Middle East at Jeddah Islamic Port. It also established a logistics park at the same location in partnership with CMA CGM and launched a new logistics park at Jeddah Islamic Port in collaboration with LogiPoint, marking the company’s inaugural integrated logistics park in the region.
Maritime services
To bolster international trade, Mawani introduced 28 new maritime services that connect Saudi ports with both eastern and western ports. It also forged partnership agreements with international ports and national destinations to strengthen its standing in the maritime industry.
Additionally, Mawani laid the foundation stone for projects aimed at developing and operating container terminals at King Abdulaziz Port in Dammam, with investments exceeding SAR 7 billion. Saudi Arabia has inaugurated several strategic initiatives at Jubail Commercial and Industrial Ports to enhance capacity. Moreover, the kingdom established the Seaman Club at Jeddah Islamic Port to improve services for ship crews.
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