DP World and Saudi Ports Authority Begin Construction on Jeddah Logistics Park Project to Boost Middle East Trade Hub
To improve logistics capabilities and support Saudi Arabia's Vision 2030 economic goals, DP World and the Saudi Ports Authority have recently begun construction on the Jeddah Logistics Park. This environmentally friendly infrastructure, powered by solar panels, will cover a total area of 415,000 square meters and is anticipated to be finished by next year.
(Photo : Pexels/Jesús Esteban San José)
Construction of Jeddah Logistics Park Project
On Sunday, May 26, the Dubai Media Office announced the start of the construction of Jeddah Logistics Park. The park will be developed at Jeddah Islamic Port and will cost 900 million Saudi riyals (about 240 million dollars). It will be the largest integrated logistics park in Saudi Arabia.
Ahead of SR500 million or more than $133 million in investment, DP World and the Saudi Ports Authority, also called Mawani, executed a 30-year agreement in June 2022 to develop a state-of-the-art logistics complex in Jeddah, focusing on the port. As mentioned, a total of 100,000 square meters of warehousing storage space and an in-land container depot with the capacity to accommodate about 250,000 TEU are components of the proposed development of the park, which will encompass a total area of 415,000 square meters. The storage capacity could be increased to 200,000 square meters if there are potential extensions.
Moreover, Saleh Al-Jasser, the Saudi Minister of Transport and Logistics Services and chairperson of the board of the Saudi Ports Authority, facilitated the signing of the agreement. Accordingly, the park can handle more than 390,000 pallet positions, providing customers with an effective platform for efficiently transporting goods to and from Jeddah at all times. On the other hand, in the second quarter of 2025, it is anticipated that the park, which will be constructed in two stages, will be ready for use. Additionally, rooftop solar panels with a capacity of 20 MW will provide its power.
DP World chairman and CEO Sultan bin Sulayem stated during the park's groundbreaking ceremony that Jeddah Logistics Park, situated strategically on the vital Asia-Europe transportation route, will provide customers with market access and high-quality multimodal connectivity. It will also significantly contribute to realizing the ambitious objectives outlined in Saudi Vision 2030, which pertains to the kingdom's ambitious economic strategy of separating itself from oil dependence.
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Other Collaboration Projects of DP World and Saudi Ports Authority
The partnership between Mawani and DP World also involves the administration of the South Container Terminal through a second 30-year concession contracted in the year 2020. It was mentioned that the terminal is presently in the final phase of a major modernization project, which is expected to be finished in the fourth quarter of 2024. Nevertheless, this project will reportedly increase the handling capacity to 5 million TEU. Omar bin Talal Hariri, the president of Mawani, emphasized that integrating this novel logistics zone with DP World's South Container Terminal at Jeddah Islamic Port would promote expansion and augment the terminal's container capacity.
According to Hariri, the initiative is a component of Mawani's more extensive efforts to increase the number of logistics centers in Saudi ports. These initiatives are being carried out in collaboration with significant national and international businesses and are also based on the National Transport and Logistics Strategy and Vision 2030 goals.
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