Saudi Ports lays the foundation stone for the largest integrated logistics area in the Middle East

Saudi Ports lays the foundation stone for the largest integrated logistics area in the Middle East
Saudi Ports

The Saudi Ports Authority (Mawani) and Maersk announced the laying of the foundation stone for the company's largest integrated logistics area in the Middle East at Jeddah Islamic Port. With investments amounting to 1.3 billion riyals, and providing more than 2,500 direct and indirect job opportunities, in the presence of a group of officials from the maritime and logistics sectors.

This comes within the framework of the initiatives launched by "Mawani" with the aim of developing and offering investment opportunities in logistical areas for the private sector, and increasing the number of logistical areas that include re-export to reach 30 areas by 2030, in line with the objectives of the national strategy for transport and logistics services to establish the Kingdom's position as a global logistics center. The hub of the confluence of three continents.

The new area, which covers an area of 225,000 square meters; A set of clean logistical solutions that link and facilitate the movement of supply chains, and deal with annual volumes close to 200,000 TEUs across various products. The work is expected to be completed during the first quarter of 2024.

The region includes storage and distribution areas that accommodate exports and imports of general goods, warehouses to accommodate refrigerated food products, in addition to an area for transshipment, air freight, freight forwarding (LCL), and an e-commerce implementation center, with designs with high storage density and pioneering mechanical solutions.

Renewable energy 

In the same context; The region works using renewable energy and applying solutions to decarbonize logistics services to achieve net zero by 2040, as it is powered by 100 percent solar energy generated from rooftop solar panels distributed over 65,000 square meters, and the trucks used for transportation will be cars effectively reducing emissions.

Jeddah Islamic Port

The region operates according to an advanced warehouse management system. It applies modern technologies and digital solutions to manage inventory efficiently, and allows tracking at the unit level. An advanced dashboard will be provided to improve competencies and build a competitive advantage for beneficiaries of importers, exporters and shipping agents, in addition to an internal women's academy that provides training programs for women.

It is noteworthy that Mawani and Maersk signed an agreement at the end of 2021, following which the foundation stone for the integrated logistics zone in Jeddah Islamic Port was laid. This supports the growth of the logistics services industry, contributes significantly to supporting economic and developmental activity, raises the absorptive capacity of the share of non-oil exports in the Kingdom by 50 percent, and creates growing job opportunities in the logistics sector.