Ports & Logistics Opportunities in Saudi Arabia

An Expert's View about Water Transportation Support Services in Saudi Arabia

Last updated: 14 Mar 2011

Saudi Arabia's eight major ports, with a total of 183 piers (making it the largest seaport network in the Middle East), handle 90% of the country's trade, including imports/exports.

Sector briefing Ports & Logistics Opportunities in Saudi Arabia Why Saudi Arabia? Saudi Arabia's eight major ports, with a total of 183 piers (making it the largest seaport network in the Middle East), handle 90% of the country's trade, including imports and exports. Jeddah's strategic central location on the Red Sea coast of the Arabian Peninsula and on a major East West trade route has, for millennia, sustained its importance as a trading port and entrepot. The Saudi Ports Authority recently announced that the Kingdom is envisaging an investment of SR 30 billion (US$ 8 billion) on modernising ?The Saudi Ports Authority and equipping all of its ports with the participation of private sector. recently announced that the Kingdom is envisaging an Find general information on the Saudi Arabian investment of SR 30 billion market conditions on UKTI?s website. (US$ 8 billion) on www.uktradeinvest.gov.uk. The Doing Business Guide for Saudi Arabia gives an overview of modernising and equipping all Saudi Arabia?s economy, business culture, of its ports with the potential opportunities and an introduction to participation of private other relevant issues. sector.? UK Trade & Investment Sector briefing: Ports opportunities in Saudi Arabia the Red Sea close to the industrial city of Opportunities Jeddah already gives it an advantage. The development master plans see it becoming the With major expansion and development plans largest port in the region, equipped to receive for both the existing and new ports, coupled the largest shipping vessels and providing with the intention to expand the role of the connections to onward road, rail and air private sector and to restructure the role of the transport networks. In addition to the existing Saudi Ports Authority, there will be increasing volumes of traffic through the Red Sea, KAEC opportunities for UK companies in many areas. itself will create around 10,000 businesses and The privatisation of a number of activities and industries, all with shipping requirements. the creation of further BOT port facilities There is also an opportunity to create a world- presents opportunities for the provision of legal class port that can become a hub for services to bidding consortia and possibly the transhipment. Saudi Ports Authority. There will also be potential for port planning and development Emaar Economic City, spearheading the consultancy, port security, equipment supply, development of KAEC on the Saudi Red Sea and port operation contracts. coast, recently announced a preliminary accord with Saudi Bin Laden Group over the joint King Abdullah Economic City Port Project venture, which will start work to build the port. ? estimated cost US$ 5 billion This does not meant the cancellation of an King Abdullah Economic City (KAEC) seaport initial agreement signed in April 2008 by Emaar project (Industrial & Commercial), extending with DP World. The first phase of the port will over 14 square kilometres has been announced cost SR 4 billion (US$ 1.07 billion) with and an MOU has been signed by the ports operations expected to start in 2012 resulting operator DP World. The seaport will be the in a port with capacity for 1.7 million largest in the Red Sea and one of the top 10 containers. ports in the world, with a capacity to handle 20 million TEU. Two logistic port areas ? US$ 40 million & US$ 186 million It will be equipped to receive the new Saudi Ports Authority will announce public generation mega-vessels, with a nominal tenders for the development of two logistic capacity of in excess of 10,000 TEU and will operation areas at Jeddah Islamic Port, worth utilise global positioning technologies, US$ 40 million and for King Abdul Aziz Port in advanced information management systems Dammam, worth US$ 186 million. and automated processes. It is predicted that a multipurpose cargo terminal is scheduled to be Three new container terminals under operational by end of 2012 and a 1.6 million B.O.T systems TEU container terminal by mid-2013, after A tender for establishing three new container which the capacity of the port will be increased terminals under B.O.T systems will be in several phases. announced for Jeddah, worth US$ 400 million, Dammam Port US $ 210 million and Dhiba Port The KAEC Sea Port will become part of Saudi for US $ 96 million. Arabia?s vast transportation and port network and seeks to capitalise on untapped Bunkering terminals at all eight Saudi opportunities by leveraging on its strategic ports ? US$ 135 million location on the Red Sea, one of the most Bunkering terminals are to be established at all important sea routes between the East and the eight Saudi ports worth US$ 135 million. West. The Seaport will be integrated with the Tenders of these projects are to be announced industrial zone and logistics hub to provide a soon. seamless logistics operation within KAEC that will further promote regional trade. Ship repair yards ? US$ 150 million Two ship repair yards are to be developed at This port will be situated between the holy Dammam and Jeddah Islamic Ports worth US $ cities of Makkah and Madinah, 80 150 million. kilometres north of Jeddah, estimated to cost US$ 990 million. It will have a purpose built Privatisation of ports services Hajj terminal, complete with hotels capable of The privatisation of ports services is a major receiving more than 300,000 pilgrims every improvement in the five year plan of the Saudi season. The strategic location of the port on UK Trade & Investment Sector briefing: Ports opportunities in Saudi Arabia Ports Authority, offering 21 port services receive the first ship at port in September contracts to the private sector. 2010. New container terminal ? King Abdul Aziz Other opportunities Port, Dammam ? US$ 430 million With the announcement of Jazan Economic City A new container terminal w (JEC), a new industrial port has recently been ill be established at announced as part of the government's efforts King Abdul Aziz Port in Dammam at a cost of to boost the region's development; this is more than SR 1 billion(US$ 430 million). The thought to cost some SR 3 billion. project will be implemented on a build operate- transfer (BOT) basis. Studies have been A plan has been approved for construction of completed on the new container terminal and three new petrochemical berths at King Fahad tenders will be invited within a few months to Industrial port at Jubail Industrial City and 9 implement the project, which will be open to new berths at King Fahad Industrial port at Saudi and foreign companies. Yanbu. Under the plans to be submitted to the Saudi The Royal Commission of Yanbu and Jubail is Transport Ministry, a 400 square metre developing a plan to double the capacity of the container terminal will be built next to the petrochemical industry in the town. A key port's existing free zone. The terminal would element of the plan is the buildingof a new add 1.5 million twenty foot equivalent units chemical quay at the King Fahd Industrial port, (TEUs) to the port's capacity of 1.7 million. Yanbu for exporting both liquid and solid This is being propsed by the Dammam Bonded petrochemicals and enhancing the facilities at & Re-export Zone (BBRZ), which is eight years the Jubail Commercial ports as well. Bechtel is into a 30 years concession to run the free drawing up plans for both ports. zone. It hopes to expand the range of services at the site, enhancing its commercial appeal. It A contract has been approved for the hopes to develop the free zone and container deepening of King Abdul Aziz Port to a depth of facility side by side, as they have done at Jebel 18 metres, including a channel leading to the Ali in Dubai. Dammam port is already linked to docks worth SR 200 million. Saudi Ports Riyadh by rail, and is set to assume greater Authority will announce public tenders for the significance with the development of the Saudi development of two logistic operations areas at landbridge, which will link it to the country's Jeddah Islamic Port and King AbdulAziz Port in largest port in Jeddah on the Red Sea coast, Dammam. Feasibility studies are currently via a rail line. being conducted for the rest of the Saudi ports. Industrial port at Ras Al Zour ? US$ 600 Additional ground equipment viz.: Diesel and million ? work in progress Electric Forklifts, Terminal tractors, Container A contract for US$ 600 million to build an chassis, Straddle carriers, Empty container industrial port at Al-Zour has been handlers and container Scanning units. Port awarded to China Harbour Contracting management and consultancy and port safety Company and work is in progress. They & security equipment and systems have partnered the local Rafid Group on the project to form the China Harbour If you have any questions on the opportunities Engineering Arabia Company. The Saudi Port above, contact the UKTI contacts named in this Authority has issued a letter of intent to China report. Business opportunities aimed Harbour for an engineering, procurement and specifically at UK companies are added daily to construction contract. UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High The port will serve nearby fertiliser and Commissions and Consulates, across all sectors aluminium smelting complexes. Three berths and in over 100 markets. will be built to handle general, dry bulk and liquid cargo. The port will cater for vessels of You can be alerted to business opportunities on up to 70,000 dead weight tonnes and handle a regular basis by registering on the UKTI bauxite, process chemicals and other website. More on UKTI?s business opportunities equipment needed for the aluminium smelter service planned by Saudi Arabian Mining Co, Ma'aden. The first phase of the project is almost completed and they are expecting to UK Trade & Investment Sector briefing: Ports opportunities in Saudi Arabia Major events and activities UKTI contacts Inward mission by Saudi Ports Authority Abdul Muqtadar officials to attend Trade & Investment Officer UK Trade & Investment Ports Seminar/Conference in London & British Consulate-General, Jeddah Liverpool. Tel: 00966 (0) 2 622 5550 ext. 2214 Contact: Jason Castelino, Deputy Head, Ports E-mail: abdul.muqtadar@fco.gov.uk Email: Jason.castelino@ukti.gsi.gov.uk www.ukti.gov.uk Time: 18-22 October 2010 Saad Al-Adhami Find full details of al Trade & Investment Officer l events in this country British Embassy, Riyadh and sector on the UKTI website. New export events are added daily to the site Tel: 00966 (0) 1 488 0088 ext. 2257 and you can register to be alerted to them E-mail: saad.aladhami@fco.gov.uk on a dai www.ukti.gov.uk ly, weekly or monthly basis UKTI?s David Harries Tradeshow Access Programme (TAP) provides grant support for eligible Smal Head of Trade Office l & Medium Sized Enterprises (SME British Trade Office, Al Khobar 's) to attend Tel: 00966 (0) 3 882 5288 ext. 2999 trade shows overseas. Find out more about UKTI s E-mail david.harries@fco.gov.uk upport for attendance at overseas www.ukti.gov.uk events UK Trade & Investment Sector briefing: Ports opportunities in Saudi Arabia Next steps - How UKTI can help British companies wishing to develop their business in the Saudi Arabian market are advised to undertake as much market research and planning as possible in the UK. UKTI?s team in Saudi Arabia, with its wide local knowledge and experience, can provide a range of services to British-based companies wishing to grow their business in global markets. This can include: ? Provision of market information ? Validated lists of agents/distributors ? Key market players or potential customers in the Saudi Arabian market ? Establishment of interest of such contacts in working with you ? Arranging appointments ? Organise seminars or other events for you to meet contacts and promote your company in the Saudi Arabian market This work is available via our Overseas Market Introduction Service (OMIS) a chargeable service which assists British-based companies wishing to enter or expand their business in overseas markets. To find out more about commissioning this work, or accessing other UKTI services and specialist advice, please visit the UKTI website to find contact details for your local UKTI office. Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Ports opportunities in Saudi Arabia
Posted: 29 September 2010, last updated 14 March 2011

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