Ports and logistics sector

An Expert's View about Sea, Coastal and Inland Water Transport in Saudi Arabia

Last updated: 26 Sep 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 and exports.

Sector briefing Ports and logistics sector 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 and equipping all of its ports with the The Saudi Ports Authority participation of private sector. recently announced that the Kingdom is envisaging an See the UKTI website for general information investment of SR 30 billion about Saudi Arabia. The ?Doing business? guide includes an overview of the economy, business (US$ 8 billion) on culture, potential opportunities and other modernising and equipping all relevant issues. of its ports with the participation of private sector UK Trade & Investment Sector briefing: ports sector 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 (KAEC) Port venture, which has started the port Project ? estimated cost US$ 5 billion construction. This does not meant the King Abdullah Economic City (KAEC) seaport cancellation of an initial agreement signed in project (Industrial & Commercial), extending April 2008 by Emaar with DP World. The first over 14 square kilometres has been announced phase of the port will cost SR 4 billion (US$ and an MOU has been signed by the ports 1.07 billion) with operations expected to start operator DP World. The seaport will be the in 2012 resulting in a port with capacity for 1.7 largest in the Red Sea and one of the top 10 million containers. ports in the world, with a capacity to handle 20 million TEUs. 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 TEUs 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$ 5 bn. It will have a purpose built Hajj Privatisation of ports services 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 sector in Saudi Arabia Ports Authority, offering 21 port services With the announcement of Jazan Economic City contracts (JEC), a new industrial port has recently been to the private sector. announced as part of the government's efforts to boost the region's development; this is New container terminal ? King Abdul Aziz thought to cost some SR 3 billion. Port, Dammam ? US$ 430 million A new container terminal will be established at A plan has been approved for construction of King Abdul Aziz Port in Dammam at a cost of three new petrochemical berths at King Fahad more than SR 1 billion(US$ 430 million). The Industrial port at Jubail Industrial City and 9 project will be implemented on a build operate- new berths at King Fahad Industrial port at transfer (BOT) basis. Studies have been Yanbu. completed on the new container terminal and tenders will be invited within a few months to The Royal Commission of Yanbu and Jubail is implement the project, which will be open to developing a plan to double the capacity of the Saudi and foreign companies. petrochemical industry in the town. A key element of the plan is the building of a new Under the plans to be submitted to the Saudi chemical quay at the King Fahd Industrial port. Transport Ministry, a 400 square metre Yanbu, for exporting both liquid and solid container terminal will be built next to the petrochemicals and enhancing the facilities at port's existing free zone. The terminal would the Jubail Commercial ports as well. Bechtel is add 1.5 million twenty foot equivalent units drawing up plans for both ports. (TEUs) to the port's capacity of 1.7 million. This is being propsed by the Dammam Bonded A contract has been approved for the & Re-export Zone (BBRZ), which is eight years deepening of King Abdul Aziz Port to a depth of into a 30 years concession to run the free 18 metres, including a channel leading to the zone. It hopes to expand the range of services docks worth SR 200 million. Saudi Ports at the site, enhancing its commercial appeal. It Authority will announce public tenders for the hopes to develop the free zone and container development of two logistic operations areas at facility side by side, as they have done at Jebel Jeddah Islamic Port and King AbdulAziz Port in Ali in Dubai. Dammam port is already linked to Dammam. Feasibility studies are currently Riyadh by rail, and is set to assume greater being conducted for the rest of the Saudi ports. significance with the development of the Saudi landbridge, which will link it to the country's Additional ground equipment viz.: Diesel and largest port in Jeddah on the Red Sea coast, Electric Forklifts, Terminal tractors, Container via a rail line. chassis, Straddle carriers, Empty container handlers and container Scanning units. Port Industrial port at Ras Al Zour ? US$ 600 management and consultancy and port safety million ? work in progress & security equipment and systems. A contract for US$ 600 million to build an If you have any questions about opportunities industrial port at Ras Al-Zour was in the local market, get in touch with the awarded to China Harbour Contracting contacts listed at the end of this report. Company and work is near to its completion. They have partnered the local Rafid Group on Business opportunities aimed at UK companies the project to form the China Harbour are added daily to the UKTI website. These Engineering Arabia Company. leads are sourced by our staff overseas in British Embassies, High Commissions and The port will serve nearby fertiliser and Consulates, across all sectors and in over 100 aluminium smelting complexes. Three berths markets. You can search for opportunities by are built to handle general, dry bulk and liquid sector or country, or register to receive cargo. The port will cater for vessels of up to business opportunity alerts on a regular basis. 70,000 dead weight tonnes and handle bauxite, process chemicals and other equipment needed for the aluminium smelter planned by Saudi Arabian Mining Co, Ma'aden. The first phase of the project is almost completed and they are expecting to receive the first ship at port in June 2011 . Other opportunities UK Trade & Investment Sector briefing: ports sector in Saudi Arabia Major events and activities UKTI contacts World Transport Showcase Week ? Abdul Muqtadar London Trade & Investment Officer & Leeds 16-20 May 2011. To outline High value opportunities (projects) for Ports, British Consulate-General, Jeddah Ra Tel: 00966 (0) 2 622 5550 ext. 2214 il & Airport sectors and Roundtable d E-mail: abdul.muqtadar@fco.gov.uk iscussions with group of relevant UK compan www.ukti.gov.uk ies Contact: Jason Castelino, Deputy Head, Ports Emai Saad Al-Adhami l: Jason.castelino@ukti.gsi.gov.uk Time: 16-20 may 2011 Trade & Investment Officer British Embassy, Riyadh For Tel: 00966 (0) 1 488 0088 ext. 2257 details of events related to this country or sector, E-mail: saad.aladhami@fco.gov.uk use the events search on the UKTI webs www.ukti.gov.uk ite or register to receive regular updates. New export events are added daily. David Harries UKTI?s Tradeshow Access Head of Trade Office Programme (TAP) prov British Trade Office, Al Khobar ides grant support for eligible Small & M Tel: 00966 (0) 3 882 5288 ext. 2999 edium Sized Enterprises (SMEs) to attend E-mail david.harries@fco.gov.uk trade shows overseas. www.ukti.gov.uk UK Trade & Investment Sector briefing: ports sector in Saudi Arabia Next steps - how UKTI can help British companies wishing to develop their business in the local market are advised to undertake as much market research and planning as possible in the UK. UKTI?s local team, 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 local 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 local 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 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: ports sector in Saudi Arabia
Posted: 26 September 2011, last updated 26 September 2011

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