Saudi Arabia Signs $586 Million Deals To Privatise Cargo Terminals At 8 Ports

The Saudi Ports Authority (Mawani) has signed a series of major contracts to privatise multipurpose cargo terminals at eight commercial and industrial ports across Saudi Arabia.

These Build-Operate-Transfer (BOT) agreements, covering a 20-year period, are valued at over SAR 2.2 billion (approximately $586.6 million) and aim to attract private sector investment to improve port performance and competitiveness.

The deals were announced during a formal ceremony held under the patronage of His Excellency Eng. Saleh bin Nasser Al-Jasser, Minister of Transport and Logistic Services and Chairman of Mawani.

The agreements were signed in collaboration with the National Center for Privatization (NCP), which played a key role in facilitating the contracts.

Two leading national companies, Saudi Global Ports and Red Sea Gateway Terminal Company, have been selected to develop, operate, and manage the terminals under the BOT model.

According to the agreement, Saudi Global Ports will be responsible for four major ports in the Eastern Province:

• King Abdulaziz Port in Dammam
• Jubail Commercial Port
• King Fahd Industrial Port in Jubail
• Ras Al-Khair Port

Red Sea Gateway Terminal Company will manage operations at four ports located in the Western Province:

• Jeddah Islamic Port
• Yanbu Commercial Port
• King Fahd Industrial Port in Yanbu
• Jazan Port

The contract for King Fahd Industrial Port in Yanbu includes plans to significantly boost container handling capacity. This will be achieved through the use of advanced cargo handling equipment such as ship-to-shore (STS) cranes, rubber-tyred gantry (RTG) cranes, smart yard vehicles, reach stackers, and modern transport systems. These upgrades are aimed at reducing truck turnaround times and vessel berth stays, leading to faster and more efficient operations.

The signing ceremony was attended by several senior figures from the maritime and logistics sectors. According to statements from Mawani representatives, the agreements demonstrate strong investor confidence in Saudi Arabia’s port sector and align with national objectives to improve logistics performance.

Eng. Al-Jasser, who also chairs the Supervisory Committee for Privatization in the Transport and Logistics Sector, highlighted the growing role of private partnerships in Saudi Arabia’s infrastructure development. He stated that these projects reflect the robust and expanding logistics ecosystem of the Kingdom and are aligned with the National Transport and Logistics Strategy, a core pillar of Saudi Vision 2030.

Meanwhile, H.E. Mr. Mohannad bin Ahmed Basodan, CEO of the National Center for Privatization, pointed out that this project stands among the most wide-ranging privatisation efforts ever undertaken in the country’s maritime sector.

Reference: prnewswire

Source: Maritime Shipping News