A. P. Moller – Maersk has signed an agreement with Saudi Ports Authority to invest $136m over 25 years in an integrated logistics park at the Jeddah Islamic Port in Saudi Arabia that will be able to handle annual volumes of close to 200,000 teu across different products.
The project, which will cover an area of 205,000 sq m, will be the first of its kind at the port, with the goal of connecting and simplifying supply chains in the Kingdom. Maersk said it will also invest in renewable energy to power this facility and eventually achieve carbon-neutrality. The project is expected to create more than 2,500 direct and indirect jobs in Saudi Arabia.
The Jeddah Islamic Port sits on the Red Sea coast, connecting the international shipping routes between the east and the west. With over 5m teu of containers flowing in and out of the port, it is the largest port in terms of volume and cargo handling in Saudi Arabia and the second largest in Gulf Cooperation Council countries. Over 2.5m teu tranship through the port every year. It also connects to the hinterland through a road and rail network.
“The vision for the Kingdom to diversify its economy beyond the oil sector is an important one to enable long term growth for Saudi Arabia. At Maersk, we not only believe in this vision, but are also committed to play a role by upgrading the logistics infrastructure through our integrated offering and thus opening more avenues for traders in Saudi Arabia,” said Mohamad Shihab managing director, Maersk Saudi Arabia.