Saudi Global Ports (SGP), a subsidiary of Singapore’s port operator PSA International, entered a build, operate and transfer (BOT) agreement with Saudi Ports Authority (Mawani) for the first two container terminals in the King Abdulaziz Port in Dammam, making SGP the sole container terminal operator of the port.
SGP will embark on a development and modernisation program to transform the King Abdulaziz Port into a mega container hub and increase the port’s annual handling capacity of around 7.5m teu when the planned expansion works are fully completed.
The total estimated investment on the project is over S$2.6bn ($1.8bn).
“SGP’s development of large-scale, efficient and modern container terminal operations in Dammam Port is an important element of the Kingdom’s objective of developing the necessary logistics infrastructure to facilitate and promote the diversification of the Kingdom’s economy into a leading industrial powerhouse,” PSA said in a release.
The agreement is one of the key initiatives within the Saudi Vision 2030 framework, a government plan to reduce Saudi Arabia’s dependence on oil, diversify its economy, and develop public service sectors such as health, education, infrastructure, recreation and tourism.
“We would like to thank Mawani and the Kingdom for trusting PSA again to deliver another significant investment with the new BOT Agreement. PSA is committed to the Kingdom to support the transformation of King Abdulaziz Port into a global mega hub, with modern and robust infrastructure, and through the cultivation of a strong Saudi workforce. We would also like to thank our partners, customers and stakeholders for their continued support as we work together alongside towards a more efficient and resilient global supply chain,” commented Tan Chong Meng, Group CEO of PSA International.