Saudi Global Ports Company (SGP) aims to create a mega container hub at King Abdulaziz Port Dammam (KAPD), having assumed the management of both First and Second Container Terminals.
Saudi Ports Authority (Mawani) successfully handed over First Container Terminal to SGP less than six months after the signing of a 30-year Build, Operater and Transfer (BOT) agreement between the two organisations in April, 2020.
Abdulla Zamil, chairman of SGP, said: “The smooth transition within a short timeline under the pandemic situation is phenomenal.
“The positive relationship will be the catalyst to accelerate the developments to elevate the seaport and logistics capabilities of Dammam to support the industrial growth initiatives under Saudi Vision 2030.”
SGP is now the sole container terminal operator at the port and, once its planned expansion works are fully completed, it aims to increase KAPD’s annual container handling capacity to approximately 7.5m teu.
SGP’s estimated total investment of more than SAR7bn (US$1.8bn) is expected to be the largest seaport investment by a single operator under a public private partnership in the Kingdom of Saudi Arabia.
The terminal operator has advanced the purchase and commissioning of more than 200 new handling equipment to facilitate smooth operations at both terminals on top of the transfer of equipment from Mawani.
H.E. Eng. Saad, president of Mawani, said: “I am confident that SGP will continue to raise the performance and customer service levels across both terminals through their strong business practices and as SGP invests and develops key infrastructure, focusing on environmentally friendly and technologically sophisticated systems to develop a modern Saudi workforce.”
Since the signing of the BOT agreement, Mawani and SGP have worked closely on various activities including manpower retention, transfer of assets, engagement of the port community and collaboration with stakeholders like Tabadul and Customs Authority.
Wan Chee Foong, PSA International’s regional CEO of Middle East South East Asia, said: “As both a shareholder and technical partner, PSA is committed to providing its expertise and leveraging its resources towards 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.”