JEDDAH, KINGDOM OF SAUDI ARABIA – DP World has been awarded a 30-year concession deal by the Saudi Ports Authority (Mawani), for the management and development of the Jeddah South Container Terminal at the multi-purpose Jeddah Islamic Port, the government of Dubai said in a statement on Monday.
The Southern Container Terminal will upgrade its capacity to 3.6 million TEUs, up from 2.4 million TEUs, and will provide 1,400 jobs.
DP World has operated the South Container Terminal on a lease agreement for more than 20 years.
“Under the agreement, DP World will invest up to $500 million (384.2 million pounds) to improve and modernise the Jeddah Islamic Port, including major infrastructure development to enable the port to serve ultra-large container carriers,” the statement said.
The Jeddah Islamic Port, which was established in 1976, is on the Red Sea coast and is the largest port in the Kingdom of Saudi Arabia with annual volumes of over 6 million TEUs.
As a link on the busy east-west trade route and as one of Saudi Arabia’s main commercial centres, the port currently handles approximately 60% of the nation’s sea-imports.
The development of the Jeddah Islamic Port is also in line with the Saudi Vision 2030 as the project is considered a key milestone towards achieving the targets of The National Industrial Development and Logistics Vision Realization Programme, one of the Vision’s primary initiatives.
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