In a significant move to enhance maritime services, the Saudi Ports Authority (Mawani) has executed four major contracts at King Abdulaziz Port in Dammam. These agreements, involving over SAR one billion in private sector investments, are in partnership with Zamil Marine Services and Naghi Marine Co. The initiative aims to provide a range of maritime services across eight of Mawani’s ports, a step that aligns with global standards of efficiency and competence.
The Eastern Region’s Governor, under the support of King Salman bin Abdulaziz Al Saud and the guidance of Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, reiterated the government’s dedication to advancing Saudi ports to global recognition. This development is part of the broader national transport and logistics strategy that seeks to create a formidable port network, efficient logistics services, and strengthen the logistics sector as per the aspirations of Saudi Vision 2030.
The Minister of Transport and Logistic Services expressed that these contracts are pivotal in expanding private sector partnerships, boosting the competitive stature of Saudi ports, and increasing operational efficiency. The investments include the introduction of 44 new maritime units, which are expected to support economic expansion and fortify the supply chain.
These agreements also represent a concerted effort to empower the private sector’s role in transportation and logistics, as reflected by the SAR 17 billion invested in privatization projects in the first half of 2023. The Minister stressed the ongoing initiative to enhance investment opportunities within the transportation and logistics system, emphasizing the commitment to fostering local engagement and realizing the objectives of Saudi Vision 2030.
The President of the Saudi Ports Authority highlighted the contracts’ strategic intent to improve the Kingdom’s competitiveness regionally and globally through value-added investment projects. He underscored the vital role these maritime services contracts play in reinforcing the maritime transport sector, diversifying the economy, and refining international performance indicators.
Mohanad Basudan, CEO of the National Center for Privatization, pointed out the robust collaboration between the privatization system and the transportation and logistics sectors. He noted the strong interest from domestic and international investors in privatization and partnership projects, aimed at elevating service quality and operational efficiency.
The new contracts will see the deployment of 27 tugboats and 17 other maritime units, with the goal of attracting additional shipping lines and propelling the ports sector to international standards. These efforts are expected to cut assistance operation times by 45% across the eight ports. The contracts also focus on providing critical maritime services, such as towing, mooring, berthing, and auxiliary services, under the oversight of the Privatization Supervisory Committee in the Transport and Logistics Sector.
Responsibilities for marine services under these contracts are allocated among eight ports, with Zamil Marine Services Company covering the Jeddah Islamic Port, Jazan Port, Ras Al Khair Port, King Fahd Industrial Port in Jubail, and Jubail Commercial Port. Naghi Marine Co. will take charge of services at King Abdulaziz Port in Dammam, Yanbu Commercial Port, and the King Fahd Industrial Port in Yanbu.
Mawani is committed to developing a sustainable and prosperous maritime transport system by delivering highly efficient logistic services. This commitment is part of the authority’s ongoing efforts to enhance economic development through improved port operational processes and increased capacity.