The Saudi Ports Authority (MAWANI) is embarking on an ambitious journey to position Saudi Arabia as a preeminent global logistics hub, bridging three continents. The strategy is in alignment with the nation’s National Transportation and Logistics Strategy (NTLS), aiming to enhance the Kingdom’s connectivity and economic diversification.
As part of this initiative, MAWANI is actively encouraging private sector engagement, negotiating contracts, and forging agreements to create new logistical zones. This is anticipated to result in a significant transformation in the operational and logistical support frameworks within the Kingdom’s ports.
According to MAWANI’s Vice President of Strategic Management, Khaled al-Ghayth, the plan is expected to open up numerous employment opportunities. Al-Ghayth shared with the press that the authority is widening its strategic alliances with key global and regional players to introduce additional shipping services, thereby elevating the Kingdom’s logistical stature.
Enhancing Supply Chain Sustainability
In its quest to fortify supply chain resilience, MAWANI is taking decisive actions to sustain the flow of containers and goods. This involves leveraging smart technology and logistical support systems that strengthen the competitive edge of Saudi ports. During 2023, the authority successfully integrated 31 new shipping services, expanding its reach to approximately 145 services connecting with over 350 ports worldwide.
Several deals have been inked to lay the groundwork for nine zones across the Jeddah Islamic Port, King Abdulaziz Port in Dammam, and King Fahd Industrial Port in Yanbu, with investments surpassing $1.6 billion. These new areas are intended to boost the dynamics and growth of the supply chains.
Intermodal Connectivity between Sea and Air
MAWANI has also signed a memorandum of understanding (MoU) with the General Authority of Civil Aviation and the Zakat, Tax, and Customs Authority (ZATCA) to enhance logistical synergy between air and maritime gateways, aiming to streamline the multimodal transit of goods through the Kingdom. A successful pilot integrating sea and air transport was conducted at Jeddah Islamic Port.
Al-Ghayth highlighted MAWANI’s commitment to deepen collaborations with international ports to foster economic diversification and create a more competitive, investment-friendly environment. Agreements with significant global ports like Antwerp and Rotterdam have been finalized, focusing on port optimization, digital innovation, and sharing expertise.
The foundation stone for the Bahri Logistics Center at Jeddah Islamic Port was recently laid, marking a significant step in advancing the Kingdom’s logistic capabilities. The event was attended by key figures including the Minister of Transport and Logistics Services and MAWANI Chairman, MAWANI President, and the CEO of Bahri.
Once operational, the state-of-the-art logistics center managed by Bahri Logistics Services Company will span 95,436 square meters. It will provide a multitude of storage solutions, including temperature-controlled zones, handling services, and additional value-added services, facilitating multinational corporations in establishing hubs within the center.
Omar Hariri, MAWANI President, underscored the Bahri Logistics Center’s vital role in the maritime logistics sector, aligning with NTLS objectives. This project is a testament to MAWANI’s dedication to enhancing the infrastructure and capabilities of the Saudi logistics sector, thus playing an active role in the nation’s economic expansion and diversification beyond oil, as envisioned in Saudi Vision 2030.
Bahri CEO Ahmed al-Subaey expressed his anticipation for the collaboration with MAWANI and ZATCA in delivering this advanced logistics facility, which is poised to make a significant mark on the logistics industry both regionally and globally. He emphasized the center’s potential to capitalize on new opportunities, significantly enriching Saudi Arabia’s role as a logistics powerhouse.
The Bahri Logistics Center is slated to commence operations in the first half of 2025, offering impressive capabilities with over 80,000 pallet positions, 40,000 shelving units, and an annual handling capacity of more than 900,000 pallets. The facility will cater to various storage needs, including reefer, insulated, and dry containers, and will offer a suite of services such as container maintenance and repair, cleaning, bonded storage, and haulage.