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Steering a New Course: Saudi Arabia’s maritime sector is set to take on a more prominent role in the global supply chain

Friday, 20 September 2024 | 00:00

Saudi Arabia’s ports are undergoing a period of rapid transformation, poised to significantly impact global trade.

Guided by the ambitious Vision 2030, Saudi Arabia is driving economic diversification, aiming to shift from a regional player to a global leader. At the heart of this transition is the National Transport & Logistics Strategy (NTLS), which targets an annual economic contribution of approximately $12 billion from the logistics sector by 2030.
Saudi Arabia’s strategic geographic position places it at the crossroads of major global trade routes, positioning the Kingdom as a key player in the evolution of global commerce.

Leading this transformation is the Saudi Ports Authority (Mawani), which has invested heavily in infrastructure to increase the capacity of its major ports, including Jeddah Islamic Port and King Abdulaziz Port. In 2023 alone, $3 billion was dedicated to infrastructure projects, such as establishing logistics parks and allocating $1.9 billion for the development and operation of two advanced container terminals.

At Jeddah Islamic Port, cutting-edge technology and a business-friendly environment have attracted global shipping and logistics investors. Upgrades include new terminals, deeper drafts to accommodate the world’s largest mega ships, and advanced cargo-handling systems. In addition, new berths and expanded facilities are under construction.

In early 2024, Mawani introduced the Ports Community System, a comprehensive digital platform developed with Tabadul, a leading Saudi company specializing in electronic information exchange. This platform connects all port stakeholders—from shipping lines and cargo owners to customs authorities and logistics providers—offering access to over 250 services. At the same time, Mawani is pursuing initiatives to reduce carbon emissions, increase sustainability, and enhance operational efficiency, aligning with Vision 2030’s sustainability objectives. A key milestone was reached in June 2024 with the signing of a major contract with SANY Heavy Industry to manufacture and supply 80 electric terminal tractors, furthering Mawani’s commitment to sustainable growth.

In August 2024, Maersk celebrated the opening of the largest logistics park in the world at Jeddah Islamic Port—a 225,000-square-meter facility, built with an investment of nearly $350 million. This establishes it as the largest single-site logistics and services facility globally. Mawani has also partnered with industry giants like MSC and CMA CGM.

On the Arabian Gulf, King Abdulaziz Port is emerging as a strategic hub, boasting streamlined operations, new container terminals, and enhanced connectivity to handle shipments through the world’s busiest energy corridor. Mawani’s Smart Port initiative, developed in collaboration with partners like STC, Ericsson, and Huawei, is integrating 5G, AI, and IoT technologies to create intelligent trade gateways.

As Mawani continues expanding its capacity and capabilities, it is actively seeking partnerships with international leaders in the shipping, maritime, and logistics sectors. Positioned at the intersection of three continents, Saudi Arabia is emerging as a pivotal enabler of global trade, ushering in a new era of opportunity and growth for the Kingdom.
Source: Mawani

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