Saudi Arabia has awarded a contract to a local company to build a logistics zone at its Western Red Sea Port of Jeddah within an ongoing strategy to expand shipping business, newspapers reported on Wednesday.

The Saudi Ports Authority (SPA) – Mawani- signed an land lease agreement on Tuesday with the National Shipping Company of Saudi Arabia (Bahri) for project, one of several logistics facilities planned by the Gulf Kingdom at its ports.

Under the 20-year agreement, Bahri will use the 954,000 square metre area to build warehouses for cargo and containers, a container services facility, a distribution centre, shipping and storage support services and other facilities, according to Aliqtisadia and other Saudi newspapers.

SPA Chairman Omar Hariri, who signed the deal, said it is part of initiatives by the Authority to develop the shipping industry and turn the Kingdom into a “global shipping and logistics centre.”
Source: Reuters (Writing by Nadim Kawach; Editing by Anoop Menon)