Istanbul / Anadolu

- In Jeddah Islamic Port and Al-Khumra area worth about $267 million

- The new centers cover an area exceeding 444,000 square meters allocated for storage, assembly, and re-export

- These projects provide more than 5,000 direct and indirect job opportunities, support the expansion of commercial activities inside and outside the Kingdom, and enhance the efficiency of supply chains

- With the signing of the new contracts, the number of logistics centers in Saudi ports rises to 34, including 17 centers in Jeddah Islamic Port

The Saudi Ports Authority (Mawani) announced on Thursday the signing of 7 investment agreements with local and international companies to establish and expand logistics centers in Jeddah Islamic Port and Al-Khumra area in Jeddah, with investments of nearly 1 billion riyals (about $267 million).

The authority said in a statement that the agreements cover projects on an area exceeding 444,000 square meters, and are expected to provide more than 5,000 direct and indirect job opportunities.

The agreements were signed during the inauguration ceremony of the truck staging area at Jeddah Islamic Port, under the patronage of Minister of Transport and Logistics Services and Chairman of the Board of Directors of the Authority, Saleh Al-Jasser, and in the presence of the President of the Authority, Suleiman Al-Mazrou', and a number of officials.

The agreements included local companies 'Jadeer for Logistics Services,' 'Masdar for Building Materials,' 'Matjar Al-Shatri for Trading,' and 'Al-Gharb Group for Port Services,' along with global companies 'JD' and 'Maersk.'

The agreements include the establishment and development of specialized centers for handling, storage, distribution, re-export, and digital logistics services, in addition to smart warehouses and facilities for storing refrigerated and frozen products.

They also include the expansion of the logistics center of 'Maersk' in Jeddah Islamic Port.

Al-Jasser said that the establishment of new centers and the expansion of existing ones reflect the support enjoyed by the transport and logistics system in the Kingdom.

He added that the development of Jeddah Islamic Port and Al-Khumra area contributes to achieving the targets of the National Transport and Logistics Strategy and 'Saudi Vision 2030.'

Al-Jasser explained that the agreements will contribute to empowering the private sector, providing advanced infrastructure that supports the growth of commercial and logistics activities, and enhancing the Kingdom's position as a global trade hub on the Red Sea.

For his part, Al-Mazrou' said that the projects represent a 'strategic step' to develop the port system and raise its operational readiness, in line with the growth of trade movement and meeting the needs of the private sector.

He added that the new centers will contribute to raising service efficiency and expanding capacity, in addition to providing job opportunities for national cadres and enhancing the reliability of logistics operations.

According to the authority, the centers' areas are allocated for storage, assembly, and re-export, and include smart warehouses, refrigerated and frozen facilities, and integrated logistics solutions.

The expansion of the 'Maersk' center includes the construction of additional warehouses and storage yards over an area of 60,000 square meters, with investments amounting to 40 million riyals (about $10.7 million), enhancing handling and storage services for importers and exporters.

With the signing of the new agreements, the number of logistics centers in Saudi ports reaches 34, including 17 in Jeddah Islamic Port, with total investments exceeding 14 billion riyals (about $3.7 billion), according to the authority.

The projects come amid the growing importance of Jeddah Islamic Port and its associated land transport routes, coinciding with navigation and supply chain disruptions in the region.

Maersk had announced in recent months the expansion of the use of alternative land transport routes in the Gulf, while shipping traffic to Jeddah Port increased with the disruption of navigation in the Strait of Hormuz.