RIYADH: The Saudi Ports Authority, known as Mawani, has signed two contracts totaling SR642 million ($170 million) to deepen and establish new berths at Jeddah Islamic port.

The two contracts were signed with contractors PC Marine Services and Modern Building Leaders, the latter in a consortium with Huta Hegerfeld Saudia, according to a statement. 

In line with the objectives of the National Transport and Logistics Strategy, this comes as part of the authority’s growth in the maritime transport and logistics industry. 

It will also underpin a transformative shift in port operations by implementing over 160 projects in a bid to position Saudi Arabia as a global logistics hub connecting three major continents. 

The contract with MBL, in association with Huta Hegerfeld Saudia, aims to develop the credentials of Jeddah Islamic Port as a logistics destination.

This will happen through the deepening of harbor approach channels, turning basins, waterways, and the South Terminal basin. 

The upgrades will allow the arrival of giant vessels that hold a capacity of up to 24,000 twenty-foot equivalent containers, and will enhance the port’s competitive capability and attract new global shipping lines to local shores. 

The contract with PC Marine Services will see new berths, measuring 16 meters deep and 1,100 meters long, to receive large bulk grain carriers and accommodate larger vessels to cover the local market demand.

This is part of an effort to secure the Kingdom’s strategic grain reserves through higher imports, and boost overall food security through Jeddah Islamic Port. 

In June 2021, Saudi Arabia’s Crown Prince Mohammed bin Salman launched the country’s National Transport and Logistics Strategy.

The comprehensive program aims to position the Kingdom as a global logistics hub connecting three continents, and improve all transport services in support of Saudi Vision 2030.

A host of game-changing projects are planned to help achieve the strategy’s economic and social goals, along with improved governance to enhance the work of the organizations involved. It also reflects the renaming of the Ministry of Transport as the Ministry of Transport and Logistics Services.

“This strategy will strengthen human and technical capabilities in the transport and logistics sector in the Kingdom,” the Crown Prince had said at the launch.

“It will enhance the connection with the global economy and enable our country to invest its geographical position, in the middle of three continents, in diversifying our economy by establishing an advanced logistics-services industry, building high-quality systems of services, and applying competitive business models to enhance productivity and sustainability in the logistics sector,” he had added.