DP World and Saudi Ports Authority begin construction on logistics park in Jeddah

DP World and the Saudi Ports Authority (Mawani) have begun construction on a US$250mn (SAR900 million) logistics park at Jeddah Islamic Port.

The park is designed to offer cutting-edge storage and distribution facilities, aiming to boost trade in Saudi Arabia and the broader region.

The 415,000 sqm greenfield site will include 185,000 sqm of warehouse space and an expansive multi-purpose storage yard, making it the largest integrated logistics park in the kingdom, with capacity for over 390,000 pallet positions.

Solar energy

Established in 2022 under a 30-year concession, Jeddah Logistics Park will be developed in two phases, with the opening planned for Q2 2025. The facility will feature a rooftop solar plant on the warehouse, generating 20 MW of renewable energy, enhancing its sustainable design.

In addition, the collaboration between Mawani and DP World includes managing the South Container Terminal through a separate 30-year concession signed in 2020. The terminal is currently in the final phase of a comprehensive modernisation project, scheduled for completion in Q4 2024, which will increase its handling capacity to five million twenty-foot equivalent units (TEUs).

Together, these two DP World projects represent a combined investment of nearly US$1bn.

His Excellency Sultan Ahmed bin Sulayem, chairman and CEO of DP World, said, “Saudi Arabia has always been a deeply important market for DP World and this milestone represents our ongoing commitment to the Kingdom. Jeddah Logistics Park, strategically located on the vital Asia-Europe shipping route, will provide world-class multimodal connectivity and market access for our customers while supporting the ambitious aims of Saudi Vision 2030. This investment marks a significant step as we mark 25 years of operations in Jeddah and underscores our enduring commitment to facilitating the flow of trade.”

President of Saudi Ports Authority (Mawani), Omar Bin Talal Hariri, said, “This new logistics area will be connected to DP World’s South Container Terminal at Jeddah Islamic Port, facilitating growth and increasing the number of containers handled at the terminal. The project is part of Mawani’s broader efforts to expand the number of logistics centres in Saudi ports, in partnership with major national and international companies, and in line with the objectives of the National Transport and Logistics Strategy and Vision 2030.”