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MAWANI and SGP sign BOT agreement for container terminals in Dammam port

The agreements focus on providing comprehensive operational services. (Image source: MAWANI)

Saudi Ports Authority (MAWANI) and Saudi Global Ports (SGP) have signed a build, operate and transfer (BOT) agreement for the container terminals in the King Abdulaziz Port in Dammam

The BOT agreement represents a major step toward achieving the strategic objectives and development plan of the Saudi Ports Authority by conceding some of its services in partnership with the Ministry of Transport and with the support of the National Centre for Privatisation.

Upon assuming the responsibility of managing both Container Terminals, SGP will embark on a development and modernisation programme to transform King Abdulaziz Port into a mega container hub and increase the port?s capacity to an estimated annual handling capacity of 7.5mn 20-foot equivalent units when the planned expansion works are fully completed.

The aim is to invest and develop important infrastructure such as berths and container handling equipment and double the existing container handling capacity of King Abdulaziz Port in Dammam .The investments will  focus on environmentally friendly and technologically sophisticated systems including the adoption of automation to develop a modern Saudi workforce.

Saleh Al-Jasser, minister of transport and chairman of the Saudi Ports Authority, explained the expected economic feasibility and impact of this agreement as it enhances logistics, raises the reliability of supply chains, supports local and international trade and contributes in raising the rank of the kingdom at the logistics performance index to become among the 25 best countries around the world.

Saad Alkhalb, president of MAWANI, noted, ?These new agreements will contribute mainly to developing berths, increasing the capacity of container terminals in King Abdulaziz Port by more than 120 per cent and providing integrated solutions to operate container terminals. They achieve technological and information integration and automation of operating systems and set environmentally friendly operating practices, which contribute to strengthening their leading role in the global maritime traffic and supporting the import and export operations.?

 

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