Saudi Ports Authority inks privatisation deals for multipurpose terminals

The Saudi Ports Authority (Mawani), in collaboration with the National Center for Privatisation of Saudi Arabia, has entered into agreements to privatise multipurpose cargo terminals at eight Saudi ports under a build-operate-transfer model spanning 20 years.

The agreements were signed with Saudi Global Ports and Red Sea Gateway Terminal Company, with private sector investments exceeding SAR2.2 billion (US$590 million).

Under the contracts, Saudi Global Ports will develop, manage, and operate multipurpose terminals at four Eastern Province ports under Mawani’s jurisdiction: King Abdulaziz Port in Dammam, Jubail Commercial Port, King Fahd Industrial Port in Jubail, and Ras Al-Khair Port.

Red Sea Gateway Terminal will meanwhile manage the development and operations of multipurpose terminals at four Western Province ports: Jeddah Islamic Port, Yanbu Commercial Port, King Fahd Industrial Port in Yanbu, and Jazan Port.

The privatisation contracts for King Fahd Industrial Port in Yanbu involve increasing container handling capacity through the deployment of modern STS and RTG cranes, reach stackers, modern trucks and trailers, as well as reducing truck turnaround times and vessel berth stays.