MAWANI inks deal with Bahri to build logistics park at Jeddah Port

By Amirtha P S, Desk Reporter
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MAWANI & Bahri
Officials from MAWANI & Bahri during the signing ceremony.

The Saudi Ports Authority (MAWANI) has signed a long-term deal with Bahri, the national shipping carrier of Saudi Arabia, to construct and operate an integrated logistics park on land leased at the Jeddah Islamic Port with a total area of 95,436 square meters.

The agreement was signed by Mr. Omar Talal Hariri, President of MAWANI and Eng. Abdullah Ali Aldubaikhi, CEO of Bahri in the presence of senior officials from both sides. Once completed, Bahri will manage operations at the state-of-the-art facility for 20 years. 

The logistics zone will provide storage and handling services for all types of inbound and outbound shipping containers that are owned by Bahri and other entities. It will be capable of storing reefer, insulated and dry containers with services like container maintenance and repair, container cleaning, bonded storage, and haulage available to clients at any given point. 

Omar Bin Talal Hariri
Omar Bin Talal Hariri
President – MAWANI

“Launching this project forms a core part of our initiatives to achieve the objectives of the National Transportation and Logistics Strategy (NTLS), which envisions setting up similar logistics zones within and beyond Saudi ports to empower the Kingdom’s bid to become a global logistics hub as well as provide world-class logistics services to accelerate economic development and enable overall transformation in line with Vision 2030.”

The deal is expected to strengthen Bahri’s partnership with MAWANI in the pursuit of developing the Kingdom’s logistics services and consolidating its stature as a global hub that links three continents. 

Commenting on the deal, Eng. Aldubaikhi added, “Leveraging Jeddah Islamic Port’s strategic location, this agreement will further expand Bahri’s import, transport, distribution, and storage capabilities and help the company raise the level of its services according to international standards.”

The Jeddah Islamic Port leads the Kingdom’s ports in terms of imports and exports besides being a Red Sea re-export hub as 75 percent of the total incoming trade and transshipment traffic at Saudi ports takes place through this important trade gateway.

Spread over 12.5 square kilometers and equipped with 62 berths and 4 terminals, MAWANI is all geared in its drive to position the Jeddah Islamic Port amongst the top ten globally. Efforts are underway to expand the port’s capacity and upgrade its operations with the help of development projects and concessions.

A recent concession worth $2.4 billion was awarded to DP World for a period of 30 years to improve the operational efficiency of the port’s container terminals and raise its capacity by 70 percent to be able to handle more than 13 million units.

Last year, MAWANI had signed a similar deal with Maersk Saudi Arabia to establish an integrated logistics park at the Jeddah Islamic Port, set to be the company’s largest in the Middle East, to enhance the port’s exceptional operational capabilities and value-added services.

Related: MAWANI and Saffania Navigation unite to operate bunker station in Yanbu