Saudi Arabia’s King Salman Energy Park (SPARK) and Hong Kong-based leading port network Hutchison Ports have signed an agreement to form a joint venture to manage and operate the dry port and bonded logistics zone within the energy industrial city.
According to the company statement, the dry port will link the region’s fully integrated energy hub to the rest of the world.
The 3 sq. km dry port, which is designed to offer easy access to global markets, will allow the future joint venture to meet the increasing need for logistical services for energy-related products in the Middle East and beyond, as well as serve the nearby industrial cities.
Spanning over a 50 sq. km area, SPARK is a sustainable, global energy hub in Saudi Arabia’s Eastern Province. Further, it is a service center, and logistics facility for the energy sector, as well as a key component of Saudi Vision 2030. On completion, SPARK will create significant employment, diversify the economy, and draw additional international investment to the kingdom.
“Our partnership with Hutchison Ports marks an important milestone in the ongoing development of SPARK. The dry port and logistics zone will be the key to unlocking the potential of our strategic location in the Eastern Province, a region that is known for its unmatched oil and gas resources. We are tremendously excited to work with Hutchison Ports to help connect our investors to the world, allowing them to operate efficiently and save on transport times and costs.”
Dr. Mohammad Yahiya Al-Qahtani, SPARK Chairman of the Board of Directors said, “The logistic hubs will serve the eastern region and its industrial cities. It will also help us fulfill our IKTVA promise to the Kingdom of Saudi Arabia and the world by giving local manufacturers the physical infrastructure they need.”
“Saudi Arabia is an important market and we are very excited to participate in this ambitious, game-changing mega project. As the world’s leading port group, we will leverage our logistics expertise to create value and competitiveness for the tenants of SPARK. And, the dedicated dry port and logistics zone will include warehouses and storage facilities, a bonded area, and on-site customs clearance,” noted Mr. Eric Ip, Managing Director at Hutchison Ports Group.