RIYADH: Jeddah will soon get an integrated logistics zone, as the Saudi Ports Authority and MEDLOG have signed an agreement for the project.   

The government agency, known as Mawani, has joined with the logistics arm of the Mediterranean Shipping Co. to develop the integrated zone, which will have an investment value of up to SR175 million ($46.6 million), according to a statement.  

The project includes an integrated services site to maintain and inspect containers, and will also provide 400 direct and indirect job opportunities as well as qualify national staff in the logistics services sector.

In addition, the zone will contribute to preserving the safety of the port environment through the use of alternative energy in an attempt to reduce carbon emissions.

The new undertaking will contribute to increasing the operational efficiency of the facility, enhancing commercial movement, and ensuring robust supply chains.  

This falls in line with the objectives of the National Transport and Logistics Strategy, which is to consolidate the Kingdom’s position as a global supply chain management center and the meeting point of three continents.   

The region also aims to raise the level of logistical services provided on the Red Sea coast.  

Additionally, it will work on providing comprehensive and integrated services, thereby facilitating the needs of beneficiaries as well as meeting the requirements of the local market in terms of transporting and handling goods with high operational capabilities.

In December it was announced that King Abdulaziz Port in Dammam was also set to receive an integrated logistics zone as Mawani and MEDLOG laid the foundation stone for the project. 

The new undertaking was set to be built with an investment value exceeding SR150 million, the Saudi Press Agency reported at the time. 

Speaking in December Omar Hariri, chairman of Mawani, said laying the foundation stone of the new logistics zone aligned with the authority’s goal to develop a sustainable and prosperous maritime sector.

The SPA report also added that the new zone will be built in an area of over 100,000 sq. m., with a capacity of handling 300,000 containers per year.

Given its sustained efforts, Saudi Arabia achieved significant progress on the World Bank’s Logistics Performance Index, jumping 17 places to reach the 38th position in 2023.