RIYADH: Saudi Arabia’s King Fahad Industrial Port in Yanbu will see the establishment of an SR500 million ($133 million) integrated ship refueling center following a lease agreement signed by the Kingdom’s Ports Authority, Mawani.
Inked with the National Petroleum and Petrochemical Tank and Pipelines Co., the deal will see the facility developed on a 110,700 sq. meter site over 20 years, the Saudi Press Agency reported.
The initiative falls in line with Mawani’s drive to enhance the competitiveness of Saudi ports by developing fuel and oil tank infrastructure, which is crucial for delivering high-value logistical services, supporting increased vessel traffic, and strengthening both regional and global port competitiveness.
It also supports the goals of the National Transport and Logistics Strategy, which seeks to invest more than $266.7 billion by 2030 and establish Saudi Arabia as a top international logistics hub.
“This collaboration with Petrotank reflects Mawani’s commitment to enhancing the attractiveness and competitiveness of Saudi ports through the expansion of services provided to shipping lines,” Mawani President Suliman Al-Mazroua said.
As part of its ongoing strategic partnership with Mawani, Petrotank operates the fuel station at King Fahad Industrial Port in Yanbu. The facility houses eight tanks with a combined storage capacity of 114,000 cubic meters and plays a vital role in supporting vessel operations, SPA added.
The new center represents a major advancement in fuel storage and bunkering services to attract more vessels, enhance efficiency, and boost commercial traffic, thereby supporting Saudi Vision 2030’s objective to strengthen the logistics sector.
King Fahad Industrial Port in Yanbu is a key industrial hub on the Kingdom’s Red Sea coast and is recognized for its ability to manage diverse cargo types such as petrochemicals and refined products. Covering 6.8 sq. km, the port includes 34 berths and 10 terminals, with a total handling capacity of up to 210 million tonnes.
Saudi Arabia’s logistics sector is emerging as a magnet for global investment, powered by regulatory reforms, incentive schemes, and its alignment with the ambitious Vision 2030 agenda, according to industry experts.
As the Kingdom pushes ahead with economic diversification, strengthening its transport and logistics infrastructure has become a central pillar of the program.
Speaking to Arab News in July, Paolo Carlomagno, partner at Arthur D. Little, said global logistics players now view Saudi Arabia not only as a high-growth market but as a strategic regional hub for multimodal operations, spanning the Gulf Cooperation Council region, Red Sea basin, and East Africa, anchored by the Kingdom’s expanding port, airport, and inland logistics network.
In January, Saudi Arabia introduced 15 new incentives under the Authorized Economic Operator program to bolster its export competitiveness. These included streamlined administrative processes, dedicated account managers, and liaison officers to support investors.
