RIYADH: Saudi Arabia is set to enhance food-supply infrastructure and expand logistics capacity at King Abdulaziz Port after signing a SR200 million ($53.2 million) agreement with Arabian Agricultural Services Co., or Arasco. 

The contract, signed by Suliman bin Khalid Al-Mazroua, president of the Saudi Ports Authority, also known as Mawani, and Arasco CEO Ziyad A. Alsheikh, supports the National Transport and Logistics Strategy and strengthens the Kingdom’s positioning as a global logistics hub. 

A press release from the authority stated: “This contract aligns with Mawani’s efforts to strengthen national supply chains and boost operational efficiency at King Abdulaziz Port in Dammam.”  

It added: “It also reflects Mawani’s commitment to supporting private-sector partnerships and providing world-class infrastructure that advances the goals of Saudi Vision 2030 while solidifying the Kingdom’s standing as a global logistics hub bridging the three continents.”  

The new facility is set to span 40,000 sq. meters and enhance the port’s capacity for handling vital food commodities. 

A core component of the project is the development of advanced grain storage silos with a total capacity of up to 100,000 tonnes, significantly boosting the Kingdom’s strategic grain reserve infrastructure. 

The integrated logistics center will feature a dedicated vehicle-loading facility, advanced conveyor belt systems, and specialized ship-unloading equipment to connect Berths 37 and 39.  

This development is expected to streamline port operations, ensure seamless integration within the broader transport network, and reduce turnaround times for cargo. 

Beyond infrastructure, the project promises substantial economic and social impact. It is projected to create more than 3,000 direct and indirect employment opportunities, contributing to local job creation and skills development.  

Furthermore, the center will fortify both national and regional supply and distribution networks, offering value-added services that stimulate broader economic growth. 

King Abdulaziz Port in Dammam, a critical gateway linking Saudi Arabia to international markets, is already one of the region’s most formidable maritime facilities. It boasts 43 fully operational berths and an annual handling capacity exceeding 105 million tonnes of various cargo and containers.  

This new partnership with Araso is poised to further elevate its status, attracting leading global logistics firms and solidifying Saudi Arabia’s role as a leading regional logistics center.