DP World, Mawani break ground on US$ 250 m logistics park at Jeddah

DP World and Saudi Ports Authority (Mawani) have commenced construction of a new SAR900 million (US$ 250 million) logistics park at Jeddah Islamic Port.

The 415,000 sq m greenfield facility, featuring 185,000 sq m of warehousing space and a multi-purpose storage yard, will have the capacity for more than 390,000 pallet positions, making it the Kingdom’s largest integrated logistics park.

Established in 2022 as part of a 30-year concession, Jeddah Logistics Park will be developed in two phases with a planned opening in Q2 2025. The facility will have a rooftop solar plant set to generate 20MW of renewable energy.

The collaboration between Mawani and DP World also includes the management of the South Container Terminal through a separate 30-year concession signed in 2020. The terminal is currently in the final phase of a comprehensive modernisation project, scheduled for completion in Q4 2024, which will see the handling capacity being ramped up to five million TEU.

“Saudi Arabia has always been a deeply important market for DP World and this milestone represents our ongoing commitment to the Kingdom. Jeddah Logistics Park, strategically located on the vital Asia-Europe shipping route, will provide world-class multimodal connectivity and market access for our customers while supporting the ambitious aims of Saudi Vision 2030,” said Sultan Ahmed bin Sulayem, Chairman and CEO of DP World.

“This investment marks a significant step as we mark 25 years of operations in Jeddah and underscores our enduring commitment to facilitating the flow of trade.”

“This new logistics area will be connected to DP World’s South Container Terminal at Jeddah Islamic Port, facilitating growth and increasing the number of containers handled at the terminal. The project is part of Mawani’s broader efforts to expand the number of logistics centres in Saudi ports, in partnership with major national and international companies, and in line with the objectives of the National Transport and Logistics Strategy and Vision 2030,” said Mawani President Omar Bin Talal Hariri.

The facility aims to optimise the logistics processes for both importers and exporters, providing an integrated platform for trade and logistics.

The groundbreaking follows on the heels of the opening of freight forwarding offices in Dammam, Jeddah and Riyadh, expanding the logistics footprint of DP World in the Kingdom of Saudi Arabia.