Saudi Ports Authority to develop $79m logistics zone at Dammam port

29/04/2025 03:33 AST

Saudi Arabia's General Ports Authority, known as Mawani, has signed a new agreement to develop a SR300 million ($79 million) logistics zone at King Abdulaziz Port in Dammam, further strengthening the Kingdom's ambition to become a global logistics hub.

The project, launched in partnership with Alissa International Motors - a subsidiary of Abdullatif Alissa Holding Group - will cover 382,000 sq. m. The new facility will serve as a central hub for the import and re-export of vehicles and spare parts, the authority said in a statement.

This initiative aligns with the goals of Saudi Arabia's National Strategy for Transport and Logistics, which seeks to enhance supply chain efficiency and attract foreign and domestic investment. The Dammam logistics zone is part of a broader SR10 billion investment plan to establish 20 integrated logistics hubs across the Kingdom under the authority's supervision.

The new facility will feature a 7,000-sq.-m warehouse dedicated to spare parts storage and is designed to accommodate more than 13,000 vehicles.

"This development will strengthen the port's competitive edge and reinforce its position as a regional logistics center by delivering high-quality logistics services," Mawani stated.

The authority emphasized that the project would contribute to economic diversification and bolster private sector participation in the Kingdom's growth.

Already a vital link connecting Saudi Arabia to international markets, King Abdulaziz Port offers state-of-the-art infrastructure and logistics capabilities, making it an attractive destination for global trade companies.

In a separate development, Mawani signed another contract with Sultan Logistics to establish an additional logistics zone at King Abdulaziz Port, valued at SR200 million. Covering 197,000 sq. m, the facility will include 35,000 sq. m of warehouse space, administrative offices, storage yards for dry and refrigerated containers, and a dedicated re-export area.

"These facilities will elevate the quality of logistics services offered at the port and support trade with enhanced operational efficiency," Mawani added.

The establishment of the new zones is expected to significantly boost King Abdulaziz Port's operational capacity and competitiveness.

In 2024, Saudi Arabia launched, developed, and inaugurated eight logistics zones and centers, backed by approximately SR2.9 billion in private sector investments. These efforts form part of the Kingdom's wider strategy to solidify its standing as a leading global logistics powerhouse.

Arab News