PSA International-backed Saudi Global Ports (SGP) is set to transform the King Abdulaziz Port into a “mega container hub” as part of an SGD 2.6bn ($1.8bn) investment.
News of the project comes as SGP sealed a fresh build, operate and transfer (BOT) agreement with the Saudi Ports Authority for the first and second container terminals at the Dammam-based facility, making it the sole container terminal operator of the port.
King Abdulaziz Port will see its annual handling capacity increase to 7.5m teu when the expansion works are completed.
SGP, which is a joint venture between PSA International and Saudi Arabia’s Public Investment Fund (PIF), said the total investment is expected to be the “largest seaport investment by a single operator under a public private partnership”.
“PIF, as a 51% majority shareholder in SGP, is committed to developing the logistics sector in Saudi Arabia by providing patient investment capital and through catalyzing the right partnerships to develop infrastructure and local capacity and expertise in this strategic sector,” it said.
Tan Chong Meng, group CEO of PSA International, said: “We would like to thank the Saudi Ports Authority and the Kingdom for trusting PSA again to deliver another significant investment with the new BOT Agreement.
“PSA is committed to the Kingdom to support the transformation of King Abdulaziz Port into a global mega hub, with modern and robust infrastructure, and through the cultivation of a strong Saudi workforce. “
Prior to the new BOT agreement SGP operated the second container terminal located along the eastern coastline of Saudi Arabia in Dammam’s King Abdul Aziz Port.
It is the largest Gulf port in Saudi Arabia and an important deepwater hinterland port serving the major provincial cities in the eastern and central provinces of Saudi Arabia.
“Dammam is the closest gateway port to the country’s economic centre and capital city, Riyadh, and is linked by an existing railway network and excellent highways,” SGP said.
Singapore-headquartered PSA International has a portfolio that comprises a network of over 50 coastal, rail and inland terminals spread across 19 countries.
