Full privatisation of Saudi ports ruled out

Riyadh: The privatisation of Saudi Ports Authority is on track, says Transport Minister Dr Jabara Al Seraisry.

However, he ruled out complete privatisation of the public sector undertaking.

"The privatisation is going on as per the fixed plan. Only a portion of the activities of the Authority will be handed over to the private sector," he told reporters after presiding over the board meeting here on Sunday evening.

According to the minister who is also chairman of the Saudi Ports Authority, revenues of Saudi ports amounted to 2.8 billion riyals (Dh2.7 billion) in 2009.

Speaking about the privatisation, Al Seraisry said that it is impossible to achieve a 100 per cent privatisation of the Authority as its lands are owned by the government.

"We are keen to privatise the activities and commercial services offered at the ports like that of container terminals," he said.

The minister expressed regret over the criticism levelled against the functioning of ports in the country.

"The ports in the Kingdom are working at full capacity. The government is keen to support the efforts to improve the ports and make them competitive at par with the global ports," he said while drawing special attention to the largest upgrading works going on at the Islamic Port of Jeddah.

The minister noted that experimental operation of the third container terminal, built with the participation of the private sector, has already been started. "The project, which was completed at a cost of more than two billion riyals, raised the capacity of the Jeddah port by 50 per cent. There have been qualitative changes in the functioning of other ports, especially Dammam port," he said.

Referring to the study to make the Authority a company, he said that the study, to find out the way by which the Authority could be supported to make the ports achieve world class standard, is going to be completed soon.

"We are exploring the prospect of making the Authority an effective body to organise works at the ports," he said.

According to the ports chief, nearly 70 per cent of the works at various Saudi ports have so far been assigned to private companies.

Meanwhile, the Authority made it mandatory for shipping agents working at the Riyadh dry port to receive endorsed cheques and complete all the transactions only through the agents' offices at the port. The agents have also been asked to make available of sufficient number of staffers to work on Thursdays and official holidays to update information and addresses of the agents with the customs department.