Dubai: DP World’s ambitions to create an integrated trading hub in Jeddah - and one that will eventually serve the wider Middle East and beyond - took a decisive step with the recent launch of construction for the Jeddah Logistics Park (JLP).
For DP World, the Dubai Government owned port and container terminal operator, the plan is to maintain a tight timeline for the many phases leading to the build up of the logistics facility in Saudi Arabia.
“We have operated in Jeddah Islamic Port for 25 years and we are pleased to begin construction on our logistics park, which will be the largest integrated facility in the Kingdom when it opens,” said Abdulla Bin Damithan, CEO and Managing Director for DP World GCC.
Construction and launch schedule for JLP
The first phase is likely to go operational in the second quarter of 2025. This will ‘significantly expand’ the existing warehousing capacity and ‘enhance the efficiency of trade’.
“We are working closely with the Saudi Ports Authority (Mawani) and other stakeholders to ensure a successful implementation,” said Damithan.
Billed as being Saudi Arabia’s ‘largest integrated logistics facility’, the JLP sure has the scale to back that claim.
It will cover 415,000 square meters and with a dedicated space for warehousing of 185,000 square metres. The Jeddah Logistics Park will offer over 390,000 pallet positions, including for dry, chilled, and cold storage goods as well as bonded and un-bonded zones.
Adding up all these, this will raise the Jeddah port's ability to handle increased trade volumes and ‘support the growing demands of the Saudi market’. (There is also a lot of thought given sustainability, with a 20MW solar rooftop installation being part of the logistics park.)
Connecting the world
“The Saudi market is the largest economy in the Middle East and a major player in global trade with a strategic location between the East and West, which makes it an ideal hub for logistics,” said Damithan.
“The ambitious aims of (Saudi Arabia’s) Vision 2030 and the National Transport and Logistics Strategy align perfectly with our vision of facilitating trade in the region.”
DP World’s clear aim is to leverage its network of global ports and terminals and building out is reach from its Jebel Ali nerve-centre. The new capacities in Jeddah that DP World is creating should also be seen within the context of changes happening to the global shipping industry and to container flows.
The Jeddah Islamic Port, established in 1976 and with its location on the Red Sea, is the largest facility of its kind in Saudi Arabia, The number of containers handled through the Port top 4.5 million TEUs annually. (The port currently handles nearly 60 per cent of Saudi Arabia’s imports by sea.) Now, with the Jeddah Logistics Park getting constructed, Saudi Arabia - and DP World - wants to anchor those gains further.
“We have a strong relationship with Mawani (Saudi Ports Authority), and closely aligned in our commitment to enhance the Kingdom's logistics capabilities and drive economic growth,” said Damithan. “Our investments in the South Container Terminal (SCT) and the Jeddah Logistics Park are a reflection of our strong partnership.”
It was in 2020 that DP World signed the 30-year concession agreement for South Container Terminal, which ism part of Jeddah Islamic Port. “We are modernising the terminal with an investment of more than SR3 billion,” the DP World official added. This will ramp up the handling capacity to 5 million TEUs.
And in 2022, the Dubai entity signed another 30-year concession for Jeddah Logistics Park with a planned investment of more than SR900 million. “These investments represent our long-term commitment to Saudi Arabia, with the two DP World projects representing a combined investment of close to SR4 billion,” said Damithan,
