DP World has been awarded a 30-year concession for the management and development of the Jeddah South Container Terminal at the multipurpose Jeddah Islamic Port in Saudi Arabia.
DP World has operated the South Container Terminal under a lease for more than 20 years, but a new "build-operate-transfer" concession contract signed on Dec. 23 will result in DP World investing up to $500 million to improve and modernize the terminal to enable it to serve ultra-large containerships.
Established in 1976, the Jeddah Islamic Port is the largest port in Saudi Arabia with annual volumes of over 6 million twenty-foot equivalent units (TEUs). Located on the Red Sea, Jeddah terminals currently handle approximately 60% of the country's sea imports.
DP World will increase the capacity of the South Container Terminal from 2.4 million TEUs to 3.6 million TEUs. Other container terminals in Jeddah include the Red Sea Gateway Terminal and the Northern Container Terminal, operated by Gulf Stevedoring and Contracting Co., a subsidiary of Gulftainer.
Mawani, the Saudi Ports Authority, has also signed a build-operate-transfer concession contract with the Red Sea Gateway Terminal.
Sultan Ahmed Bin Sulayem, chairman and chief executive officer of DP World, said the expansion will support Saudi Arabia's plan "to transform the country into a global logistics hub."
"Beyond the terminal, our ambition is to develop inland connectivity across the Arabian Peninsula between Jeddah and Jebel Ali Port in Dubai, as well as to Saudi Arabia's cities through smart technology-led logistics, which should support further growth in this strategic hub that connects east to west."
The Red Sea Gateway Terminal website says more than 30% of the world's container volume passes through the Red Sea basin every year.
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