BOT agreement for Saudi port
A new Build, Operate and Transfer (BOT) agreement has been signed for the first and second container terminals in King Abdulaziz Port in Dammam, Saudi Arabia.
Saudi Global Ports (SGP), one of PSA International’s subsidiaries, and government-managed Saudi Ports Authority (Mawani) signed the BOT agreement, making SGP the sole container terminal operator of the port. SGP currently operates the second container terminal .
“I am truly honoured to be part of this milestone event. The envisaged transformation will benefit port users and the Kingdom and promote the creation of high value employment opportunities for Saudi citizens.” said SGP chairman Abdulla Al Zamil.
Upon assuming the responsibility of managing both container terminals, SGP will invest in and develop key infrastructure, such as berths and container handling equipment, to transform King Abdulaziz Port into a mega container hub and increase container handling capacity to an estimated 7.5m TEUS when the planned expansion works are fully completed.
The total estimated investment of more than 2.6bn Singapore dollars is expected to be the largest seaport investment by a single operator under a public private partnership.
Saudi Arabia’s Public Investment Fund (PIF), a majority shareholder in SGP, is committed to developing the logistics sector in Saudi Arabia in line with its mandate to diversify the Saudi economy under the country’s Vision 2030.