Saudi Arabia takes first privatisation steps

Similar moves were first mooted in 1997, when terminal operations were transferred to private sector operators, with the possibility that the ports themselves might also end up in private hands.

However, under the current announcement, no fixed timetable for the sale of has been scheduled, although the new management body has been tasked with boosting the number of containers handled to 15m teu by 2020 from a current level of 9m teu.

Oil exports will not be covered by the new body.

Meanwhile, Khaled Bubshait, president of Saudi Ports Authority, has announced that in addition to the kingdom’s six commercial ports and two industrial ports, a ninth facility will be built at Al-Lith in the Red Sea. Currently, a feasibility study is underway.