Saudi seals new port construction deal

The Saudi Ports Authority has signed a $586m contract with China HarbourEngineering Company (CHEC) for the design and construction of a new port in RasAl-Zour following an international bidding process.

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The Chinese group fought off competition from Belgium’s Dredging International in tandem with local Huta Group, and a joint venture between Dutch Royal Boskalis Westminster and Geneva-registered Archirodon Construction (Overseas). CHEC has now linked with local company Rafid Group and formed China Harbour Engineering Arabia Company to complete the project.

The new facility, located on the central east coast of Saudi Arabia, will include dedicated terminals for general cargo, liquid bulk and dry bulk goods and will serve nearby fertilizer and aluminium smelting complexes under development by Saudi Arabian Mining Company.

The port will also be linked to downstream oil and gas projects via a new 1,097 mile rail link due to be up and running in 2011.