Saudi Signs $586M Deals to Boost Cargo Terminals at Ports

The Saudi Ports Authority (Mawani) has signed long-term concession agreements totaling more than SAR 2.2 billion (approximately $586 million) to upgrade and manage multipurpose cargo terminals at eight key ports throughout the country.

These 20-year contracts have been awarded to two prominent international port operators: Saudi Global Ports (SGP), a subsidiary of Singapore-based PSA International, and Red Sea Gateway Terminal Company (RSGT), a joint venture between Saudi and Malaysian stakeholders. Each operator will be responsible for overseeing four terminals.

Eastern and Western Port Management Divided

SGP will be tasked with operating terminals in the Eastern Province, specifically at King Abdulaziz Port in Dammam, Jubail Commercial Port, King Fahd Industrial Port in Jubail, and Ras Al-Khair Port.

RSGT, which currently handles container operations at Jeddah Islamic Port, will manage terminals in the Western Province. These include Jeddah Islamic Port, Yanbu Commercial Port, King Fahd Industrial Port in Yanbu, and Jazan Port. Planned enhancements at the Yanbu industrial port involve deploying advanced cargo handling technology such as ship-to-shore cranes, rubber-tyred gantry cranes, and modern transport equipment to streamline operations and reduce vessel turnaround times.

Strategic Move to Advance Saudi Logistics Goals

Transport and Logistics Minister Saleh bin Nasser Al-Jasser, who also serves as chairman of Mawani, emphasized that these partnerships with private sector players reflect the Authority’s commitment to strengthening the Kingdom’s maritime infrastructure. He added that the deals are aligned with national goals to foster economic diversification and position Saudi Arabia as a key global logistics hub.