Mawani signs US$262M logistics contracts to expand Jeddah Port, Al Khumra zones
By modernizing these hubs with digital platforms and improved road connectivity, the initiatives aim to streamline global trade and reinforce the nation’s role as a primary Red Sea transit point.
SAUDI ARABIA – Saudi Ports Authority (Mawani) has signed seven contracts worth a total of SAR1 billion (approx. US$262 million) with national and international companies for the construction and expansion of logistics centres at Jeddah Islamic Port and the Al Khumra logistics zone.
Spanning over 384,000 sq m for storage, consolidation, and re-export, these new facilities are designed to handle rapid trade growth, improve supply chain efficiency, and create more than 5,000 direct and indirect jobs in line with Saudi Vision 2030 and the National Transport and Logistics Strategy, said Mawani in a statement.
These additions bring the total number of port-based logistics facilities in the kingdom to 34, with 17 located at Jeddah Islamic Port, representing over SAR14 billion in total investments.
The scope of work also includes a SAR40 million project with Maersk to build 60,000 square metres of container yards, said senior Mawani officials at the signing ceremony, which was held in the presence of the Minister of Transport and Logistics Services, Saleh Al Jasser.
Strategic Vision and Infrastructure Development
These investments target the development of expansive logistics centres at the Al Khumra zone and Jeddah Islamic Port, covering nearly 400,000 square meters of operational space.
By modernizing these hubs with digital platforms and improved road connectivity, the initiatives aim to streamline global trade and reinforce the nation’s role as a primary Red Sea transit point.
Supported by digital platforms that accelerate business processes, the integrated infrastructure leverages Al Khumra’s strategic road connections to Jeddah Islamic Port, King Abdulaziz International Airport, and major highways, positioning the kingdom as a global logistics hub along the Red Sea.
Economic Impact and Future Outlook
This strategic growth is expected to create approximately 5,000 new jobs while advancing the objectives of the Saudi Vision 2030 economic plan.
The new facilities will increase the kingdom’s capacity to handle growing trade volumes and strengthen its position as a key node in global supply chains.
This strategic expansion is a calculated effort to position Saudi Arabia as a premier Red Sea transit hub despite regional competition, with Mawani maintaining a focus on operational excellence and infrastructure development.
Finally, these projects contribute to a vast regional network that now includes dozens of facilities designed to optimize the movement and storage of international goods. The authority remains prepared to pursue further investments to sustain long-term growth in the kingdom’s logistics sector.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates
