News & insight

MAWANI secures deal with Bahri to set up logistics park at Jeddah port

15 FEB 2022

Riyadh, February 15 2022: The Saudi Ports Authority (MAWANI) has agreed a long-term deal with shipping giant Bahri to build and operate an integrated logistics park on land leased at the Jeddah Islamic Port with a total area of 95436 m2.


The agreement was signed today by H.E. Omar Talal Hariri, President of MAWANI and H.E. Eng. Abdullah Ali Aldubaikhi, CEO of Bahri in the presence of senior officials from both sides


On this occasion, H.E. Mr. Hariri remarked: “Launching this project forms a core part of our initiatives to achieve the objectives of the National Transportation and Logistics Strategy (NTLS), which envisions setting up similar logistics zones within and beyond Saudi ports to empower the Kingdom’s bid to become a global logistics hub as well as provide world-class logistics services to accelerate economic development and enable overall transformation in line with Vision 2030.”  


On the other hand, H.E. Abdullah Aldubaikhi expressed his delight at signing the deal which is expected to boost his company’s partnership with MAWANI in the pursuit of developing the Kingdom’s logistics services and consolidating its stature as a global hub that links three continents. He added: “Leveraging Jeddah Islamic Port’s strategic location, this agreement will further expand Bahri’s import, transport, distribution, and storage capabilities and help the company raise the level of its services according to international standards. We constantly strive to be a responsible business that builds sustainable capabilities and offers solutions that meet the exact needs of our partners,” 


Once built, Bahri will manage operations at the state-of-the-art facility for a duration of 20 years. The 95436m2 logistics zone will provide storage and handling services for all types of inbound and outbound shipping containers that are owned by Bahri and other entities. It will be capable of storing reefer, insulated and dry containers with services like container maintenance and repair, container cleaning, bonded storage, and haulage available to clients at any given point.


No stranger to accomplishments, the Jeddah Islamic Port leads the Kingdom’s ports in terms of imports and exports besides being a Red Sea re-export hub as 75% of the total incoming trade and transshipment traffic at Saudi ports takes place through this important trade gateway. Being ranked as number one among its Red Sea counterparts allows the Jeddah port, with its capacity to handle 130 million tons, to stake a claim as a regional hub.


Spread over 12.5km2 and equipped with 62 berths and 4 terminals, MAWANI is all geared in its drive to position the Jeddah Islamic Port amongst the top ten globally. Efforts are underway to expand the port’s capacity and upgrade its operations with the help of development projects and concessions. A recent concession worth SAR9 billion was awarded to DP World for a period of 30 years to improve the operational efficiency of the port’s container terminals and raise its capacity by 70% to be able to handle more than 13 million units.


In November 2021, MAWANI had signed a similar deal with Maersk Saudi Arabia to establish an integrated logistics park at the Jeddah Islamic Port, set to be the company’s largest in the Middle East, with the aim of enhancing the port’s exceptional operational capabilities and value-added services.    


One of the world’s largest owners and operators of VLCCs and the largest owner and operator of chemical tankers in the Middle East, Bahri owns and operates a fleet of 90 vessels, serving 150 ports worldwide. The company offers a diverse range of onshore and offshore solutions through its five business units and plays a pivotal role in the transportation and logistics sector’s growth.