Pubic Investment Fund (PIF)-backed Saudi Global Ports (SGP) has signed a SAR7bn (€1.7bn) public-private partnership agreement with Saudi authorities to construct two new container terminals.
SGP, which currently operates Dammam’s King Abdul Aziz Port, has agreed the build-operate-transfer agreement to construct the terminals at the port.
The development will help SGP to more than double existing container handling capacity at King Abdulaziz Port.
PIF – the sovereign wealth fund of Saudi Arabia – is a 51%-stakeholder in SGP alongside Singapore-based global port operator PSA International, which holds the remaining 49% stake.
SGP chairman, Abdulla Al Zamil, said: “This is in line with PIF’s mandate to diversify the Saudi economy under its Vision 2030,” said SGP chairman, Abdulla Al Zamil.
He added that SGP’s development of large-scale, efficient and modern container terminal operations in Dammam port was an important element of the Kingdom’s objective of developing the necessary logistics infrastructure to facilitate and promote diversification of its economy.
Worldwide, SGP holds a portfolio network of more than 50 coastal, rail and inland logistics terminals in 19 countries.
Singapore’s coordinating minister for infrastructure and minister for transport, Khaw Boon Wan, said Saudi ports were rapidly enhancing their systems and procedures, with advanced logistics services covering both the west and east coasts.