The Saudi Global Ports, a joint venture company formed by the Public Investment Fund of Saudi Arabia and Singapore port operator PSA International Ltd., had been awarded a contract to develop, operate and manage a second container terminal at the King Abdul Aziz Port in Dammam, a key gateway port on the Arabian Gulf. The SR2 billion agreement to build the new terminal will add 1.5 million TEU (twenty-foot equivalent units) to raise the capacity of the port to 3 million TEU, Saudi Press Agency said. The Kingdom currently has nine ports, five on the Red Sea and four on the Gulf, with around 200 docks. The Kingdom may spend more than $613 million, Saudi Transport Minister Jabarah Al- Suraisry said. "All ports are subject now to expansion. We are investing now SR2.3 billion ($613 million) for projects in all the ports and we always continue increasing, particularly the industrial ports in Yanbu and Jubail," he said last month. "The next budget will be coming in five or six months and we will see more projects," he said, without giving more details. Suraisry said he believed that despite the downturn in the global economy, the Jeddah Islamic Port will see at least a 5 percent increase in traffic this year. JIP handled 3.9 million TEU in 2010, according to data from the Saudi Ports Authority. A port catering to grains imports is to be built by the private sector over the next two to three years, Suraisry said. "The intention is for the government to provide the land and the private sector to construct the project," he said, adding that Saudi investors had shown interest in the project. The SGP terminal will be equipped with the latest equipment and technology to serve the fast growing economy of the Kingdom and the regional economies. The construction of a new terminal indicates the strength of the Saudi economy. Saudi Arabian maritime transport investments are expected to reach $50 billion, Gulf Capital CEO Issa Al-Hamadi said in May. "It is possible to estimate that investment in this field will be no lower than $50 billion across all its activities." Linked to the development of the mining and oil industries, maritime transport has immense potential for growth in the Kingdom, he said. When the new SGP terminal is fully built up and developed, it will have a quay length of 1,200 meters and 12 quay cranes, with a design capacity of 1.8 million twenty-foot equivalent units (TEUs) per annum. PSA's Group CEO Eddie Teh said: "Dammam represents PSA International's first port infrastructure project in the Kingdom of Saudi Arabia and the Arabian Gulf. We will work closely with our partner and Saudi Ports Authority to transform the Saudi Global Ports terminal into the preferred port of call to support the high trade growth and business activities in the region." President of the Saudi Ports Authority Engineer Abdulaziz Al-Tuwaijri was quoted as saying recently that the (Saudi) ports were not to reach this high level of standards "if it is not for the support of God and then the support that ports receive from the Government of the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince and Second Deputy Premier." He made the remarks when the giant container ship (CSCL STAR) docked at the Red Sea Gate Container Terminal last month. CSCL STAR is one of the largest container ships in the world with a total load of (14.100) TEU, a length of 366 meters, a draft of (15.5) meters, width of (51.2) meters (22-23 containers). It is also one of the latest giant container ships which was built in the arsenal of Samsung in South Korea, and it started operating last February. CSCL STAR's first visit to the Jeddah Islamic Port confirms the confidence of global shipping lines in its distinguished operational capabilities. Al-Tuwaijri noted that the visit of the ship to the Jeddah Islamic Port "emphasizes the importance of this port and shows the capabilities that are available in the three container terminals which are fully equipped with the cutting-edge technologies and handling equipment." The container terminal at the Red Sea Gate was carried out by the private sector with investments amounting to SR2 billion.
