Emaar, the Economic City (Emaar EC), a Tadawul-listed company developing King Abdullah Economic City (KAEC), and global marine terminal operator DP World signed a memorandum of understanding (MoU) on developing and operating the KAEC Sea Port. Under the patronage and presence of Dr Jubarah Al-Suraisiri, minister of Transport, Saudi Arabia, Amr Al-Dabbagh, governor, Saudi Arabian General Investment Authority (SAGIA), hosted the signing event at KAEC in the presence of Mohamed Ali Alabbar, chairman, Emaar EC; Sultan Ahmed Bin Sulayem, chairman, Dubai World and DP World; Fahd Al-Rasheed, chief executive officer, Emaar EC, and other Saudi government officials and entrepreneurs. One of the six key components of the 168 million sq m KAEC, the Sea Port will be the largest in the Red Sea and one of the top 10 ports in the world with a capacity to handle 20 million TEU (twenty foot equivalent container units). A multipurpose cargo terminal is scheduled to be operational by end of 2010 and a 1.6 million TEU container terminal by mid-2011 that would increase the capacity of the port. In addition to creating 15,000 direct and indirect jobs, the port is expected to contribute an average SR10 billion to the Kingdom's GDP annually on completion of all phases. Al-Dabbagh said: “SAGIA is committed to the Kingdom's vision to make the Saudi economy one of the top 10 competitive economies in the world by the turn of this decade. To achieve our goal, we encourage major local, regional and international companies to invest in the infrastructure to augment investment in high-growth strategic sectors, most importantly the transport sector, and thus enhance the competitiveness of these sectors, which contribute to overall economic development.” “KAEC Sea Port is the first port in the Kingdom to be completely financed by the private sector. Seaports play a key role in shaping a country's growth, and the agreement between Emaar EC and DP World is an important step in developing KAEC within the desired timeframe. We believe that the sea port at KAEC will catalyze regional and international investment to KAEC, and make a substantial contribution to the GDP, in addition to creating direct and indirect job opportunities for the Saudi youth,” Al-Dabbagh added. Alabbar said: “With its strategic location on the Red Sea, the KAEC Sea Port will create a regional logistics hub that will further stimulate the Saudi economy through new job and investment opportunities. The sea port is stationed on one of the largest and most busiest shipping line routes in the world, and will offer an integrated transportation system to deliver cargo seamlessly to various destinations - within the region and internationally.” Bin Sulayem added: “We are pleased to be involved in this exciting project and welcome the opportunity to bring our expertise in developing and operating ports globally to this pioneering development. Our ports are a vital link in the global supply chain, enhancing efficiency and the growth of economies in the communities in which we operate. We look forward to working with Emaar EC and SAGIA in coming months to explore the next steps in creating a KAEC Sea Port of the highest international standards, connected to markets around the world.” Extending over 14 sq km, the KAEC Sea Port will be equipped to receive the new generation mega-vessels, with a nominal capacity of around 10,000 TEU and more, and will utilize global positioning technologies, advanced information management systems and automated processes. Al-Rasheed said: “The KAEC Sea Port will provide a qualitative and quantitative leap to the marine transportation and logistic services sector of Saudi Arabia that will boost the Kingdom's global competitive advantage. Logistics is one of the fastest growing sectors, and creating a world-class port is an important part of building a robust economic environment. After intensive studies and negotiations, we chose DP World, which is one of the fastest-growing and established port operators with a breadth of international port development and management expertise. Our partnership with DP World reiterates our commitment to work with the best and offer world-class standards to our clients.” The KAEC Sea Port will contribute to the total transportation and port network of Saudi Arabia, and seek to capitalize on the untapped opportunities by leveraging on its strategic location on the Red Sea, which is one of the most important sea routes between the East and West. The sea port will be integrated with the industrial zone and logistics hub to provide a seamless logistics operation within KAEC that will further promote regional trade. KAEC, as planned, has six zones: sea port, industrial zone, central business district (including financial district), education zone, resort district and residential zone. Work is progressing on schedule on the first phase of the project. DP World is currently the fourth largest port operator in the world and has a portfolio of 43 terminals and 13 new developments across 28 countries. It has established expertise in designing, building and operating ports in developed and developing countries. __
