RIYADH: President of the Saudi Ports Authority Abdul Aziz Al-Tuwaijri signed Wednesday a SR2 billion contract with Saudi Global Ports (SGP) to construct a second container station at the King Abdulaziz Port in Dammam.
"The new terminal will add 1.5 million TEU (twenty-foot equivalent units) to raise the capacity of the port to 3 million TEU, and make the Dammam port one of the leading ports in the Arabian Gulf," Al-Tuwaijri said in a press statement after the signing ceremony at the ports authority's headquarters in Riyadh.
SGP Chairman Aamir Al-Sulaim represented his company at the signing ceremony, which was also attended by Singapore's Ambassador to the Kingdom Wong Kwok Pun, the Saudi Press Agency reported.
SGP is a joint venture between the Saudi Public Investment Fund and PSA International of Singapore. The 30-year contract, undertaken under the BOT (build, own and transfer) system, will be completed in three years.
"The contract also covers the training of Saudis to administer and operate the station," Al-Tuwaijri said, adding that the commissioning of the new facility will boost Saudi exports and imports through the Gulf.
The terminal will be equipped with the latest equipment and technology to serve the fast growing economy of the Kingdom. The port has an advanced center for training Saudi staff in repairing ships. The port is the main gateway through which cargoes from all over the world enter the Eastern Province and the central region of the Kingdom.
It is strategically placed to service the requirements of the oil industry.
Saudi Arabia currently has nine ports, five on the Red Sea and four on the Gulf, with around 200 docks.
The total tonnage handled in all Saudi ports during the first quarter of 2011 reached 35.07 million tons, registering an increase of 4.45 percent more than the previous year. The imported shipments increased by 4.57 percent and exports by 4.28 percent during the period.
The largest Saudi port is Jeddah Islamic Port on the Red Sea, which has increased its capacity to around 5 million TEU, after it opened the Red Sea Gateway (RSG) terminal at the end of 2009. It also serves as a port of entry and departure for Umrah and Haj pilgrims from Egypt, Sudan and other African countries.
The Jeddah port handled 3.9 million TEU in 2010, according to data from the Saudi Ports Authority.
© Arab News 2011
