09 June 2015
A significant volume of goods destined for the Saudi market goes through other ports in the region and authorities at King Abdullah Port (KAP) in Rabigh are targeting these goods as their main challenge in order to boost trade.
KAP aims at being part of the overall development of the Saudi economy, which is the largest economy in the region and among the top 20 in the world, said Abdullah Hameedaddin, managing director of Ports Development Company (PDC).
"King Abdullah Port also takes pride in its high-tech superstructures, as they are some of the most advanced in the world and already optimized to service vessels and operate terminals for decades to come," Hameedaddin, an engineer by profession, told Arab News in an exclusive interview.
"The largest trade routes of container ships are Asia-Europe routes, where our region finds itself right in the middle," says Hameedaddin.
These are highlights of the interview:
Q: King Abdullah Port is being described as a full-service commercial port with a highly strategic location.What are its main attractions and how does it stand out from the region's other ports?
A: King Abdullah Port (KAP) is the newest port facility and is owned and developed by Ports Development Company (PDC).
It is the first port in Saudi Arabia fully owned and developed by the private sector.
The port is characterized by its strategic geographical location on the Red Sea, between Europe and Asia and where more than 6,000 vessels pass every year carrying more than 42,000,000 TEU.
In the area near King Abdullah Port, current connections to Saudi Arabia's major highways have been included in the port's master plan.
It has a dedicated area for the Saudi Land Bridge project, which can be utilized to transport up to 6. 5 million TEU yearly.
The Saudi Land Bridge will connect the western side of Saudi Arabia with the east, passing through Riyadh and with future plans to connect both north and south, and be linked also to other GCC countries.
We are in continuous coordination with the relevant governmental bodies in order to ensure King Abdullah Port's smooth integration with the Saudi Land Bridge project.
Proximity to the region's largest industrial hub at King Abdullah Economic City Industrial Valley is a major advantage for clients who are looking for fully integrated manufacturing, industrial and logistics solutions.
We aim to integrate King Abdullah Port services through the practice of deploying the most up-to-date and advanced technologies and employing local and international experts to provide the highest service delivery.
The world's largest shipping lines already use the port, and this has been achieved by setting a well-established business plan to develop the port at a steady pace and with a clear vision to become one of the leading major ports in the world.
Q: What is the impact of lower oil prices in your business and related industries? What are the advantages and/or disadvantages to transport industry from lower fuel prices?
A: The reduction in oil prices has an impact on the whole economical chain from production to transportation to delivery, wherever in the world that may be.
The fall in the oil price has also had an impact on the shipping sector in particular and to understand this we have to look at the nature of transportation as a whole.
The demand for transportation occurs if goods are shipped around the world.
In the current economic climate, many consumer goods, for example, are consumed in Europe, the Americas and the Middle East, with Asia being the production hub for these items.
The largest trade routes of container ships are Asia-Europe routes, where our region finds itself right in the middle.
When we look at economic indicators predicting economic activity in the GCC, the future is stable, both politically and economically, and the projected growth in demand and the continuing governmental spending that has a major impact on the overall economy support this.
Q: Will King Abdullah Port pose a threat to the business of other Saudi ports such as the Jeddah Islamic port and what are the strategies for synergy?
A: King Abdullah Port aims at being part of the overall development of the Saudi economy, which is the largest economy in the region and among the top 20 in the world.However today, Saudi ports' capacities do not reflect the size of the Saudi economy compared to our neighbors' ports.
A significant volume of goods destined for the Saudi market goes through other ports in the region and we are targeting these goods as our main challenge in order to regain lost imports.
This is part of our role to enrich the ports across Saudi Arabia and contribute to raising the standards of port services and boost the local influx of goods as part of the Kingdom's already growing economy.
Thus, we are part of an integrated ports system across the country and the region, and we are working hand-in-hand to contribute to the growth of the economy and meet all our clients' requirements inside Saudi Arabia, in the region, and globally.
Q: How will the new mega port help promote Saudi exports -- your expectations and goals?
A: There is no doubt that a country flourishes by its economic growth.To achieve this growth, the country should enhance its trading activities.
We are now in the globalization era and international trade is one of the uppermost promising roads to economic welfare.
A country that excels at its trading capabilities grows and this is where our role comes as a port that is aiming to drive this success.
When a country has a port such as King Abdullah Port that can receive such mega vessels with huge container capacity, it attracts more shipping lines.
Having a port that can serve all customers' demands makes it an attractive site globally as King Abdullah Port plans to become one of the top 10 ports in the world.Mediterranean Shipping Company (MSC), the world's second largest shipping line in terms of container vessel capacity, has been calling at King Abdullah Port for over a year along with other shipping lines this alone displays the credibility and level of trust we have from a major global shipping line to and from Saudi Arabia.
In addition, MAERSK Shipping Line, the leading global shipping line, has recently kicked off its operations at King Abdullah Port too.
The largest ever vessel at the time (399 meters) to dock in Saudi Arabia, the MSC London, was hosted at King Abdullah Port recently.
In addition, King Abdullah Port hosted 3 mega vessels at one time at the beginning of 2015: MSC Vandya, with a total length of 365 meters; followed by MSC Taranto, with an overall length of 365 meters disembarking at the second berth, and MSC Carolina, with a length of 274 meters anchoring at berth number three.
This indicates the port's readiness, storage capacity and efficiency to handle such huge cargo simultaneously.
Having had the trust of such a reputable company and the success of such major transactions demonstrates that the port is more than ready to attract additional shipping lines, thus promoting and making easier the export and import of goods to and from Saudi Arabia.
Q: When will the King Abdullah Port be fully operational and what will be its capacity?
A: We are a fully operational port since January 2014 when we started our import and export activities to complement our transshipment operations, which started in September 2013.
After the opening of our 4th berth this month, the container capacity will stand at about 3 million TEU per annum.
We anticipate handling around 7 million TEU per annum within 3-5 years in addition to 600,000 vehicles for RO/RO and 3 million tons for bulk, which operations will begin by 2016.
This by itself is a major leap for King Abdullah Port and the economy of Saudi Arabia.
Q: Rabigh Refining and Petrochemical Company (PetroRabigh) was the first company to ship petrochemical products from the port.How do you rate the progress so far? Do you agree that the shipment was a significant step forward in the export operations of PetroRabigh products due to the proximity of the port?
A: Of course, due to our geographical location and proximity to major transport and transit stations being the sea, rail (Haramain High Speed Rail: KAEC station), Saudi Land Bridge and main highways, this is a significant step forward in the export operations for any industry using King Abdullah Port.
Our business will expand in 2016 beyond the container business toward bulk and RO/RO (vehicles) and due to this we were able to attract and sign a deal with one of the most renowned companies in the region, Almarai who is interested in our Bulk Cargo Terminal.
The bulk terminals will be ideal for any industry importing raw materials that require transfer by automated means, especially considering the bulk terminal's proximity to the KAEC Industrial Valley, a state-of-the-art industrial hub.
Q: How many Saudi nationals work at King Abdullah Port at present and how many jobs will be created for Saudis once the port is fully operational?
A: King Abdullah Port aims for excellence and is therefore continuously investing in employees as we expect nothing less than high quality professional expertise.
We build clear and solid career paths and enhance employees' ability to flourish through training and development.
By realizing the importance of manpower and appreciating our employees, they are motivated to serve King Abdullah Port by using their skills that yield significant results.
The port has implemented extensive training and certification programs in key areas of port operations for its Saudi Staff, most recently this being an intensive training course for our safety team at the Port of Liverpool in the UK, covering a number of areas related to the most up-to-date safety procedures in force worldwide.
In addition, the Vessel Traffic Service (VTS) operators traveled abroad to acquire advanced training and certification by respective authorities in the UK in the field of VTS, called V103 ??from the Naval College in Newcastle.
Over and above this, King Abdullah Port encourages the employment of Saudi women by providing the right environment for their jobs, and to date has successfully attracted more than 90 women in different fields within the port's operations such as engineering, IT, planning and human resources.With this and more, we are considerably exceeding our Saudization levels with a current percentage that hits around 70 percent.Of course, we are also always on the look out to attract and work to develop local talent to ensure they are part of this mega project for the country.
Q: What additional measures are required to attract more Saudi graduates to shipping and logistics careers?
A: This industry is already on the rise whether on land or at sea.
At King Abdullah Port, we organize various visits for interested candidates and undergraduate Saudi students in order to share with them our story and plans, and present to them our future about how King Abdullah Port specifically and shipping and logistic careers in general have already started becoming a contributor to the overall development of the Saudi economy.
We hope this is a motivator for them to continue in this very important and integral economic sector for the best of the country. ?
Q: Does King Abdullah Port have high-tech facilities to handle large cargo shipments???
A: The key to handling the large cargo shipments is ensuring that we can easily discharge them from arriving vessels.
That's why we have invested and deployed cranes of the highest capacity and most up-to-date technology, optimized to service not just the currently available vessels, but even the next generation mega vessels with an outreach of 25 containers.
Our state-of-the-art mobile harbor crane dedicated for special projects also backs this up.Just last month, we had a major delivery of project cargo for Samsung Engineering, which consisted of electrical machinery of more than 20,000 tons, destined to the Saudi Electricity Company.
Having said that, we realize the absolute need of keeping up with all the new technological advancements as we move forward.We also appreciate human capital.
To ensure the ultimate port service levels, the port has developed and implemented the most advanced Port Community System (PCS) as well as putting in place an intensive training program for employees in order to ensure expertise, experience and professional handling using these latest technologies.
The PCS connects the multiple systems operated by the various organizations that play a role in the port's operations and integrates the data from multiple sources so that it can be used in a more effective and efficient manner.
King Abdullah Port also takes pride in its high-tech superstructures, as they are some of the most advanced in the world and already optimized to service vessels and operate terminals for decades to come.
A significant volume of goods destined for the Saudi market goes through other ports in the region and authorities at King Abdullah Port (KAP) in Rabigh are targeting these goods as their main challenge in order to boost trade.
KAP aims at being part of the overall development of the Saudi economy, which is the largest economy in the region and among the top 20 in the world, said Abdullah Hameedaddin, managing director of Ports Development Company (PDC).
"King Abdullah Port also takes pride in its high-tech superstructures, as they are some of the most advanced in the world and already optimized to service vessels and operate terminals for decades to come," Hameedaddin, an engineer by profession, told Arab News in an exclusive interview.
"The largest trade routes of container ships are Asia-Europe routes, where our region finds itself right in the middle," says Hameedaddin.
These are highlights of the interview:
Q: King Abdullah Port is being described as a full-service commercial port with a highly strategic location.What are its main attractions and how does it stand out from the region's other ports?
A: King Abdullah Port (KAP) is the newest port facility and is owned and developed by Ports Development Company (PDC).
It is the first port in Saudi Arabia fully owned and developed by the private sector.
The port is characterized by its strategic geographical location on the Red Sea, between Europe and Asia and where more than 6,000 vessels pass every year carrying more than 42,000,000 TEU.
In the area near King Abdullah Port, current connections to Saudi Arabia's major highways have been included in the port's master plan.
It has a dedicated area for the Saudi Land Bridge project, which can be utilized to transport up to 6. 5 million TEU yearly.
The Saudi Land Bridge will connect the western side of Saudi Arabia with the east, passing through Riyadh and with future plans to connect both north and south, and be linked also to other GCC countries.
We are in continuous coordination with the relevant governmental bodies in order to ensure King Abdullah Port's smooth integration with the Saudi Land Bridge project.
Proximity to the region's largest industrial hub at King Abdullah Economic City Industrial Valley is a major advantage for clients who are looking for fully integrated manufacturing, industrial and logistics solutions.
We aim to integrate King Abdullah Port services through the practice of deploying the most up-to-date and advanced technologies and employing local and international experts to provide the highest service delivery.
The world's largest shipping lines already use the port, and this has been achieved by setting a well-established business plan to develop the port at a steady pace and with a clear vision to become one of the leading major ports in the world.
Q: What is the impact of lower oil prices in your business and related industries? What are the advantages and/or disadvantages to transport industry from lower fuel prices?
A: The reduction in oil prices has an impact on the whole economical chain from production to transportation to delivery, wherever in the world that may be.
The fall in the oil price has also had an impact on the shipping sector in particular and to understand this we have to look at the nature of transportation as a whole.
The demand for transportation occurs if goods are shipped around the world.
In the current economic climate, many consumer goods, for example, are consumed in Europe, the Americas and the Middle East, with Asia being the production hub for these items.
The largest trade routes of container ships are Asia-Europe routes, where our region finds itself right in the middle.
When we look at economic indicators predicting economic activity in the GCC, the future is stable, both politically and economically, and the projected growth in demand and the continuing governmental spending that has a major impact on the overall economy support this.
Q: Will King Abdullah Port pose a threat to the business of other Saudi ports such as the Jeddah Islamic port and what are the strategies for synergy?
A: King Abdullah Port aims at being part of the overall development of the Saudi economy, which is the largest economy in the region and among the top 20 in the world.However today, Saudi ports' capacities do not reflect the size of the Saudi economy compared to our neighbors' ports.
A significant volume of goods destined for the Saudi market goes through other ports in the region and we are targeting these goods as our main challenge in order to regain lost imports.
This is part of our role to enrich the ports across Saudi Arabia and contribute to raising the standards of port services and boost the local influx of goods as part of the Kingdom's already growing economy.
Thus, we are part of an integrated ports system across the country and the region, and we are working hand-in-hand to contribute to the growth of the economy and meet all our clients' requirements inside Saudi Arabia, in the region, and globally.
Q: How will the new mega port help promote Saudi exports -- your expectations and goals?
A: There is no doubt that a country flourishes by its economic growth.To achieve this growth, the country should enhance its trading activities.
We are now in the globalization era and international trade is one of the uppermost promising roads to economic welfare.
A country that excels at its trading capabilities grows and this is where our role comes as a port that is aiming to drive this success.
When a country has a port such as King Abdullah Port that can receive such mega vessels with huge container capacity, it attracts more shipping lines.
Having a port that can serve all customers' demands makes it an attractive site globally as King Abdullah Port plans to become one of the top 10 ports in the world.Mediterranean Shipping Company (MSC), the world's second largest shipping line in terms of container vessel capacity, has been calling at King Abdullah Port for over a year along with other shipping lines this alone displays the credibility and level of trust we have from a major global shipping line to and from Saudi Arabia.
In addition, MAERSK Shipping Line, the leading global shipping line, has recently kicked off its operations at King Abdullah Port too.
The largest ever vessel at the time (399 meters) to dock in Saudi Arabia, the MSC London, was hosted at King Abdullah Port recently.
In addition, King Abdullah Port hosted 3 mega vessels at one time at the beginning of 2015: MSC Vandya, with a total length of 365 meters; followed by MSC Taranto, with an overall length of 365 meters disembarking at the second berth, and MSC Carolina, with a length of 274 meters anchoring at berth number three.
This indicates the port's readiness, storage capacity and efficiency to handle such huge cargo simultaneously.
Having had the trust of such a reputable company and the success of such major transactions demonstrates that the port is more than ready to attract additional shipping lines, thus promoting and making easier the export and import of goods to and from Saudi Arabia.
Q: When will the King Abdullah Port be fully operational and what will be its capacity?
A: We are a fully operational port since January 2014 when we started our import and export activities to complement our transshipment operations, which started in September 2013.
After the opening of our 4th berth this month, the container capacity will stand at about 3 million TEU per annum.
We anticipate handling around 7 million TEU per annum within 3-5 years in addition to 600,000 vehicles for RO/RO and 3 million tons for bulk, which operations will begin by 2016.
This by itself is a major leap for King Abdullah Port and the economy of Saudi Arabia.
Q: Rabigh Refining and Petrochemical Company (PetroRabigh) was the first company to ship petrochemical products from the port.How do you rate the progress so far? Do you agree that the shipment was a significant step forward in the export operations of PetroRabigh products due to the proximity of the port?
A: Of course, due to our geographical location and proximity to major transport and transit stations being the sea, rail (Haramain High Speed Rail: KAEC station), Saudi Land Bridge and main highways, this is a significant step forward in the export operations for any industry using King Abdullah Port.
Our business will expand in 2016 beyond the container business toward bulk and RO/RO (vehicles) and due to this we were able to attract and sign a deal with one of the most renowned companies in the region, Almarai who is interested in our Bulk Cargo Terminal.
The bulk terminals will be ideal for any industry importing raw materials that require transfer by automated means, especially considering the bulk terminal's proximity to the KAEC Industrial Valley, a state-of-the-art industrial hub.
Q: How many Saudi nationals work at King Abdullah Port at present and how many jobs will be created for Saudis once the port is fully operational?
A: King Abdullah Port aims for excellence and is therefore continuously investing in employees as we expect nothing less than high quality professional expertise.
We build clear and solid career paths and enhance employees' ability to flourish through training and development.
By realizing the importance of manpower and appreciating our employees, they are motivated to serve King Abdullah Port by using their skills that yield significant results.
The port has implemented extensive training and certification programs in key areas of port operations for its Saudi Staff, most recently this being an intensive training course for our safety team at the Port of Liverpool in the UK, covering a number of areas related to the most up-to-date safety procedures in force worldwide.
In addition, the Vessel Traffic Service (VTS) operators traveled abroad to acquire advanced training and certification by respective authorities in the UK in the field of VTS, called V103 ??from the Naval College in Newcastle.
Over and above this, King Abdullah Port encourages the employment of Saudi women by providing the right environment for their jobs, and to date has successfully attracted more than 90 women in different fields within the port's operations such as engineering, IT, planning and human resources.With this and more, we are considerably exceeding our Saudization levels with a current percentage that hits around 70 percent.Of course, we are also always on the look out to attract and work to develop local talent to ensure they are part of this mega project for the country.
Q: What additional measures are required to attract more Saudi graduates to shipping and logistics careers?
A: This industry is already on the rise whether on land or at sea.
At King Abdullah Port, we organize various visits for interested candidates and undergraduate Saudi students in order to share with them our story and plans, and present to them our future about how King Abdullah Port specifically and shipping and logistic careers in general have already started becoming a contributor to the overall development of the Saudi economy.
We hope this is a motivator for them to continue in this very important and integral economic sector for the best of the country. ?
Q: Does King Abdullah Port have high-tech facilities to handle large cargo shipments???
A: The key to handling the large cargo shipments is ensuring that we can easily discharge them from arriving vessels.
That's why we have invested and deployed cranes of the highest capacity and most up-to-date technology, optimized to service not just the currently available vessels, but even the next generation mega vessels with an outreach of 25 containers.
Our state-of-the-art mobile harbor crane dedicated for special projects also backs this up.Just last month, we had a major delivery of project cargo for Samsung Engineering, which consisted of electrical machinery of more than 20,000 tons, destined to the Saudi Electricity Company.
Having said that, we realize the absolute need of keeping up with all the new technological advancements as we move forward.We also appreciate human capital.
To ensure the ultimate port service levels, the port has developed and implemented the most advanced Port Community System (PCS) as well as putting in place an intensive training program for employees in order to ensure expertise, experience and professional handling using these latest technologies.
The PCS connects the multiple systems operated by the various organizations that play a role in the port's operations and integrates the data from multiple sources so that it can be used in a more effective and efficient manner.
King Abdullah Port also takes pride in its high-tech superstructures, as they are some of the most advanced in the world and already optimized to service vessels and operate terminals for decades to come.
© Arab News 2015
