Wednesday, Jul 06, 2011
RIYADH (Zawya Dow Jones)--Saudi Ports Authority, or SPA, said Wednesday it awarded a concession to develop, operate and manage the second container terminal at King Abdul Aziz Port, which will cost about 2 billion Saudi riyals ($533.3 million).
The 30-year contract was awarded to a joint venture between Singapore port operator PSA International and Saudi Arabia's Public Investment Fund, SPA said in a statement posted on its website.
The new terminal in Dammam will have a capacity for 1.5 million containers, which will lift the port's total capacity to 3 million containers. The project will be completed in three years, and is part of a bigger plan to develop the infrastructure of the kingdom's ports.
Last year, total container volumes handled by the ports in the Arab world's largest economy totaled 154.03 million tons versus 142.3 million tons during the same period a year earlier.
Saudi Arabia, which imports the bulk of its food needs, handles some 12,000 ships annually, more than one ship an hour. The Gulf state aims to create an independent company that will manage the kingdom's ports under a gradual privatization process.
-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
06-07-11 1052GMT
