The Saudi Ports Authority (Mawani) has signed a contract with Arabian Agricultural Services Company (ARASCO) to establish a logistics centre for storage and distribution at King Abdulaziz Port in Dammam, with an investment value of 200 million Saudi riyals ($53.3 million).

The project will be developed over an area of 40,000 square metres (sqm) and is aimed at supporting national food security, strengthening supply chains and increasing operational capacity at the port, Mawani said.

The agreement was signed by Mawani president Suliman bin Khalid Al-Mazroua and ARASCO chief executive Ziyad A. Alsheikh, in the presence of ARASCO chairman Mohammed bin Abdullah Al-Khuraif.

The logistics facility will include warehouses with storage capacity of up to 100,000 metric tonnes, alongside the construction of an integrated truck-loading facility, installation of conveyor systems, and development of ship-unloading equipment linking berths 37 and 39 to enhance bulk grain discharge efficiency.

Mawani said the project is expected to create more than 3,000 direct and indirect jobs and aligns with Saudi Arabia’s National Transport and Logistics Strategy and Vision 2030.

King Abdulaziz Port in Dammam currently operates 43 berths and has an annual handling capacity of around 105 million tonnes of cargo and containers, making it one of the Kingdom’s key maritime gateways.

(Writing by Majda Muhsen; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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