Now that the Saudi Vision 2030 and the national transformation program have been starting the implementation process, the objectives of which include turning the Kingdom of Saudi Arabia into a regional and global hub for trade and industry and a strategic commercial corridor that connects three continents, with the aim being to bring about a vigorous national economy based on diversity and the full utilization of the Kingdom’s economic resources and commercial capabilities for the benefit of comprehensive development, the role of King Abdullah Port, the first port ever to be fully owned and developed by the private sector in the Kingdom and Middle East, as a major driver of these efforts, cannot be understated.
According to many economists and experts, the vital role King Abdullah Port expected to play is perfectly in line with the post-petroleum vision of HRH Prince Mohammad bin Salman, Deputy Crown Prince, Second Deputy Prime Minister and Minister of Defense. This is especially true as the Kingdom upholds its status as a key player in the global economic arena as part of the G20, which includes 19 countries plus the European Union.
As an outlet for exports and a primary gateway to new markets, King Abdullah Port not only enhances the trade capabilities and boosts commercial exchange between the Kingdom and global markets, but also invigorates the freight transport industry, which will help the Kingdom regain its fair share of imports by bringing them back to Saudi shores, in lieu of having to use the ports of neighboring countries.
“There are plenty of aspects that set King Abdullah Port apart from others in the region, on top of which is its strategic location,” says Abdullah Hameedadin, Managing Director of the Ports Development Company. “Some 20% to 25% of the world’s non-petroleum trade passes through the Red Sea, which translates into about 730 million tonnes of freight on more than 11,000 vessels having passed through the Suez Canal in 2015.
“Given these astounding figures, King Abdullah Port’s strategic location in the Red Sea is bound to make it the premier gateway for goods into Saudi Arabia and the emerging markets of neighboring countries, and a hub for the transshipment industry in Middle Eastern ports and beyond.”
As to the port’s current and future role and how it fits in with the Saudi Vision 2030, Hameedadin adds that King Abdullah Port offers its services in a region that enjoys brisk growth in its population, with the resulting corresponding growth in the consumption of all kinds of products.
“King Abdullah Port also provides invaluable support to the export industry, thanks to its proximity to industrial and manufacturing facilities in King Abdullah Economic City’s Industrial Valley, and to Rabigh, which is home to such major corporations as its namesake Petro Rabigh, as well as to Yanbu, Jeddah, and Al Madinah, where many industries seek opportunities to establish global reach. For all these reasons and more, King Abdullah Port is an invaluable asset, not only for the Kingdom, but the entire region.”
Besides its prime location, another aspect that sets King Abdullah Port apart is the state-of-the-art technologies employed to operate it. As the smart gate system is set to be brought online in the fourth quarter of 2016, King Abdullah Port’s management system revolves around an e-platform that brings together all stakeholders based on their needs to execute or get information about various operations.
King Abdullah Port also utilizes a modern, advanced transport network, designed to carry out all loading, unloading and transportation of goods quickly and efficiently. The port’s proximity and access to the Kingdom’s road network facilitates the smooth, efficient and timesaving transportation of goods to where they need to go.
All of these advantages, in addition to modern facilities and long, 18-meter-deep berths, will contribute to King Abdullah Port’s role as a powerhouse of the Saudi economy and a driver of growth as a catalyst for business.
The cooperation between King Abdullah Port and all supporting government agencies, such as ministries, security agencies, and institutions, is wide and deep. Their support was indispensable in helping the port achieve multiple successes and record-breaking operational levels. The public-private collaboration is key to the success of efforts to achieve diversification of investments and the enablement of the national economy. The relationship between King Abdullah Port and those agencies is one of symbiosis that aims to achieve the greater good of public interest. The Economic Cities Authority is a vital strategic enabler of the port’s operations, thanks to its role in attracting business to this industrial and commercial center, made all the more robust with KAEC and the Industrial Valley working together as an integral system.
King Abdullah Port and the Saudi Ports Authority enjoy a great working relationship. Initiatives of cooperation between the two sides strengthen integration in the Saudi ports system, working together to meet the growing activity in both imports and exports, which in turn helps meet the needs of major projects across the Kingdom and bolster business and commerce.
King Abdullah Port has made great strides in a relatively short time. Operationally, Berth 4 was opened in May 2015, right on schedule, raising the port’s capacity to around three million TEU. Constructed and brought online in record time, it was equipped with modern cranes with a capacity of 65 t each, and a reach of 25 containers. Bringing Berth 4 online was vastly instrumental in boosting King Abdullah Port’s TEU throughput in 2015. Operating with three berths for the first four months of the year and four berths for the remainder, the port handled 1.3 million TEU while in 2016 it has witnessed an increase of nearly 8% taking the annual throughput up to 1.4 million TEU.
2015 witnessed the signing of an agreement with NYK Group, one of the largest shipping companies in the world, to operate automotive RORO activities. The company’s first berth is expected to open by 2017, with a second to follow a year later, for a combined capacity of 600,000 vehicles a year.
By the end of 2016 the full infrastructural work of berths 5 & 6 has been completed and which will lift the port capacity to 4 million TEU a year.
The infrastructure works for Berth 5 and Berth 6 at King Abdullah Port are finished. The two berths are part of the port’s strategic expansion plan, which aims to significantly uprate the port’s capacity, thus boosting its standing in the maritime industry, both regionally and internationally.
“With the two new berths, the port’s annual capacity will rise to four million TEU as of the beginning of the first quarter of 2017,” said Eng. Abdullah Hameedadin, Managing Director of the Ports Development Company, the owner and developer of King Abdullah Port.
“This will extend the port’s reach to the most important trade hubs in the region and the world, solidifying the roles of the private sector in general, and King Abdullah Port in particular, in achieving Vision 2030.”
Last year, King Abdullah Port’s annual throughput rose to 1.27 million TEU, making it the fastest growing port in the world according to a study recently conducted on over 120 container ports worldwide. This figure is expected to continue rising despite the challenges faced by the market and a slowing down of global economic growth. Moreover, the port’s annual capacity had risen by 25% to reach about four million.
The management of King Abdullah Port expects to finalize the first phase of bulk cargo terminals with a capacity of three million tons, in addition to the RORO (roll-on/roll-off) terminals with a capacity of 300,000 CEU by the beginning of 2017. This comes specifically after announcing the strategic move of signing an SAR 2.7 billion financial agreement with both SABB and ANB, which reflects the banking sector’s trust in King Abdullah Port.
Run by the Ports Development Company, King Abdullah Port is the Kingdom’s first port to be fully owned, developed and operated by the private sector. With its strategic location and state-of-the-art technologies, all managed by national and global experts who strive to offer the best possible services, King Abdullah Port has earned its place at the heart of the world’s major shipping lines, all within a solid plan that will bring to reality its vision of becoming one of the largest ports in the world.
King Abdullah Port annual throughput increased to 1.4 million TEU by the end of 2016, representing an increase of around 8% compared to 2015. The annual throughput increase comes despite the challenges facing the markets and the slowdown of global economic growth. In addition, King Abdullah Port announced receiving 729 vessels in 2016 compared to 637 vessels in 2015.
A highly strategic location serves multiple key markers.
The infrastructure of King Abdullah Port is designed to handle the world’s largest vessels – and to save time and money.
A single window into regulatory and logistics data makes port operations more efficient.
Our Port Community System (PCS) integrates data from various systems, improving how that data is shared and used.
The result? Processes can be better planned, accuracy is gained, and cargo handling speeds up.
Our ultimate target is to deliver swift and smooth services to our business partners.
From crane operators and tug pilots to VTS personnel, we aim to hire the most talented people in the industry. We equip them with cutting-edge technology to ensure their efficiency, and to enforce their professionalism.
At King Abdullah Port, to ensure superior partner experience, we adhere to the following core values:
The Port Community System enables efficient, transparent and reliable operation that provide significant cost savings
Optimizes performances of the Port/terminal gates reducing truck turn-around time and improving security processes
King Abdullah Economic City, June 2017
The Ports Development Company, the owner and developer of King Abdullah Port, has announced the completion of the building of a central operating room monitoring and linking together the X-ray customs inspection systems in the port. The room will also equip all customs inspection areas with a wireless network built according to the latest global technologies. The project has been successfully delivered to the Saudi Customs in King Abdullah Port, making the port a pioneer in equipping the central operations center and activating the 24-hour container inspection initiative.
Managing Director of the Ports Development Company, Eng. Abdullah Hameedadin, commented: “This achievement comes within King Abdullah Port’s efforts to support the Saudi Customs initiative, as well as enhancing customs operations in the port in line with the goals of Vision 2030. It is also part of the efforts to strengthen the role of King Abdullah Port in supporting the growth and development of the Kingdom in cooperation with institutions and government entities, including the Saudi Customs, with the goal of revitalizing the commercial sector, through improving coordination and increasing efficiency – all under the organizing umbrella of our direct governmental partner, the Economic Cities Authority.”
The project was completed in record time over two phases; the first of which included equipping all customs inspection areas with a 1.75 gigabit wireless network using a technical method used for the first time in the Kingdom. Customs officers will be able to inspect containers through a tablet in the inspection area and send all comments to the customs system directly without having to do it the traditional way, which required leaving the site and returning to the office to input the information manually.
In the second phase, inspection equipment in King Abdullah Port was connected using optical fibers to the central operating room, which was built using state-of-the-art infrastructure. In turn, the central operating room is connected to the customs systems through air fiber, with an incredible speed of up to 2 gigabits per second.
From its side, the Saudi Customs confirmed earlier that successfully clearing containers within 24 hours of arrival depends primarily on establishing the import statement prior to the container’s arrival, which would enable the department and government entities related to the customs clearance process to finalize procedures while the containers are still on the vessels. The department clarified that containers are transferred upon their arrival directly from the vessel to X-ray inspection and then to final clearance.
King Abdullah Port, which is owned by the Ports Development Company, is the first privately owned, developed and operated port in the Kingdom. It is characterized by its strategic geographic location and its integrated services using the latest state-of-the-art technology and utilizing local and international experts. The port has been listed as one of the world’s largest maritime shipping lines, and its development plan is proceeding at a steady pace and with a clear vision towards becoming one of the world’s leading ports.
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About King Abdullah Port
Strategically located on the Red Sea coast on one of the world’s busiest maritime shipping lanes and with direct access to extensive transportation networks and urban centers, King Abdullah Port is the first fully privately owned, developed and operated commercial port in the Kingdom of Saudi Arabia.
King Abdullah Port occupies a total area of 15 square kilometers and enjoys close proximity to King Abdullah Economic City’s Industrial Valley and the bonded zone. The port makes an increasingly important contribution to the Kingdom’s regional and global role in trade, logistics and shipping. Once fully built, King Abdullah Port will be able to handle 20 million containers (TEU), 1.5 million vehicles (CEU) and 15 million tons of clean bulk cargo every year.
With state-of-the-art processing facilities, the world’s deepest 18-meter water berths, expanding roll-on/roll-off operations, and a fully-integrated Port Community System, King Abdullah Port is capable of receiving today’s diverse mega cargo ships, fulfilling the growing needs of the young and fast-growing population of the Kingdom and the region.
King Abdullah Port is testament to the important role of the private sector in realizing Saudi Vision 2030 and is well on its way to meeting its goal of becoming one of the top ports worldwide.
Jeddah, June 2017
An atmosphere of trust, collaboration and unity settled over those gathered at this year’s annual iftar held by the Ports Development Company, the owner and developer of King Abdullah Port, with the participation of a wide array of guests including managers and stakeholders from the Economic Cities Authority, the Saudi Customs, the Border Guard, the Saudi Food and Drug Authority, the Saudi Standards, Metrology and Quality Organization, and the National Container Terminal Company, which is the main operator of container berths, in addition to representatives of a number of international shipping lines and logistics companies.
Eng. Abdullah Hameedadin, Managing Director of the Ports Development Company, addressed the gathering, wishing all present a spiritually fulfilling holy month of Ramadan while praying to Allah to bless the Kingdom and all Arab and Muslim nations.
“It is an honor and, indeed, it is spiritually fulfilling to be able to meet with all of you in this setting to celebrate the holy month of Ramadan,” said Eng. Hameedadin. “King Abdullah Port is, by its very nature, is a sprawling, multi-faceted project that demands the services of numerous diverse companies and agencies. Tonight’s iftar offers us the opportunity to embrace this vast diversity as well as our common goals.”
In his remarks, Eng. Hameedadin praised and congratulated everyone present for their determination to work without restraint to make King Abdullah Port one of the most exciting additions to the global shipping industry. Eng. Hameedadin proclaimed that everyone should be rightfully proud of the year’s accomplishments, which included an 8% growth in throughput in 2016 and an infrastructure to increase container capacity to more than four million TEU, in addition to the first operational phase of RORO and bulk terminals that are being developed at a steady pace.
Eng. Hameedadin also spoke of King Abdullah Port successfully aligning itself with Vision 2030, as it is the Kingdom’s first privately owned, developed and operated megaproject and is devoted to attracting additional businesses that will contribute to the much-needed diversification of the Saudi economy. He also celebrated the participation of Saudi women in the King Abdullah Port’s growth, pointing out that dozens of Saudi women employed at the port are indispensable to its operations.
Run by the Ports Development Company, King Abdullah Port is the first port to be fully owned, developed and operated by the private sector in the Middle East. With its strategic location and state-of-the-art technologies, all managed by national and global experts who strive to offer the best possible services, King Abdullah Port has earned its place at the heart of the world’s major shipping lines, all within a solid plan that will bring its vision of becoming one of the world’s largest ports to reality.
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About King Abdullah Port
Strategically located on the Red Sea coast on one of the world’s busiest maritime shipping lanes and with direct access to extensive transportation networks and urban centers, King Abdullah Port is the first fully privately owned, developed and operated commercial port in the Kingdom of Saudi Arabia.
King Abdullah Port occupies a total area of 15 square kilometers and enjoys close proximity to King Abdullah Economic City’s Industrial Valley and the bonded zone. The port makes an increasingly important contribution to the Kingdom’s regional and global role in trade, logistics and shipping. Once fully built, King Abdullah Port will be able to handle 20 million containers (TEU), 1.5 million vehicles (CEU) and 15 million tons of clean bulk cargo every year.
With state-of-the-art processing facilities, the world’s deepest 18-meter water berths, expanding roll-on/roll-off operations, and a fully-integrated Port Community System, King Abdullah Port is capable of receiving today’s diverse mega cargo ships, fulfilling the growing needs of the young and fast-growing population of the Kingdom and the region.
King Abdullah Port is testament to the important role of the private sector in realizing Saudi Vision 2030 and is well on its way to meeting its goal of becoming one of the top ports worldwide.
King Abdullah Economic City, May 2017
Today, the Kingdom is moving with confidence and clarity towards promising new horizons with the implementation of Vision 2030 and the National Transformation Program 2020. Both the government and the private sector are working to implement initiatives in various economic fields. Now, the country is preparing to initiate a new phase of development and growth that will thrust it into a leading regional role, especially in the maritime and shipping sectors and their respective logistical services.
King Abdullah Port and Vision 2030
One of the most important roles that King Abdullah Port plays in Vision 2030 is its contribution to the Kingdom’s regional and international profile as a strategic trade corridor, directly supporting national efforts to diversify the economy and harness the Kingdom’s economic and trade potential as part of the overall development process. This includes the activation of the transportation sector, which will contribute to the Kingdom’s upcoming renaissance and further energize the proliferation of public partnerships with the private sector, thus reinforcing the latter’s contribution to the gross national product.
King Abdullah Port is characterized by its strategic geographic location and integrated services. It is well-known in the shipping industry that King Abdullah Port offers the latest in technology and is under the management of a notable selection of Saudi and international experts who are working together to launch a new era of maritime transport services regionally and globally.
In terms of geographical location, King Abdullah Port is unique in many ways, the first of which being its location on the Red Sea coast, the maritime corridor for 25% of the world’s non-oil trade. In addition, King Abdullah Port is located in King Abdullah Economic City and is in close proximity to the city’s Industrial Valley, as well as to Holy Makkah, Al Madinah and Jeddah, all of which generate massive trade movement.
King Abdullah Port plays an important role in the Kingdom’s realization of the goals of put forth in Vision 2030. It has already become a role model for the future because of its contribution to the activation of the private sector in such megaprojects. In addition to being the first privately owned, operated and developed port in the region, King Abdullah Port cooperates with all government entities related to maritime transport, including Saudi Customs, the Border Guards, the Saudi Food & Drug Authority and more, all through the Economic Cities Authority which is the port’s direct governmental partner.
King Abdullah Port has been participating in regional and international logistical forums and exhibitions since 2015 as part of its role of contributing to the Kingdom’s logistical role and promoting the content and goals of Vision 2030.
King Abdullah Port has effectively contributed to the Kingdom’s growth and was classified in the last quarter of 2016 as the ‘World’s Fastest Growing Port’ by Container Management Magazine, a British magazine specializing in ports, maritime transport and the shipping and handling of containers. Moreover, Alphaliner, the global leader in analyzing maritime transport data, port capabilities and the future of vessels and shipping route development, revealed that King Abdullah Port joined its 2016 list of the world’s top 100 container ports as number 98. These impressive achievements come after only three years of operation, as King Abdullah Port opened its doors to the world in early 2014.
Currently, King Abdullah Port is finalizing contracts with major companies seeking to invest in logistical services, with the announcement of new signings to take place soon.
With Saudi Hands…
King Abdullah Port team strives to empower Saudi youth as a key component of its developmental role. The team has worked with Saudi women especially, as a major goal of Vision 2030 is to increase the number of Saudi women in the labor market from 20% to 30%.
King Abdullah Port effectively contributes to meetinging this goal by directly or indirectly facilitating integrated logistical solutions for business owners, by providing expansion opportunities, thereby increasing the employment rate for Saudi men and women. Furthermore, King Abdullah Port has succeeded in attracting highly skilled and qualified national cadres, and has been successful in the recruitment of women. Today, more than 80 Saudi women are working in control rooms, management, information technology and engineering.
King Abdullah Port Numbers and Achievements in 2016
King Abdullah Port can point to many achievements in 2016, most notably:
Towards the Future…With Confidence and Power
King Abdullah Port serves one of the largest maritime transport routes in the world, and is moving steadily toward becoming one of the leading ports worldwide. King Abdullah Port also strives to become a primary contributor in the realization of Vision 2030. Vision 2030 is based on three elements: first, the Kingdom being the land of the Haramayn, which is the destination of over a billion Muslims; second, the Kingdom’s massive investment potential; and third, the Kingdom’s strategic geographic location as a gateway to the world and a link between the three continents, overlooking the most important marine crossings in the world: the Arabian Gulf and the Red Sea.
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About King Abdullah Port
Strategically located on the Red Sea coast on one of the world’s busiest maritime shipping lanes and with direct access to extensive transportation networks and urban centers, King Abdullah Port is the first fully privately owned, developed and operated commercial port in the Middle East.
King Abdullah Port occupies a total area of 15 square kilometers and enjoys close proximity to King Abdullah Economic City’s Industrial Valley and the bonded zone. The port makes an increasingly important contribution to the Kingdom’s regional and global role in trade, logistics and shipping. Once fully built, King Abdullah Port will be able to handle 20 million containers (TEU), 1.5 million vehicles (CEU) and 15 million tons of clean bulk cargo every year.
With state-of-the-art processing facilities, the world’s deepest 18-meter water berths, expanding roll-on/roll-off operations, and a fully-integrated Port Community System, King Abdullah Port is capable of receiving today’s diverse mega cargo ships, fulfilling the growing needs of the young and fast-growing population of the Kingdom and the region.
King Abdullah Port is testament to the important role of the private sector in realizing Saudi Vision 2030 and is well on its way to meeting its goal of becoming one of the top ports worldwide.