King Abdullah Economic City, July 2018: Rayan Qutub, CEO of King Abdullah Port, announced that the port handled a total of 1,236,075 TEU during the first half of 2018; registering a record 50.5% increase compared to the same period last year.

“Since the launch of operations five years ago, King Abdullah Port has become the second largest container port in the Kingdom, and it is moving forward towards becoming a major trade hub and global logistics platform on the Red Sea,” Qutub stated.

“Located on the main maritime line linking the east and the west, King Abdullah Port aims to increase the Kingdom’s competitiveness in The World Bank’s Logistics Performance Index (LPI); therefore, effectively contributing to accomplishing the logistics objectives of Vision 2030.”

The CEO concluded his statement by thanking the port’s success partners from government agencies and the private sector, including the Transport Ministry, the Public Transport Authority, the Economic Cities Authority, the Saudi Customs, the Border Guards, and all the custom clearance agents, importers, exporters, and shipping lines operating in the port.

Earlier this year, King Abdullah Port announced a 21% increase in its annual throughput during 2017, and the port’s development plan is well on its way towards meeting its goal of becoming one of the top ports in the world. Once fully built, King Abdullah Port will be able to handle 20 million TEU, 1.5 million CEU and 15 million t of clean bulk cargo annually.

King Abdullah Port has announced a 21% increase in its annual throughput compared to 2016, reaching 1,695,322 TEU by the end of 2017 and becoming the second largest port in the Kingdom in terms of container handling. Since operations started in the final quarter of 2013, the cumulative throughput reached 4,898,016 TEU. The port’s management stated that the increase in annual throughput was mainly due to the increased activity in imports and exports, amounting to an average of a 4% increase (exports at 3% and imports at 5%).

Commenting, Mr. Rayan Qutub, CEO of King Abdullah Port, said: “King Abdullah Port represents a real success story for public-private partnerships in the Kingdom in respect of Vision 2030, to which the port looks forward to significantly contributing to achieving its goals by supporting the Kingdom’s economic development journey and enhancing its competitiveness. This is done by increasing the efficiency of logistical services and supporting trade movement between the Kingdom and the world through the provision of state-of-the-art infrastructure and advanced logistical services.” He added: “The port’s success in reaching second place in container handling in the Kingdom after only four years of operations proves that we are confidently moving towards becoming a main hub on the maritime navigation and logistics map, both locally and regionally.”

Qutub went on to say: “We are moving forward with executing our development plans to utilize best practices in the field of developing and operating ports and logistics support services. This comes after King Abdullah Port was rated the fastest growing port in the world in an international study by Container Management magazine in 2015, in addition to earning a place on the list of the 100 largest container ports in the world, according to research conducted by two leading maritime and port information databases, Alphaliner and Lloyd’s, in 2016.”

Some other numbers achieved by King Abdullah Port in 2017 are a 28% increase in transshipment volume compared to 2016, while the number of vessels received by the port increased to 820 vessels, with a 14% increase compared to 716 vessels received in 2016.

Run by the Ports Development Company, King Abdullah Port is the Middle East’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 lanes, all within a solid plan that will bring to reality its vision of becoming one of the largest ports in the world.

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.