King Abdullah Port Concludes 2018 with an Annual Throughput Increase Exceeding 36%
Qutub: “King Abdullah Port has become the leading driver in the maritime shipping and logistics services sector.”
KAEC, January 2019: The annual throughput of King Abdullah Port increased to 2,301,595 TEUs by the end of 2018, an increase of more than 36% compared to 2017, maintaining its position as the second largest port in the Kingdom in terms of container handling.
Since its inception in the last quarter of 2013 the number of containers handled by the port has reached 7,227,859 TEUs. The port’s management states that the annual increase in throughput was primarily achieved in conjunction with an 8% increase in imports and exports compared to 2017.
Commenting, King Abdullah Port CEO Mr. Rayan Qutub stated: “King Abdullah Port constitutes a real success story in public-private sector partnerships in light of the increasingly outstanding figures it achieves year after year. The port has become the leading driver in the maritime shipping and logistics services sector in terms of building knowledge, launching initiatives and supporting various activities in this sector.”
“King Abdullah Port aspires to support the Kingdom’s economic development and enhance its competitiveness by increasing the efficiency of logistics services and supporting trade movement between the Kingdom and the rest of the world in line with Vision 2030. The latter would occur through the provision of state-of-the-art infrastructure and advanced logistics services to become a landmark on the maritime and logistics services map in the Kingdom and the region,” he explained.
Referring back to the 2018 results, Qutub stated: “We achieved a record 50% increase in container handling in the first half of 2018, and we are moving forward with our development plans to provide best practices in the fields of port development and operation as well as supporting logistical services. This will increase the Kingdom’s competitive advantage on the logistics services index, and in turn effectively contribute to achieving the logistical objectives of the Kingdom’s Vision 2030.”
The results achieved by King Abdullah Port in 2018 include an increase in transshipment volume reaching 1,847,569 TEUs, which is a 44% increase compared to 2017. Meanwhile, the number of vessels received by the port increased to 911 vessels, a 12% increase compared to 820 vessels in 2017.
The port features state-of-the-art facilities including 18-meter water berths, which are the deepest in the world, and the world’s largest and most advanced cranes, which employ the latest technology and feature a 65-ton lifting capacity as well as a handling capacity of 25 containers. Such facilities enable the port to serve giant container vessels now and in the future.
Owned by the Ports Development Company, King Abdullah Port is the region’s first port to be fully owned, developed, and operated by the private sector. It has been listed as the fastest growing container port and one of the world’s top 100 ports after less than four years of operation. Eight of the largest shipping lines operate at the port to offer integrated services to importers and exporters, and the port’s development plan is proceeding at a steady pace with a clear vision to become one of the world’s leading ports. Utilizing its advanced facilities and proximity to the assembly, re-export, and logistics services zones, the port offers its clients logistics support that can enable them to achieve their desired growth.
####
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.
Honorable presence confirms Port’s importance to Vision 2030
King Abdullah Economic City, February 2019: HRH Prince Mohammed bin Salman, Crown Prince, Vice President of the Council of Ministers and Minister of Defense, officially inaugurated King Abdullah Port on Monday, 11 February 2019, during a visit to King Abdullah Economic City (KAEC). The visit came during a series of internal tours of projects located in the Kingdom’s provinces.
The inauguration ceremony began with a speech from the Minister of Transport and Board Member of the Economic Cities Authority (ECA), HE Dr. Nabeel M. Al-Amudi. He praised the Crown Prince’s visit and generous patronage of the official opening of King Abdullah Port, which is the first privately developed, managed and operated port in the Kingdom and region. He said: “I would like to emphasize how important this national project is, and how the achievements we are witnessing today would not have been possible without Allah, followed by the government of the Custodian of the Two Holy Mosques and his support, patronage, and commitment to advance our beloved nation.”
Chairman of the Ports Development Company (PDC), Mr. Saleh bin Ladin, welcomed the Crown Prince, and expressed his honor in opening King Abdullah Port, which is owned and developed by PDC. He commented: “King Abdullah Port has undergone major milestones during its development, two of which represent historical moments in the port’s journey. The first was the nationwide leap that occurred when the esteemed Council of Ministers approved Vision 2030 under the chairmanship of the Custodian of the Two Holy Mosques, HRH King Salman bin Abdulaziz. The second is the one we are witnessing today, as Your Royal Highnesses honors this port through its opening ceremony.”
He added: “We are looking forward to making King Abdullah Port a major logistics hub, and a key driver in the Kingdom’s logistics sector by utilizing its geographical location on one of the most important trade routes in the world, in order to attract all types of investments to the Kingdom and increase the nation’s share of global trade.”
At the end of his speech, bin Ladin thanked the port’s partners, which include international shipping companies and operators, and government agencies working at the port. He also praised the important role played by ECA, the government agency overseeing King Abdullah Port. He thanked ECA for their efforts in enabling and supporting the port’s development work, in order to achieve strategic objectives and enhance its role in meeting the needs of the growing Saudi market, in addition to contributing to advancing the national economy.
MSC Group Executive Chairman, Capt. Gianluigi Aponte, emphasized the quality of the world-class services offered by King Abdullah Port to international shipping companies. He said: “I am pleased MSC plays a vital role in developing this significant project, thereby contributing to achieving the objectives of Vision 2030. The strategic location of King Abdullah Port will enable it to effectively contribute to the socioeconomic growth of the Kingdom and the Gulf region in general, which has the potential to become a key logistics hub for global trade. We at MSC believe this region provides us with an excellent opportunity to carry out our work in container transport and port terminal activities, while ensuring the provision of high-quality services to our customers and contributing to the growth and development of our operations.”
After the speeches, honored guests watched a short film about the port’s development, followed by the announcement of MoUs signed by the port. The event was concluded with the inauguration of King Abdullah Port by the Crown Prince.
The agreements already signed by the port, include a MoU between King Abdullah Port and Saudia Cargo for the establishment of a land-air bridge. This will help link the Kingdom’s ports sector to the airport sector for the first time, with intra-trade volume expected to reach SR10 billion by 2030. The MoU will positively impact on several sectors, most notably e-commerce, and promote the Kingdom’s standing as a regional logistics hub. In addition, a MoU was signed between the port and Petro Rabigh to adopt the port as the main logistics platform for the company’s petrochemical exports. This MoU will enable the port to become a platform for exporting petrochemicals through the Red Sea, in addition to adding competitive value and increasing the level of Saudi exports.
Another MoU signed by King Abdullah Port with the National Container Terminals will expand the port’s container terminal and increase throughput to seven million TEU, making it the largest container port on the Red Sea coast. The beginning of drilling operations on the north basin between the port and Huta Marine was also announced, an agreement which will add 10 million TEU of throughput and 15 million t of bulk cargo.
The inspirational concept that led to the creation of King Abdullah Port was the visionary realization that the Kingdom of Saudi Arabia needed a world class port capable of receiving today’s mega cargo ships in order to handle the increasing number of imports to fulfill the growing needs of the young and fast growing population, while also facilitating increased exports to global markets. Today, the far-sighted concept of King Abdullah Port is completely aligned with the government’s Vision 2030 for an economy that is non-dependent on oil, and boosting the Kingdom’s competitive role.
The added value of King Abdullah Port in the Kingdom’s socioeconomic development journey is based on capacity building. Saudization rates in the port have reached 61.5%, excluding labor. Eight of the largest shipping lines operate at the port to offer integrated services to importers and exporters, and the port’s development plan is proceeding at a steady pace with a clear vision to become one of the world’s leading ports. Utilizing its advanced facilities and proximity to the Bonded and Re-export Zone, and the logistics park, King Abdullah Port offers its clients logistics support to enable them to achieve their desired growth. The port has established partnerships with shipping companies, banks, and global port operators, with investments exceeding SR13 billion.
The government, represented by ECA, is responsible for overseeing, organizing, and coordinating the government agencies involved in the port’s activities, in order to ensure a smooth flow of work. King Abdullah Port is one of the latest infrastructure megaprojects in the Middle East, and is a testament to the success of public-private partnerships.
####
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 privately owned, developed and operated commercial port in the Kingdom of Saudi Arabia and the region.
King Abdullah Port occupies a total area of 17.4 km2 and enjoys close proximity to King Abdullah Economic City’s Industrial Valley and the bonded zone. The port is making 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 TEU, 1.5 million CEU and 15 million t 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.
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 PORT CEO: “LOGISTICALLY-ADVANCED COUNTRIES HAVE RELIED ON THE CONCEPT OF FREE ZONES”
Qutub discusses enhancing connectivity and leveraging logistical assets in The Makkah Region Economic Forum 2019
Holy Makkah, April 2019: King Abdullah Port CEO Rayan Qutub participated in a panel discussion titled ‘Enhancing Connectivity and Leveraging Logistical Assets’ at The Makkah Region Economic Forum 2019 recently held in Holy Makkah. The panel, which was moderated by the Founder and Director of Platforms Dr. Roudaina Al-Khani, also included the CEO of Agility KSA Eng. Abdullah Al-Ahmed, Ministry of Economy and Planning Advisor Ms. Farah Ismail, and Co-Founder of Cities Forum Ms. Zeina Nazer.
During the panel discussion Qutub reviewed the most effective methods for leveraging and enhancing logistics assets, as well as ensuring sufficient support for multi-sector supply chains. He also discussed the best methods for effectively integrating new technologies in order to create and manage logistics plans. “Logistically-advanced countries have relied on the concept of industrially- and logistically-integrated free zones as they contribute to achieving industrial integration and development. They also serve trade movement in the Red Sea and East African countries, which are expected to achieve substantial growth in the coming years,” he said.
On the strategic location of King Abdullah Port, Qutub commented: “The success and growth of King Abdullah Port is due to its location on the Red Sea coast linking trade between the East and West and its proximity to the Industrial Valley in King Abdullah Economic City, as well as the large areas that can be utilized as free zones. It is also close to the three commercial centers: Jeddah, Holy Makkah and Al Madinah, thereby facilitating the transportation of goods to and from those cities. Therefore, King Abdullah Port has the ideal characteristics to serve as an expandable logistics platform of international standards.”
Qutub also discussed the impact that the National Industrial Development and Logistics Program has on the Makkah Region and the emerging investment opportunities in this area, pointing out the importance of “Approving the project to link King Abdullah Port to Yanbu Commercial Port after the completion of research, as well as the dry port in Riyadh.” He noted that the port should also be linked to Wa’ad AlShamal and different industrial cities through the proposed railway, which will reflect logistics integration to serve the national industrial system in line with Vision 2030.
At the end of the discussion, the participants emphasized the necessity of prioritizing the establishment of free zones as they would contribute to developing and leveraging the Kingdom’s industrial sector in general and the logistics services sector in particular, thereby advancing it to become a key element for global logistics centers.
Previously, King Abdullah Port had announced an increase in its annual throughput to 2,301,595 TEU by the end of 2018, which is a 36% increase compared to 2017, therefore maintaining its status as the second largest ports in the Kingdom in terms of container handling.
Run by the Ports Development Company, King Abdullah Port is the region’s first port to be fully owned, developed, and operated by the private sector. It has been listed as the fastest growing container port and one of the world’s top 100 ports after less than four years of operation. Eight of the largest shipping lines operate at the port to offer integrated services to importers and exporters, and the port’s development plan is proceeding at a steady pace with a clear vision to become one of the world’s leading ports. Utilizing its advanced facilities and proximity to the assembly, re-export, and logistics services zones, the port offers its clients logistics support that can enable them to achieve their desired growth.
####
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 privately owned, developed and operated commercial port in the Kingdom of Saudi Arabia and the region.
King Abdullah Port occupies a total area of 17.4 km2 and enjoys close proximity to King Abdullah Economic City’s Industrial Valley and the bonded zone. The port is making 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 TEU, 1.5 million CEU and 15 million t 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 Port Concludes 2018 with an Annual Throughput Increase Exceeding 36%
Qutub: “King Abdullah Port has become the leading driver in the maritime shipping and logistics services sector.”
KAEC, January 2019: The annual throughput of King Abdullah Port increased to 2,301,595 TEUs by the end of 2018, an increase of more than 36% compared to 2017, maintaining its position as the second largest port in the Kingdom in terms of container handling.
Since its inception in the last quarter of 2013 the number of containers handled by the port has reached 7,227,859 TEUs. The port’s management states that the annual increase in throughput was primarily achieved in conjunction with an 8% increase in imports and exports compared to 2017.
Commenting, King Abdullah Port CEO Mr. Rayan Qutub stated: “King Abdullah Port constitutes a real success story in public-private sector partnerships in light of the increasingly outstanding figures it achieves year after year. The port has become the leading driver in the maritime shipping and logistics services sector in terms of building knowledge, launching initiatives and supporting various activities in this sector.”
“King Abdullah Port aspires to support the Kingdom’s economic development and enhance its competitiveness by increasing the efficiency of logistics services and supporting trade movement between the Kingdom and the rest of the world in line with Vision 2030. The latter would occur through the provision of state-of-the-art infrastructure and advanced logistics services to become a landmark on the maritime and logistics services map in the Kingdom and the region,” he explained.
Referring back to the 2018 results, Qutub stated: “We achieved a record 50% increase in container handling in the first half of 2018, and we are moving forward with our development plans to provide best practices in the fields of port development and operation as well as supporting logistical services. This will increase the Kingdom’s competitive advantage on the logistics services index, and in turn effectively contribute to achieving the logistical objectives of the Kingdom’s Vision 2030.”
The results achieved by King Abdullah Port in 2018 include an increase in transshipment volume reaching 1,847,569 TEUs, which is a 44% increase compared to 2017. Meanwhile, the number of vessels received by the port increased to 911 vessels, a 12% increase compared to 820 vessels in 2017.
The port features state-of-the-art facilities including 18-meter water berths, which are the deepest in the world, and the world’s largest and most advanced cranes, which employ the latest technology and feature a 65-ton lifting capacity as well as a handling capacity of 25 containers. Such facilities enable the port to serve giant container vessels now and in the future.
Owned by the Ports Development Company, King Abdullah Port is the region’s first port to be fully owned, developed, and operated by the private sector. It has been listed as the fastest growing container port and one of the world’s top 100 ports after less than four years of operation. Eight of the largest shipping lines operate at the port to offer integrated services to importers and exporters, and the port’s development plan is proceeding at a steady pace with a clear vision to become one of the world’s leading ports. Utilizing its advanced facilities and proximity to the assembly, re-export, and logistics services zones, the port offers its clients logistics support that can enable them to achieve their desired growth.
####