Doubling up in Dammam
Saudi Global Ports (SGP), a subsidiary of Singapore’s PSA International, and Mawani, the Saudi Ports Authority, have agreed to build and operate two container terminals at the King Abdul Aziz Port in Dammam. Saudi Customs’ measures also support the move.
The deal struck covers an agreement to build, operate and transfer two container terminals in King Abdul Aziz Port in Dammam. SGP already runs a similar facility there, and will thus remain the sole container terminal operator in the important Saudi Arabian deepsea port on the country’s eastern coast. The two partner’s officials weren’t able to give a detailed time-line for the project yet.
The agreement envisages SGP investing and developing key infrastructure such as berths and container-handling equipment there, and will increase the hub’s annual handling capacity by around 120% to around 7.5 million teu.
SGP prices the deal at approximately USD 1.82 billion, making it the largest seaport investment by a single operator under a public-private partnership. The Far Eastern / Middle Eastern joint venture, which has seen investment from several Saudi entities, including the Public Investment Fund, Saudi Arabia’s sovereign wealth fund, improves services to and from Dammam for the eastern and central provinces of the kingdom.
The Singapore government was equally enthusiastic in its support for the deal. It was signed virtually, during a tele-conference, as travelling is currently not easy on account of governmental reactions to the outbreak of Covid-19. The Singaporean transport minister Khaw Boon Wan said (via Facebook) that “this joint commitment reflects our determination to keep the global supply chain intact, so that exporters’ and importers’ cargo can continue to move without disruption.”
Customs steps complement hardware
Saudi Customs is currently also implementing measures to bolster this investment in hardware. It will aim to reach leading industry standards through new optimisation initiatives, identifying process improvements and setting up a department for operational excellence. To this end it has entered into a partnership with the consultancy Four Principles. Saudi Customs governor Ahmed Al-Haqbani said that his authority “is confident that our partnership with Four Principles will transform our major operational processes, and achieve our vision for Saudi Customs. This starts with a 24-hour customs clearance goal.”
He pointed to a new centre for customs operations that handles customs declarations from every hub in one place. A concomitant pilot project was successfully completed in one port; the scheme is due to be implemented in all Saudi ports by mid-2021.
