Groundbreaking has commenced on a significant new logistics park in Saudi Arabia, spanning an area of 415,000 square meters. This ambitious project is being developed through a partnership between a major global logistics provider and the Saudi Ports Authority.
The new facility aims to enhance modern storage and distribution capabilities, significantly boosting trade within Saudi Arabia and the broader region. Established in 2022 as part of a 30-year concession, the logistics park will be developed in two phases, with an anticipated opening in the second quarter of next year.
With an investment of $250 million, the greenfield facility will feature 185,000 square meters of warehousing space and a multipurpose storage yard, making it the largest integrated logistics park in the Kingdom. It will accommodate over 390,000 pallet positions, offering an efficient platform for the seamless flow of goods to and from Saudi Arabia.
A rooftop solar plant on the warehouse will generate 20MW of renewable energy, contributing to the facility’s sustainable design and operation.
Strategically located on the vital Asia-Europe shipping route, the logistics park will provide world-class multimodal connectivity and market access, supporting Saudi Vision 2030’s ambitious goals. This development marks a significant milestone, enhancing trade facilitation and logistics efficiency in the region.
The collaboration also includes the management of a major container terminal through a separate 30-year concession. Currently in the final phase of a comprehensive modernization project, the terminal’s handling capacity is set to reach five million twenty-foot equivalent units (TEUs) by the end of 2024. Combined, these projects represent a close to $1 billion investment.
The President of the Saudi Ports Authority emphasized that this new logistics area will be integrated with the major container terminal, facilitating growth and increasing the container handling capacity. The project aligns with broader efforts to expand logistics centers in Saudi ports, in partnership with major national and international companies, supporting the National Transport and Logistics Strategy and Vision 2030.
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