Maersk has announced it has signed an agreement with the Saudi Ports Authority committing to an investment of $136m to set up an Integrated Logistics Park at Jeddah Islamic Port in Saudi Arabia. The company hopes that the 205,00 sq m warehouse will offer customers an extensive infrastructure for warehousing & distribution, cold storage, e-commerce and serve as a hub for transhipments, petrochemical consolidation, air freight and less than container load (LCL) cargo.
According to the company, the bonded and non-bonded warehousing & distribution facility will cover more than 70% of the total area while the remaining part will act as a hub for transhipment, air freight and LCL cargo. The facility will have several different sections to accommodate general warehousing and cold chain storage.
Maersk reported that the Integrated Logistics Park will also have a dedicated e-commerce fulfilment centre. The company hopes that the facility will be able to handle annual volumes close to 200,000 TEUs across different products.
The facility will aim to connect and simplify the supply chains of importers and exporters in the country. Maersk also announced it intends to invest heavily in renewable energy to power its facility and eventually achieve carbon-neutrality. The project is expected to create more than 2,500 direct and indirect jobs in Saudi Arabia.
Maersk reported that the investment aligns with Saudi Arabia’s Vision 2030 strategy. Vision 2030 aims to triple the share of non-oil exports from Saudi Arabia, to eventually reach 50% of the country’s total exports. The strategy also looks to raise the country’s global ranking to top 25 in the Logistics Performance Index.
Managing Director of Maersk West and Central Asia Richard Morgan commented: “Our ambition is not only to connect and simplify our customers’ supply chains, but also be a catalyst in the growth of trade and economies through our customer-centric solutions”.
Source: Maersk
