DP World, one of the world biggest port operators, has partnered with the Saudi Ports Authority (Mawani) to launch a new shipping line to help the kingdom increase its connectivity.
The new direct shipping line will connect the UAE’s Jebel Ali Port in Dubai with Egypt’s Sokhna Port through Jeddah Islamic Port, enabling Saudi Arabia to improve shipping services to the Red Sea coast area, the Dubai Media Office said in a statement on Wednesday.
This is the fourth shipping line venture undertaken by Mawani, which is part of Saudi Arabia’s Ministry of Transport, this year. It has a strategy to improve the kingdom’s sea, land and air connectivity with neighbouring countries.
“The launch of the new shipping line is part of Mawani’s ambitious initiatives to achieve its strategic goals set by the National Industrial Development and Logistics Programme to support economic growth, foster investments and contribute to achieving Saudi Vision 2030, positioning Saudi Arabia as a global centre for logistics,” Saad Alkhalb, president of Mawani said.
“The direct shipping line will … facilitate trade across all global supply chains, increase trans-shipment volumes and gain an upgraded share of the ships on the Red Sea coast.”
In December last year, DP World was awarded a 30-year build-operate-transfer concession by Mawani to develop and manage the Jeddah South Container Terminal at Jeddah Islamic Port. DP World, which manages port facilities across the globe, will invest up to $500 million (Dh1.84 billion) to improve and modernise the Jeddah Islamic Port as part of the agreement. The Dubai-based operator will undertake major infrastructure development in Jeddah to enable the port to serve ultra-large container carriers, including some of the world’s largest container ships, according to the agreement.
Sultan Bin Sulayem, DP World group chairman and chief executive, said the first dedicated shipping service connecting Jebel Ali, Jeddah and Sokhna will be a “game-changer in promoting the much-needed intra-regional trade”.
“The shipping line will directly benefit the Arab world's three largest markets. We are committed to delivering best-in-class efficiency and productivity using smart technology-led logistics.”