King Abdullah Port Closer to 4 Million TEU Milestone
- Business & Finance
The infrastructure of the Berth 5 and Berth 6 at Saudi Arabia’s King Abdullah Port is taking shape as the port informed that the works at the site are expected to be finished in a few weeks.
The two berths are part of the port’s strategic expansion plan, which aims to increase the port’s capacity, thus boosting its standing in the maritime industry.
“With the two new berths, the port’s annual capacity will rise to four million TEU as of the beginning of the first quarter of 2017,” Eng. Abdullah Hameedadin, Managing Director of the Ports Development Company, the owner and developer of King Abdullah Port, said.
Last year, King Abdullah Port’s annual throughput rose to 1.27 million TEU. This figure is expected to continue rising despite the challenges faced by the market and a slowing down of global economic growth, the port said. Moreover, the port’s annual capacity had risen by 25% to reach about four million.
The management of King Abdullah Port expects to finalize the first phase of bulk cargo terminals with a capacity of three million tons, in addition to the roll-on/roll-off terminals with a capacity of 300,000 CEU by the beginning of 2017.
The announcement comes on the back of a SAR 2.7 billion (USD 719.6 million) financial deal signed for the development and expansion of the port’s facilities in early October.
The owner and developer of the port, The Ports Development Company, signed the agreement with SABB and the Arab National Bank. Under the deal PDC will work to provide proper financing for the next phase of expansion and development for the port’s southern basin, which includes an additional container terminal, a ro-ro terminal and a bulk cargo terminal.
The expansion works would increase the port’s total capacity to 6 million TEUs annually.