Saudi 2030 Vision in the making: SGP wins 20-year concession for four multipurpose terminals

Saudi Global Ports Group (SGP) has been awarded four 20-year concession agreements by the Saudi Ports Authority (Mawani) to operate multipurpose terminals along the Eastern Coast of Saudi Arabia.

The agreements, awarded through SGP’s subsidiary Modern Port Services Company Limited (SGP Multipurpose Terminals or SGPMP) covers terminals located at King Abdulaziz Port Dammam (KAPD), Jubail Commercial Port (JCP), King Fahad Industrial Port Jubail (KFIP) and Ras Al-Khair Port (RAK).

SGP is currently the operator of container terminals at KAPD and the rail intermodal Riyadh Dry Port Ecosystem and also has an ongoing investment to develop the Dammam Integrated Logistics Zone (DILZ).

In 2024, SGP handled more than 4 million TEUs across its ecosystem of seaports and inland terminals.

Under the four concession agreements, SGP plans to invest more than 700 million Saudi Riyals (~$187 million) to upgrade the terminals and purchase new equipment. SGP also aims to integrate the four multipurpose terminals with its existing operations across Dammam and Riyadh, and to transform the terminals into more efficient and resilient gateways supporting the ‘robust’ growth in the Kingdom, which will be key for the ongoing and upcoming mega projects in the country.

As informed, SGP, with the support of its technical partner, Singapore-based port and terminal operator PSA International, will tailor training programs for the existing and new workforce at all the terminals. The training will introduce best practices in safety, operations and sustainability, drawing from PSA International’s successes in multipurpose terminals globally.

“SGP, as one of the National Champions for Ports and Logistics in Saudi Arabia, is proud to be entrusted with this opportunity to nurture and grow the four multipurpose terminals along the Eastern Coast of Saudi Arabia. We will strive to provide the same reliability, integration and spirit of innovation at the multipurpose terminals as we have done so for the container terminals at KAPD, the Riyadh Dry Port Ecosystem and DILZ,” Abdullah Al Zamil, Chairman of the Board of Saudi Global Ports Company, commented.

“The agreement between SGP and Mawani is pivotal in driving economic diversification under Saudi Arabia’s Vision 2030. By integrating and modernising key terminals, SGP, together with its technical partner, PSA International, brings their expertise to enhance supply chain efficiency, support critical mega projects, and strengthen the Kingdom’s position as a global logistics hub,” Bakr AlMuhanna, Vice Chairman of the Saudi Global Ports Board, said.

“PSA is proud to be alongside Saudi Arabia’s growth journey for over 10 years. We are excited to continue to work alongside PIF, Mawani and other stakeholders in the Kingdom, supporting SGP with our global expertise and network as it expands its ecosystem to include capabilities that can bring new and differentiated value to the Kingdom’s ports and logistics sector,” Vincent Ng, Regional CEO Europe & Mediterranean and Middle East South Asia, PSA International, noted.

Saudi Arabia’s Vision 2030 is a strategic framework aimed at reducing the country’s dependence on oil, diversifying its economy, and developing public service sectors.

The ports and logistics sectors are said to be a major part of this vision, as the country seeks to become a global logistics hub connecting three continents: Asia, Europe, and Africa.

The flagship project of the Kingdom’s Vision2030 plan is NEOM, a futuristic megacity project on the Red Sea coast in Tabuk province. NEOM aims to pivot Saudi Arabia’s economy away from oil and toward renewable energy, technology, biotech, tourism, and entertainment.

The central position here also plays Oxagon, described as the world’s largest floating industrial complex that will focus on energy (hydrogen included), manufacturing, logistics, and R&D.