DP World could operate Saudi ports

Riyadh: Saudi ports authorities are considering giving a stake in the operation of the kingdom's ports to DP World, a top official told Gulf News.

This could be on the same pattern of the southern port on the Arabian Gulf, which has been operated by DP World for the last seven years, said Dr Khalid Bu Bashit, chairman of the Saudi Ports Authority.

DP World manages Jeddah Islamic Port.

He made the remarks at a press conference after signing five contracts with the private sector. Emaar, The Economic City (Emaar EC) recently signed an agreement with DP World for the development and operation of the port at King Abdullah Economic City (KAEC). The new port, to be financed completely by the private sector, will be one of the world's ten largest ports.

Development works

Dr Bashit said the works for developing some ports in the kingdom are progressing well.

These works are aimed at increasing the operational capacity of these ports in terms of wharves, upgrading of equipment and machinery and the like, he said.

He added that the government has spent 38 billion Saudi riyals on construction and maintenance at the ports.

Nearly 80 per cent of the operation of ports is being carried out by the private sector. The role of the Saudi Ports Authority would be supervisory, he said.

The authority has clinched as many as 27 contracts with the private sector in the recent past. He called on Saudi businessmen to come forward with more investments in the port sector.

Dr Bashit disclosed that the 2.2 billion riyal Raas Al Zour Port will be opened soon.

"There are also plans to develop Jeddah Islamic Port to increase its operating capacity by 50 per cent to 4.5 million containers by next year, he said.

The port handles nearly 70 per cent of the kingdom's imported goods.

Source: Gulfnews.com