Saudi Arabia prepares for port privatisation

Saudi Arabia plans to create an independent firm that will manage the kingdom's eight ports under a gradual privatisation process.

The state-run Saudi Ports Authority has completed privatisation studies of the ports, which will lead to the inception of an independent managing body. Although it is not certain when this entity would be set up, the plan will resurrect a process that began hesitantly in 1997.

A royal decree in 1997 allowed private firms to operate and maintain berths and equipment owned by the Ports Authority on a commercial basis, while keeping the ports and their facilities under government ownership. The move was aimed at raising efficiency and creating more jobs for Saudi nationals. The bidding process was on the basis that the government would receive a share of terminal revenues.

In late 1997, the Ports Authority started transferring some terminals to the private sector on a terminal-by-terminal basis but progress to date has been vey slow.

Currently standing at around 9m teu, the Saudi Ports Authority body plans to raise the kingdom's container handling capacity to 15m teu by 2020.
(Source:www.container-mag.com)