Saudi Ports Authority signs $586mln privatisation contracts for cargo terminals
The Saudi Ports Authority (Mawani), in partnership with the National Centre for Privatisation and PPP, has signed build-operate-transfer (BOT) contracts worth more than 2.2 billion Saudi riyals ($586 million) for multipurpose cargo terminals at eight major ports across the Kingdom.
The contracts were signed on Monday in the presence of Saleh bin Nasser Al-Jasser, Minister of Transport and Logistics Services and Chairman of Mawani's Board of Directors, according to a Arabic language press statement posted by the Authority.
Under the 20-year concession agreements, Saudi Global Ports (SGP), a part of Singapore-headquartered PSA group will develop, operate, and manage terminals on the East Coast, including: King Abdulaziz Port in Dammam
Jubail Commercial Port
King Fahd Industrial Port in Jubail
Ras Al Khair Port
SGP currenly operates both deepsea container terminals at King Abdulaziz Port Dammam.
On the West Coast, Red Sea Gateway Terminal (RSGT) will handle operations at: Jeddah Islamic Port
Yanbu Commercial Port
King Fahd Industrial Port in Yanbu
Jazan Port
RSGT, which operates the container terminal at Jeddah Islamic Port, is a partnership between the Red Sea Gateway Terminal of Saudi Arabia and the Malaysian Mining Company (MMC)
The contracts include investments in modernising terminal infrastructure and equipment. At King Fahd Industrial Port in Yanbu, upgrades will feature RTG and STS cranes, reach stackers, and new trailer fleets, which is expected to improve truck turnaround times, reduce ship dwell periods, and enhance overall cargo handling efficiency.
(Writing by Majda Muhsen; Editing by Anoop Menon)
(anoop.menon@lseg.com)
Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Business
2 hours ago
- Arabian Business
Saudi Arabia signs $586m port privatisation deals to boost logistics sector
Saudi Arabia has signed SR2.2bn ($586m) worth of Build-Operate-Transfer (BOT) privatisation contracts for multi-purpose cargo terminals at eight major ports. The deals were signed by the Saudi Ports Authority (Mawani) in cooperation with the National Centre for Privatisation, and witnessed by Saleh Al Jasser, Minister of Transport and Logistic Services and Chairman of Mawani. The contracts span a 20-year period and were awarded to Saudi Global Ports (SGP) and Red Sea Gateway Terminal, two of the Kingdom's leading logistics firms. Saudi port privatisation deals Eastern coast: King Abdulaziz Port (Dammam), Jubail Commercial Port, King Fahd Industrial Port (Jubail), Ras Al-Khair Port Western coast: Jeddah Islamic Port, Yanbu Commercial Port, King Fahd Industrial Port (Yanbu), Jazan Port Strategic goals and impact: Modernize cargo handling infrastructure using state-of-the-art cranes, stackers, and trucks Reduce truck turnaround times and vessel berth times Increase container capacity and operational efficiency Attract further private investment into Saudi Arabia's logistics ecosystem Strengthen the Kingdom's position as a global logistics hub Minister Al Jasser underscored that the transport and logistic ecosystem will continue boosting partnerships with the private sector across all regions and sectors in the Kingdom. He noted that the new privatisation contracts are an extension of strategic partnerships established by Mawani with major national and international specialised companies to empower the maritime transport sector, support economic diversification, and reinforce the Kingdom's position as a global logistics hub.
UAE Moments
6 hours ago
- UAE Moments
What Will Happen If the Strait of Hormuz Closes?
Since the media reports of Iran's plan to close the Strait of Hormuz have been circulating on social media, the world has been in panic because the strait is the gateway to almost a fifth of the world's daily oil output. Around 84 percent of the oil leaving the Strait of Hormuz is set for Asia, with 14.2 million barrels of crude oil and 5.9 million barrels of other petroleum products leaving the strait every day, which is 20 percent of global production in the first quarter, according to the US Energy Information Administration (EIA). The crude oil from Saudi Arabia, the UAE, Iraq, Kuwait, Qatar and Iran is exported exclusively from this strait. China is one of the biggest importers of oil passing through the strait because it imports 5.4 million barrels of crude oil per day in the first quarter, according to EIA. Saudi Arabia is China's second-largest supplier by exporting 1.6 million barrels a day. China also imports 90 percent of Iran's oil exports, according to Kpler. India imported 2.1 million barrels of crude a day through the corridor in the first quarter. According to local media, almost 53 percent of India's imported oil came from Iraq and Saudi Arabia in the first quarter of 2025. South Korea imported 1.7 million barrels a day this year from the strait, which is almost 68 percent of its crude oil imports. The country is mainly dependent on Saudi Arabia for its imports, which accounted for a third of its oil imports last year. Japan receives 1.6 million barrels of crude oil per day through the Strait of Hormuz, according to the EIA. Last year, 95 percent of the country's crude oil imports were from the Middle East. Around 2 million barrels of crude oil exported through Hormuz is for the rest of the world including the following: Thailand Phillippines Europe (0.5 million barrels) United States (0.4 million barrels) Analysts and experts are worried about the possibility of the full closure of the Strait of Hormuz because it would disrupt global oil supplies and lead to a huge spike in oil prices.
Khaleej Times
12 hours ago
- Khaleej Times
Stocks climb, oil reverses gains amid Gulf flare-ups
Gulf stock markets gained ground on Monday as oil prices surged to a five-month high, driven by mounting geopolitical tensions following US strikes on Iranian nuclear sites. Investor anxiety has deepened over the possibility of an Iranian response, especially amid growing fears that Tehran may attempt to disrupt or block the critical Strait of Hormuz—a conduit for more than 20 per cent of the world's oil supply. Brent crude rose sharply in the wake of the US offensive, which marked a dramatic escalation in the ongoing Middle East conflict. This spike in oil prices, while boosting energy-exporting economies in the Arab Gulf, also reignited global concerns over inflation, supply chain fragility, and stagflation risks. However, gains were reversed later in the day. Around 7pm UAE time, Brent was down 0.93 per cent to $76.29, while West Texas Intermediate fell 0.99 per cent to $73.11. While investors across global markets adopted a cautious stance, the response in Gulf equity markets was more upbeat. Saudi Arabia's benchmark index advanced 0.7 per cent, led by gains in Al Rajhi Bank and Saudi Arabian Mining Company. Dubai's main index rose 1 per cent, with blue-chip developer Emaar Properties jumping 2.4 per cent and Dubai Islamic Bank gaining 1.7 per cent. Analysts attributed this relative optimism to speculation that direct US involvement might pressure Iran towards a diplomatic resolution. 'Regional markets are trying to price in both the risks and opportunities from the escalation,' said Hani Abuagla, senior market analyst at XTB MENA. 'Some investors are betting that the crisis may force stakeholders back to the negotiating table.' Despite the uptick in regional equities, global markets were jittery. US stock futures edged lower on Monday. Futures tied to the Dow Jones Industrial Average slipped 114 points, or 0.2 per cent, while S&P 500 and Nasdaq-100 futures both fell by 0.2 per cent. Last week, the S&P 500 posted a 0.15 per cent loss—its second consecutive weekly decline. Josh Gilbert, market analyst at eToro, said investors are approaching the week with a 'heightened sense of caution.' He noted that markets are witnessing a classic flight to safety, with equity futures down, bitcoin sliding below $100,000, and gold and oil prices trending higher. 'Until we see signs of de-escalation, this defensive positioning will continue,' Gilbert said. 'This kind of geopolitical uncertainty is becoming part of the new normal.' The key risk factor, he emphasised, remains the Strait of Hormuz. 'Any disruption to that key artery could lead to a sharp spike in oil prices in the short term,' Gilbert said, adding that while the UAE and other Arab Gulf exporters might benefit from higher crude prices, broader market volatility and inflationary pressures would weigh heavily on the global economy. Tavis McCourt, analyst at Raymond James, echoed this sentiment, warning that an escalation would likely result in a short-term rise in oil prices, interest rates, and the US dollar, fuelling fears of stagflation. 'Conversely, signs of resolution could revive risk appetite and reward dip buyers,' he wrote in a note. Vijay Valecha, chief investment officer at Century Financial, said crude prices briefly touched their highest levels since January, underpinned by expectations of Iranian retaliation. He pointed out that Iran's parliament had approved measures that could lead to blocking the Strait of Hormuz. 'Markets initially reacted to the headline risk, but are now bracing for Iran's next move,' he said. 'Even limited interference with tanker traffic could significantly reprice geopolitical risk.' Beyond immediate market moves, analysts warned of wider economic fallout. A disruption to the Strait would not only hurt global oil supply but could also deal a blow to Iran's own exports. Even without a full closure, sustained tension could upend shipping insurance costs, delay deliveries, and increase energy and food prices across importing nations. In particular, countries in Asia—heavily dependent on oil from the Arab Gulf—are expected to bear the brunt of rising costs. 'There is no real substitute for Gulf oil in the short term,' said Joaquin Vespignani, associate professor of finance at the University of Tasmania. 'For Indo-Pacific countries, higher import bills could force budget cuts elsewhere. Inflation will rise while incomes stagnate—a double blow for consumers.' He warned that nations with limited fiscal space could struggle to maintain current levels of infrastructure spending and welfare programs. 'This shock will ripple far beyond the Gulf, straining economies and consumers alike,' he added.
