Saudi Ports Authority launches 2m sq m logistics zone in Jeddah
Half of the land within the zone will be offered to investors through leases
The Saudi Ports Authority (Mawani) launched a new logistics zone in Jeddah known as Al Khomra, which will cover more than two million square metres in its initial phase.
The zone will house bonded customs and re-export zones, and about half of the land within it will be offered to investors on a leasehold basis. It was announced by the kingdom's transport minister, Nabeel bin Mohamed Al-Amudi, at the Saudi Logistics Conference in Riyadh on Sunday, who said it would have a huge impact on the kingdom's logistics sector.
"[The government] has been keen on promoting the various sectors of business and production in the kingdom to enhance our national economy and promote development," Al Amudi said. "It will drive comprehensive major steps forward for the prosperity of our people, and the well-being of our homeland."
The 2 million sq m zone in the south of the city will be linked by road to the nearby Jeddah Islamic Port, King Abdulaziz International Airport and the Saudi Landbridge rail project linking Jeddah and Riyadh, Mawani's president Saad bin Abdulaziz Alkhalb said in an accompanying statement.
The statement said that the project's location along the Red Sea coast — a route for more than 13 per cent of global maritime trade — would make it an important hub for China's Belt and Road initiative.
Data produced for the conference, which runs until Tuesday, states that the kingdom's logistics sector is currently worth $18bn. It said 90 per cent of Red Sea trade passes through the kingdom's west coast seaports.
Updated: October 13, 2019 08:32 PM