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US$443 Million To Increase Saudi Arabia’s Jeddah Islamic Port Capacity By 45%


New Container Terminal will integrate with Saudi land bridge project to link Red Sea with Persian Gulf

Jeddah, Saudi Arabia - Jan 9, 2007: The Saudi Sea Port Authority (SEAPA) signed a license agreement with Saudi Trade & Export Development Company (TUSDEER) to develop and operate a third container terminal at Jeddah Islamic Port (JIP) on a build-operate-transfer (BOT) basis.

In 2005 JIP ranked 27th among100 international seaports jumping 29 places in less than four years.

The US$443 million project will expand JIP capacity by 45 percent, and help maintain Jeddah’s lead as the hub port of the region. The new container terminal is also expected to contribute to the planned ‘Land Bridge’ with the completion of the Saudi Railways project, creating a fast and efficient land-based link from the Red Sea to the Gulf. Additionally, the project will help to boost the business activity of consignment and re-export across the Kingdom, thus increasing the competitive capability of the marine transport and support system in Saudi Arabia.

Mohammed A. Zainal Alireza Chairman of TUSDEER, stated that the new terminal is to be built on reclaimed land along the re-export zone in JIP. It is expected to handle up to 2 million twenty-foot-equivalent units (TEUs) of containers annually, and will be equipped to accommodate the biggest and latest container vessels under design. The proposed terminal will include a handling and storage area covering about 400,000 square meters. The estimated $443 million scheme will take about three years to become operational, with dredging work expected to start by mid 2007.

TUSDEER has brought together a world-class team to develop the new terminal. They have joint-ventured with Seaport Terminal of Malaysia, which built and developed the Port of Tanjung Pelepas (PTP). The Malaysian firm, with a 20 percent stake in the project, was brought in for its expertise and success in operating the fastest growing port in Asia. UK’s Drewry Shipping was commissioned to conduct a market study and demand projection analysis for container traffic at JIP.

Edaw/Aecom, international leader in engineering and master planning, was selected to develop a 30-year master plan for the terminal. TUSDEER went a step further by appointing Maunsell from Australia to conduct a detailed rail and road network analysis for solutions to ease traffic around the port area and effectively connect to the upcoming Saudi Land Bridge Project; a move that will benefit the whole of Jeddah Islamic Port.

The project is now proceeding at full steam. All marine surveys and soil testing works have been completed, and four leading international consultants have submitted bids for the Design & Engineering contract. The successful bidder, to be decided by the beginning of next year, will conduct the terminal’s design & detailed engineering as well as oversee the project execution.

Saleh Hefni, CEO of SISCO, explained that initial designs for the new terminal were created taking into consideration latest, next generation technologies in the marine transport field. The terminal will have Super-Post Panamax quay cranes, berth depths of over 18m, and an independent 16.5m deep navigation channel – making it ready to efficiently service the largest and most advanced class of next generation container ships that can carry loads in excess of 14,000 TEUs. The terminal will be supported by advanced IT systems to facilitate free-flow of updated information and provide near paperless transactions between port personnel, shipping lines, marine services, and freight forwarders.

About Saudi Trade & Export Development Co. (Tusdeer)
The Saudi Trade & Export Development Company (Tusdeer), a subsidiary of Saudi Industrial Services Company (SISCO), was established to develop and operate the first Re-Export Zone at Jeddah Islamic Sea Port (JIP) located in the Kingdom of Saudi Arabia. Tusdeer’s vision is to be an engine of growth for the economy and businesses by providing world-class integrated logistics solutions and port development and operations in Saudi Arabia and worldwide.

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For more information, contact:

Farah Ibrahim
Public Relations for the Middle East
Phone: + 971 4 367 2530
Fax: + 971 4 367 2531


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