Saudi Arabia’s Mawani Signs SAR 2.2 Billion Privatization Contracts for Cargo Terminals Across Eight Ports

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Saudi Arabia’s Mawani Signs SAR 2.2 Billion Privatization Contracts for Cargo Terminals Across Eight Ports

In a landmark step to boost Saudi Arabia’s global logistics competitiveness, the Saudi Ports Authority (Mawani), in cooperation with the National Center for Privatization, has signed privatization contracts for multipurpose cargo terminals at eight key ports across the Kingdom. The agreements, structured under a 20-year Build-Operate-Transfer (BOT) model, will see private sector investments exceeding SAR 2.2 billion.

The contracts were signed in the presence of H.E. Eng. Saleh bin Nasser Al-Jasser, Minister of Transport and Logistic Services and Chairman of Mawani, alongside senior officials including Mr. Mazen bin Ahmed Al-Turki, Acting President of Mawani, Eng. Abdullah bin Mohammed Al-Zamil, Chairman of Saudi Global Ports, and Mr. Aamer Alireza, Chairman of Red Sea Gateway Terminal.

Strategic Partnerships with the Private Sector

Two major national logistics entities—Saudi Global Ports and Red Sea Gateway Terminal Company—have been entrusted with the management, operation, and development of the terminals.

Saudi Global Ports will oversee four ports in the Eastern Province:
- King Abdulaziz Port (Dammam)
- Jubail Commercial Port
- King Fahd Industrial Port in Jubail
- Ras Al-Khair Port
Red Sea Gateway Terminal will manage four ports in the Western Province:
- Jeddah Islamic Port
- Yanbu Commercial Port
- King Fahd Industrial Port in Yanbu
- Jazan Port

These contracts are expected to significantly enhance port capacity, introduce advanced cargo handling technologies, and improve operational efficiency.

Supporting Vision 2030 and Economic Diversification

Minister Al-Jasser emphasized that the privatization drive reflects strong investor confidence in Saudi Arabia’s logistics sector and is part of the Kingdom’s broader efforts to transform into a global logistics hub.

“These partnerships represent a key component of our national logistics strategy. They will enhance Saudi ports’ operational competitiveness, support sustainable development, and advance the goals of Saudi Vision 2030,” he stated.

He also acknowledged the strong support of the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince in enabling the transport and logistics sector to thrive.

Boosting Maritime Capabilities

According to Mr. Mohannad bin Ahmed Basodan, CEO of the National Center for Privatization, the initiative allows the private sector to leverage its technical expertise and global best practices to enhance public services and accelerate economic development.

The King Fahd Industrial Port in Yanbu, for instance, will see expanded container handling capacity through new ship-to-shore (STS) and rubber-tyred gantry (RTG) cranes, modern truck fleets, and improved berth and turnaround operations, significantly boosting performance standards.

Oversight and Implementation

The contracts were signed following the endorsement of the Supervisory Committee for Privatization in the Transport and Logistics Sector, chaired by H.E. Eng. Saleh bin Nasser Al-Jasser. The initiative is part of a broader effort to enhance Saudi port competitiveness, expand economic opportunities, and ensure long-term sustainability through effective private sector engagement.