Maersk and Mawani break ground at Jeddah Islamic Port


A. P. Moller – Maersk, a global logistics integrator, and Saudi Ports Authority ‘Mawani’ have broke ground for Saudi Arabia’s largest Integrated Logistics Park at Jeddah Islamic Port. Present at the ground-breaking ceremony were His Excellency Mr Omar Bin Talal Hariri, President, Saudi Ports Authority (Mawani), Her Excellency Ambassador Liselotte Plesner, Danish Ambassador to Saudi Arabia, Mr Abdullah Al Zamil, CEO of Zamil Construction, and Mr Mohammad Shihab, Managing Director, Maersk Saudi Arabia, along with Maersk’s valued customers, and partners.

“We have come a long way in realizing our strategy to offer integrated logistics to our customers. The ground-breaking ceremony is yet another milestone in building a logistics ecosystem that strengthens our position as an enabler of global logistics while also focusing on our core targets around decarbonizing logistics to achieve net zero by 2040,” said Mohammad Shihab, Managing Director Maersk Saudi Arabia.

The greenfield project spread over an area of 225,000 sq. m. will be the first of its kind at the Jeddah Islamic Port, offering an array of solutions to connect and simplify the supply chains of Maersk’s customers in the Kingdom. The 346 Mn USD- (1.3 Bn Saudi Riyal) investment project will create bespoke logistics solutions and focus heavily on decarbonizing logistics using renewable energy to power the entire facility. In addition, the project will generate more than 2,500 direct and indirect jobs in Saudi Arabia.

The bonded and non-bonded warehousing & distribution (W&D) facility will cover more than 70% of the total area of the Integrated Logistics Park. At the same time, the remaining part will act as a hub for transhipment, air freight and LCL cargo. The W&D part will have several different sections to accommodate general warehousing (food & beverages, furniture, automobiles, chemicals, textile & apparel and machinery, appliances & electronics) and cold chain storage (fruits & vegetables, protein and confectionary & consumables). In addition, to cater to the rapid penetration of eCommerce in Saudi Arabia, the facility will also have a dedicated eCommerce fulfilment centre. As a result, the Integrated Logistics Park will be able to handle annual volumes of close to 200,000 TEUs across different products.

The Integrated Logistics Park will be 100% powered with solar energy generated from rooftop solar panels spread over 65,000 sq. m. Further, the trucks used for transportation at the Park will be fully electric vehicles. The facility’s design utilizes higher storage density, mechanized pallet-in-out solutions, a product-to-man pick-n-pack strategy and optimized flows, improving productivity by approximately 50% and effectively reducing emissions. In addition, there will be a provision for additional space for E-com, value-added service (“VAS”) and Omni Channel Fulfilment across all storage types.

Maersk will deploy a state-of-the-art warehouse management system that implements modern technologies and digital solutions for efficient inventory management, track & trace at the unit level and offers rich dashboards for higher visibility and deeper insights. These systems will help improve efficiencies and build a competitive edge for Maersk’s customers.

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Ryan Finn
Ryan is the Digital Marketing and Content Creation Manager for Trade and Logistics Siam Ltd. He provides a creative flair to the team and his resourcefulness helps to bring an imaginative improvement to both literary archetypes and online content production. A writer by day and a rider by night, when he's not composing the latest logistics news update or creating compelling copy for our clients, Ryan spends his free time travelling Thailand by motorbike.