Saudi eyes SAR bns in Eastern Province logistics projects

A logistics investment wave hits the Eastern Province: Developers are committing more than SAR 3.2 bn to new ports, logistics, and rail projects in the Eastern Province.

At sea

SGP takes over Jubail container terminal: The largest ticket saw Saudi Global Ports Group secure a contract from Mawani to operate the container terminal at Jubail commercial port, backed by more than SAR 2 bn in private sector investment. The project will raise the terminal’s annual capacity to 2.4 mn TEUs through a series of upgrades, including extending the berth length to 1.4 km, deepening the berth to 18 meters, and expanding the fleet of ship-to-shore and rubber-tyred gantry cranes to 39 units.

On land

New truck services hub for Dammam port: At King Abdulaziz Port in Dammam, Mawani signed an agreement with Q Saudi to develop an integrated truck services center with SAR 180 mn in investment. The 97.7k sqm facility will include truck staging and waiting areas, driver rest facilities, and commercial services aimed at improving traffic flow and reducing waiting times.

Agility to expand Dammam logistics footprint: Mawani also partnered with Agility Logistics Parks to develop an integrated logistics zone covering nearly 400k sqm at King Abdulaziz Port, it said on X.

Two new logistics centers come online: King Abdulaziz Port also saw the launch of two new logistics centers worth a combined SAR 70 mn. Aldrees opened a SAR 40 mn, 14.6k sqm facility, while United Electronics Company (eXtra) launched a SAR 30 mn logistics center spanning more than 32k sqm. eXtra said the facility will increase its handling capacity by 30% and improve cargo flows through the port.

On the tracks

AND- A rail link to connect Dammam’s industrial base: Separately, Hassan Allam Construction Saudi and OHL Arabia were awarded a contract by Saudi Arabia Railways to build the Dammam 2nd Industrial City Railway Connection, according to a press release (pdf). The project includes a 22.7 km single-track freight railway linking the industrial city to the Kingdom’s 556 km Dammam-Riyadh freight line, along with associated civil works, signaling, telecommunications, and utility integration infrastructure. Neither the contract value nor the timeline was disclosed.

Why it matters

Connecting the logistics dots: These investments are tightening the links between Saudi Arabia’s ports, industrial zones, and the transport network backbone. By expanding capacity at Jubail, adding logistics zones, improving truck handling at Dammam, and connecting industrial areas to the national rail network, the Kingdom is boosting throughput across sea, road, and rail. The result is a more coordinated freight system that reduces bottlenecks, speeds up turnaround times, and lowers logistics costs for manufacturers.