DP World is looking to spend SAR 1.28 bn on upgrades at its south container terminal at Jeddah Islamic Port, according to a press release. It has lined up funding from lenders including Saudi Awwal Bank (SAB) and Bahrain’s Gulf International Bank.

What we know: Developments will include deeper berths and improvements to quay walls to allow larger vessels with berths of up to 18 meters to call at the terminal. Plans also include the establishment of a container yard and an engineering workshop for maintaining terminal equipment, the statement said.

Background: DP World was awarded a concession in April 2020 by Saudi Ports Authority (Mawani) to continue managing and operating the south container terminal at Jeddah’s port for a further 30 years. The agreement committed DP World to investing SAR 3 bn in a bid to double the terminal’s capacity to 5 mn TEU. The upgrades are planned in four phases and should wrap up by 2024. The overhaul is also supposed to see technological upgrades, increased automation and digitalisation, and a decarbonization drive, the statement said.

About the terminal: The south container terminal is DP World’s first terminal concession outside of the UAE. It is part of Jeddah Islamic Port, which handles 59% of KSA’s imports.

ADVISORS- UK-based law firm White & Case advised DP World.

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