DP Worldhas secured SAR 1.28 bn in project financing for developments and upgrades at the south container terminal at Jeddah Islamic Port, according to a press release from UK-based law firm White & Case which is advising DP World on the transaction. Funds for the project will be sourced from Saudi Awwal Bank, formerly Saudi British Bank, and Bahrain’s Gulf International Bank, the statement adds.

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, according to a statement released by DP World at a later date. The agreement commits DP World to investing SAR 3 bn towards doubling the terminal’s capacity from 2.5 mn TEUs per annum to 5 mn TEU. The upgrades were planned to take place over four phases and to be completed by 2024. In addition to deeper drafts and upgrades to the quay, 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 represents DP World’s first terminal concession outside of the UAE. It is part of Jeddah Islamic Port, which handles 59% of KSA’s imports, according to White & Case’s statement.

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