{"id":91647,"date":"2026-01-07T00:00:00","date_gmt":"2026-01-07T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/?p=91647"},"modified":"2026-01-07T07:30:07","modified_gmt":"2026-01-07T07:30:07","slug":"sgp-to-ramp-up-its-dammam-investments-as-it-eyes-competition-with-uae-hubs","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2026\/01\/07\/sgp-to-ramp-up-its-dammam-investments-as-it-eyes-competition-with-uae-hubs\/","title":{"rendered":"SGP to ramp up its Dammam investments as it eyes competition with UAE hubs"},"content":{"rendered":"

Saudi<\/strong> Global Ports (SGP) to plug SAR 3.5 bn into Dammam over the next five years<\/strong>, in a bid to snap up a larger share of the transhipment cargo market from the UAE, Chief Executive Rob Harrison told Arabian Business<\/a>. The investments will span Dammam Port and zones to create an ecosystem capable of competing with established Emirati leaders, Harrison said, noting the success of Jebel Ali and Khalifa Ports as models for building regional logistics hubs.<\/p>\n

The breakdown: <\/strong>The firm has earmarked SAR 2 bn for the development of container terminals, which are expected to account for up to 85% of its top line. In addition, SAR 665 mn is allocated to upgrading equipment at existing multipurpose terminals, while the remaining SAR 670 mn will go toward the company\u2019s Dammam integrated logistics park.<\/p>\n

Why Dammam? <\/p>\n

Dammam Port is nestled only some 400 km from Riyadh<\/strong>, a core node in the country\u2019s diversification effort \u2014 giving it a leg up compared with its counterpart, Jeddah Port on the Red Sea coast, which sits 1k km from the Kingdom\u2019s capital. Cargo entering the Kingdom from Jebel Ali or Khalifa Port also faces a 1k km journey, on top of a border crossing. Saudi Global Ports also currently operates five to seven daily rail services between Dammam and two locations in Riyadh.<\/p>\n

\n

Why it matters<\/p>\n

The move aims to capture a larger portion of cargo flowing through the GCC, <\/strong>putting Saudi Global Ports in competition with UAE ports.<\/strong> To do this, Dammam\u2019s King Abdulaziz Port needs to substantially ramp up its handling capacity, which currently stands<\/a> at just under 3.9 mn TEUs. This falls well behind the UAE\u2019s leading heavyweights, with Jebel Ali boasting a 19.3 mn TEU<\/a> capacity in 1H 2025 and Khalifa port\u2019s standing at 9.6 mn TEUs<\/a>. <\/p>\n

\n

Our take: Emerging strong because of, not despite, volatility<\/p>\n

SGP appears to be taking stock of the <\/strong>lessons learned<\/a><\/strong> over the past two years<\/strong>, during which deeper integration of logistics and industrial services emerged as a critical tool for port operators to hedge against shipping volatility. <\/p>\n

Leveraging new routes for global shipping:<\/strong> The port operator ran at 122% capacity in 2024, as its ports served as an alternative stop for container ships diverted around the Cape of Good Hope. \u201cWe\u2019ve benefited from having more volume, but the real strategic benefit is that we\u2019ve been able to show we are a viable supply chain routing,\u201d Harrison explained. <\/p>\n

Logistics providers are routing containers via rail through Dammam rather than <\/strong>through<\/strong> Jeddah or UAE ports<\/strong>, a trend that is backed by the growing number<\/a> of warehouses popping up on the Kingdom\u2019s east coast and in Riyadh. <\/p>\n

\n

Background<\/p>\n

SGP inaugurated a SAR 1.5 bn expansion of its second container terminal at King <\/strong>Abdulaziz Port <\/strong>in November<\/a><\/strong>, increasing the terminal\u2019s capacity from 2.5 mn TEUs to 3.8 mn TEUs. The firm also broke ground on the SAR 1.3 bn integrated logistics park at King Abdulaziz Port in the same month. The park \u2014 spanning 1 mn sqm \u2014 will deliver 300k sqm of Grade A warehousing over the next 18 months. <\/p>\n

Dammam is now a logistics investment hotspot<\/strong>, with a long line-up of in-development and recently launched projects around King Abdulaziz Port. Arasco<\/a>, Hizon<\/a>, and Abyat all plugged large investments \u2013 totaling over SAR 300 mn \u2013 in the region in 4Q 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"

The port operator will invest SAR 3.5 bn in Dammam port's container terminals, equipment, and logistics park<\/p>\n","protected":false},"author":1,"featured_media":91648,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[966],"tags":[17,37,31,965,21],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-91647","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-big-story-today","tag-enterprise-logistics","tag-ports","tag-saudi-arabia","tag-the-big-story-today","tag-zones","wpautop","entry"],"acf":{"mongo_id":"a656d61d-eec8-41e6-a8d0-d297f6f47569","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/8\/1403.jpg","photo_position":"above","homepage_title":"","full_issue_title":"SGP 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