In a strategic move reflecting the Kingdom of Saudi Arabia’s commitment to developing its logistics infrastructure, the Saudi Ports Authority (Mawani) signed a significant contract with a leading national company to construct a state-of-the-art tank farm for storing and exporting chemicals and petrochemicals at Jubail Commercial Port. The investment in this major project exceeds 500 million riyals, representing a substantial boost to the national economy and the industrial sector in the Eastern Province.
Project details and capacity
Under the new contract, the storage tanks will be constructed on a vast area of 49,000 square meters within the port premises. This expansion aims to significantly enhance the port's operational efficiency, increasing the project's storage capacity to 70,000 cubic tons. The project includes the establishment and development of specialized facilities that not only handle storage but also provide integrated distribution services for domestic and international import and export, implementing state-of-the-art digital and procedural systems to ensure smooth operations in accordance with the highest international quality and safety standards.
The strategic importance of Jubail's location
This project derives its paramount importance from the unique geographical and economic location of Jubail Industrial City, a hub for petrochemical industries in the Middle East and the world. Given the proximity of Jubail Commercial Port to the main Eastern Industrial Complex and petrochemical plants, the construction of these storage tanks will reduce logistical costs for manufacturers and expedite the delivery of Saudi products to global markets, thereby enhancing the international competitiveness of Saudi goods.
Alignment with the Kingdom's Vision 2030
This signing aligns with the objectives of the National Transport and Logistics Strategy, launched by His Royal Highness the Crown Prince, which aims to solidify the Kingdom's position as a global logistics hub connecting three continents. Through these partnerships with the private sector, "Mawani" (the Saudi Ports Authority) is working to enhance the ports' contribution to the GDP and support economic diversification away from total reliance on crude oil by boosting exports of manufactured and petrochemical industries.
The role of Jubail Port in the trade system
It is worth noting that Jubail Commercial Port plays a pivotal role as a major gateway for Saudi exports and imports, serving as a vital support to King Abdulaziz Port in Dammam and bolstering trade in the Eastern Province. This new project is expected to contribute to strengthening national supply chains and enhancing operational efficiency, positively impacting the customer and investor experience and underscoring the readiness of Saudi ports to accommodate the increasing growth in global trade.
