Saudi Global Ports Formally Assumes Operatorship of Riyadh Dry Port
2022-03-17
Saudi Global Ports Formally Assumes Operatorship of Riyadh Dry Port
Saudi Global Ports (SGP) formally assumed the operatorship of the Riyadh Dry Port (RDP) Ecosystem on 14 March 2022 under a new entity “SGP Riyadh”. The successful takeover was completed in under 4 months following the signing of a 10-year concession agreement between Saudi Railway Company (SAR) and SGP on 07 December 2021.
SAR and SGP have worked closely on efforts to retain manpower, transfer assets and engage the port community ahead of the takeover, and closely consulted its stakeholders including the Saudi Chamber of Commerce, Tabadul and Customs Authority. SAR and SGP have also purchased and commissioned more than 100 units of new container and cargo handling equipment to gear up for the expanded operations.
As part of developing the RDP Ecosystem towards providing more efficient and integrated logistics services, SGP will be starting operations of the Riyadh Empty Yard to re-position empty containers for exports. The current RDP and container depot in Dammam will also undergo a series of civil rehabilitation and upgrades to their terminal operating systems.Overall, SGP is expected to invest over 250 million Saudi Riyals in developing the RDPEcosystem.
Mr Bashar Al Malik, CEO of SAR said he was pleased to see how SAR and SGP have successfully collaborated on the change in operatorship within a compressed timeline. We look forward to strengthening this partnership, offering world-class logistics productivity and solutions to the cities and regions served by the Riyadh-Dammam railway.”
Mr Abdulla Zamil, Chairman of SGP said, “I would like to express my gratitude to the management and working teams from SAR and SGP for their close partnership through this challenging process. Despite the delays from global supply chain disruptions, SGP managed to leverage their resources and assets from Dammam Port to ensure a smooth transition.”
Mr Wan Chee Foong, Regional CEO of Middle East South Asia, PSA International, said, “We would like to thank our partners, the Public Investment Fund (PIF), SAR, and the Kingdom for their support and trust throughout this journey. The integration of RDP and Dammam Port is timely as the demand for more resilient and sustainable supply chain ecosystems increases. PSA is committed to working alongside our partners towards the Kingdom’s vision to build an efficient logistics hub for the region and beyond.”
