Kuwait Financial Centre (Markaz) said recently in the executive summary of its infrastructure series covering power, airports, seaports, roads & railways, ICT and water.

The Jeddah port alone accounted for 4 million TEU of container traffic in 2011 and is one of the top 50 container ports in the world with a ranking of 27.

Port authority for all the ports is Saudi Ports Authority and independent terminals of a port are given to a private sector for operation.

The ports of Jeddah and Dammam are KSA’s busiest ports, handling container volume of 4 million and 1.5 million TEU respectively. The bulk cargo volume handled by the Saudi Arabian ports reached its peak in 2008 and decreased during the next two years. Volume handled increased in 2011 to nearly 95 million tons.

Liquid bulk (mainly oil) is the most important cargo followed by dry bulk. The ports of Jeddah, Jizan and Yanbu have passenger terminals for hajj pilgrims.

The development of the 4 Economic Cities is Saudi’s attempt to attract foreign direct investment (FDI) to diversify the economy. It is important for Saudi Arabia to invest in port developments, to handle the increase in nonoil exports and to attract FDI through the Economic Cities, Free Trade Zones and Industrial Cities located adjacent to the ports.

Two new ports are being developed in King Abdullah Economic City (KAEC) and Jizan Economic City. Development of $ 6 billion Millennium Seaport in KAEC started in 2010 and is set to complete by 2019 in two phases. The phase I of the port is scheduled to be completed in 2013 and will have a capacity of 3.8 million TEU. The phase II will be completed by 2019 and will add 6 million TEU, taking the port’s total capacity to 10 million TEU.

King Abdul Aziz port, otherwise known as Dammam Port, is also undergoing expansion. A new container terminal is being planned which will double the port’s capacity to 3 million TEU. The project is scheduled to be completed by 2015.

This was a much needed expansion as Dammam port is marred by heavy congestion and this is the only port in Saudi Arabia with a railway link which connects the city and port’s docks directly to industrial complexes.

Saudi Arabia is powering ahead with port infrastructure development with more than $750 million allocated to Dammam’s King Abdul Aziz Port, which includes the launch of a second hi-tech container terminal in 2015 with capacity for 1.8 million TEUs per annum.

The Jizan Economic City project will also include port infrastructure plans while the northwestern port of Dhiba will get a new $46.4 million container terminal. Two additional terminals, valued at $38.4 million, are to be constructed at King Fahd Industrial Port in Jubail while Jeddah Islamic Port is forecasting an average increase of 10.9 percent through to 2016.

Qatar’s new $7.1 billion mega-port project, located close to the busy Messaeid Industrial Zone and Port is aiming for a 2016 opening, with eventual capacity of six million TEU per year by 2028.

Against this backdrop, the International Association of Ports & Harbors (IAPH) will meet in the UAE capital from on March 19-20, 2013, for the third annual edition of the World Ports & Trade Summit at the St Regis Saadiyat Island Resort.

In the UAE, Jebel Ali will see its terminal three capacity expanded to 19 million TEU per annum, with Abu Dhabi’s Khalifa Port Terminal adding a further 15 million TEU per year upon completion in 2030. – SG

Oman is also expanding existing facilities at Salalah, to form a new $143 million maritime- meets-air hub, and phase one of its 1,061-kilometre long national railway system will include a link from Sohar Port to Al Misfah (Muscat) and onwards to Duqm Port, as well as connecting Sohar to the UAE border. In the UAE, Jebel Ali will see its terminal three capacity expanded to 19 million TEU per annum, with Abu Dhabi’s Khalifa Port Terminal adding a further 15 million TEU per year upon completion in 2030.

According to the UAE Federal Customs Authority, foreign exports soared in the first eight months of 2012 with non-oil trade reaching almost $184.6 billion, up $19 billion against the same period in 2011.

Export growth of 49 percent saw total exports jump to just under $31 billion compared to $20.6 billion the previous year. Foreign non-oil imports were also up by 11 per cent, an increase of $11.8 billion, with 85.1 million tons of goods coming into the country from January to August 2012.

“The UAE, and its neighbours are fast becoming a more cohesive maritime and air trade power that will provide a vital link between the Far East and Australasia. Europe and North America; and with over $36 billion investment into port transportation in some of the Gulf’s key destinations, the future potential for trade growth is unlimited,” said Chris Hayman, Chairman of Seatrade.

“With the proposed GCC regional rail network entering the early phases of development in the UAE and Saudi Arabia, and receiving government sign-off elsewhere, the road map for land-sea-air connectivity is in place to drive new intra-regional opportunity and the development of next generation terminal facilities are needed to accommodate future projected demand,” said Hayman.

“In the interim, with the world’s largest ship owners’ association — Bimco — confirming that the current oversupply of vessels will continue to force down shipping rates, this gives added impetus to those opportunistic companies looking to expand their trade horizons while market rates swing in their favour,” he added.

Taking place at the five-star St Regis Saadiyat Island Resort, and an annual calendar event for global economists, port authorities, terminal operators, shipping companies, global cargo owners and investors, the two-day summit will deliver a focused programme of conference sessions designed to promote trade development, examine supply chain management systems and discuss port efficiency. Organised by Seatrade, the World Ports & Trade Summit is held in strategic partnership with the Abu Dhabi Ports Company (ADPC).

According to official data from the Saudi Ports Authority , its revenues increased during the fiscal year of 2012 to SR 3,282 million, a 10.6 percent increase — one that was more than estimated in the development plan for the same year, which was SR 2,966 million. The development plan saw an increase of 9.6 percent as compared to the previous year.

“Saudi ports are experiencing the biggest number of development projects in years,” said Ihsan Abdel Gawad, a member in the Shoura Council. He said this was a result of the generous government support and stressed that these gigantic projects would enable the ports to keep pace with the increasing volumes of imports, boost their competitiveness, and raise their capacity to new records.

“There are a number of big projects being carried out at the moment, which will link ports of the Kingdom on the Red Sea with those on the Arabian Gulf,” said Abdel Gawad. He pointed out that a railroad would link Ras Al-Khair port with ports on the Arabian Gulf.

Abdel Gawad praised the role of the Saudi Ports Authority in nourishing the national economy and sustainable development in all sectors of businesses, production and development since its establishment 36 years ago. He pointed to its contribution in the country’s comprehensive renaissance in economic, social and developmental fields. “Ports have achieved a quantum leap, from mere modest ports to upload and download goods and commodities to integrated industrial cities, as well as being a productive and yielding sector to the treasury, characterized with accurate and organized work.”

An economic analyst, Fadel Al-Buainain, said the volume of work at Saudi ports had risen significantly, had contributed to the income of the treasury, and had provided job opportunities for Saudis.

“The volume of cargo handling increased during the first half of 2012 by 23.17 percent to reach more than 92 million tons, against 75 million tons last year. The number of handled containers rose 22 percent, and transshipment containers by more than 26 percent,” said Al-Buainain.

He said the growth in the ports’ revenues had increased from SR 2.97 billion in 2010 to SR 3.3 billion in 2011. “This growth can be doubled after the completion of the current development plans,” he said.