Maersk, Saudi Arabia break ground at largest integrated logistics park at Jeddah Islamic Port

Maersk and Saudi Ports Authority Mawani February 16 broke ground for Saudi Arabia’s largest Integrated Logistics Park at Jeddah Islamic Port. 

The greenfield project, spread over an area of 225,000 sqm, will be the first of its kind at the Jeddah Islamic Port offering an array of solutions with an aim to connect and simplify the supply chains of Maersk’s customers in the Kingdom. 

The US$346 million investment project will not only create bespoke logistics solutions but also focus heavily on decarbonizing logistics with the use of renewable energy to power the entire facility. The project is expected to create more than 2,500 direct and indirect jobs in Saudi Arabia.

The bonded and non-bonded warehousing & distribution (W&D) facility will cover more than 70% of the total area of the Integrated Logistics Park while the remaining part will act as a hub for transhipment, air freight and LCL cargo. 

The W&D part will have several different sections to accommodate general warehousing (food & beverages, furniture, automobiles, chemicals, textile & apparel and machinery, appliances & electronics) and cold chain storage (fruits & vegetables, protein and confectionary & consumables). 

To cater to the rapid penetration of eCommerce in Saudi Arabia, the facility will also have a dedicated e-commerce fulfilment center. The Integrated Logistics Park will be able to handle annual volumes of close to 200,000 TEUs across different products.

The Integrated Logistics Park will be 100% powered with solar energy generated from rooftop solar panels spread over 65,000 sq. m. Further, the trucks used for transportation at the Park will be fully electric vehicles. 

The design of the facility utilizes higher storage density, mechanized pallet-in-out solutions, a product-to-man pick-n-pack strategy and optimized flows, improving productivity by approximately 50% and effectively bringing down emissions. There will be a provision for additional space for e-commerce, value-added service and omni channel fulfilment across all storage types.

Photo credit: iStock/ eugenesergeev. Jeddah Islamic Port.

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