Saudi Ports Authority Signs Deal to Establish Integrated Center for Fuel Supply
The Saudi Ports Authority, also known as Mawani, has signed a deal worth over SR2 billion ($533 million) to establish an integrated center as part of a pilot project to supply ships with fuel at the Yanbu Industrial Port. The project is expected to have a total holding capacity of 2.5 million metric tons. The agreement was signed with International and Trafalgar Co. Ltd. in collaboration with the Ministry of Energy. This aligns with the Saudi Ministry of Energy’s efforts to increase the Kingdom’s share of fuel supply for ships transiting to 10 million tons and the authority’s goals to increase the number of logistic zones to 30 by 2030.
The New Integrated Center
The new center aims to establish tanks for storing, trading, and mixing petroleum materials in two stages. In each phase, 1.2 million metric tons capacity facilities will be built, spanning over 196,000 sq. meters. At each stage, 144 storage units will be built, including diesel tanks, benzene tanks, and heavy fuel oil tanks. These facilities, each with a storage capacity of 8,650 metric tons, are intended to provide the national petroleum industry with high-quality, cost-effective service while meeting local and international market demands.
The Yanbu Industrial Port
The Yanbu-based King Fahad Industrial Port is the largest trading port for crude oil, refined petroleum, and petrochemicals in the Kingdom and the Red Sea. The port is ideally situated to serve the East-West global trade routes with a throughput capacity of 500,000 tons and infrastructure that spans 34 berths and 10 terminals.
Saudi Arabia’s Logistics Initiatives
Mazen Al-Bunyan, CEO of Standard Chartered in Saudi Arabia, said earlier this month that the Kingdom’s logistics initiatives are helping to drive the Middle East “into a new era of trade and economic prosperity.” He added that “the Kingdom aspires to become the next global logistics hub and has pledged to make its economy more sustainable and innovative.”
Conclusion
The Saudi Ports Authority’s deal to establish an integrated center for fuel supply at the Yanbu Industrial Port is a significant step towards achieving the Kingdom’s goal of becoming a global logistics hub. The project’s total holding capacity of 2.5 million metric tons will contribute to consolidating the Kingdom’s position as a global logistics hub and increase the number of logistic zones to 30 by 2030. The Yanbu-based King Fahad Industrial Port is the largest trading port for crude oil, refined petroleum, and petrochemicals in the Kingdom and the Red Sea, ideally situated to serve the East-West global trade routes.