Port operator AMSteel has entered an agreement with King Abdullah Port in Saudi Arabia to operate the first bulk and general cargo terminal berth for a 25-year period.
Construction of the new terminals’ first phase is expected to be completed by the second quarter of next year.
The first phase will be able to handle three million tonnes of cargo annually upon completion.
King Abdullah Port was developed by its current owner Ports Development Company. The facility increased its annual throughput to 1.4 million twenty-foot equivalent unit (TEU) at the end of the last year.
Ports Development Company managing director Abdullah Hameedadin said: “Signing this agreement comes within the framework of developing our capabilities in the field of bulk and general cargo.
“It will enable us to actively contribute to promoting this industry due to its economic benefits and its support for the development journey in the Kingdom.
“We at King Abdullah Port are keen to cooperate with entities that are experienced and knowledgeable in order to enable ourselves to develop business at the port and contribute to the development of the maritime transport industry in the Kingdom, in line with the objectives of Vision 2030.”
King Abdullah Port is situated on the Red Sea coast and currently spans an area of 17km².
The port will be able to handle an estimated 20 million TEU containers, 1.5 million vehicles and 15 million tonnes of clean bulk cargo per year once fully developed.