Japanese shipping company NYK has agreed to establish a RORO terminal at King Abdullah port (KAP) on the Red Sea coast of Saudi Arabia.

The company has also signed a joint-venture (JV) agreement with Ports Development (PDC) in relation to the above development. The JV will be the first automotive logistics base for NYK in the Middle East.

Named KAP RORO Terminal, the facility is planned to commence full operations by the third quarter of 2016.

"It is expected to have the capacity to handle 600,000 units a year as a gate port, to serve the increasing demand in Middle East."

It is expected to have the capacity to handle 600,000 units a year as a gate port, to serve the increasing demand in Middle East.

The project is part of NYK’s plan to expand the reach of its global operations, and provide customer-oriented service based on its operational expertise.

NYK will continue its efforts to improve operational efficiency and safety management as part of its ‘More Than Shipping 2018’ medium-term management plan, the company said.

Owned and developed by PDC, KAP is a private port within King Abdullah Economic City located 88km to the north of Jeddah.

PDC is a JV between Saudi Arabian conglomerate Huta Marine Works and Emaar, the Economic City in Saudi Arabia.

Earlier this year, NYK developed an unmanned machinery space (UMS) check system in partnership with the Monohakobi Technology Institute.

The UMS checks are measurements required to be taken before engine plants or equipments can operate unattended.