Jeddah, Asharq Al-Awsat- The Saudi Sea Port Authority (SEAPA) signed a license agreement with Saudi Trade & Export Development Company (TUSDEER) to develop and operate a third container terminal at Jeddah Islamic Port (JIP) on a build-operate-transfer (BOT) basis.

In 2005 JIP ranked 27th among100 international seaports jumping 29 places in less than four years.

The US$443 million project will expand JIP capacity by 45 percent, and help maintain Jeddah’s lead as the hub port of the region. The new container terminal is also expected to contribute to the planned ‘Land Bridge’ with the completion of the Saudi Railways project, creating a fast and efficient land-based link from the Red Sea to the Gulf. Additionally, the project will help to boost the business activity of consignment and re-export across the Kingdom, thus increasing the competitive capability of the marine transport and support system in Saudi Arabia.

Mohammed A. Zainal Alireza Chairman of TUSDEER, stated that the new terminal is to be built on reclaimed land along the re-export zone in JIP. It is expected to handle up to 2 million twenty-foot-equivalent units (TEUs) of containers annually, and will be equipped to accommodate the biggest and latest container vessels under design. The proposed terminal will include a handling and storage area covering about 400,000 square meters. The estimated $443 million scheme will take about three years to become operational, with dredging work expected to start by mid 2007.