The Saudi Ports Authority (Mawani), in collaboration with the National Center for Privatization, has signed contracts to privatize multipurpose cargo terminals at eight Saudi ports under a Build-Operate-Transfer (BOT) model spanning 20 years.
The agreements were signed with national partners Saudi Global Ports (SGP) and Red Sea Gateway Terminal Company, with private sector investments exceeding SAR 2.2 billion (approximately US$586.5 million).
Under the contracts, SGP will develop, manage, and operate multipurpose terminals at four Eastern Province ports under Mawani's jurisdiction: King Abdulaziz Port in Dammam, Jubail Commercial Port, King Fahd Industrial Port in Jubail, and Ras Al-Khair Port.
Red Sea Gateway Terminal, on the other hand, will manage the development and operations of multipurpose terminals at four Western Province ports: Jeddah Islamic Port, Yanbu Commercial Port, King Fahd Industrial Port in Yanbu, and Jazan Port.
Mawani said the privatization contracts for King Fahd Industrial Port in Yanbu involve increasing container handling capacity through the deployment of the latest STS and RTG cranes, reach stackers, modern trucks and trailers, as well as reducing truck turnaround times and vessel berth stays — all contributing to improved operational efficiency.
[Source: Mawani]
"These privatization contracts aim to enhance the competitiveness of Saudi ports, expand operational capacity, support economic growth, and contribute to sustainable development," Mawani, the government agency responsible for managing, operating, and developing Saudi Arabia's seaports, said.
It added that the signing of the deals follows approval from the Supervisory Committee for Privatization in the Transport and Logistics Sector, chaired by H.E. Eng. Saleh bin Nasser Al-Jasser.
Saleh bin Nasser Al-Jasser, Saudi minister of transport and logistics services and chairman of the Saudi Ports Authority (Mawani,) said the successive private sector investments reflect the strong appeal of Saudi ports and the logistics sector. He also stated that Saudi ports have witnessed remarkable progress in operational efficiency, cargo handling rates, and maritime connectivity, according to international indices — driven by significant investments from leading global and national logistics companies.
The Minister emphasized that the transport and logistics ecosystem will continue to strengthen its partnerships with the private sector across all areas and regions of the Kingdom. He noted that these privatization contracts also represent an extension of Mawani's strategic partnerships with major national and international companies, enabling growth in the maritime transport sector, diversifying the economy, and reinforcing Saudi Arabia's position as a global logistics hub.
Mohannad bin Ahmed Basodan, CEO of the National Center for Privatization, said the newly signed port contracts mark a major step in enabling the private sector to elevate service quality and operational efficiency across Saudi Arabia's maritime landscape.
"This project represents one of the most comprehensive privatization initiatives in the Kingdom’s maritime domain," Basodan said. "It aligns with international benchmarks and delivers long-term economic impact."
He added that the initiative reflects the Center's broader goal of fostering a robust privatization ecosystem that supports Saudi Arabia’s Vision 2030 and positions the Kingdom as a global logistics hub.
