Saudi Global Ports (SGP) has been awarded a concession by Saudi Railway Company (SAR) to develop and operate the Riyadh Dry Port (RDP) ecosystem, which comprises of three facilities in Riyadh and Dammam.

SGP, the container terminal operator in King Abdul Aziz Port Dammam, was successful in a public private partnership tender process under the country’s Privatisation Supervisory Committee.

The company, which is a joint venture between Saudi Arabia’s Private Investment Fund (PIF) and port operator PSA International, plans to develop and operate RDP and Dammam Seaport as an integrated system, to improve logistics network flow efficiencies and reduce logistics costs in the country.

It will also be collaborating with SAR and various stakeholders to provide multimodal and cargo solutions for market needs, and grow RDP’s rail freight activities.

In addition, SGP will embark on a modernisation program to upgrade civil infrastructure and facilities, procure new equipment and invest in technologies such as automation and a unified digital platform.

Abdulla Al Zamil, SGP Chairman said that the announcement represented a milestone for the company as it looks to extend its focus “beyond ports to grow as an integrated cargo solutions provider”.

“SGP is honoured to be selected as SAR’s partner to transform the RDP into a modern logistics facility that supports the Kingdom Vision 2030’s second pillar of a thriving Saudi economy.”

He noted, “With the support of Saudi Railway Company, we will work towards a quick and smooth transition and thereafter streamline the supply chain landscape for more efficient cargo movement between Dammam and Riyadh.”

Wan Chee Foong, PSA’s Regional CEO of Middle East South Asia and Head of Group Business Development stated that the partners will work to transform Riyadh Dry Port into a resilient and sustainable supply chain ecosystem.

Under the agreement, SGP and SAR will work together to raise the operational efficiency of the Riyadh-Dammam Freight line and more than double RDP’s handling capacity to 1.5mn containers annually by 2030.

New business processes will be introduced within the Riyadh Dry Port Ecosystem such as automating customer services on a 24/7 basis, facilitating cost-effective last mile delivery service, and supporting the competitiveness of Saudi exports with various enhanced rail services and incentives.


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