SGP Launches Dammam Logistics Zone and Terminal 2 Expansion
SGP Launches Dammam Logistics Zone and Terminal 2 Expansion
Saudi Global Ports (SGP) has launched a significant logistics transformation across Saudi Arabia's eastern corridor by announcing two critical projects at King Abdulaziz Port Dammam on the same day. The company held an official inauguration ceremony for Terminal 2 Berth Expansion while simultaneously laying the foundation for the Dammam Integrated Logistics Zone, positioning itself as one of the country's new strategic centers. Both projects aim to transform Dammam into a higher-capacity, multi-functional, and integrated logistics platform for both national and international trade.
The new Dammam Integrated Logistics Zone is located in a 1 million square-meter area adjacent to the port and will be managed by SGP Freezones. The project carries an investment volume of approximately 1.3 billion SAR and is designed according to a multi-modular usage plan aimed at expanding logistics infrastructure in the region. The logistics zone will feature dedicated areas for modular warehousing, cold chain, vehicle storage, re-export hubs, light manufacturing zones, petrochemical storage, e-commerce warehousing, and container handling. This approach creates a multi-functional supply chain infrastructure supporting the broad industrial ecosystem in Saudi Arabia's Eastern Region, known for its proximity to the energy sector.
The developed logistics zone does not merely provide storage and distribution services; it will operate as a single integrated system with direct connections to SGP Container Terminals, SGP Multipurpose Terminals, and SGP Intermodal. This structure has the potential to strengthen Dammam's hinterland connections and increase efficiency in national commerce. Through this integration between facilities, SGP anticipates that the region will achieve a more competitive position in both GCC and global cargo flows.
Meanwhile, the Terminal 2 berth expansion encompasses the addition of 225 meters to the existing 700-meter berth. This expansion is a critical capacity increase that will enable the terminal to accommodate two large mega container vessels simultaneously. With the consolidation of Terminal 1 and Terminal 2, the total handling capacity is targeted to reach 3.8 million TEU in 2025. This capacity increase contributes to making Dammam a higher-volume hub connecting the complex trade flows linking the Red Sea and Gulf routes.
Saudi Global Ports Group is structured around a tripartite partnership: the Public Investment Fund (PIF), global port operator PSA International, and Al Blagha Holding. PIF, as Saudi Arabia's sovereign wealth fund, supports the majority of strategic investments at the center of the country's logistics transformation. PSA International, owned by Temasek Holdings, ranks among the world's largest port operators, operating across multiple continents. SGP's combination of PSA's expertise with PIF's financial capacity strengthens Saudi port infrastructure to a competitive level regionally.
Experts note that the new investments in Dammam strengthen the eastern leg of the logistics hub plan under Saudi Vision 2030. The developed logistics zone not only increases container terminal capacity but also supports Saudi Arabia's assumption of a more central transit role within the GCC supply chain network. The opening of new storage and distribution areas, particularly for fast-moving sectors such as petrochemicals, e-commerce, and automotive, has the potential to enhance Dammam's competitiveness.
According to SGP's statement, both projects are expected to diversify regional trade flows in the coming period, increase terminal efficiency, and transform Saudi Arabia into a stronger integrated logistics ecosystem center in the Gulf.
Key Points:
SGP has launched a two-phase development process for Terminal 2 expansion and Dammam Integrated Logistics Zone.
The logistics zone covers 1 million m² with an investment volume of 1.3 billion SAR.
The zone will include modular warehousing, cold chain, re-export, light manufacturing, and petrochemical storage areas.
Terminal 2 expansion will provide an additional 225-meter berth, enabling two mega vessels to dock simultaneously.
Terminal 1 + Terminal 2 capacity will reach 3.8 million TEU by 2025.
SGP's partnership structure is based on PIF, PSA International, and Al Blagha Holding.
The project is viewed as an important component of Saudi Vision 2030's Eastern Region logistics strategy.
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News Link: https://en.portnews.ru/news/384961/
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Author: SedatOnat.com
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