The Saudi Ports Authority (MAWANI) and SALIC, the Saudi Agricultural and Livestock Investment Company, a Public Investment Fund owned company, signed an agreement through video conferencing on Thursday to develop the Kingdom’s largest and first grain terminal in Yanbu Commercial Port.
With a land mass of 313 thousand square meters the terminal will be importing, processing and exporting grains in the Kingdom in two phases, and with a total capacity of 5 million tons annually.
The ceremony was attended by Minister of Ministry of Environment, Water and Agriculture (MEWA) Eng. Abdul Rahman bin Abdul Mohsen al-Fadhli and Minister of Transport Eng. Saleh bin Nasser Al-Jasser, and was signed by Eng. Saad bin Abdulaziz Al-Khalb, President of MAWANI and the CEO of SALIC Eng. Sulaiman bin Abdul Rahman Al-Rumaih.
Eng. Abdul Rahman bin Abdul Mohsen Al-Fadhli, Chairman of SALIC’s Board of Directors said, “this strategic partnership with MAWANI has lasted for over thirty years and is considered one of the key pillars of the food security system in the Kingdom.
The project aims to enhance the velocity of the main grain influx to Saudi Arabia and is considered the first regional center for grains in the commercial port of Yanbu.
He added that SALIC relies on the geographical location of the Kingdom and the port infrastructure to enhance overall food distribution solutions in the region by linking the Kingdom to global grain sources, especially countries where SALIC is currently investing.
Eng. Saleh bin Nasser Al-Jasser, Minister of Transport and Chairman of Mawani’s Board of Directors, commented in the signing that “the Yanbu grain project aims to build the first regional center and logistic platform for importing, processing and exporting grains in KSA, taking advantage of the Yanbu commercial port’s exceptional location on the Red Sea coast and the competitive advantage its provides given its proximity to local and regional markets in the Red Sea Basin and the Horn of Africa.”
“This partnership plays a vital role in the ports and logistic services sector, given they are the main enablers of many key industries and sectors, including the food security sector,” he added.
“It also goes in line with MAWANI’s strategic objectives of fully utilizing the huge absorptive capacity in Saudi ports and raising the percentage of private sector investment in the port sector to 90% by 2030. By doing this it will serve the establishment of various development projects that contribute to achieving added value to the national economy, and supporting the investment landscape and commercial traffic in the Kingdom,”
“This regional project will support the operational traffic in the Yanbu Commercial Port, attract additional international shipping lines, and increase investment in the logistic services sector which will bring about significant growth in operational traffic and the increase in the number of ships that lead the port.” Eng. Al-Jasser concluded
It is worth noting that one SALIC’s key strategic objectives is to significantly contribute to the import of basic commodities that are in line with the food security strategy in the Kingdom. Furthermore, the company aims to invest in supply chains and ports in Saudi and countries where SALIC holds investments to ensure the sustainability of the supply of all basic commodities.
For its part, one of MAWANI’s strategic objective is to partner with public and private sector organizations to support the Kingdom’s ports in becoming the leading regional and international ports and providing an efficient, high capacity, integrated port network.
This will significantly support the Kingdom’s economic growth plans, stimulate the logistics services industry and global supply chains, and position Saudi as a global logistical hub and link to the three continents, in line with the Saudi’s 2030 vision.