Hutchison Ports and King Salman Energy Park (SPARK) have agreed to form a joint venture to manage and operate the dry port and bonded logistics zone in the SPARK energy industrial city in Saudi Arabia’s Eastern Province.
Designed to ensure ease of access to global markets, the 3 sq km dry port will enable the future joint venture to capture the growing demand for logistic services for energy-related products in the Middle East and beyond while also serving the neighboring industrial cities.
Eric Ip, Global Managing Director of Hutchison Ports stated, “Saudi Arabia is an important market and we are very excited to participate in this ambitious, game-changing mega project. As the world’s leading port group, we will leverage our logistics expertise to create values and competitiveness for the tenants of SPARK.”
SPARK is a manufacturing, service centre and logistics hub for the energy sectors, spanning more than 50 sq km. Its first phase is divided into a number of clusters: logistics zone, industrial hub, business district, digital hub, and residential and commercial areas.
The dedicated dry port and logistics zone will include warehouses and storage facilities, a bonded area and on-site customs clearance.
Mohammed Y Al-Qahtani, Chairman of SPARK said, “The step we take together today will give SPARK’s investors ease of access to local and global markets.”
“Furthermore, the logistic hubs will also serve the eastern region and its industrial cities. It will also help us fulfil our IKTVA promise to the Kingdom of Saudi Arabia and the world by giving local manufacturers the physical infrastructure they need.”
Saif Al Qahtani, SPARK President and CEO said, “The dry port and logistics zone will be the key to unlocking the potential of our strategic location in the Eastern Province of Saudi Arabia, a region which is known for its unmatched oil and gas resources.”
He noted that the joint venture would help to connect its investors to global markets, “allowing us to operate efficiently and save on transport times and costs.”
