Saudi Arabia Achieves 231.7 Points in UN Maritime Index

Saudi Arabia, represented by the Saudi Ports Authority (Mawani), has achieved 231.7 points in the United Nations Trade and Development’s (UNCTAD) Liner Shipping Connectivity Index (LSCI) for the second quarter of 2024. This milestone underscores the Kingdom’s ongoing efforts to enhance its maritime infrastructure and strengthen its position as a global logistics hub.

Context and Background

The Liner Shipping Connectivity Index, developed by UNCTAD, measures a country’s integration into global liner shipping networks. It considers factors such as the number of shipping services, vessel capacity, and port infrastructure. Saudi Arabia’s score of 231.7 reflects significant progress in these areas, driven by strategic investments and reforms under Vision 2030.

In recent years, Mawani has prioritized the development of the Kingdom’s ports to boost competitiveness regionally and internationally, facilitating global trade and supporting economic diversification. These efforts align with the National Transport and Logistics Strategy, which aims to position Saudi Arabia as a leading logistics hub connecting three continents.

Key Details

Several key projects have contributed to this achievement. The Red Sea Gateway Terminal at Jeddah Islamic Port has completed development work with investments totaling SAR 1 billion. Additionally, Mawani has deepened the northwestern approach channel at the port to a length of 3,000 meters, width of 300 meters, and depth of 18.5 meters, up from 17 meters, allowing larger vessels to access the port.

Commercial support contracts worth SAR 7 billion have been signed with Saudi Global Ports (SGP). King Abdulaziz Port in Dammam has received six coastal and bridge cranes to enhance operational efficiency and handle giant ships. Through strategic partnerships with international shipping lines, Mawani has added 14 new shipping services this year at Jeddah Islamic Port, King Abdulaziz Port, and Jubail Commercial Port, improving connectivity with Eastern and Western ports.

Furthermore, Jeddah Islamic Port has seen the establishment of a logistics zone with an investment of SAR 175 million in cooperation with MEDLOG, the logistics arm of the Mediterranean Shipping Company (MSC). The port also laid the foundation for a logistics center spanning 95,436 square meters for Bahri, the national shipping carrier, and an integrated logistics zone of 415,000 square meters with an investment exceeding SAR 500 million in partnership with Dubai World.

Implications and Impact

This achievement enhances Saudi Arabia’s attractiveness as a trade and logistics hub, potentially increasing foreign investment and fostering economic growth. Improved connectivity reduces shipping costs and transit times, benefiting importers and exporters. Regionally, it strengthens Saudi Arabia’s competitive edge against other ports in the Middle East, positioning the Kingdom as a preferred gateway for goods moving between Asia, Europe, and Africa.

Internationally, the higher LSCI score signals reliability and efficiency to global shipping alliances, encouraging more services to include Saudi ports in their routes. This can lead to increased trade volumes and deeper integration into global supply chains, supporting the Kingdom’s goal of becoming a top 10 logistics performer by 2030.

Vision 2030 Alignment

This milestone directly supports Vision 2030’s objective of transforming Saudi Arabia into a global logistics hub. By investing in world-class infrastructure and forging strategic partnerships, the Kingdom is diversifying its economy away from oil, creating jobs, and enhancing non-oil exports. The progress at Jeddah Islamic Port and other ports exemplifies the Vision’s emphasis on private sector participation and international cooperation, paving the way for sustainable economic growth and a prominent role in global trade.

20 Questions

Q1. What is the Liner Shipping Connectivity Index (LSCI)?

A1. The LSCI is a measure developed by UNCTAD that evaluates a country’s integration into global liner shipping networks. It considers factors like the number of shipping services, vessel capacity, and port infrastructure. Saudi Arabia’s score of 231.7 indicates strong connectivity.

Q2. Which Saudi authority is responsible for the ports?

A2. The Saudi Ports Authority (Mawani) oversees the Kingdom’s ports. It is responsible for developing infrastructure, enhancing competitiveness, and facilitating global trade in line with Vision 2030 objectives.

Q3. How much was invested in the Red Sea Gateway Terminal?

A3. The development work at the Red Sea Gateway Terminal in Jeddah Islamic Port was completed with investments amounting to SAR 1 billion. This investment aimed to enhance the terminal’s capacity and efficiency.

Q4. What improvements were made to the approach channel at Jeddah Islamic Port?

A4. Mawani deepened the northwestern approach channel to a length of 3,000 meters, width of 300 meters, and depth of 18.5 meters, up from 17 meters. This allows larger vessels to access the port.

Q5. What is the value of contracts signed with Saudi Global Ports?

A5. Mawani signed commercial support contracts worth SAR 7 billion with Saudi Global Ports (SGP). These contracts aim to enhance port infrastructure and operational efficiency.

Q6. How many new shipping services were added this year?

A6. Mawani added 14 new shipping services at Jeddah Islamic Port, King Abdulaziz Port in Dammam, and Jubail Commercial Port. These services enhance connectivity with Eastern and Western ports.

Q7. What is the MEDLOG logistics zone?

A7. MEDLOG, the logistics arm of MSC, established a logistics zone at Jeddah Islamic Port with an investment of SAR 175 million. It aims to provide integrated logistics solutions.

Q8. What is the size of the logistics center for Bahri?

A8. The logistics center for Bahri, the national shipping carrier, spans 95,436 square meters at Jeddah Islamic Port. It is designed to support Bahri’s operations and enhance logistics services.

Q9. What is the integrated logistics zone with Dubai World?

A9. An integrated logistics zone with a total area of 415,000 square meters is being developed at Jeddah Islamic Port in cooperation with Dubai World, with an investment exceeding SAR 500 million.

Q10. How does this achievement benefit Saudi Arabia’s economy?

A10. Improved port connectivity reduces shipping costs and transit times, boosts trade volumes, and attracts foreign investment. It supports economic diversification and job creation, aligning with Vision 2030.

Q11. What is the significance of the LSCI score for Saudi Arabia?

A11. The score of 231.7 reflects Saudi Arabia’s progress in enhancing maritime infrastructure and integration into global trade networks. It signals reliability and efficiency to international shipping lines.

Q12. How does this align with Vision 2030?

A12. Vision 2030 aims to transform Saudi Arabia into a global logistics hub. This achievement supports that goal by improving infrastructure, boosting competitiveness, and fostering international partnerships.

Q13. What are the key ports involved in this development?

A13. The key ports are Jeddah Islamic Port, King Abdulaziz Port in Dammam, and Jubail Commercial Port. These ports are central to Saudi Arabia’s trade and logistics network.

Q14. What role does the private sector play in these developments?

A14. The private sector is crucial, with partnerships like MEDLOG, Bahri, and Dubai World investing in logistics zones and infrastructure. These collaborations drive efficiency and innovation.

Q15. How does this impact regional trade?

A15. Enhanced connectivity strengthens Saudi Arabia’s position as a regional trade hub, offering faster and more reliable routes for goods moving between Asia, Europe, and Africa, benefiting regional economies.

Q16. What are the environmental considerations in port development?

A16. Mawani is committed to sustainable development, incorporating environmental standards in projects. Deepening channels and building infrastructure are done with minimal ecological impact, in line with international best practices.

Q17. What future projects are planned for Saudi ports?

A17. Future projects include further expansion of logistics zones, adoption of smart technologies, and additional partnerships to enhance capacity and connectivity, supporting the goal of becoming a top 10 logistics performer.

Q18. How does this affect local communities?

A18. Port developments create jobs, stimulate local businesses, and improve infrastructure. They contribute to quality of life and economic opportunities for communities near ports.

Q19. What is the role of UNCTAD in this index?

A19. UNCTAD compiles the LSCI to provide insights into global shipping connectivity. It helps countries benchmark their performance and identify areas for improvement in maritime logistics.

Q20. What does this mean for Saudi Arabia’s global standing?

A20. The high LSCI score elevates Saudi Arabia’s status as a key player in global trade and logistics. It demonstrates the Kingdom’s commitment to excellence and its growing influence in international maritime affairs.

---