NEOM transfers Duba Port management to Saudi Ports Authority in 2022
In a move aligned with NEOM's overarching strategy and the Saudi Ports Authority's relentless endeavors to revolutionize local ports into internationally renowned logistics hubs, the management of Duba Port has been officially handed over from the national maritime regulator, Mawani, to NEOM, effective as of 2022.
In a significant development for the bustling industrial hub of Oxagon in NEOM, the renowned seaport serving the northwest region of Saudi Arabia has undergone a momentous transformation. Now known as the Port of NEOM, this vital maritime gateway stands as a testament to the cutting-edge and environmentally friendly industries that thrive in this dynamic location. In response to the increasing influx of cargo into NEOM, key capabilities have been significantly enhanced following the transfer. This includes the expansion of container and general cargo handling, ensuring that the rising volume of goods can be efficiently accommodated.
In a statement made by Nadhmi Al Nasr, the esteemed Chief Executive Officer of NEOM, he emphasized the significance of the Port of NEOM. Al Nasr highlighted that this port will play a crucial role in maintaining the Kingdom's commercial competitiveness, fostering economic diversification, and realizing its maritime trade aspirations. In pursuit of an ambitious goal, we aim to construct a port that stands among the most cutting-edge, streamlined, and eco-friendly in the world. Our vision encompasses the establishment of a fully integrated and automated supply chain and logistics network. The initial phase of this development marks a significant stride towards the realization of our grand vision.
Situated along the shores of the Red Sea, where international trade routes converge, the port holds immense significance as a pivotal facilitator for NEOM and a driving force behind the overall economic progress in the area. With an investment exceeding SAR 7.5 billion, our unwavering dedication to the vision is evident. Furthermore, our ambitious plan to inaugurate the inaugural state-of-the-art terminal in 2025 solidifies our commitment.
The Port of NEOM is set to play a pivotal role in the grand scheme of NEOM's construction, operations, and economic aspirations. It will not only facilitate the importation of goods and materials during the developmental stage but also serve as a prominent international port catering to the needs of the region. In a statement provided by Sean Kelly, the Managing Director of the Port of NEOM, he emphasized the significance of this matter, especially in light of the rapid development and the imminent launch of businesses within NEOM.
In a move aimed at enhancing connectivity to global markets, CMA CGM, a prominent player in sea, air, land, and logistics solutions, has launched the world's first fixed-call container service. In a groundbreaking development, CMA CGM, a leading global shipping company, has introduced a new service called JEDDEX, which now includes the highly anticipated Port of NEOM. This strategic move marks the first-ever direct connection between NEOM and the extensive global network of CMA CGM. The port, in its bustling activity, witnesses numerous impromptu vessel arrivals carrying shipments of materials and goods crucial to fueling the continuous development efforts in NEOM.
Recent contract awards have been made for design, dredging, and quay wall construction, as well as cargo handling equipment. In a significant development, Jacobs has been appointed as the primary design consultant for the ambitious redesign project. Collaborating with Moffatt and Nichol, IGO, and Trent, who will serve as the main subconsultants, Jacobs will play a crucial role in transforming various aspects of the project. With a staggering value of over SAR 180 million, the project encompasses a wide range of areas, including terminals, warehouses, rail delivery, infrastructure, and even a sustainable energy network. This appointment marks a major milestone in the project's journey towards a comprehensive and innovative revamp.
In a strategic move to secure their participation in the highly sought-after competitive bidding process for the inaugural phase of the dredging and quay wall tender, two prominent entities, BESIX and Modern Building Leaders, have joined forces. This formidable joint venture has further strengthened its position by partnering with the renowned Boskalis, a key player in the industry. In a groundbreaking development, BESIX and Boskalis have emerged as the inaugural European contractors to secure a prestigious design and build lump sum contract worth an impressive SAR 2 billion with NEOM. This landmark agreement marks a significant milestone for both companies as they become trailblazers in the European construction industry.
In a significant development, Boskalis has been awarded the crucial task of deepening and widening the main access channel. This endeavor is in perfect alignment with the sustainable aspirations of Oxagon and NEOM. Notably, the project aims to achieve zero material discharge, with a strong emphasis on recovering and reusing materials and structures. These efforts will primarily be focused on constructing earthwork platforms that will play a pivotal role in the development of Oxagon. BESIX-MBL has been awarded the crucial task of designing and constructing more than 3 kilometers of quay walls, employing cutting-edge construction techniques and materials. In a bid to minimize the environmental impact of the project, the decision has been made to utilize low-carbon steel frames for the construction of the quay walls.
In a recent statement, Kelly emphasized the importance of adopting a sustainable approach to port development. She highlighted that this requirement is critical to the tenders and should align with NEOM's core sustainability principles. Kelly further mentioned that the consortium of companies has collectively showcased their ability to fulfill the ambitious goals set by NEOM.
In a significant move towards the development of the port, a number of contracts for cranes and container equipment have been recently awarded. The esteemed recipients of these contracts are none other than Saudi Liebherr Company Ltd. and Shanghai Zhenhua Heavy Industries Company Limited (ZPMC). In a significant development, Saudi Liebherr, a prominent player in the construction industry, has recently secured contracts for the acquisition of ten state-of-the-art mobile harbor cranes. The total investment for these contracts exceeds an impressive SAR 200 million. This achievement highlights the company's growing influence and underscores its commitment to delivering cutting-edge solutions in the maritime sector. In a significant development, ZPMC, a renowned global leader in port machinery and equipment, has secured a remarkable contract worth SAR 1 billion. The contract entails the delivery of a total of 46 cranes, including ten ship-to-shore (STS) gantry cranes, 30 electric rubber tiered gantry (ERTG) cranes, and six automated rail-mounted gantry (ARMG) cranes. ZPMC, known for its expertise in providing cutting-edge solutions to the maritime industry, will be collaborating with Siemens Europe to ensure the successful implementation of the automation components. This partnership between ZPMC and Siemens Europe is expected to bring forth a seamless integration of advanced technologies, further enhancing the efficiency and productivity of port operations. In a groundbreaking development set to revolutionize the industry, the first container terminal is slated to commence operations by the dawn of 2025. This state-of-the-art facility will boast an array of cutting-edge technologies, seamlessly integrating supply chain and logistics solutions for maximum efficiency and productivity. In a groundbreaking development, the port is set to achieve a remarkable feat: operating at net carbon zero levels upon completion. This ambitious endeavor will be made possible by relying solely on 100% renewable energy sourced from sustainable sources. As a result, the port is poised to become the epitome of sustainability, solidifying its position as the world's most environmentally friendly next-generation port.
Oxagon: A Closer Look at the Enigmatic Entity
NEOM, the futuristic city in the making, has found its hub for advanced and clean industries in the form of Oxagon. Introducing a groundbreaking paradigm for industrial centers, this visionary concept amalgamates cutting-edge and environmentally friendly industries, pioneering research and innovation, state-of-the-art ports, and seamlessly integrated supply chains and logistics. Oxagon, a cognitive city, is founded upon the principles of NEOM's visionary philosophy, which aims to revolutionize the future of human living and working by prioritizing exceptional livability. Situated in a strategic position within the Red Sea, Oxagon is poised to revitalize manufacturing advancements and enhance global supply chain connectivity. With a staggering 13% of global trade flowing through the adjacent Suez Canal, this innovative hub aims to foster creativity, attract top-notch talent, and propel forward-thinking ideas. Situated on the picturesque Red Sea, the Port of NEOM is strategically positioned in Oxagon to cater to the diverse needs of NEOM, the Kingdom, and beyond.