October 12, 2008

Port development essential for Middle East – Report

Companies such as Saudi Ports Authority and DP World highlighted the need for port developments at last month's Saudi International Ports & Maritime Transport Forum.

According to speakers at Saudi International Ports & Maritime Transport Forum, the Middle East must develop its shipping infrastructure to capitalize on the international maritime boom.

The event, which was hosted by Jeddah Chamber of Commerce & Industries, attracted more than 500 shipping experts from companies such as the National Shipping Company of Saudi Arabia, United Arab Shipping Agencies Company, DP World and Saudi Ports Authority.

Dr Khaled bin Ahmed Bubshait president of Saudi Ports Authority said that "The development of seaports in the Middle East is essential to future growth. Saudi Arabia has envisaged an investment of USD 8 billion on modernizing and equipping its ports. This will be done with the participation of the private sector."

Mr Bubshait said "Jeddah Islamic Port has experienced a record period of growth in 2007, with around 4 million containers being handled. This is a sizeable increase over 2006 and we want to reach 6 million containers in the near future. Studies are currently underway for an expansion, which will increase the capacity to handle larger ships and containers. This includes the ongoing construction of the third container station in the north west of the port, which will cost approximately half a billion dollars, with a capacity to handle up to 1.5 million containers."

The decision to modernize Jeddah Islamic Port has received a positive response from the shipping fraternity, with a number of companies at the Saudi International Ports & Maritime Transport Forum considering an increase in operations at the facility once the expansion is completed.

Mr Jacob Hansen GM of Maersk Line in Saudi Arabia said that "Jeddah Islamic Port is the Kingdom's largest port and should be developed to handle a far greater volume of containers, especially with its excellent geographic location. In particular, the port will need better facilities to receive the world's largest container vessel Emma Maersk."

Mr Mohammed Al Muallem MD of DP World said that the shipping industry is entering such an unprecedented period of growth that global demand for containers will reach 500 million TEUs before 2009. He added that "We need to expand significantly to meet that demand. Through meticulous planning and a strategic focus, we will continue to provide a competitive platform for our customers at ports around the world, allowing them to maintain their edge and capitalize on the shipping industry's growth opportunities."

Mr Al Muallem noted that DP World is constantly evolving and moving towards its mission to develop world class shipping facilities and ports. He added that "We achieved this ranking by expanding our operations across the Indian subcontinent, Far East, Europe, Americas, Australia and, of course, the UAE. DP World benchmarks its efficiency to the highest international standards, which is essential because we regard ourselves as something more than a terminal operator. Instead, we are an important link in the supply chain."