Saudi Arabia: Port of NEOM opens for business

The Port of NEOM, described as the primary seaport of entry to the northwest of Saudi Arabia and which now incorporates Duba Port, is up and running.

Operations include a CMA CGM scheduled liner service, general cargo facilities, storage, and passenger services.

More than SAR7.5 billion (US$2.025 billion) has been committed to the new port’s development so far. It will provide a key entry point for goods and materials required for the development of the City of NEOM, Saudi Arabia’s vast new city of the future.

The ‘smart’ metropolis in Tabuk Province is just north of the Red Sea and will cover a total area of 26,500 sq km, more than 35 times the area of Singapore.

At the port, contracts for design, dredging, quay wall construction, and cargo handling equipment have recently been awarded. US-based port consultant, Jacobs, has been engaged to oversee design, with Moffatt and Nichol, IGO, and Trent as sub-consultants.

The redesign project costing SAR180 million (US$48.6 million) will cover terminals, warehousing, rail delivery, infrastructure, and a sustainable energy network.

Netherlands-based Boskalis and Belgium-France contractor, BESIX, are the first European contractors to be involved. They have been awarded a design-and-build lump sum contract worth more than SAR2 billion (US$540 million).

Several crane and container equipment contracts have also been awarded. Saudi Liebherr Company Ltd won contracts for ten mobile harbour cranes valued at more than SAR200 million (US$54 million). Shanghai Zhenhua Heavy Industries Company Limited (ZPMC) landed contracts for ten ship-to-shore gantry cranes, 30 electric rubber-tyred gantry cranes, and six automated rail-mounted gantry cranes, together worth more than SAR one billion US$270 million). ZMPC will work with Siemens Europe to supply automation components.

The first container terminal is due to start operation by the beginning of 2025.

Sean Kelly, Managing Director of Port of NEOM, commented, “The Port of NEOM will be a critical enabler to the overall build, operations and economic ambitions of NEOM – from the import of goods and materials during the development phase and as a new global port serving the region. This is particularly important as development accelerates and businesses across NEOM come on stream.”

Courtesy: Seatrade Maritime News