First dry port of its kind will connect the region’s fully integrated energy hub to the world
King Salman Energy Park (SPARK) and Hutchison Ports recently announced the signing of a shareholders’ agreement for the formation of a joint venture to manage and operate the dry port and bonded logistics zone in the SPARK energy industrial city.
Designed to ensure ease of access to global markets, the three-square-kilometre dry port will enable the future joint venture to capture the growing demand for logistics services for energy-related products in the Middle East and beyond while also serving the neighboring industrial cities.
SPARK is a sustainable, global energy hub in Saudi Arabia’s Eastern Province. The mega project, which spans over 50sqm, is a manufacturing, service center and logistics hub for the energy sectors and is an integral part of the Saudi Vision 2030. SPARK will create significant employment, further diversify the economy, and attract additional foreign investment into the Kingdom.
“Hutchison Ports is a world class ports and terminal operator and the logistic hubs will also serve the Kingdom’s 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,” affirmed Mohammed Y. Al-Qahtani, Chairman, SPARK.
“As the world’s leading port group, we will leverage our logistics expertise to create value and competitiveness for the tenants of SPARK,” commented Eric Ip, Group Managing Director, Hutchison Ports.
“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 vast oil and gas resources. We are excited to work with Hutchison Ports to help connect our investors to the world, allowing them to operate efficiently and save on transport times and costs,” asserted Saif Al Qahtani, President and CEO, SPARK.
SPARK’s first phase is divided into a number of clusters: logistics zone, industrial hub, business district, digital hub, and residential and commercial areas. The dedicated three-square-kilometre dry port and logistics zone will include warehouses and storage facilities, a bonded area and on-site customs clearance.