The SAR 7 billion (USD 1.87 billion) deal makes SGP the sole container terminal operator of the deep-water hinterland port.
The deal was closed in a digital transaction due to ongoing circumstances caused by the pandemic.
The agreement is one of the key initiatives within the Saudi Vision 2030 framework, promoting the diversification of the Kingdom’s economy.
The PSA subsidiary plans to embark on a major development and modernisation program to transform the King Abdulaziz Port into a mega container hub and increase its capacity to an estimated annual handling capacity of 7.5 million TEU when the planned expansion works are fully completed.
“The envisaged transformation will benefit port users and the Kingdom and promote the creation of high-value employment opportunities for Saudi citizens,” said SGP Chairman Abdulla Al Zamil.
Mawani President Saad Abdul Aziz Al Khalb said that the investments would develop key infrastructures such as berths and container handling equipment, and will more than double the existing container handling capacity of the King Abdulaziz Port.
The investments will focus on environmentally friendly and technologically sophisticated systems, including the adoption of automation, he added.
The port serves the major provincial cities in the Eastern and Central Provinces of Saudi Arabia and it is the closest gateway port to the country’s economic centre and capital city, Riyadh.