Mawani announced a SAR 200 million (USD 53 million) agreement with ARASCO to develop a grain-focused logistics centre at King Abdulaziz Port in Dammam. The signing took place on 7 December and included senior leaders from both organisations.
A Major Step in Port-Logistics Development
The partners will build a 40,000-square-metre storage and distribution facility inside the port. Mawani’s President and ARASCO’s CEO signed the contract with their respective teams present. The authority explained that the project supports national supply chains and improves operational efficiency. Additionally, it strengthens private-sector participation and aligns with Vision 2030.
Grain-Handling Capacity and Key Facilities
The centre will manage essential food commodities and bulk grains. Warehouses will hold up to 100,000 metric tonnes. Advanced silos and grain-handling systems will support the operation.
Furthermore, the project includes a vehicle-loading area, conveyor networks and specialised unloading equipment at berths 37 and 39. These additions will speed vessel discharge, reduce turnaround times and improve links to the wider logistics network.
Boost to Food-Security and Supply Networks
Mawani and ARASCO noted that the investment expands the port’s grain-handling capability. It also strengthens the Kingdom’s strategic food reserves. The project will create more than 3,000 direct and indirect jobs. Consequently, the new hub will enhance national and regional supply networks and expand value-added logistics services.
Part of ARASCO’s Five-Year Expansion Plan
The facility also supports ARASCO’s plan to increase annual grain imports through King Abdulaziz Port. The company aims to move more than 5 million metric tonnes each year by improving handling efficiency.
King Abdulaziz Port has 43 berths and annual capacity above 105 million tonnes. It serves Saudi Arabia’s eastern and central regions. The new complex will further support its role in food and agricultural imports. Additionally, the project aligns with the National Transport and Logistics Strategy, which aims to expand port capacity and attract more private-sector investment.
Organisational Background
Mawani, the Saudi Ports Authority created in 1976, oversees the development, management and regulation of commercial and industrial ports across the Kingdom. It manages governance frameworks and long-term port partnerships.
Meanwhile, ARASCO is a privately held Saudi feed-to-food group founded in 1983. It operates across feed production, poultry, food ingredients, agrochemicals, veterinary services, logistics and laboratory analysis, with major sites in Riyadh, Al-Kharj and Dammam.
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Source: PortNews
