King Salman Energy Park (Spark) and Hutchison Ports signed a concession agreement to oversee the operation and management of a dry port and bonded logistics zone within the expansive 50 square kilometres global energy hub located in Saudi Arabia’s Eastern Province.
Agreement details
The concession has been granted to Energy City Logistics Company (ECLC), a newly established entity formed through a joint venture between Spark and Hutchison Ports’ subsidiary, Colour Path Holdings Limited.
Under the agreement, ECLC will assume the exclusive role of managing a cutting-edge logistics facility valued at $400 million within Spark.
The facility will offer a comprehensive range of services, including container handling, breakbulk and project cargo services, storage yards, warehousing, customs clearance, and both bonded and non-bonded logistics solutions tailored specifically to the requirements of the energy ecosystem.
By integrating the future GCC rail link, GCC highway, and multiple expressways connected to the Spark site, the Dry Port is expected to expedite the development of the Eastern Province as a regional logistics powerhouse, the company revealed.
“The Dry Port is one of the key enablers for Spark’s ecosystem and the signing of the concession agreement marks an important milestone for its moving to the operational readiness phase,” Spark CEO and President, Engineer Saif Al Qahtani noted, emphasising that ECLC would be fully prepared to serve Spark tenants right from the start, offering integrated logistics solutions and efficient services, allowing them to focus on productivity and value creation.
On his part, Hutchison Ports Group Managing Director, Eric Ip expressed his enthusiasm to participate in the mega project and contribute to the success of the Saudi Vision 2030 of developing the kingdom into a global logistics hub, stressing that the partnership demonstrates Hutchison Ports’ unwavering commitment to the kingdom.
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Source: Logistics Middle East
