Saudi Arabia applies new tariff for port service fees and charges



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The General Port Authority (Mawani) today announced the start of the application of the new tariff of fees and charges for port services, as of January 1, 2021, in accordance with the plans for the privatization and transformation of the port sector to operate in a commercial and investment manner.

With the modification and application of the new tariff, Mawani aims to implement a number of economic and social impacts, including increasing the attractiveness of investments in the Kingdom’s port sector, thus helping to stimulate the national economy and serving exporters, importers and service providers, in addition to creating new investment opportunities in support services that will provide over 9,600 new direct jobs in the various port and logistics sectors

The Port Authority has been working to reconsider and modify some port salaries in light of the emergence of new services in the maritime transport sector, which has created the need to add salaries for these services to keep pace with the market, in addition to current and new wages for handling certain types of cargo are considered low compared to regional and competitive markets.

The new tariff will help support the commitment of the General Authority of Ports and Operators in Saudi Ports with competitive global indicators that include the availability of berths, increasing the total number of crane movements per hour, in addition to the total number of movements of the berth in one hour, and reducing the time required between the entry of the truck until its exit, in addition to the total time spent. Let each truck go to the station.

As part of the development, automation and provision of technological systems on which the community works to increase operational efficiency, the new tariff will also contribute to the establishment of new internal and external portals based on the optical recognition technology, in addition to updating the fiber optic network supply infrastructure and information technology, and setting up the station operating system. In addition to industrial mobile terminals installed on container handling equipment.

It should be noted that Mawani seeks, in accordance with its objectives and strategic plans, in partnership with the public and private sectors, to occupy the ports of the Kingdom in a leading position at the international level and first of all in the region, by providing a efficient and integrated port network with high efficiency and capacity, in a way that helps support the Kingdom’s economic growth plans and boost the logistics industry. And global supply chains, in accordance with the pillars of the Kingdom’s Vision 2030 and the objectives of the national industrial development and logistics program for the Kingdom to be a global logistics center and a hub connecting the three continents.

Evolution of ports

The Kingdom has an extensive network of seaports along the coasts of the Red Sea and the Persian Gulf. As the largest port network in the Middle East, be an important indication of the regional and international weight of Saudi ports.

The Kingdom occupies a strategic geographic position on the world map, across which it overlooks the Persian Gulf to the east and the Red Sea to the west. The Kingdom’s geographical location also provides a link and gateway to the continents of the world and its coasts stretching east and west and has a series of ports ready to cope with a strong movement of export, import and service of transit vessels, which contributed to the registration of ports. The Kingdom has made further progress in the indicator of maritime navigation network connectivity with global shipping lines in the ((UNCTAD)) report for the third quarter of 2020 published by the United Nations Conference on Trade and Development , by (13.8) points, an increase of 24.6%, which is the highest in the region from Q1 2019 to Q3 2020.

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