The Saudi Ports Authority (Mawani) is set to develop the Kingdom’s biggest grain terminal in Yanbu.
Mawani signed an agreement with the Saudi Agricultural and Livestock Investment Company (SALIC), a Public Investment Fund-owned company, to lease land in Yanbu Commercial Port to be used to develop the project. The value of the project was not disclosed.
The terminal, which will be sited on 313,000 square meters of land, will be used for importing, processing and exporting grain. It will be built in two phases with total capacity of 5 million tons annually.
Gulf states are investing heavily in food security as a combination of political and climate factors encourage countries to ensure they have enough essential food supplies in case of an emergency.
“This strategic partnership with Mawani has lasted for over 30 years and is considered one of the key pillars of the food security system in the Kingdom,”Abdul Rahman Al-Fadhli, minister of environment, water and agriculture and chairman of SALIC, said. “The project aims to enhance the velocity of the main grain influx to Saudi Arabia and is considered the first regional center for grains in the commercial port of Yanbu.”
The Yanbu project will become the first regional center for importing, processing and re-exporting grains, according to Saleh bin Nasser Al-Jasser, Saudi transport minister and chairman of Mawani.
“This regional project will support the operational traffic in the Yanbu Commercial Port, attract additional international shipping lines, and increase investment in the logistic services sector which will bring about significant growth in operational traffic,”Al-Jasser said.
The project represents the latest move by the ports authority to develop its infrastructure and better position Saudi Arabia as an international trade hub linking Africa, Asia and the Middle East.