DP World and Mawani begin US$250M logistics park at Jeddah Port
28.05.2024
DP World and the Saudi Ports Authority (Mawani) have begun constructing a new US$250 million logistics park at Jeddah Islamic Port.
This state-of-the-art facility aims to enhance storage and distribution capabilities, bolstering trade within Saudi Arabia and the broader region.
Spanning 415,000 square meters, the greenfield facility will include 185,000 square meters of warehousing space and an expansive multi-purpose storage yard, making it the largest integrated logistics park in the Kingdom. It will accommodate over 390,000 pallet positions, providing customers with an efficient platform for the seamless movement of goods in and out of Jeddah.
Established in 2022 under a 30-year concession, Jeddah Logistics Park will be developed in two phases, with a planned opening in Q2 2025. The facility will feature a rooftop solar plant on the warehouse, generating 20MW of renewable energy, underscoring its sustainable design.
“This investment marks a significant step as we mark 25 years of operations in Jeddah and underscores our enduring commitment to facilitating the flow of trade," stated Sultan Ahmed bin Sulayem, Chairman and CEO of DP World.
Additionally, Mawani and DP World are collaborating on the management of the South Container Terminal through a separate 30-year concession signed in 2020. This terminal is in the final phase of a comprehensive modernization project, slated for completion in Q4 2024, which will increase its handling capacity to five million TEUs.
Together, these two DP World projects represent a combined investment of nearly US$1 billion.
“This new logistics area will be connected to DP World’s South Container Terminal at Jeddah Islamic Port, facilitating growth and increasing the number of containers handled at the terminal. The project is part of Mawani’s broader efforts to expand the number of logistics centres in Saudi ports, in partnership with major national and international companies, and in line with the objectives of the National Transport and Logistics Strategy and Vision 2030,” added president of Saudi Ports Authority (Mawani), Omar Bin Talal Hariri.
According to a statement, Mohammad Alshaikh, DP World Country Head, KSA, delivered details on the comprehensive project to attendees at the groundbreaking, including the UAE Consul General to Jeddah, Nasser Huwaiden Thaiban Ali AlKetbi, and senior Saudi government representatives and members of DP World’s leadership team.
HPH Trust and Beibu Gulf Port Group sign landmark cooperation agreement
24.05.2024
Hutchison Port Holdings Trust (HPH Trust) and Guangxi Beibu Gulf International Port Group Company Limited (Beibu Gulf Port Group) have signed a memorandum of cooperation, marking a significant step towards enhancing collaboration in the ports and logistics sectors, while promoting economic and trade exchanges between Guangxi and Hong Kong.
This pivotal partnership aims to accelerate the growth of the Guangdong-Hong Kong-Macao Greater Bay Area and the Beibu Gulf economic zone.
The memorandum was signed in the presence of over 50 guests and government officials, including Liu Ning, secretary of the Communist Party of China Guangxi Regional Committee, Amy Chan, commissioner for Maritime and Port Development of the Transport and Logistics Bureau, and Ivor Chow, Chief Executive Officer of Hutchison Port Holdings Trust.
“Hong Kong is an important hub port in the region providing excellent port and maritime services. As announced in the Action Plan on Maritime and Port Development in December 2023, we aim to enhance the overall competitiveness of the Hong Kong Port and the Greater Bay Area port cluster,” stated Amy Chan, commissioner for Maritime and Port Development of the Transport and Logistics Bureau.
By leveraging their respective strengths, the cooperation seeks to strengthen economic and trade ties between Guangxi and Hong Kong, with a focus on enhancing multimodal transportation collaboration. The partnership will emphasize fortifying connections between the two regions, using the Beibu Gulf Port as a key link connecting the northwest region over land and the Guangdong-Hong Kong-Macao Greater Bay Area by sea. The ultimate goal is to establish a seamless route connecting Asia with North America, Europe, and other regions, known as the "Western-Beibu Gulf-Hong Kong (Kwai Tsing)/Yantian-Destination route."
Furthermore, by taking advantage of complementary routes and efficient customs clearance between Hong Kong and Yantian Port in Shenzhen, both parties aim to facilitate transshipment traffic between the Beibu Gulf Port and Hong Kong. This will enhance the logistics hub collaboration among Guangxi, Kwai Tsing, and Yantian port zones, ensuring seamless and highly efficient operations.
“HPH Trust is committed to collaborating with leading industry stakeholders to explore development opportunities for its port and logistics-related businesses. We are delighted to cooperate with Beibu Gulf Port Group as we capitalise on the unique strengths of both ports to enhance our overall competitiveness, thereby reinforcing the development of Hong Kong as an international transshipment hub,” commented Ivor Chow, Chief Executive Officer of Hutchison Port Holdings Trust.
The partnership is expected to increase cargo volume at the Hong Kong Port and expedite import/export cargo movement. For example, shipping goods from the northwest to major Asian regions via Hong Kong can now be completed in just 4-7 days. Currently, Hong Kong offers over 170 international weekly container liner services, connecting destinations worldwide.
“This memorandum of cooperation symbolises our commitment to support Guangxi in establishing the ‘One Zone, Two Cities’ model and building it into an important strategic hinterland of the Guangdong-Hong Kong-Macao Greater Bay Area. Dedicated to deepening the cooperation between Guangxi and Hong Kong across the ports and logistics sectors, as well as economic and trade exchanges, the memorandum will catalyse high-quality development towards a maritime economy, making significant contributions to national strategies including the Belt and Road initiative," added a spokesperson of Beibu Gulf Port Group.
Hong Kong Officially Launches Digital Yuan Payments Pilot
17.05.2024
Hong Kong launched a pilot program enabling digital yuan payments through major Chinese banks, the first example of China’s currency project being deployed beyond the mainland.
Residents of the city can now open digital yuan wallets with Bank of China, Bank of Communications, China Construction Bank and Industrial and Commercial Bank of China to pay merchants in mainland China directly, Hong Kong’s de facto central bank said in a statement on Friday.
The wallets can be set up using only a Hong Kong mobile phone number and can be used within the Greater Bay Area as well as other pilot regions. Users can top-up the wallets using the local instant payment system known as FPS.
“We will continue to work closely with the People’s Bank of China to gradually expand the application of e-CNY, enrich the range of functionalities” and promote the acceptance of the digital yuan by more retail merchants in both Hong Kong and China, said Eddie Yue, chief executive of the Hong Kong Monetary Authority in a statement. Hong Kong is the first place outside of mainland China in which residents can set up e-CNY wallets, according to the HKMA.
Asian ports hit by Red Sea backlogs
10.05.2024
The Red Sea crisis is challenging Asian ports as congestion with “echoes of the pandemic” is seen in Asia and the Middle East with analysts warning backlogs could also spread to European facilities.
Container ship diversions avoiding the Red Sea and Suez Canal are in a continuous state of flux, changing port calls and vessel sizes as carriers adjust Asia to Europe rotations to cope with demand.
These fluctuations, along with unexpected weather events and higher volumes, and holidays, including Ramadan and Eid Al-Fitr, have created challenging conditions for port operators.
Eleanor Hadland, ports’ analyst at Drewry Shipping Consultants told Container News some congestion hotspots emerging, as vessels arrive at ports outside of their docking windows.
The markets where there has been the greatest impact have fewer mainline vessel calls – but each call is taking longer - indicating a greater cargo exchange – which occurs when carriers consolidate cargo in specific markets onto fewer routes.
“For example, whereas Asia-Middle East cargo may previously have been handled on a wayport basis (i.e. dropped off / collected at key hubs on Asia-Europe trade) this is now being consolidated onto specific Asia-Middle East routes leading to larger parcel sizes being handled at the main ports,” explained Hadland.
One of the most significant ports impacted is Jebel Ali which has seen dwell for ships larger than 12,500 TEU increase from about 1.5 days in Q4 2023 to 2.5 days by the first quarter of this year, increasing pressure on trucking and port storage facilities.
A DP World spokesperson said, “Jebel Ali Port has experienced a temporary increase in vessel arrivals due to recent severe weather and changes to regional shipping routes. We're working diligently with our partners to ensure efficient operations and minimise any effects on schedules. All major shipping lines continue their on-time arrivals at Jebel Ali Port.”
Consultancy MDS Transmodal analysed the number and size of vessels operating in the Asia to Europe trades, including direct Asia to Europe services, those with wayport calls and the Middle East, Indian Subcontinent to Asia trades in an attempt to understand the challenges being faced.
Hapag-Lloyd partners with IKEA for cleaner shipping
08.05.2024
Hapag-Lloyd and IKEA Supply Chain Operations have entered into a cooperation to decarbonise container shipments from Asia.
From March 2024 until February 2025, both companies have agreed to use Hapag-Lloyd’s highest product option for biofuels “Ship Green 100”, which relies on waste- and residue-based biofuel instead of conventional marine fuel oil. The expected result for IKEA during this period is a CO2 emission reduction of around 100,000 tonnes.
“IKEA stands as one of our valued customers, known for its unwavering commitment to sustainability. By joining forces, we are reducing CO2e emissions significantly”, said Danny Smolders, Managing Director Global Sales at Hapag-Lloyd. “Ship Green is an important aspect of our decarbonisation journey and brings us one step closer to our goal of net-zero fleet operations by 2045.”
The IKEA goal is to reduce the relative GHG emissions from their product transportation by 70% by 2030 and to only use zero-emission heavy-duty vehicles and ocean vessels by 2040.
“It’s through efforts like this one that we can reduce immediate emissions from ocean shipping in the short-term”, says Dariusz Mroczek, Category Area Transport Manager, IKEA Supply Chain Operations. “However, biofuel is not the ultimate solution and we need to continue to collaborate to make the necessary shift toward zero emission fuels and technologies.”
Hapag-Lloyd has launched the Ship Green product to offer its customers emission-reduced ocean transport solutions. Based on biofuel, Hapag-Lloyd’s customers can choose between 100%, 50% or 25% CO2e emission avoidance. Ship Green is available for all shipments, including standard, reefer, hardtop, or tank equipment.