King Abdul Aziz Sea Port in Dammam, Saudi Arabia’s second-largest port in terms of cargo volumes and the kingdom’s main outlet on the Gulf, is becoming an increasingly pivotal node in the Upper Gulf’s transport and logistics networks.
The region’s fastest-growing port, it is the principal gateway for non-oil imports to the kingdom’s Eastern and Central Provinces and, according to official statistics, handled 11 million tonnes of cargo last year.
Dammam Port’s growing regional influence is, say port officials, driven by several key factors, including the kingdom’s rapid economic expansion and population growth, the port’s close proximity to other major regional markets, and the strategic thinking of Saudi Seaports Authority (SEAPA) and the kingdom’s port planning.
Port traffic continues to increase rapidly on the back of strong consumer demand for imported goods (from cars to electronic goods to foodstuffs), new infrastructure projects being planned in Saudi Arabia and the opening up of new markets in the Upper Gulf being served as transhipments from Dammam, says Naeem Al Naeem, director, King Abdul Aziz Port.
'The economic outlook for Saudi Arabia is very positive. Over the last two years we have turned the Port of Dammam into the transshipment hub of the Upper Gulf. Transshipment is in addition to the local import and export cargo handled by Dammam,' he explains. 'Furthermore, $500 billion-worth of infrastructure projects are planned in Saudi Arabia, while the development of petrochemical industries in Jubail is another growth driver,' he points out.
The port’s growing influence as an import/ export and transshipment hub, thanks to its recently-upgraded deep water port, means it can comfortably handle ‘mother ships’ with capacities up to 9,000 teu, which not long ago ventured only as far north in the Gulf as Jebel Ali. At Dammam, mother ships can discharge their cargoes for import, pick up exports and transfer cargo onto smaller feeder vessels for transshipment elsewhere in the Upper Gulf.
Al Naeem says the port’s enhanced capability to handle mother ships followed a dredging programme by SEAPA, creating the Upper Gulf’s deepest water facility.
Thanks to continuous investment, vessels now docking at King Abdul Aziz Port benefit from world-class facilities. As well as its 16 m draft channel approach, assets include, six container berths, 12 quay cranes (able to handle 20 across), a plethora of yard equipment and 1,658 permanent reefer (refrigerated container) points.
Expansion underway
Further expansion is now under- way to meet the challenges of increased cargo and transhipment business.
'Phase 2 expansion is in progress. We are adding two quay cranes; six RTGs and a further 15 tugs have been ordered. This will add another 300 to 400 teu capacity,' Al Naeem explains, adding that the Dammam Port Authority along with its major partners, continues to invest in its ‘first class’ employees to ensure it can rise to all future operational and business challenges.
'We will be able to handle future volume/cargo projections,' he says of concerns about potential bottlenecks. 'Dammam Port Authority has a master plan to handle any future cargo,' he insists.
He also points out that additional capacities on the cards at new port projects elsewhere in the Gulf, in particular in Abu Dhabi or Doha, will have minimal impact upon King Abdul Aziz Port, which has a different geographical focus.
'The Upper Gulf market is not affected by the development of Lower Gulf ports serving the UAE, Oman and Iran,' he notes. 'Saudi Arabian cargo will continue to grow, as will the majority of cargo. The Upper Gulf ports are gateways to their specific countries and are separate from Lower Gulf ports.
'Ultimately, the hub that can provide the best productivity and price will be the transshipment hub of the Gulf.'
As Dammam Port grows further into its role as a major hub, Al Naeem says it is well-placed to thrive even during unfavourable global economic conditions, such as those experienced in particular from 2008 to 2010.
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Al Naeem: developing a pivotal hub |
While containers constitute the majority (approximately 55 per cent in 2010) of total cargo handled in King Abdul Aziz Port, bulk cargo (approximately 25 per cent) and general cargo (approximately 15 per cent) add a significant dimension to activity levels.
In recent years the port has, via specialist local and international terminal operators contracted by SEAPA, strengthened its bulk and general cargo handling capabilities, delivered through world-class dedicated bulk cargo and general cargo terminals.
The general cargo terminal, where berths alongside range between 10 and 13 m depth, are equipped with large cranes and associated infrastructure, including covered warehousing and substantial areas of open yards, and supported by what operator Gulf Stevedoring Contracting Company claims are the region’s most advanced computerised cargo tracking systems in the region, which allow real time cargo tracking.
Meanwhile bulk grain handling is carried out at the Arabian Agricultural Services (Arasco)-operated bulk cargo terminal.
Marine services available
The thriving community at King Abdul Aziz Port is further enhanced by the provision of diverse marine services. These specialist, in-demand services are provided by experienced expert contractors at fully-equipped, award-winning yards and facilities, which have established a successful track record for serving major shipping lines, prestigious oil and gas industry clients and the military.
Marine services provided by Zamil Offshore Services and Saipem Taqa AI-Rushaid Fabricators Company Ltd (Star) encompass ship building (anchor handling tugs/supply/safety vessels, diving support vessels, supply vessels, utility vessels, work boats, buoy handling vessels, harbour tugs, pilot boats, fire fighting boats, rescue boats and other special craft), ship repair, rig repair and rig conversion, steel fabrication (underwater pipelines and oil rigs), as well as the fabrication of offshore platforms for the oil and gas industry.
The King Fahd Ship Repair Yard at Dammam Port, operated by Dena BMS Co Ltd, meanwhile, claims to be one of the Gulf’s leading ship repair facilities, with two floating docks able to accommodate vessels up to 45,000 dwt.
Strategic alliance
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A rental warehouse at the Dammam
Bonded and Re-Export Zone |
Dammam Port’s hand was further strengthened in early 2011 when the Dammam Port Authority brokered a strategic alliance with the IPS Dammam Container Terminal, a joint venture with Hutchison Port Holdings (HPH), a subsidiary of Hong Kong’s Hutchison Whampoa Group, and Saudi Arabia’s Maritime Company for Navigation (Macna), and Dammam Bonded and Re-Export Zone (DBRZ), to establish a free-trade gateway for Saudi imports, exports, and re-exports to neighbouring Gulf and Middle Eastern countries.
The alliance created a seamless integrated logistics/supply chain corridor between the two facilities which, according to Al Naeem, is unmatched in the Gulf.
'Closer operational cooperation with the container terminal and 351,000 sq m bonded zone means a seamless transfer of containers from the terminal to the zone,' Al Naeem says.
Importers/exporters have an increased cargo routing menu/choice at Dammam Port, including import (by sea or road), export (by sea), re-export (by sea or road), transhipment (by sea) and transit (by road).'
DBRZ at Dammam accesses more than 22 million consumers in Saudi Arabia and a potential one-billion-plus consumers in the wider region.
Along with Dammam Port, it enjoys excellent links with modern road, air and rail networks, putting it within reach of any city in Saudi Arabia in 24 hours. Links will be further improved when a state-of-the-art rail ‘Landbridge’ between Jeddah and the Eastern Province is completed.
Bonded Zone’s solutions
According to the Dammam Port Authority the Dammam Bonded Zone offers a comprehensive and flexible range of cargo handling solutions to meet most client needs, including rental of bonded warehouses or covered storage sheds (prior to re-export); bonded container storage; container offloading and re-loading for customs inspection and clearance; bulk cargo handling packages; third party logistics; third party customs clearance and freight forwarding; and equipment and manpower hire.
Furthermore, DBRZ customers can exercise the option to defer duty payments (‘drip feeding’ cargo to the local market as and when required and only paying duty on smaller consignments), re-export goods duty-free; enjoy full or partial withdrawal of stored items from bond; have exclusive use of an onsite customs office; access to cargo prior to customs inspection; faster cargo clearance; access DBRZ’s container tracking system and have the freedom to undertake Arabic labeling and dating of merchandise held in bond.
Current facilities at DBRZ include 22 prebuilt warehouses, six office suites, a 100,000 sq m paved external storage site, and a 100,000 sq m container storage and handling park, a dedicated industrial storage area, a temperature controlled warehouse facility, a 51,000 sq m auto storage zone, and 10 x 1,000 sq m covered storage sheds for bulk cargo storage and processing.
A container stacking yard at the King Abdul Aziz Sea Port, Dammam
