Saudi Global Ports Breaks Ground on Logistics Zone at Dammam

Saudi Global Ports Group on November 23 celebrated a landmark moment in the kingdom’s logistics development with the official inauguration of the Terminal 2 Berth Expansion under SGP Container Terminals and the groundbreaking of the Dammam Integrated Logistics Zone at King Abdulaziz Port Dammam (KAPD).

Both milestones strengthen SGP’s mission to advance the kingdom’s position as a global logistics hub.

The dual event was held in the presence of Prince Saud bin Nayef bin Abdulaziz, Governor of the Eastern Province, and Engineer Saleh bin Nasser Al Jasser, Minister of Transport and Logistic Services.

The event was further distinguished by the attendance of senior representatives from key Saudi governmental authorities - including the Saudi Ports Authority (Mawani) and the Zakat, Tax and Customs Authority (ZATCA) - as well as senior leaders from major logistics companies and shipping lines.

Adjacent to KAPD, the Dammam Integrated Logistics Zone, spanning 1 million sq m will be managed by SGP Freezones.

Representing an investment of up to SAR1.3 billion (US$346 million), the development underscores SGP’s commitment to expanding the kingdom’s logistics capacity and competitiveness.

It will provide modular warehousing, cold chain and vehicle storage facilities, re-export and light manufacturing zones, as well as dedicated areas for petrochemical products, e-commerce storage, and container handling within an eco-friendly, integrated system. Linked directly to SGP Container Terminals, SGP Multipurpose Terminals and SGP Intermodal (the Riyadh Dry Port Ecosystem), the logistics zone will deliver an integrated trade solution connecting sea, land, and industrial logistics for domestic and international customers.

On completion of expansion work, the Terminal 2 will add 225m to the existing 700m of quay length, allowing two mega container vessels to berth simultaneously and significantly improving operational capabilities.

Combined with Terminal 1, the consolidated handling capacity will rise to 3.8 million TEUs in 2025, thus reinforcing KAPD’s position as a key maritime gateway on the Persian Gulf.

Chairman of the SGP Board Eng. Abdullah Al Zamil said the expansion of Terminal 2 and launch of SGP Freezones reflects SGP’s commitment to be future-ready and deliver the world class infrastructure that strengthens the kingdom’s logistics competitiveness.

Group CEO Rob Harrison said the inauguration of Terminal 2 and the groundbreaking of the Dammam Integrated Logistics Zone represent more than the physical expansion of infrastructure.

"They reflect our belief in Saudi Arabia’s trade potential and our commitment to meeting the growing demand. At SGP, we are creating a connected port ecosystem that will drive efficiency, capacity, and sustainable growth for years to come," stated Harrison.

"We extend our sincere appreciation to Mawani and the other key government partners for their continued support and shared dedication to promoting trade diversification, job creation, and supply chain resilience throughout the kingdom," he added.