3 July 2019
SAUDI ARABIA: Saudi Port Authority Slashes Service Tariffs at Yanbu Port
The Saudi Ports Authority (MAWANI) has greatly reduced handling tariffs, increased free storage time for containers, and reduced the Marine Services tariff for container ships using King Fahad Industrial Port in Yanbu.
As a consequence, the cost of handling containers at the port – one of the busiest in the Kingdom – has been reduced by up to 57.5%; free storage time for import and export of empty containers has been increased from five to 30 days; and 30 days of free storage for full containers is now also provided. Furthermore, to boost exporters’ access to empty containers, the tariff item for loading empty containers destined for King Fahad Industrial Port at nearby Jeddah Islamic Port has been cut to 50% of the previous rate.
The purpose of the initiatives, which came into effect on 16 June, is to optimise the country’s existing port infrastructure and improve its integration into global shipping routes, according to MAWANI. As a result, importer and exporter logistics operations should be substantially improved.
King Fahad Industrial Port possesses an integrated station for handling containers, with a capacity of 460,000 containers per year, and connects to King Abdullah Port and Jeddah Islamic Port. It is also the country’s largest industrial port in terms of loading crude oil and refined products, and is the main gateway port for the pilgrimage city of Medina (Madinah). The port will also serve two of the country’s mega development projects: the US$500 billion new city of NEOM; and the Red Sea tourism project that will develop an area larger than Belgium into a luxury tourism region covering 13,000 square miles.