02/10/2016
At a meeting with businessmen in the Eastern Region
Saudi ports steps
towards privatization
His Excellency the Chairman of the General Organization
of Ports Dr. Nabil bin Mohammed Al Amoudi said that the institution in the
process of a comprehensive developmental steps that depend on the efforts and
investments of the private sector, under new long term contracts, that achieve
more improvement and growth of this vital facility.
This was in a meeting hosted by Asharqia Chamber Sunday
(02.10.2016) saying that the institution since its establishing as an
independent entity, was entitled to supervise the Saudi ports and developed in
the year 1396, and took over the operation and management of ports and providing
supporting the services, relied on the private sector efforts, but through the
short term contracts (no more than three years), but the institution and after
a period of time has given the business operation and maintenance of stations and
ports to the private sector through long term the contracts ranges between 10
and 20 years, contributed grately to the entry of the private sector in this field,
we were one of the first governmental institutions that opened its arms to the
work of this sector.
He said that the ports sector is still a fertile and
attractive for more investments as there is in the Kingdom nine ports between
commercial and industrial, including 4 ports in the eastern region, notably ofcourse
King Abdul Aziz Port in Dammam, which is the second largest port in the Kingdom,
and the latest port is the port of Ras Al Khair, a port for mining, he explained that, over 40 year the
institution that was able to cover a network of ports across the Kingdom and
operates effectively in the national economy, as the Saudi ports is capable of
handling about 10 million containers annually.
Al Amoudi said that the institution
faces many challenges and the first challenge in the traditional regulatory
framework that prevents the achievement of ports for maximum commercial
flexibility so that it can compete with other ports in the region, while the
second challenge forms the "restricted freedom" in the development of
the tax in order to meet the needs and requirements of the international shipping
industry, and therefore attract more shipping lines to the ports of the Kingdom,
also as the multiplicity of relevant government entities ports which are 14 and
the complications from the interactions that occur between them, adding that
despite all these challenges the institution could raise the annual income of
two billion 2005 Real to more than 4.5 billion riyals in the year 2015
Al Amoudi stressed that the institution
will reconsider its contracts of ports through presenting ia program based on a
level of performance to motivate the operators to improve the operational
efficiency of the ports of Saudi, and investment in basic infrastructure and information
technology systems to enhance the quality and improve the interaction between
authorities with interest and development of operational processes ports, and
application performance management system to ebthe principle of transparency
within the operations of ports through the various authorities with interest.
Turning to the institution initiatives in the National
Transformation 2020 program, he said that the institution is working to improve
the regulatory situation and the development of the administrative environment
in the ports to develop the efficiency and effectiveness of the trading system
for the ports to enhance their competitiveness in markets, and to increase
private sector investment of about 8 billion riyals during the years 2016 2025 and
increase returns by about 6.7 billion riyals
during the same period, also increased from owned land 80 million riyals, the
increase in the private sector investment of 7 billion riyals.
For
his part, chairman of Asharqia Chamber Abdul Rahman bin Saleh Al Ataishan said that our government looked
for many supporting private sector policies, to fulfill its role and
confirm its partnership in the development process, listened to ideas and
responded to the suggestions and supported the modernization and development in
various sectors, but we are in great maturity stage origionated
in the concepts of diversity, progress and participation, Asharqia Chamber is
seeking a meeting today to open an open dialogue about our aspirations towards
the more competitive ports system corresponding with the Kingdom vision 2030.
He
pointed to the contributions of seaports advanced network in the Kingdom of
raising the efficiency of the supply chains, which has reduced import costs and
provoked exports especially non oil, which exceeded the
increase of imports of goods at current prices for 2015, the 28% barrier, also
the country returns from the operation of the Saudi ports over 2015, about (4.5)
billion riyals, an increase of (378) million for 2014. Explaining
that this positive growth for seaports in the development and diversification
of the national economy and its role in enhancing the position of the Kingdom
as a center for transportation and logistics business, there are many topics
that need more research and discussion to maintain the sustainability of the
growth.
In
conclusion Chairman of the Chamber Abdulrahman Al Ataishan has honored Dr. Al Amoudi, Chairman of the institution of Ports.
