10/03/2010
Saudi Ports in a continuous development phasem and a modest efffects on the economic crisis.
Budget of the Saudi ports reached 1496 million riyals, up more than 40% of 2009.
Head of the General Ports Dr. Khalid Bubshait confirmed that ports in Saudi Arabia is in continuous development phase, in line with the movement of economic growth in the country, as the country has invested in ports around 40 billion riyals, adding that the end of August will witness the entry of a new port in Ras Al-Zour, where an experimental operation will start.
Bubshait said during the meeting organized by Asharqia Chamber on Tuesday, attended by a large number of businessmen in the region, the world over the past year has seen a financial crisis hit many economic entities, but did not affect our ports thankfully only slightly, reflecting the figures contained in the state budget for the fiscal year 1432/1431 economic strength and persistence of Saudi Arabia, although the repercussions of the global crisis and its negative impacts on the economies of all countries of the world, including the major industrialized countries, the Kingdom budget numbers were unprecedented up to a total of 540 billion riyals will be spent on aspects of the more supportive of economic growth and development and provide more job opportunities for citizens through focusing the human development sectors, infrastructure and social services.
Bubshait said that the Ports budget has reached 1496 million riyals, an increase of more than 40% from last year's budget, an increase of 81% on the budget for the previous year, the Ports budget includes a number of projects to modernize the infrastructure of some ports and the establishment of Ras Al-Zour port paths, which enable the Ports Public Institution to continue implementing its plan to develop ports in Saudi Arabia, and the preservation of the special place it occupies among the world ports while strengthening their competitiveness at the regional level and international level.
Bubshait has referred that the Eastern Province ports share is about 56% from the institution budget, total of 830 million riyal, which is considered a positive thing for the ports future and the possibility of developing it to the intense stages.
Bubshait has confirmed that Saudi Ports is obtaining its power from the Saudi Economy which has a global trust, also the strategic plans for ports development in the Kingdom is matching the economic development in the Kingdom.
In response to inquiry about whether the Saudi ports ready to face the rapid growth in export and import growth, Bubshait said that many of the Saudi ports are ready for this growth, all experiencing inter expansions, for example, Jubail Industrial Port, which was operational capacity 100 thousand containers, are 300 thousand, In 2012 will reach one million TEUs and the port is growing in a measured way, and we are supporting it with a rival firm in order to meet the significant growth, and there will be a sufficient at the docks in coordination with the Royal Commission for Jubail .The situation is the same for Jeddah Islamic Port, which will reach its operational capacity to 6 7 million containers, after the horizontal and vertical expansion of the port, there is also a committee of transportation and traffic, port and the Secretariat in Jeddah, to determine the appropriate mechanism to address the increase in the movement, as bridges have been identified and we have a future plan. Therefore, we hope to eliminate the word (Ports congestion) from our dictionary. The agency sees Jeddah as the hub on the Red Sea that 25 million containers being entered in it, our share is only three million and the trend is to find another port allocated to the grain bulk, cars and cattle, but those who settle down on the ground, and if adopted it will the operational capacity is 15 million containers.
Bubshait mentioned that the run test for Ras-Al-Zour port will start at the end of next August.
Regarding King Abdulaziz Port in Dammam, Bubshait said that the port is going through a developmental, like the rest of the Saudi ports and we are working to establish a container terminal operational capacity of up to two million containers, to believe that any port runs at 70% of its energy it needs to be expanded, and the port in Dammam works by 80% and we also find another gateway to facilitate the processes of entry and exit.
On the issue of ports storage, including the King Abdulaziz Port, Bubshait said that the company is building the multi-role parking, covering Jeddah port, for example, 500 thousand square meters.
He refuted the issue of the ports rented lands as being expensive, and said that prices starting from 2 riyals for the meter for two years, and 4 riyals after ten years, and it is leased for a period of thirty years, explaining that the increase in the prices is the way of the sub-lease, and we have in the King Abdulaziz Port in Dammam 300 applications for the rental of land, has formed a committee to study this subject.
Bubshait talked about the ports investment opportunities and said that all opportunities and tenders in front of everyone, the country has invested in ports 40 billion riyals, and the process continues by 4 billion dollars per annum is pumped into infrastructure, and there are 6 billion riyals invested by the private sector, the investment is open to everyone, as the company welcomes all suggestions from the private sector.
For his part, Asharqia Chamber Chairman who has conducted the discussion between the head of the General Ports and businessmen presentations in a speech said that this meeting is an extension of the chamber programs with regard to the examination of issues of concerning businesses in the region, as part of its communication with senior officials of the institutions concerned with the interests of businessmen.
AlRashid said that the foundation of the ports is dealing with a wide range and large businessmen in the region, also deals with many of the occupations of interlocking and overlapping interests, which includes investors, and import-export firms, traders, companies and customs clearance, trucking companies, and owners of warehouses and shipping containers , which makes the institution one of the more governmental and private organizations linked to the private sector, and the most relevant issues involved and the friction and concerns about their difficulties and concerns, and perhaps most familiar with the knowledge and the nature of the concerns and anxieties and their causes, and most appreciated the priority and importance of these problems and the critical need to review, debate and dialogue, and to find solutions satisfy everyone, and in the interest of our national economy.
At the end of the meeting, AlRashed honored Dr. Bubshait,and a member of the Governing Council, Mr. Ibrahim AlJumaih for AlJumaih Motors sponsorship for the conference.
