Riyadh-based Trading & Development Partnership has started construction works on the estimated SR689m ($183.73m) logistics corridor that will connect Jeddah Islamic Port with the Al-Khumrah logistics park in the south of Jeddah.
The 17-kilometre-long road will have two lanes in each direction and 12 bridges.
Earlier in July, Saleh Al-Jasser, Saudi Arabia’s Transport & Logistics Services Minister and chairman of the Saudi Ports Authority (Mawani), broke ground on the project.
“The logistics corridor will significantly enhance truck movement efficiency and increase the handling capacity of Jeddah Islamic Port by 10%,” he said at the time. “The project will also include emergency access points, maintenance facilities and a complete rainwater drainage system.”
There has been a significant level of development activity at Jeddah Islamic Port in recent months. In March, Dubai’s DP World and Mawani inaugurated the south terminal expansion project at the port.
The project was undertaken under a 30-year build, operate and transfer agreement to double the capacity from 1.8 million 20-foot equivalent units (TEUs) to 4 million TEUs, while paving the way for a future capacity of 5 million TEUs with the deployment of additional ship-to-shore equipment.
The terminal spans a total quay length of 2,150 metres, including a deep-water quay with an 18-metre depth capable of accommodating up to five ultra-large container vessels simultaneously.
UK analytics firm GlobalData expects the Saudi construction industry to record an annual average growth rate of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure projects, as well as the kingdom’s $850bn-plus gigaprojects programme.
The infrastructure construction sector is expected to grow at an average rate of 6% in 2025-28, supported by government investments in rail, dam and road infrastructure projects.
READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF
UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge
Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:
