EXCLUSIVE: Saudi Global Ports unveils $933m expansion to challenge UAE transshipment dominance

Saudi Global Ports is investing 3.5 billion dollars ($933 million) over the next five years as part of a strategy to try to capture cargo that often flows through Jebel Ali and Abu Dhabi.

The Dammam port operator is plowing funds into terminals, multi-purpose facilities and a new integrated transport hub to leverage geographic advantages over Emirati rivals as the kingdom’s non-oil economy grows.

CEO Rob Harrison told Arabian business The investment represents the third stage in the company’s transformation from a port operator to an ecosystem developer, positioning Saudi Global Ports to serve the kingdom’s 36 million consumers more directly than its trade-focused competitors.

“We don’t see the need to build a transit facility,” Harrison said. “As long as we can continue to build this ecosystem and the ecosystem can compete with things like neighboring operators, we will continue to see growth because that value will eventually be available in the market.

The advantages of location are obvious: Dammam sits 400 kilometers from Riyadh compared to 1,000 kilometers from Jeddah on the coast of the Red Sea. Goods transferred from Jebel Ali or Abu Dhabi also face a journey of 1,000 kilometers and a border crossing to reach the capital.

Saudi Global Ports operates a rail line, sending five to seven trains daily between Dammam and the two Riyadh hubs. “Riyadh is part of our market,” Harrison said. “We are very connected to regime change that is not oil and gas, especially from Riyadh in the east.”

Harrison said the company is allocating 2 billion riyals to the terminals, which are expected to generate 80 to 85 percent of revenue. Another 665 million riyals will upgrade equipment at multi-purpose terminals, while 670 million riyals – targeted to rise to one billion – will upgrade Dammam’s integrated transport hub.

The logistics center will deliver 300,000 square meters of Grade A warehouse space in its first phase over the next 18 months, creating what Harrison describes as a free space to compete with established Emirati facilities.

“We emulate that to some extent,” he said, acknowledging the success of Jebel Ali and Abu Dhabi in building regional hubs. “They’ve done a great, amazing job. They’ve really led the world in being able to create an ecosystem that can add value.”

The investment comes as the Red Sea crisis provided an unexpected proof of concept for Saudi Global Ports’ strategy. The operation was 122 percent operational in 2024 as container ships patrolled the Cape of Good Hope to avoid Houthi attacks, forcing cargo owners to reorganize supply chains.

“We have benefited from having more volume but the real strategic advantage is that we have been able to demonstrate that we are an efficient supply chain channel,” said Harrison. “That gives a guarantee that the state can help them if there is a problem, so they have another option.”

Logistics providers have set up warehouses on the east coast and in Riyadh, moving containers to Dammam by rail rather than through the ports of Jeddah or the UAE. Harrison said the company does not expect all of the volume to remain when the Red Sea reopens but believes a large portion will continue to flow through Dammam.

The operator completed a major expansion phase in October, increasing capacity to 3.5 million twenty square meters and doubling its ability to handle the largest floating vessels. Two berths can now simultaneously accommodate 24,000 TEU vessels.

“We have reached a stage now where the port itself is at scale,” said Harrison. “There are not many ports in the world that handle more than three million containers as a gateway.”

Saudi Global Ports has expanded from 1,200 to nearly 4,000 direct employees after taking control of the Riyadh dry port ecosystem by 2022, an integrated transport hub by 2024 and four multi-purpose terminals on the east coast by July 2024. Including contractors and third-party companies, the project now employs more than 5,000 people.

Harrison said he expects the company to end 2025 operating at a high 90 percent capacity.

He added that the fundamentals supporting long-term growth remain strong. Major time-bound projects including Expo 2030, the World Cup and the Asian World Cup will drive demand, while ongoing infrastructure investments by Aramco, Sabic and other companies will support the non-oil centralization of Vision 2030.

Saudi Global Ports is 51 percent owned by PIF.