Maersk Expands Its Footprint in the Middle East with the Largest Logistics Park at Jeddah Islamic Port

Maersk Expands Its Footprint in the Middle East with the Largest Logistics Park at Jeddah Islamic Port

In a significant stride towards bolstering its global logistics footprint, A.P. Moller – Maersk (Maersk) has officially inaugurated its largest and most advanced Logistics Park in the Middle East, strategically located at Jeddah Islamic Port in Saudi Arabia.

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This monumental facility, sprawling over 225,000 square meters, represents a massive $250 million USD investment and is poised to become a key driver in the region’s logistics and supply chain ecosystem.
Image Credit: Maersk

A Grand Inauguration with High-Level Dignitaries

The opening ceremony was a high-profile event attended by some of the most influential figures in Saudi Arabia’s logistics and transport sectors. His Excellency Engineer Saleh bin Nasser Al-Jasser, Minister of Transport and Logistics Services and Chairman of the General Ports Authority, graced the occasion along with His Excellency Omar bin Talal Hariri, Chairman of the General Ports Authority.

The event also saw the presence of Vincent Clerc, CEO of A.P. Moller – Maersk, Richard Morgan, Managing Director of Maersk in the Indian Subcontinent, Middle East, and Africa, and Ahmed Kadous, Head of Supply Chain Personal Care for the Middle East and Turkey at Unilever, among other notable industry leaders.

Transforming Saudi Arabia's Logistics Landscape

The Saudi Arabian ports sector has experienced rapid growth and transformation, marked by substantial improvements in operational efficiency, record-breaking performance in international benchmarks, and enhanced maritime connectivity that links the Kingdom with global trade routes.

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The newly launched Maersk Logistics Park at Jeddah Islamic Port is set to be a cornerstone in this evolution, providing cutting-edge logistics solutions that are expected to significantly boost economic activities, facilitate trade, and optimize supply chains across the Kingdom and beyond.

His Excellency Engineer Saleh bin Nasser Al-Jasser, Minister of Transport and Logistics Services and Chairman of the General Ports Authority, emphasized the strategic importance of this facility:
“The establishment of the Maersk Logistics Park is a vital component of our broader strategy to enhance the Kingdom's logistics infrastructure. This facility will not only support the local economy by improving trade efficiency but will also serve as a critical hub for exports, positioning Saudi Arabia as a leading player in the global logistics arena.”

His Excellency Omar bin Talal Hariri, President of the General Ports Authority, lauded the project, stating:
“The Logistics Park at Jeddah Islamic Port is a game-changer for our logistics sector. It will provide innovative, integrated logistics solutions that streamline supply chains, improve port operations, and contribute to the Kingdom’s goal of becoming a global logistics hub as envisioned in Vision 2030.”

A Landmark in Maersk’s Global Strategy

Maersk’s CEO, Vincent Clerc, highlighted the significance of the Jeddah Logistics Park within the company’s global strategy:
“Our Logistics Park in Jeddah is a testament to Maersk’s commitment to supporting global trade through innovative, sustainable logistics solutions. Strategically located at the crossroads of three continents, this facility embodies our vision of integrated logistics, offering our customers robust, resilient logistics services while advancing our decarbonization goals.”

This state-of-the-art facility is designed to provide a comprehensive suite of integrated logistics services, all housed under one roof, including:

  • Multi-modal Connectivity: Seamless integration between ocean, land, and air transport modes, ensuring efficient and flexible supply chain operations.
  • Advanced Warehousing Solutions: Catering to both B2B and e-commerce needs, with temperature-controlled storage options for sensitive goods.
  • Custom-Bonded Facilities: Tailored setups designed to meet the needs of various industries, including fast-moving consumer goods (FMCG), frozen food, automotive, retail, petrochemicals, electronics, and pharmaceuticals.
  • Distribution Capabilities: Comprehensive distribution solutions that include both first- and last-mile deliveries, ensuring timely and efficient delivery to end customers.
  • Enhanced Customs Clearance: Streamlined customs clearance processes supported by cutting-edge visibility solutions and a centralized control tower for real-time monitoring.

Commitment to Sustainability and a Greener Future

Maersk’s commitment to sustainability is deeply embedded in the design and operation of the Jeddah Logistics Park. The facility is a cornerstone of Maersk’s broader goal to achieve net-zero greenhouse gas emissions by 2040, with numerous initiatives aimed at reducing its environmental impact.

Among the most notable features is the installation of 32,000 solar panels across 64,000 square meters of rooftop space, which will generate up to 70% of the facility’s electricity.

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The Logistics Park also incorporates a range of energy-efficient technologies, including the use of electric trucks and equipment, and the installation of LED lighting optimized with motion sensors to minimize energy consumption.

Ahmed Kadous, Head of Supply Chain Personal Care for the Middle East and Turkey at Unilever, underscored the importance of this collaboration in achieving Unilever’s sustainability targets:
“Our partnership with Maersk in this Logistics Park is a major step forward in our journey toward sustainability. By consolidating our logistics operations into this hub, we are not only reducing our energy consumption and CO2 emissions but also contributing to the broader goals of Saudi Vision 2030. Unilever remains committed to the Kingdom’s growth and will continue to invest in its people and infrastructure.”

Empowering Women in Logistics

In a groundbreaking initiative aimed at fostering diversity and inclusion within the logistics sector, Maersk has established a dedicated in-house women’s academy at the Jeddah Logistics Park. This academy offers specialized training programs designed to equip Saudi women with the skills and knowledge needed to excel in the logistics and supply chain industries.

Beyond training, the academy provides mentorship and creates a supportive environment that encourages women to pursue careers in what has traditionally been a male-dominated field.

World-Class Safety Standards

Safety is a core value at Maersk, and the Jeddah Logistics Park is no exception. The facility is designed with a ‘Safety by Design’ approach, incorporating state-of-the-art safety features to protect both employees and cargo.

These include advanced firefighting systems, segregated pathways for pedestrians and equipment, and a comprehensive surveillance system that ensures continuous monitoring of all areas within the park.

Strategic Location and Advanced Port Infrastructure

The Jeddah Islamic Port, where the Logistics Park is situated, is one of the most advanced ports in the region, featuring infrastructure capable of handling the latest generations of giant ships. The port is equipped with modern, automated, and environmentally friendly equipment that enhances operational efficiency, increases competitiveness, and expands capacity, making it a crucial node in the global trade network.

The opening of Maersk’s largest Logistics Park in the Middle East marks a significant milestone not only for the company but also for Saudi Arabia’s logistics sector.

This facility is set to play a pivotal role in advancing the Kingdom’s Vision 2030 by enhancing logistics capabilities, supporting economic growth, and driving sustainability initiatives.

As Maersk continues to invest in the region, the Jeddah Logistics Park will undoubtedly become a beacon of innovation, efficiency, and sustainable development in the global logistics landscape.

About Maersk:
A.P. Moller – Maersk is a global leader in logistics services, with a presence in over 130 countries and a workforce of around 100,000 employees. The company is dedicated to simplifying and connecting supply chains for its customers, with a strong focus on sustainability and innovation. Maersk aims to achieve net-zero emissions by 2040, leveraging new technologies, vessels, and low-emission fuels to transform the logistics industry.

About Unilever:
Unilever is one of the world’s leading suppliers of Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream products, with operations in over 190 countries. Every day, 3.4 billion people use Unilever products, which generated sales of €59.6 billion in 2023. Unilever is committed to sustainability and innovation, driving positive change in the communities it serves. For more information, visit Unilever's official website.