Interview: Omar Hariri
To what extent can further digitalisation and technology enhance port operations?
OMAR HARIRI: Saudi Arabia’s ports handle more than 90% of the Kingdom’s exports. As such, digitalisation is an essential aspect of enhancing ports’ operations. This is why Mawani has been focused on this particular approach throughout its business strategy.
One initiative being carried out in line with digitalisation goals is Smart Ports, which aims to transform ports in Saudi Arabia into smart ports that leverage a range of next-generation technologies, including smart CCTV, smart gates, automated guided vehicles, rubber-tyred gantry cranes and remote control operations. Moreover, the upgrade to the ports management system will include a new portal that will bolster the number of services on offer online from 34 to 100.
To help support these efforts, in March 2020 we signed an agreement with national telecoms provider stc to implement 5G at all ports. This will help the authority to utilise artificial intelligence and internet of things to further develop infrastructure, increase productivity and reduce carbon emissions. Once fully implemented, these digitalisation efforts are expected to enhance the economy and help raise the contribution of non-oil exports to GDP from 16% to 50%, in line with the objectives of the Kingdom’s Vision 2030.
In what ways might better compliance with environmental, social and governance (ESG) standards improve port operations?
HARIRI: ESG standards have become an essential pillar for growth within any public or private organisation, including those that operate in the domestic maritime transport and logistics sector. Saudi Arabia has a coastline spanning thousands of kilometres, so minimising the environmental impact of port operations is key to achieving sustainable growth. To this end, Mawani has begun transitioning to clean energy, a process that is expected to be implemented by 2030.
The maritime transport and logistics sector will also create a number of job opportunities for Saudi nationals. Given continuing developments in automation, digitisation and technology implementation, these job opportunities should become increasingly attractive to the country’s highly skilled talent pool. The separation of responsibility for regulations and operations will enhance governance standards. Having different entities overseeing the two aspects of our ports will allow for greater communication and contact with key stakeholders.
How can the maritime logistics industry enable investment and economic development?
HARIRI: In June 2021 Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, who is also the chairman of the Higher Committee for Transport and Logistics, launched the National Transport and Logistics Strategy (NTLS). The NTLS aims to increase the Kingdom’s share of regional trans-shipment to 45%. In a bid to take advantage of its strategic location and proximity to the Suez Canal, by 2030 Saudi Arabia plans to raise its port utilisation rate to 70%, while its port capacity is expected to reach 40m twenty-foot equivalent units.
Mawani manages 10 ports – four in the Red Sea and six in the Gulf – with a balance of commercial and industrial activities. We are developing logistics centres within our ports and free zones in their vicinity as part of an investment strategy that will enable ports to create value-added services for exporters and importers. In October 2021 Mawani signed an agreement with global shipping company Maersk to build the biggest logistics park in the Middle East. Other arrangements have been made with partners such as CMA CGM, LogiPoint and Bahri, the national shipping carrier. In 2020 Mawani signed three build-operate-transfer agreements for container terminals at Jeddah Islamic Port and King Abdulaziz Port in Dammam with total investment of SR16.1bn ($4.3bn).
