In an exclusive conversation with Sean Kelly, Managing Director of Port of NEOM, Vibha Mehta gets an update on the reconstruction of one of the biggest ports in the kingdom…
The operation of Duba Port was handed over to NEOM in 2022 by national maritime regulator Mawani in accordance with NEOM’s plan and the Saudi Ports Authority’s initiatives to turn regional ports into internationally competitive logistics hubs. The port, the principal seaport of entry to the northwest of Saudi Arabia, will be rebranded to Port of NEOM. It is situated near Oxagon, the centre of modern and clean industries in NEOM. Since the transfer, essential capacities have been increased to keep up with the increasing amount of goods entering NEOM. Fixed contacts with CMA CGM, general cargo handling, storage, and ongoing passenger services are some of the newly added abilities.
“At the end of May, we had invested over SAR 7.5 billion to support this phase. Contracts for design, dredging, quay wall construction, and cargo handling equipment have been conferred,” said Sean Kelly, Managing Director of Port of NEOM.
These developments represent the significant advancements made in the Port of NEOM’s story and show the company’s dedication to creating the world’s most technologically sophisticated, effective, and environmentally friendly port with the first fully integrated and automated supply chain and logistics network.
Key Features
“Our vision is to build the world’s most technologically advanced, efficient, and sustainable port with the first fully integrated and automated supply chain and logistics network. The green field nature of NEOM’s development allows us to consider new operating designs,” shared Sean. Consequently, a single facility will be built to house vessel operations, warehouse operations, and the rail delivery system. With this integrated design—a ‘compressed supply chain,’ if you will—and advanced automation, they will reach previously unheard-of levels of utilisation and throughput velocity, two of the most critical indicators of port efficiency. Of course, for environmental efficiency and a net zero carbon footprint, all of it was driven by renewable energy, the majority of which was self-generated.
It is anticipated that the Port of NEOM will handle a variety of cargo and trade. This covers general cargo, containerised goods, and required NEOM development and construction supplies. Their objective is to offer comprehensive logistics solutions to meet the various demands of the region’s businesses and industries.
Contribution Towards Overall Neom Project
The Port of NEOM will be used to import the goods and materials needed for NEOM’s construction phase, and it is a crucial early enabler for the development of NEOM. Similarly, from construction to operations, tenants in Oxagon will rely heavily on the port. “To diversify and expand the economies of NEOM, Saudi Arabia, and the region,” Sean continued. “The Port of NEOM will be a critical enabler. It will greatly benefit NEOM’s business partners, investors, tenants, and ultimately residents because of the Port’s location.”
In addition to NEOM, the Port will significantly enhance the region’s connectivity to the rest of the world, boosting the economy of the Port’s catchment area in Northwest Saudi Arabia and opening up new trade routes via regional sea feeder networks and an inland intermodal corridor to the East.
Advanced Technologies
“Absolutely. The Port of NEOM will incorporate advanced technologies and automation into its operations. We will utilise fully automated port and warehouse equipment, ensuring 100% man-machine separation for enhanced safety and efficiency,” Sean added. They are putting sophisticated technologies in place for automated container storage and retrieval, like Container High Bay (CHB). Artificial intelligence will improve the order of operational steps and end-to-end traffic flows. The Port Customer Digital Platform, Terminal Operating System (TOS), and Warehouse Management System (WMS) are additional integrated and automated management systems that they will use that are powered by AI.
Global Trade
The Port of NEOM will enormously affect local and international trade. The region’s competitiveness will increase, and its economy will grow as connectivity to global markets is improved. It facilitates international trade, attracting businesses and stimulating investment as a trade gateway for NEOM and the larger region. The port creates new opportunities and establishes NEOM as a significant participant in the global supply chain thanks to its advantageous location on the Red Sea and at the intersection of major international trade routes.
Environmental And Sustainability Measures
Sean said, “Our sustainability goals are ambitious and start with our development program and how we are building the Port, are central to all design principles, drive the equipment and systems selection, and will be key KPIs for ongoing operations. The dredging program will include using pipelines instead of trucks and zero direct discharge into the sea. Quay wall construction will use low carbon steel versus alternatives or concrete to reduce the project’s overall carbon footprint.”
The use of electric machinery will maximise automation. It’s important to remember that the port will generate most of the power it needs. Renewable energy will be used to supply the remaining amount directly. These are very significant. The overall ‘compressed supply chain’ model and resulting efficiency levels, as gauged by utilisation and throughput velocity, position us to surpass our sustainability goals. The Port of NEOM will become one of the world’s most environmentally friendly next-generation ports thanks to the combination of these initiatives.
Expected Timeline
The port is being developed in stages, and each step will add to the port’s overall capacity and expansion. With immediate start-up in 2025, Terminal 1 will have a throughput capacity of more than 2 million TEUs annually. While Terminal 2 won’t open until 2045, general cargo and bulk capacity will be over 20 million freight tonnes by mid-2025.
Job Creation And Economic Growth
The Port of NEOM will significantly aid the creation of jobs and the expansion of the local economy. As it grows and becomes fully operational, a sizable workforce will be needed to manage the port’s operations, including cargo handling, logistics, and administration. “This will create employment opportunities and contribute to the local economy. Moreover, by acting as a trade gateway and facilitating international commerce, the port will attract businesses and investments to NEOM, further stimulating economic development in the region,” shared Sean.
Contracts To Support The Expansion Of The Port
Contracts for Design, Dredging and Quay Wall Construction, Facilities Construction and Equipment for Container Terminals, General Cargo Terminals, Bulk Cargo Terminals and Marine Services, including multiple utility and systems packages.