MIDDLE EAST • SAUDI ARABIA
networks and alliances to win in the new context.’
There are plans to do just that. ‘Locally, the ports sector is undergoing an important metamorphosis enabling it to win within this new context. We are in the process of increasing the competitiveness of the Saudi ports ecosystem. To do so, we have opted for two main strategic thrusts.
‘One is to transform the authority into a modern and effective regulator that enables each port to compete, while the second is corporatising the ports for increased operational efficiency and effectiveness, allowing for more flexibility and
responsiveness in the context of a rapidly changing/highly competitive industry,’ he says.
Saudi Ports Authority: driving the nation forward
Along with the likes of Saudi Aramco and the Saudi sovereign wealth fund, the Saudi Ports Authority (SPA) is one of the Kingdom’s major driving forces, helping the nation work towards its short and medium-term goals and Vision 2030.
Made up of nine commercial and industrial ports around the country – the government owns the infrastructure, but all operations are run by private enterprises – the sheer scale and importance of the SPA’s role is something to behold.
The man in charge at the SPA is Dr Nabeel bin Mohamed Al-Amudi, who joined in 2015. Looking back over the previous 12 months, he tells Seatrade Maritime Review that the ‘Kingdom’s maritime sector has achieved great strides in terms of coverage, capacity and activity.’
The figures back up his claims; continuous activity growth was achieved with 252m tons of goods handled in 2016 compared to 233m tons in 2015 (excluding crude), while container activity reached 6.5m teu in 2016 compared to 6.4m teu in 2015.
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Overall, vessels handled at Saudi ports totalled 14,032, a 1.4% increase compared to 2015.
Dr Al-Amudi has ambitions on improving those figures yet further, although he acknowledges that there has been a swing in the balance of power in the container shipping industry over the last five years.
There is a clear demand to improve efficiencies and encourage closer working relationships between all stakeholders to improve performance in what are challenging economical times for the Kingdom. In particular, there is an ongoing effort to reduce dwell time from 10-14 days to three to five days.
‘This objective is at the core of our transformation agenda and will require the careful deployment of a number of operational interventions along the maritime value chain,’ he says. ‘Hitting that target will not only benefit consumers, traders and industrialists, it
Dr Nabeel bin Mohamed Al-Amudi
‘The Kingdom’s maritime sector has achieved great strides in terms of coverage, capacity and activity’
‘Globally, the industry is undergoing a major transformation as underlined by shipping lines’ consolidation – seven alliances in 2011 versus three today. The outcome is a clear redefinition of the scale and scope at which port operators and liners engage. Bargaining power is definitely in the hands of mega shipping alliances, and port operators/ports will have to consolidate and reorganise their
will allow us to increase ports capacity by 25-30% reducing the need for further capital outlay to support our growth ambitions.’
A pilot for 24 hours’ clearance has garnered promising results across a few of SPA’s ports and, with a 30% decrease in dwell time in some cases, it is expected to be rolled out across all ports in September 2017.
Seatrade Maritime Review • Quarterly Issue 2 • June 2017 49
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