Saudi Ports Authority to begin third phase of privatization

Saudi Arabia will launch the third phase of its port privatization program in the next few months, Nabeel Al-Amudi, Minister of Transport and Chairman of the Saudi Ports Authority (SPA), told Argaam.

The model, which aims to develop privatization contracts, will be close to that applied by the General Authority of Civil Aviation.

Al-Amudi added that SPA’s board has more authority, independence, and flexibility to privatize Saudi ports and run them on a commercial basis. 

“The Ports Authority will complete the privatization program it started 20 years ago to become the first government entity to award its port operations and investments under long-term contracts,” the minister said.

The authority has so far attracted three of the world’s biggest four operators to the Kingdom.

The next phase of the privatization process will re-develop current contracts with more flexible terms, aiming to assess performance indicators and raise production efficiency.

The third phase will result in lower shipping costs and reduced container time at ports, Al-Amudi added.