Recent Economic Developments:

Since the inauguration of the Ports Authority in 1976, its main duty was to develop and improve the port operations as well as to run them according to international standards.

The Authority has re-organized the ports, revitalized productivity, and improved the equipment and work procedures to the level of the best international seaports.

All Saudi ports now recover all expenses from their revenues, and also achieve a surplus to the National Treasury. In the past, the Government was providing the ports with annual financial assistance.

But now a new era in marine trade has begun, requiring new tools to comply with.

Free trade policies are influencing world trade, and competition is becoming ever more vigorous. Ports, all over the world, are competing as never before, and are making huge investments to upgrade their equipment and modernize their operations to meet the new requirements.

The great change in the Saudi national economy, which has changed drastically from a consuming and importing one to a producing and exporting one. Exports, now, account for 70% of the total cargo handled in the Saudi ports, compared to less than 10% in the early eighties.

The new program: Saudi ports handle 95% of the kingdom's imports and exports, (excluding the crude oil) and are considered the largest port network in the Middle East. Cargo volume in Saudi ports is the largest in the region. It is apparent that maintaining the leading position held by the Saudi ports helping to consolidate the Kingdom’s national economy and its external trade is of paramount importance. On 15.3.1997, Royal approval was granted to pass responsibility for all operations and maintenance of berths, and equipment owned by the Ports Authority to the private sector, to be managed on a commercial basis, based on the following principles: The Ports and their facilities will continue to be owned by the government, The private sector will be given incentives to invest in the field of heavy equipment necessary to operate the ports effectively, The ports will be managed on a commercial basis, New services will be provided, More Saudis will be employed and trained. Under this new program, investment opportunities in the Saudi ports have been put into bidding during the year 1997, according to the following rules: The government and the private sector will share the terminal revenues. The competition is based on bidding and the priority will be given to the party who offers the highest percentage to the government share. The opportunity is available for all Saudi companies which have, or their partner has, experience in the field of the terminal in question. To widen the private sector’s participation and provide competition, the operator will not be allowed to participate in more than one contract at the same port. The operator will invest in new equipment, which will be port property at the end of the contract. The contract includes a program for recruiting and training Saudi nationals. The operator will collect the charges, calculated in accordance with the port tariffs. The operator will market the port services to attract the maritime trade. Passing of Ports management and operation to the private sector: Since the Saudi ports are subdivided into a number of independent terminals (container terminals, general cargo terminals, reefer cargo terminals, bulk cargo terminals, etc.) with every terminal having its own area, equipment, warehouses, workshops and open yards, the responsibilities of managing and operating the ports were passed to the private sector in a terminal by terminal basis. In late 1997, the Ports Authority started the process of passing the ports terminals to the private sector through public bidding. Today, all the port's terminals are managed and operated by the private sector: Privatization program participants : Jeddah Islamic Port Southern Container Terminal: "Saudi Maintenance Corp." jointly with "Dubai Port Authority". Northern Container Terminal: "Gulf stevedoring Contracting Co." Ro-Ro Vessels Cargo Terminal: “Globe Marine Services Co.” King Fahd Ship Repair Yard: “Bakri International Energy Co. Ltd.” Bulk Cargo Terminal: “Ajwa R.M.T.I. Ltd.” Chilled and Frozen Cargo Terminal: "United National Marine Projects Co." Southern General Cargo & Livestock Terminal: "Mansour Al-Mosaed Co." Northern General Cargo Terminal: "Universal Technical Co." Marine Services in Jeddah & Jizan: " A. Al-Turki establishment" King Abdul Aziz port in Dammam Bulk Cargo Terminal: “Arabian Agricultural Services Co. (Arasco)” Container and Reefer Cargo Terminal: “International Ports Services Co. Ltd.” King Fahd Ship Repair Yard: “Dena Marine Co.” Eastern General Cargo Terminal: "Gulf Stevedoring Contracting Co." Marine Services:" Al-Zamil for Operation & Maintenance". Central General Cargo Terminal " Al-Nawa for Technical Sevices". King Fahad Industrial port - Jubail General Cargo Terminal: "Gulf stevedoring Contracting Co." Marine Services: "Al-Bakri Marine Navigation Co. " King Fahad Industrial port - Yanbu General Cargo Terminal: “Globe Marine Services Co.” Marine Services: "Red Sea Marine Services Co." Jubail Commercial Port General Cargo Terminal: “Dena Marine Co. Ltd.” Bulk Cargo Terminal: “Arabian Agricultural Services Co. (Arasco)” Marine Services: “Al-Bakri Navigation Co.” Jizan commercial port General Cargo Terminal: "Al-Nawa Technical Sevices Co.”. Marine Services: "A. Al-Turki Establishment ". Yanbu Commercial Port General Cargo Terminal: “AJWA R.M.T.I Ltd." Marine services: "Red Sea Marine Services Co. Ltd." Dhiba commercial port General Cargo Terminal: "Saudi Maintenance Co.-SYANCO".