King Salman Energy Park (SPARK) gives energy investors access to global markets with Hutchison Ports alliance
KHOBAR, Saudi Arabia and HONG KONG, Sept. 15, 2021 /PRNewswire/ -- SPARK and Hutchison Ports are pleased to announce the signing of a shareholders' agreement for the formation of a joint venture to manage and operate the dry port and bonded logistics zone in the SPARK energy industrial city. Designed to ensure ease of access to global markets, the three-square-kilometre dry port will enable the future joint venture to capture the growing demand for logistics services for energy-related products in the Middle East and beyond while also serving the neighboring industrial cities.
First dry port of its kind will connect the region's fully integrated energy hub to the world
KHOBAR, Saudi Arabia and HONG KONG, Sept. 15, 2021 /PRNewswire/ -- SPARK and Hutchison Ports are pleased to announce the signing of a shareholders' agreement for the formation of a joint venture to manage and operate the dry port and bonded logistics zone in the SPARK energy industrial city. Designed to ensure ease of access to global markets, the three-square-kilometre dry port will enable the future joint venture to capture the growing demand for logistics services for energy-related products in the Middle East and beyond while also serving the neighboring industrial cities.
SPARK is a sustainable, global energy hub in Saudi Arabia's Eastern Province. The mega project, which spans over 50 square kilometres, is a manufacturing, service center and logistics hub for the energy sectors and is an integral part of the Saudi Vision 2030. SPARK will create significant employment, further diversify the economy, and attract additional foreign investment into the Kingdom.
Mr. Mohammed Y. Al-Qahtani, Chairman of SPARK, summarised the significance of the agreement: "We are so proud to give investors another reason to do business at SPARK. Hutchison Ports is a world class ports and terminal operator, and the step we take together today will give SPARK's investors ease of access to local and global markets. Furthermore, the logistic hubs will also serve the eastern region and its industrial cities. It will also help us fulfil our IKTVA promise to the Kingdom of Saudi Arabia and the world by giving local manufacturers the physical infrastructure they need."
Group Managing Director of Hutchison Ports, Mr. Eric Ip, added: "Saudi Arabia is an important market and we are very excited to participate in this ambitious, game-changing mega project. As the world's leading port group, we will leverage our logistics expertise to create value and competitiveness for the tenants of SPARK."
Commenting at the ceremony, Mr. Saif Al Qahtani, SPARK President and CEO said: "Our partnership with Hutchison Ports marks an important milestone in the ongoing development of SPARK. The dry port and logistics zone will be the key to unlocking the potential of our strategic location in the Eastern Province of Saudi Arabia, a region which is known for its unmatched oil and gas resources. We are tremendously excited to work with Hutchison Ports to help connect our investors to the world, allowing them to operate efficiently and save on transport times and costs."
SPARK's first phase is divided into a number of clusters: logistics zone, industrial hub, business district, digital hub, and residential and commercial areas. The dedicated three-square-kilometre dry port and logistics zone will include warehouses and storage facilities, a bonded area and on-site customs clearance.
Notes to the Editor:
Hutchison Ports is the ports and related services division of CK Hutchison Holdings Limited. Hutchison Ports is the world's leading port investor, developer and operator with a network of port operations in 52 ports spanning 26 countries throughout Asia, the Middle East, Africa, Europe, the Americas and Australasia. Over the years, Hutchison Ports has expanded into other logistics and transportation-related businesses, including cruise ship terminals, distribution centres, rail services and ship repair facilities.
In 2020, Hutchison Ports handled a combined throughput of 83.7 million TEU.
For more information, please visit www.hutchisonports.com.
About King Salman Energy Park (SPARK)
King Salman Energy Park (SPARK) is a fully integrated industrial ecosystem. SPARK spans an area of 50 square kilometres and is being developed with a vision to become the leading gateway to the regional energy sector, providing a complete spectrum of solutions to support business growth in the Kingdom. SPARK is also the first and only industrial city in the world to achieve silver LEED certification.
SPARK offers infrastructure at international standards for global investors in the oil and gas, refining, petrochemical, power and water production and treatment industries.
Execution is planned over three phases. SPARK has completed 80% of its first phase, which consists of infrastructure, roads, utilities and real estate assets established across 14 square kilometres; phase one is set to be completed in 2021. This is in addition to a dedicated three-square kilometres dry port and logistics zone.
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