Saudi Global Ports Begins Construction of Dammam Integrated Logistics Zone

Saudi Global Ports has started construction on the Dammam Integrated Logistics Zone and revealed plans for a major expansion of Terminal 2 at King Abdulaziz Port.

Work on the Dammam Integrated Logistics Zone began this week after government and industry leaders gathered on site for an official ground breaking.

The project sits next to King Abdulaziz Port, a location chosen to tighten links between port operations, manufacturing sites, and distribution centers.

Once complete, the zone will offer a mix of bonded facilities, value added services, and streamlined customs processes. Officials said the goal is to provide faster cargo movement for companies that rely on the Eastern Province as a gateway to Gulf markets.

Alongside the start of construction, the company unveiled the design for the expansion of Terminal 2. The upgrade will increase handling capacity and introduce new container equipment, automated yard systems, and updated digital platforms.

Saudi Arabia: An Emerging Force in Middle East and Global Logistics

According to Saudi Global Ports, the expansion will help the terminal manage rising throughput while improving vessel turnaround times. Preliminary plans show additional berths, deeper draft access, and new stacking areas meant to reduce congestion during peak periods.

Chairman of the Board of Saudi Global Ports Company, Eng. Abdullah Al Zamil said: “The expansion of Terminal 2 and launch of SGP Freezones reflects SGP’s commitment to be future-ready and deliver the world class infrastructure that strengthens the Kingdom’s logistics competitiveness."

Rob Harrison, Chief Executive Officer of Saudi Global Ports Group, said: “At SGP, we are creating a connected port ecosystem that will drive efficiency, capacity, and sustainable growth for years to come.

"We extend our sincere appreciation to Mawani and the other key government partners for their continued support and shared dedication to promoting trade diversification, job creation, and supply chain resilience throughout the Kingdom.”

Both projects reflect a broader national strategy. Saudi Arabia has been moving to raise the efficiency of its ports, open more trade corridors, and support private sector growth in logistics. King Abdulaziz Port already ranks among the busiest in the region, and the new investments aim to secure its place in global shipping networks.

Construction of the Dammam Integrated Logistics Zone will continue in phases, with the first operational sections expected to open in the near term.

The Terminal 2 expansion will roll out on a parallel schedule. Together they signal a clear message: Saudi Arabia intends to compete for a larger share of international trade and deliver the infrastructure needed to support that ambition.

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