Port of NEOM: Pioneering the Future of Global Maritime Connectivity

Aerial view of the technologically advanced Port of NEOM showcasing its expansive maritime facilities and sustainable infrastructure in 2023.
The Port of NEOM as it will look like in near future, leading the charge in sustainable and technologically driven maritime operations.

In an unprecedented move, NEOM has unveiled plans for the Port of NEOM, poised to become the world’s most technologically advanced and sustainable port. This ambitious project aims to redefine maritime infrastructure by integrating cutting-edge technology and sustainability practices, heralding a new era in global trade and economic development.

Strategically located as the primary seaport for NEOM, the Port of NEOM is not just a gateway to the Red Sea but a pivotal enabler of regional and international trade. Its design promises unprecedented efficiency and connectivity to both local and global markets, positioning NEOM as a critical node in international maritime routes.

At the heart of this project is a commitment to sustainability, with the port’s operations designed to align with global environmental standards. This focus on eco-friendly practices is expected to set a new benchmark for ports worldwide.

Driving the project is a team of seasoned professionals. Sean Kelly, with over 35 years of experience in the port, logistics, and shipping industries, leads as the Sea Mobility Managing Director. Melissa Blake, the Port Director, brings more than two decades of expertise in port development and automation. Brian Kristensen, the Port Director for Commercial, contributes his extensive experience in shipping and leadership roles across various global regions.

As the world watches, the Port of NEOM represents not just a significant infrastructural development but a symbol of the future of sustainable maritime operations. With its strategic location, advanced technology, and emphasis on sustainability, the Port of NEOM is set to become a linchpin in the global shipping industry, driving economic growth and fostering international collaboration.

Port of NEOM: Pioneering the Future of Global Maritime Connectivity

In a groundbreaking initiative, the operation of Duba Port was handed over to NEOM in 2022 by the Saudi maritime regulator Mawani, marking a significant step in the development of the Port of NEOM. This transfer is part of a broader strategy to transform regional ports into globally competitive logistics hubs. The Port of NEOM, strategically located near Oxagon, the center of modern and clean industries in NEOM, is set to be the principal seaport of entry to the northwest of Saudi Arabia. With this transition, the port has already seen a ramp-up in its capabilities, including enhancements in cargo handling and storage, as well as the introduction of ongoing passenger services​​.

Sean Kelly, the Managing Director of Port of NEOM, shared the ambitious vision to build a port that epitomizes technological advancement, efficiency, and sustainability. A significant investment of over SAR 7.5 billion has been made to support this phase, focusing on design, dredging, quay wall construction, and cargo handling equipment. This investment signifies the commitment to creating a port that stands as a beacon of technological sophistication, effectiveness, and environmental friendliness, integrating a fully automated supply chain and logistics network​​.

The port is designed to cater to a diverse range of cargo and trade, including general cargo, containerized goods, and materials required for NEOM’s development and construction. A unique aspect of the port’s development is its ‘compressed supply chain’ model, which will feature an integrated facility housing vessel operations, warehousing, and a rail delivery system. This model aims to achieve high levels of utilization and throughput velocity, crucial indicators of port efficiency. Remarkably, the operations are powered predominantly by self-generated renewable energy, aligning with the commitment to environmental sustainability and a net-zero carbon footprint​​.

The Port of NEOM is not only crucial for the development of NEOM but also plays a significant role in enhancing the connectivity of the region to the global market. It is expected to drive economic growth in the northwest of Saudi Arabia by opening new trade routes and facilitating regional sea feeder networks and an inland intermodal corridor to the East​​.

Advanced technologies and automation form the backbone of the Port of NEOM’s operations. The port will feature fully automated equipment for enhanced safety and efficiency, with sophisticated technologies for automated container storage and retrieval. Artificial intelligence will be utilized to optimize operational steps and traffic flows, supported by an integrated digital platform, Terminal Operating System (TOS), and Warehouse Management System (WMS)​​.

In terms of environmental and sustainability measures, the Port of NEOM sets ambitious goals. The development program includes using pipelines for dredging to avoid direct sea discharge and employing low carbon steel in quay wall construction. The majority of the port’s power requirements will be met through self-generated renewable energy, with the remainder supplied directly. These measures are expected to position the Port of NEOM as one of the world’s most environmentally friendly next-generation ports​​.

The development of the port is planned in stages, with each phase enhancing its overall capacity. Terminal 1 is expected to start operations in 2025 with a capacity of over 2 million TEUs annually. By mid-2025, the port aims to handle over 20 million freight tonnes of general cargo and bulk. The port is also set to play a crucial role in job creation and economic growth in the region, creating numerous employment opportunities and attracting businesses and investments as a key gateway for international commerce​​.

In summary, the Port of NEOM represents a monumental leap in maritime infrastructure, combining technological innovation, environmental sustainability, and economic growth. It stands as a testament to the vision of transforming regional ports into competitive global logistics hubs, setting new standards in port efficiency, safety, and sustainability.

Port of NEOM Releases New Standard Terms and Conditions, Bolstering Maritime Operations

In a significant development for maritime operations, the Port of NEOM has released its Standard Terms and Conditions as of August 2023. The Terminal Operator, authorized by the Port Authority, is set to provide, manage, operate, and maintain services and facilities for all users at the port. This update forms a part of any contract or agreement entered into with the Terminal Operator and governs all transactions for services provided​​.

Under the new terms, the Terminal Operator commits to providing services with reasonable care and skill, in compliance with all applicable laws, and obtaining necessary licenses and permits for operation​​. Each carrier is required to appoint a Shipping Agent for the services, with prior written notification to the Terminal Operator. The Terminal Operator is authorized to interact directly with the Shipping Agent for all related matters​​.

For vessel berthing, carriers or shipping agents are required to provide three notices to the Terminal Operator, beginning 72 hours before the vessel’s arrival. These notices must include specific information requested by the Terminal Operator, and berthing acceptance must be agreed in writing in advance​​. Moreover, relevant documents and clear instructions for all work to be performed on the vessel must be provided at least 48 hours prior to its arrival​​.

The Terminal Operator does not guarantee berthing or productivity and reserves the right to accept only vessels compliant with applicable laws. The standard of vessel master and crew certificates must meet legal standards​​. The Terminal Operator will provide mooring crew to assist vessels, operating under the instructions of the vessel’s master​​. The user is responsible for supplying gangways and pilot ladders, ensuring safety and illumination on board the vessel​​.

While the Terminal Operator will endeavor to make available adequate cargo handling equipment, there is no guarantee of their availability at any given time for loading and unloading cargo from vessels​​. Users must not move the vessel’s cranes, hatch covers, or other gears without the Terminal Operator’s consent​​. The delivery of import cargo and the loading of export cargo is contingent on payment of all port-related charges and necessary approvals​​.

The Terminal Operator may refuse to handle damaged, defective, or distorted cargo deemed in an unsatisfactory, unsuitable, or unsafe condition. Additional charges may apply in such cases​​. Compliance with the SOLAS 1974 regulation, which prohibits the carriage of dangerous goods by sea except as per the IMDG Code, is mandatory​​. Dangerous cargo requires prior approval from the Terminal Operator, with full disclosure of its characteristics, risks, and requirements​​.

The Terminal Operator operates 24 hours per day, every day throughout the year, with adjustments possible during the Holy Month of Ramadan and the first day of Eid​​. Users are solely responsible for their safety, the safety of the vessel, and its crew and personnel while berthing at the Terminal Facilities​​.

In summary, these comprehensive updates to the Port of NEOM’s Standard Terms and Conditions reflect a meticulous approach to maritime operations, emphasizing safety, compliance, and operational efficiency. The regulations set forth will significantly impact how carriers, shipping agents, and users interact with the port, ensuring streamlined and secure maritime activities.

Port of NEOM Introduces Updated Tariff Schedule Effective October 31, 2023

The Port of NEOM, in line with the Saudi Ports Authority, has updated its tariff schedule, which includes various fees and charges for maritime services. This change, effective from October 31, 2023, outlines a detailed pricing structure for services offered by the port.

The new tariff schedule is divided into several sections, addressing different aspects of port services. Table (A) outlines the fees collected from ship owners or agents, including port arrival and departure fees, waste disposal fees, and passenger departing fees. The waste disposal fee is mandatory regardless of the service’s utilization, and travelers for Hajj and Umrah are exempt from certain fees​​.

Table (B) details charges for loading and unloading cargo goods between ships and berths, with specific rates for general cargo, exported bagged cement, vehicles, self-propelled equipment, and livestock. Notably, there is a 25% additional charge for handling dangerous cargo​​.

Charges for handling containers, flatbeds, and trailers to and from both Ro-Ro and cellular ships are specified, with different rates based on the unit’s size. These charges also apply to non-cellular ships, with a heightened fee for dangerous cargo​​.

Specific charges are designated for prefabricated houses and bypassing and gate handling charges for containers. These encompass inspection and handling within port yards​​.

The tariff includes various covered and uncovered services related to ship-to-dock loading and unloading. Additional charges are levied for using extra equipment, movement of containers within the port, and connecting refrigerated containers to power sources. Charges also apply for discharging, sorting, and stacking contents of containers or trailers​​.

The port imposes fees for lost time under the ship or agent’s responsibility, re-stowage of cargo belonging to other ports, and non-maritime additional services like cleaning ship holds or repairing damaged cargo packages. These are calculated based on actual costs plus a markup​​.

Security services for level 2 security ships at Saudi ports are outlined, covering a range of security measures including officers, patrol vehicles, and boats​​.

Storage charges for containers, both exported and imported, empty or loaded, are comprehensively covered. The tariff schedule stipulates the daily rates for different container sizes, with exemptions and incremental charges based on the duration of storage​​.

Maritime service charges include pilotage, rope tying and untying, and maritime control tower services, with varying rates based on the ship’s capacity and tonnage. These charges also extend to the ship’s use of the anchorage area and the wharf​​.

Lastly, charges for passenger services and port service charges for imported or exported cargo are specified, with rates for general cargo, vehicles, equipment, livestock, and bulk cargo. Additional services for containers and trailers, such as additional movements or restuffing, are also detailed​​.

In conclusion, the updated tariff schedule from the Port of NEOM offers a comprehensive and detailed pricing structure, reflecting the port’s commitment to transparent and efficient maritime services. The changes are expected to streamline operations and provide clarity to ship owners, agents, and cargo owners utilizing the port’s facilities. See also article

In conclusion, the updated tariff schedule from the Port of NEOM offers a comprehensive and detailed pricing structure, reflecting the port’s commitment to transparent and efficient maritime services. The changes are expected to streamline operations and provide clarity to ship owners, agents, and cargo owners utilizing the port’s facilities. See also the article Oxagon is a new part of the Neomean world.

To download the documents, visit NeomDocuments.com

For more information visit neom.com


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