MODON signs SAR137m deal with Medlog to build logistics zone in Jeddah

The Saudi Authority for Industrial Cities and Technology Zones (MODON) has signed an investment agreement with Medlog, the logistics arm of Mediterranean Shipping Company (MSC), to establish an integrated logistics zone in the Third Industrial City in Jeddah.

The agreement was signed in Geneva by MODON Chief Executive Officer Eng. Majed Al-Argoubi after meetings with Medlog executives to discuss cooperation in logistics development.

Under the agreement, MODON will allocate 100,000 square metres of logistics facilities for the project. Medlog will develop container yards and warehouses with an initial investment estimated at SAR137 million.

According to MODON, the facility is expected to handle around 60,000 twenty-foot equivalent units (TEUs) annually by 2038. The site will offer services including storage, distribution, cargo handling and customs clearance.

Officials said the project is expected to contribute about SAR44 million to Saudi Arabia’s gross domestic product and create approximately 200 direct jobs. The company also plans gradual expansion of its operations in the Kingdom.

Medlog operates in more than 80 countries and manages logistics infrastructure exceeding 8.5 million square metres worldwide. MODON said the agreement supports the goals of the National Transport and Logistics Strategy and strengthens Saudi Arabia’s position in global trade and logistics.