Saudi Aramco has signed the first major contract for Saudi Arabia’s $5.2 billion maritime and shipbuilding complex planned for the Persian Gulf.
The contract was awarded to a consortium of Saudi Archirodon Company Ltd and Huta Hegerfeld AG Saudia Company for dredging, reclamation and marine structures for the King Salman International Complex for Maritime Industries and Services in Ras Al-Khair, located just north of Jubail on Saudi Arabia’s east cost.
The scope of the contract includes dredging and reclamation of approximately 37 million cubic meters of fill, in addition to 7.4 million square meters ground improvement. The contract will also provide for constructing 4,500 linear meters of concrete quay walls and wharves, in addition to 12,000 linear meters of rock retaining walls and breakwaters to protect the integrity of the complex, Saudi Aramco said in a press release. Execution of the initial phase of the contract is expected to be completed by 2020.
Once completed, the 1.7 square mile complex will be the largest yard of its kind in the Arabian Gulf and will offer a range of services from large shipbuilding and ship repair, offshore rig fabrication, and offshore support vessel repair.
“It is an important milestone for King Salman International Complex for Maritime Industries and Services, the largest of its kind in the region.” said Ahmed Al-Sa’adi, Saudi Aramco’s Senior Vice President for Technical Services. “The Complex is in line with the Kingdom’s economic diversification objectives, it will position the Kingdom as a strategic logistics hub and will create vast job opportunities.”
The Complex, which was inaugurated in November 2016, is being developed by joint venture between Saudi Aramco, Saudi Bahri, South Korea’s Hyundai Heavy Industries and Lamprell, with Aramco holding 50.1%. The majority of the cost ($3.5 billion) will be covered by the Saudi government, with the remainder funded by the joint venture.
Major production at the yard is expected to start in 2019, with full capacity by 2022.
Development of the commercial maritime complex is part of Saudi Arabia’s plan to diversify its energy industry through the development of several large “anchor projects” set forth in the government’s 2030 growth plan.