Japanese shipping company Nippon Yusen Kabushiki Kaisha (NYK Line) NYK signed a joint-venture agreement on Thursday with Saudi Arabia’s Ports Development Company (PDC) to establish NYK’s first exclusive RORO terminal operating company at King Abdullah port (KAP) on the Red Sea coast of Saudi Arabia.
The move comes in anticipation of continual economic growth in the Middle East region.
According to NYK, the terminal named KAP RORO Terminal, which is the first exclusive RORO terminal in Saudi Arabia, is planned to commence full operations by 3rd quarter 2016 and would have the capacity to handle 600,000 handling units.. The joint venture will be the first automotive logistics base for the NYK Group in the Middle East.
“By establishing this new joint venture in cooperation with PDC, the NYK Group is expanding the reach of its global operations by providing customer-oriented service based on the NYK Group’s operational experience and accomplishments as a pioneer in the field. Moreover, the NYK Group will ensure adequate capacity equal to 600,000 handling units yearly to address increasing demand at growing market in Middle East as a gate port,” NYK said in a statement.
King Abdullah port is a private port which is owned and developed by PDC, which opened a container terminal there in 2014.
PDC is a joint-venture company owned by the Saudi Arabian conglomerate Huta Marine Works Limited and Emaar, the Economic City in the Kingdom of Saudi Arabia.