RIYADH, SAUDI ARABIA — The Saudi Agricultural and Livestock Investment Company (SALIC) and the Saudi Ports Authority (MAWANI) signed an agreement to develop a grain terminal in Yanbu Commercial Port in Saudi Arabia.

The terminal will import, process and export grain in two phases, and will have a total capacity of 5 million tonnes per year.

“The project aims to enhance the velocity of the main grain influx to Saudi Arabia and is considered the first regional center for grains in the commercial port of Yanbu,” said Abdul Rahman bin Abdul Mohsen Al-Fadhli, chairman of SALIC’s board of directors.

He added that SALIC relies on the geographical location of Saudi Arabia and the port infrastructure to enhance overall food distribution solutions in the region by linking the nation to global grain sources, especially countries where SALIC is currently investing.

SALIC was formed in 2011 to secure food supplies for Saudi Arabia through mass production and investments.

Yanbu’s location on the Red Sea coast and its proximity to local and regional markets in the Red Sea basin and the Horn of Africa gives it a competitive advantage, said Saleh bin Nasser Al-Jasser, minister of Transport and chairman of Mawani’s board of directors.

“This partnership plays a vital role in the ports and logistic services sector, given they are the main enablers of many key industries and sectors, including the food security sector,” he said. “It also goes in line with MAWANI’s strategic objectives of fully utilizing the huge absorptive capacity in Saudi ports and raising the percentage of private sector investment in the port sector to 90% by 2030. By doing this it will serve the establishment of various development projects that contribute to achieving added value to the national economy, and supporting the investment landscape and commercial traffic in the Kingdom”

One of SALIC’s key strategic objectives is to significantly contribute to the import of basic commodities that are in line with the food security strategy in Saudi Arabia. Furthermore, the company aims to invest in supply chains and ports in Saudi Arabia and countries where SALIC holds investments to ensure the sustainability of the supply of all basic commodities.