Abdullah Dannounn, Acting GM/Secretary of the Board, King Abdullah Port • Interview
One of the most rapidly growing ports worldwide, King Abdullah Port focused on not only providing uninterrupted operations during the pandemic but also closely supporting port users and operators.
What drove the increase in container volumes in 2020, and what did you have to do to ensure you were able to capture it?
This growth in 2020 is not an exception and follows the annual trend since the commencement of our operations in 2014. We have one of the most aggressive KPIs in terms of operations in the port; it is a world-class KPI, and we have the most advanced infrastructure. The main driver behind its success in terms of volume growth is the flexibility that Ports Development Company (PDC) has always enjoyed as a private-sector port. We know the language of the private sector and are always ready to make strategic decisions as soon as they are needed and react to market changes. During the pandemic, we not only provided uninterrupted operations but went further and aggressively supported port users and operators. King Abdullah Port designed several incentive packages that are mainly financial support packages for operators, cargo owners, and shipping lines during the pandemic to ensure maximum productivity and a smooth flow of cargo to local Saudi markets during the crisis. The 7% growth is not an exceptional case. The most notable growth in 2020 was in imports, which was up by 16.4% compared to 2019. The fastest and biggest growth was in pharmaceuticals and medical supplies, which grew by 72%, and this is phenomenal growth in one sector and commodity. Second comes building materials, which grew by 15%, and this is again a large figure. King Abdullah Port is aggressively contributing to Vision 2030 mainly on two fronts: increasing the volume of non-oil exports and diversifying Saudi Arabia’s sources of income.
How have the digital processes that you put in place enabled your performance during the pandemic?
Since its conception, King Abdullah Port was designed and is intended to be the leading port in the region and one of the largest. We have always looked at digitalization, automation, and the latest technology, and we always considered them as the key enablers for this big dream. Several years before this initiative of digitalization came to the port sector in Saudi Arabia, in 2014 we started spending heavily on what we call the Saudi Arabia’s first Port Community System. The objective and vision at that time was to build a world-class digital system to exchange information relating to cargo movement in the port with all the stakeholders through a transparent platform. This integration has brought great value and added much to the service portfolio of King Abdullah Port and enabled our customers to utilize the services of the customs authority online. Digitalization for us should come with many objectives and advantages, including improving transparency, efficiency, and productivity. On top of that, the digital services of King Abdullah Port have enabled contactless processes in the port that greatly contributed toward securing business continuity during the pandemic and the multiple lockdowns last year and even this year.
How significant is the establishment of the new routes from MSC and Maersk for King Abdullah Port?
This choice of the two global lines for us was highly expected because this is a natural fruit of the unique relationship we have managed to maintain so far with all shipping lines and not only Maersk and MSC. We are always ready to have strategic decisions delivered in the port whenever it is needed to support the business and financials of our stakeholders, including shipping lines. This has always been the flexibility of dealing with the daily needs of shipping lines, and this remains one of the main success pillars of King Abdullah Port’s story. This is an addition to the strategic location, efficiency, and well-designed infrastructure of the port. We have two new services, and this is confirmation of the new era of King Abdullah Port, as we are transforming from a local player in the port sector in Saudi Arabia into a global enabler and hub for global trade flows.