YORK signs MoU with King Abdullah Port to strengthen efforts to transform Saudi Arabia into top global logistics hub

YORK signs MoU with King Abdullah Port to strengthen efforts to transform Saudi Arabia into top global logistics hub

The agreement aims to improve the Kingdom’s marine services by providing marine vessel maintenance and repair services

In line with Saudi Arabia's Vision 2030 goal to develop the capabilities of the marine sector in the Kingdom, the Ports Development Company (PDC), the owner and developer of King Abdullah Port, signed at its headquarters in King Abdullah Economic City a memorandum of understanding (MoU) with Al Salem Johnson Controls (YORK), the leading provider of integrated solutions in HVAC-R, fire, safety and security systems, and building management systems and controls.

The memorandum sets out the general principles and modalities of cooperation between the two parties to develop the capabilities of marine services at King Abdullah Port in line with Vision 2030. The main objectives of the memorandum are to support the development of local content and the National Industrial Development and Logistics Program (NIDLP) and provide technical support for establishing a marine office and the required facilities to offer vessel maintenance and repair services at King Abdullah Port.

The agreement also includes the provision to strengthen the cooperation between both parties to provide the necessary solutions to facilitate the comprehensive diversification of the services at King Abdullah Port.

The MoU was signed by Mr. Jay New, the Chief Executive Officer of King Abdullah Port representing PDC, and Dr. Mohanad Al Shaikh, the Chief Executive Officer of Al Salem Johnson Controls (YORK), in the presence of several senior officials from both sides.

Demonstrating the company’s commitment to Saudi Arabia’s vision as well as its efforts to establish a regional office as part of the Kingdom’s Regional Headquarters program, executives from YORK’s parent company, Johnson Controls International, including the Vice President and General Manager of Global Applied Equipment and Air Distribution, Claude Allain, and the Vice President and President of Building Solutions Europe, Middle East, Africa, and Latin America, Tomas Brannemo, were present during the signing ceremony.

Commenting on the MoU, Jay New stated: ”The agreement reflects the keen interest of the leadership of Saudi Arabia to develop the Kingdom's ports. In addition, it aims to achieve the objectives of the vision of HRH the Crown Prince Mohammed Bin Salman by leveraging Saudi Arabia's unique geographical location on the red sea through which 13% of world trade passes, and develop the Kingdom as a major center of international trade and a hub connecting three continents.”

"The memorandum comes as part of the Kingdom’s efforts to achieve the objectives of NIDLP, one of the largest and most ambitious programs under the Saudi Vision 2030 that aims to enhance the competitiveness of the economy and transform the Kingdom into a leading global logistics center. This is an objective we are always seeking to achieve through our various initiatives that contribute to enhancing the operational performance of King Abdullah Port,” he added.

Dr. Mohanad AlShaikh said: "The signing of the memorandum of understanding reflects the keenness of the two parties to establish a strategic partnership to support the national economy and to take advantage of potential opportunities. The Ports Development Company is a leading global company in providing repair services. It aims to further develop the commercial capacity of King Abdullah Port by establishing facilities for vessel maintenance and repair services. The agreement is particularly significant as King Abdullah Port is the first commercial port in Saudi Arabia and the Middle East owned and financed entirely by the private sector.”

The partnership is an extension of Johnson Controls International's global success and leadership in offering solutions for marine applications through its subsidiaries around the world, serving more than 10,000 marine vessels globally. One in every five commercial vessels in the United States of America adopts YORK Cooling Solutions for its cooling systems, while one in four commercial vessels in the USA relies on the fire safety systems produced by Tyco, one of its subsidiaries.

The two parties stressed that the memorandum of understanding reflects King Abdullah Port's vision to achieve sustainability and provide added value to its partners, enabling it to gain superior business efficiency in the long run. The port delivers integrated services to its customers by taking advantage of its strategic location along the coast of King Abdullah Economic City, which is considered one of the most advanced cities that support businesses and investments and delivers high-quality services of international standards through the latest technologies and qualified professionals.



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