The Saudi Ports Authority (Mawani), in cooperation with the Zakat, Tax and Customs Authority, announced the implementation of a new, unified mechanism for calculating and collecting storage fees (ground rent) at eight of the Kingdom's major ports. This step comes as part of the "Unified Invoicing" initiative, which aims to improve the operational environment, expedite customs clearance processes, and enhance the Kingdom's position as a leading global logistics hub.
Historical background and development context
This initiative represents a radical shift from the previous system, which was characterized by multiple billing entities and complex procedures, often leading to delays in customs clearance and increased costs for importers. In line with the Kingdom's Vision 2030 and the National Transport and Logistics Strategy, the Ports Authority (Mawani) and the General Authority of Zakat, Tax and Customs have worked to unify these procedures through a single electronic platform, ensuring transparency and efficiency and reducing the time containers spend in ports.
The eight ports where the new mechanism will be implemented include:
- Jeddah Islamic Port
- King Abdul Aziz Port in Dammam
- King Abdullah Port in Rabigh
- Jubail Commercial Port
- Jubail Industrial Port
- Yanbu Commercial Port
- Jazan Port
- Duba Port
The importance of the new organization and its expected impact
The new regulations offer numerous significant benefits that will positively impact the logistics sector and the national economy as a whole. This mechanism is expected to substantially reduce container dwell time at ports, thereby enhancing the capacity of Saudi ports and accelerating the supply chain.
Domestically, importers and exporters will benefit from reduced overall costs and faster capital turnover, as the unified invoice allows for the payment of all applicable fees (customs duties and port charges) in a single payment, streamlining customs clearance and minimizing delays. This, in turn, enhances the competitiveness of Saudi companies in both domestic and international markets.
At the regional and international levels, this step enhances the attractiveness of Saudi ports as a key transit point for global trade between East and West. Improved operational efficiency and transparency raise the Kingdom's ranking in global logistics indices, such as the Logistics Performance Index (LPI), and make it a preferred destination for major international shipping lines, thus supporting the Kingdom's goals of becoming a pivotal global logistics hub connecting three continents.
