• The following words and phrases shall have the meanings indicated next to each, unless the context requires otherwise:

  • 1- Organization: Organization of the Saudi Ports Authority.

  • 2- The Kingdom: The Kingdom of Saudi Arabia.

  • 3- The Ministry: Ministry of Transport and Logistic Services.

  • 4- The Minister: Minister of Transport and Logistic Services.

  • 5- The Authority: Saudi Ports Authority.

  • 6- The Council: Board of Directors of the Authority.

  • 7- The President: President of the Authority.

  • 8- Ports: All maritime ports in the Kingdom except for military ports and ports of economic cities.

  • 9- Port Operation Services: Services provided by the licensees.

  • 10- Port Users: Natural or legal persons benefiting from port operation services.

  • 11- License: Approval issued by the Authority to a natural or legal person to provide one or more port operation services.

  • 12- Licensees: Natural or legal persons to whom licenses are issued by the Authority.

  • 13- Port Infrastructure: All projects aimed at establishing ports and their facilities to be ready for operation, including dredging works, preparing port yards, paving, lighting, electricity, and water.

1. The Authority shall have a public legal personality and financial and administrative independence, and shall report to the Minister.

2. The Authority shall be headquartered in the city of Riyadh and may, pursuant to a Board decision, establish branches or offices within the Kingdom, as needed.

The Authority aims to organize and oversee port management and operation and develop ports to attract investments and to promote trade in the Kingdom and support the growth of the national economy. It shall, to this end, have the following powers:

• Setting rules for the management of ports in accordance with the best international systems and practices.

• Setting regulations, rules, and standards relating to the use, management, and operation of ports.

• Setting regulations for licensing.

• Promoting investment in port operation services and supporting investment activities and value-added services in ports, including support services.

• Ensuring fair competition in the provision of port operation services, protecting the interests of the users of such services, and monitoring the licensees’ performance of their duties.

• Conducting technical investigations into any accident or incident causing disruption or losses in any of the ports.

• Making navigation bulletins on ports available to relevant parties.

• Setting security, safety, and environmental standards for ports in coordination with relevant government agencies.

• Seeking the assistance of specialized agencies, scientific or technical institutions, or qualified consultants to benefit from their experience in strategic research and development as well as in the management and operation of ports.

• Creating a competitive environment for the provision of port operation services and port marketing, managing competition between ports, and aiming to achieve integration between ports.

• Carrying out the activities necessary to achieve its purposes and to enhance the ports’ competitive position.

• Incorporating companies or becoming a partner or shareholder in existing companies, in accordance with the statutory procedures and in coordination with the Public Investment Fund, to carry out port infrastructure work.

• Representing the Kingdom in relevant international bodies and organizations.

• Establishing databases which include all the data and statistics regarding maritime transportation and trade in the Kingdom, and making them available to port users and relevant parties.

• Cooperating and coordinating with government agencies to achieve its duties efficiently and effectively.

• Reviewing laws and regulations governing port activities, proposing amendments thereto, and submitting the same in accordance with the statutory procedures.

• Any other duty assigned thereto under laws and regulations.

The Authority shall operate on a commercial basis which allows it to carry out its tasks and duties related to regulating and developing its services, attracting investments, and promoting competitiveness, and which promotes trade in the Kingdom and contribute to the growth of the national economy, in accordance with its financial, administrative, operational, and investment regulations.

• 1- The Authority shall have a Board of Directors formed as follows:

  •  A- Minister of Transport and Logistic Services                                                                    Chairman                 

  • B- Chairman of the Authority                                                                                                Member       

  • C- Director General of the General Customs Authority                                                                   Member

  • D- Representative from the Ministry of Transport and Logistic Services                                                     Member   

  • E- Representative from the Ministry of Finance                                                                                 Member  

  • F- Representative from the Ministry of Commerce and Investment                                                                  Member

  • G- Three from the private sector who are not investors in the ports sector, appointed              Members

  • by a decision of the Council of Ministers based on a proposal from the Minister.

• 2- The term of membership for representatives of government agencies and members from the private sector shall be three years, renewable once, and the rank of representatives of government agencies must not be less than the (fourteenth) rank.

1. The Board shall hold its ordinary meetings upon a call by the Chairman at least once every four months.

2. The Board may hold extraordinary meetings upon a call by the Chairman or at the request of at least four of its members.

3. The Chairman may delegate any of the representatives of government agencies from among Board members to chair the meetings in his absence.

4. Board meetings shall be valid if attended by the majority of its members, including the Chairman or his designee. Decisions shall be passed by majority vote of attending members. In case of a tie, the meeting chairman shall have the casting vote.

5. Board members may not abstain from voting nor vote by proxy. A dissenting member may have his objection and grounds therefor entered into the meeting minutes.

6. A Board member may not disclose any confidential information he becomes privy to by virtue of his membership.

7. The Chairman may, as he deems appropriate, invite managers of ports or experts to attend Board meetings in a non-voting capacity.

8. Board deliberations and decisions shall be entered into minutes signed by the meeting chairman and attending members.

9. Decisions the Board deems necessary to be communicated to licensees or users of the Authority’s services shall be published in the Official Gazette and in any other medium approved by the Board, provided that such publication does not compromise public interest or breach the confidentiality of business information. The Authority shall directly communicate such decisions to relevant entities using appropriate means.

10. The Board shall have a secretary, to be appointed by the Chairman from among the Authority’s staff. The secretary shall be responsible for managing the Board’s secretariat, preparing meetings, recording Board deliberations and decisions, and communicating such decisions to relevant entities, and shall attend Board meetings in a non-voting capacity. His remuneration shall be determined by the Board.

The Board shall be the Authority’s highest authority; it shall be responsible for the management of the Authority and the conduct of its business. The Board shall have all the powers and take all decisions necessary to achieve the Authority’s purposes within the limits of this Statute. It shall, in particular, undertake the following:

1. Approving the Authority’s plans, policies, and programs, and monitoring their implementation.

2. Adopting the rules necessary for the management of ports in accordance with the best international systems and practices.

3. Adopting regulations, rules, and standards for the use of ports.

4. Adopting security, safety, and environmental standards for ports, and monitoring their implementation.

5. Adopting the Authority’s organizational structure and guide.

6. Adopting the Authority’s financial, administrative, operational, and investment regulations.

7. Adopting licensing regulations.

8. Adopting the Authority’s fees for services rendered thereby.

9. Reviewing the fees and their categories set forth in the Law of Port Service Fees and Charges issued pursuant to Royal Decree No. (M/42) dated 2/7/1405H as well as amending, approving, and canceling the same if necessary, provided that:

a) the categories of fees are in line with internationally and regionally accepted standards and competitive prices;
b) the fees are attractive to maritime transportation companies and private companies to operate in the ports and utilize their facilities and services; and
c) the strategic importance of some of the Kingdom's ports is taken into consideration.

1. Introducing new categories of port services, determining their fees, and amending them, as necessary.

2. Approving, upon coordination with the Public Investment Fund, the Authority’s incorporation of one or more companies, or its entry into existing companies as a partner or a shareholder, in accordance with statutory procedures.

3. Determining port operation services targeted for privatization.

4. Determining the ports infrastructure the Authority undertakes solely or jointly with others.

5. Reviewing periodic reports on the Authority’s activities and financial position and taking necessary action thereon.

6. Approving the investment of the Authority’s real estate and facilities.

7. Approving the Authority’s budget and submitting it in accordance with statutory procedures.

8. Approving the Authority’s final accounts and annual report as well as the auditor’s report, and submitting the same in accordance with statutory procedures.

9. Concluding agreements and contracts relating to the purposes and activities of ports with individuals, sole proprietorships, companies, and organizations; periodically reviewing such agreements and contracts according to operational requirements; and making necessary amendments thereto in agreement with investors.

10. Accepting gifts, aid, grants, bequests, donations, and endowments, in accordance with the law.

The Board may delegate some of these powers to the Chairman.

The Authority shall have a president appointed pursuant to a Board decision wherein his salary and other benefits shall be determined. The President shall be the Authority’s executive director and shall be in charge of supervising and managing the Authority’s activities within the limits of this Statute and Board decisions. In addition to the financial and administrative powers granted to him by law, the President shall have the following powers and duties:

1. Supervising the preparation of the Authority’s plans, policies, and programs, and implementing the same upon Board approval.

2. Proposing the Authority’s organizational structure and guide as well as amendments thereto, and submitting the same to the Board.

3. Monitoring the implementation of decisions issued by the Board, and briefing the Board on progress thereon.

4. Supervising the drafting of financial, administrative, operational, and investment regulations, and submitting the same to the Board.

5. Proposing the draft licensing regulations and submitting the same to the Board.

6. Approving the powers of port managers according to the workload and responsibilities of each port.

7. Appointing the Authority’s employees in accordance with applicable regulations.

8. Supervising the Authority’s employees, and assuming the financial, administrative, and operational powers granted thereto under this Statute and the regulations.

9. Supervising the preparation of the Authority’s draft budget, final accounts as well as the annual report, and submitting the same to the Board.

10. Approving disbursement orders within the limits of budget appropriations.

11. Submitting periodic reports to the Board on the Authority’s activities and financial position.

12. Periodically reviewing the administrative and documentary procedures in ports to facilitate and simplify such procedures, and benefiting from the experiences of prominent international ports with regard to such procedures.

13. Contracting with third parties, as needed, in accordance with the powers granted thereto.

14. Representing the Authority in its relations with government agencies and with others.

The President may delegate and assign some of his powers and duties to any of the Authority’s employees.

1. Representing the Authority before judicial authorities; he may delegate such power to any person he deems appropriate.

Each port shall have a manager reporting directly to the President.