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Saudi Arabia launches Yanbu Grain Terminal to strengthen food security and trade

11 January 20252 min reading

Saudi Arabia has officially opened the Yanbu Grain Handling Terminal, marking a significant step in the Kingdom's efforts to fortify food security, enhance agricultural trade, and promote public-private partnerships. 

The inauguration, held on December 22, was attended by Abdulrahman Al-Fadli, Minister of Environment, Water, and Agriculture, along with various government and private sector officials, according to the Saudi Press Agency. The newly inaugurated terminal is set to serve both public and private sector importers, featuring a storage capacity of 156,000 tonnes, including 12 silos with a combined capacity of 96,000 tonnes. This facility is part of Saudi Arabia's broader strategy to safeguard food security in light of challenges posed by climate change, geopolitical tensions, and disruptions to trade routes, such as the ongoing Russia-Ukraine conflict and blockages in the Red Sea. In response to these growing concerns, the Kingdom launched a $10 billion food security action plan in collaboration with regional partners in September 2022.


Operated by the National Grains Co., a joint venture between Saudi Arabia's national shipping company Bahri and the Saudi Agricultural and Livestock Investment Co. (SALIC), the Yanbu terminal is equipped with a 650-meter conveyor belt, offering a discharge rate of 800 tonnes per hour directly from ships. The terminal's annual handling capacity exceeds 3 million tonnes of grain.

A statement from Bahri to the Saudi Stock Exchange explained that the project's inauguration was delayed due to the addition of requirements aimed at improving future operational efficiency, as well as the construction of extra infrastructure to support potential future expansions. As a result, the total project cost rose by 7 percent from the initially allocated $109.7 million, although the increase was deemed insignificant.

The Yanbu Grain Handling Terminal is poised to become a key logistics hub connecting three continents, supporting Saudi Arabia's vision for a resilient agricultural supply chain. The National Grains Co., established in 2020 as a strategic partnership between SALIC and Bahri, aims to meet the Kingdom’s future feed grain needs while enhancing its global competitiveness.

With a focus on grain trade, handling, and storage, the National Grains Co. seeks to strengthen Saudi Arabia's supply chains and ensure price stability across the Kingdom, further advancing food security initiatives. SALIC, a company wholly owned by the Public Investment Fund, was founded in 2011 to secure Saudi Arabia’s food supply through large-scale production and investments.

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