LME approves Saudi Arabia’s Jeddah Port as warehouse delivery point

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The London Metal Exchange (LME) said on Monday that Saudi Arabia’s port city of Jeddah has been approved as a delivery point for copper and zinc.

The exchange said the listing will become active three months after the first warehouse company has been approved in the new location.

“Warehouse companies applying for approval in Jeddah will need to demonstrate that they have access to the necessary experience of operating a warehouse company within the LME procedures,” LME said in a statement.

The LME said earlier in March that it planned to add Jeddah as a new delivery point subject to consultation about a technical change to the LME warehouse framework. The new warehouse in Saudi Arabia would service the Middle East, North and East Africa regions.

“Saudi Arabia is an increasingly important global metals hub, and Jeddah fully meets the operational and logistical criteria for new warehouse locations—such as being an important area of net consumption and having an effective transport network,” Matthew Chamberlain, the CEO of LME, said following the March announcement.

Warehouses registered with the LME, the world’s largest and oldest metals trading venue, are usually located in areas of net metals consumption or top transit hubs such as Rotterdam.

However, the kingdom is planning an ambitious industrial development and logistics programme as part of the Vision 2030.

The LME, in a separate notice on Monday, said that it had amended a clause in the LME’s policy on the approval of locations as delivery points related to warehouse insolvency following a consultation.

The exchange is owned by Hong Kong Exchanges and Clearing.

Read: Saudi Arabia unveils master plan for logistics centres