Oxagon Port: When Ports Become Digital Entities that Think and Innovate

Dr. Saad Naji / Digital Economy Expert / Entrepreneur

In a rapidly changing world, a port is no longer merely a maritime gateway for cargo transport; it has become part of an integrated smart ecosystem forming the backbone of global supply chains. Leading this transformation is Oxagon—the smart industrial city within Saudi Arabia’s NEOM project—which is constructing the world’s first fully digital port, combining artificial intelligence, automation, sustainability, and big data analytics.

The term “Oxagon” derives from an octagonal design, symbolizing eco-friendly urban planning, high architectural efficiency, and a holistic future-oriented vision. The project is in an advanced execution phase, with gradual commissioning of the port and infrastructure already underway, and full completion expected by 2030.

The First Digitally-Born Port: From Digital Twin to Predictive Intelligence

Oxagon Port was not a renovation of a traditional port; it was built from scratch as a fully digital port using the Digital Twin concept. This creates a live digital replica of the port, continuously fed with real-time data from advanced sensors, drones, and monitoring robots.
This smart twin does more than monitor operations—it learns from the data, predicts malfunctions, and proposes solutions to optimize logistics flow, reducing operational downtime by up to 40%. In essence, the port “thinks” and makes autonomous decisions.

Full Automation: Minimal Human Intervention

Loading and transport operations at Oxagon are managed by remotely controlled Ship-to-Shore and RTG automated cranes, alongside SAE L4-L5 autonomous electric trucks integrated with AutoPilot systems and AI algorithms to optimize routing and energy efficiency.
Even container locking and monitoring are conducted by robots employing computer vision and AIoT technologies. This fully automated environment reduces human error by 90% and increases handling efficiency by over 25%.

Sustainable Infrastructure and a Carbon-Neutral Port

Oxagon is designed to the highest sustainability standards, from expanding navigational channels while preserving coral reefs to fully recycling construction waste and operating entirely on renewable energy.
The port relies on solar and wind power supported by smart storage systems, with water desalination consuming 40% less energy than conventional methods, making it the region’s first entirely “green” port.

An International Consortium of Leading Companies

Oxagon Port’s construction involves major global and regional companies. BESIX, MBL, and Boskalis handle core infrastructure works, while Dextra Group provides specialized construction solutions. On the consulting and design side, Jacobs serves as lead consultant alongside Moffat and Nichol, with additional contributions from IGO and Trent. Heavy equipment providers such as Liebherr Saudi Arabia and ZPMC China (Shanghai Zhenhua Heavy Industries) supply advanced cranes and logistics systems, creating a large-scale international alliance that merges global engineering expertise with Saudi Arabia’s futuristic vision for NEOM.

Cost and Investment

The total exact cost of Oxagon Port has not been officially disclosed. The first phase alone has reached approximately $2 billion, with additional construction and logistics contracts totaling around $800 million.

A City-Sized Industrial Data Center

As part of the “Data as a Strategic Asset” initiative, an agreement with DataVolt was signed to build a 1.5 GW data center with an investment of $5 billion, forming the foundation for Oxagon as a global digital analytics platform.
This center will process vast operational and logistical data, integrating blockchain technologies to track shipments, ensuring transparency and reliability across supply chains.

Job Creation and Economic Impact

Oxagon Port and its surrounding industrial complex are expected to create up to 70,000 jobs by 2030, while driving industrial growth and sustainable development in the region.

Smart Trade: New Corridors and Cost Reduction

The port has launched a multi-modal trade corridor connecting the Red Sea to Iraq by land, reducing shipping time from Cairo to Baghdad by 20% compared to traditional routes via Aqaba and Amman.
Storage costs have also decreased by 20%, and shipping speed has improved by 20%, thanks to AI analytics predicting demand and optimizing inventory management.

Potential Impact on Iraq’s Al-Faw Port

Oxagon’s rise may influence Al-Faw Port in multiple ways. In terms of regional competition, Oxagon aims to be a global logistics and advanced industrial hub on the Red Sea, while Al-Faw is positioned as a transit node linking the Gulf to Europe via Iraq’s “dry canal” (overland and rail routes). This could create competition for transshipment cargo.
From an investment perspective, global investors may favor the port offering greater speed, efficiency, and connectivity, pressuring Iraq to accelerate Al-Faw’s development.
Regarding target markets, Oxagon primarily serves trade between the Red Sea, East Africa, and Europe via the Suez Canal, while Al-Faw focuses on connecting Asia (China and India) to Europe overland through Iraq and Turkey. The overlap is limited, but competition exists in part of the global maritime trade.
Nevertheless, there is potential for positive synergy, as having two such large-scale projects may enable logistical integration rather than zero-sum competition, with each port specializing in certain routes.

NEOM and Aqaba: Port Competition in the Middle East

Oxagon is a massive logistics and industrial hub relying on full automation, AI, and renewable energy, located in northwest Saudi Arabia on the Red Sea, close to Aqaba, making it a direct competitor. As part of a unique floating industrial city, it aims to be the fastest and most efficient port in the region. Already, a trade route with Cairo has shortened shipping time to Baghdad by 20%, and the overland route via Saudi Arabia is about 300 km shorter than the Aqaba–Amman–Baghdad path, giving it a competitive advantage in attracting investment and transshipment traffic.

Aqaba Port, despite its strategic position as Jordan’s sole maritime gateway and a cargo transit hub for Iraq and Syria, still largely relies on traditional operations with some recent upgrades, leaving it at risk of losing market share if it does not accelerate digital transformation and provide smart or specialized services that complement Oxagon rather than compete head-on.

Ports of the Future: A Digital Transformation Beyond Geography

Oxagon exemplifies what future ports should be: not merely physical gateways, but smart decision-making and analytics platforms, competing on technological innovation rather than geographic size.
Traditional ports like Aqaba face existential challenges and must modernize infrastructure and adopt intelligent operational models to stay relevant.

The Future of Maritime Navigation: Toward a New Marine Map

With rapid innovation, Oxagon redefines the concept of a port in the 21st century: robots, algorithms, and digital clouds replace just docks and warehouses.
For developing nations, Oxagon is not only an ambitious Saudi project but also a call to rethink maritime policies and engage in the “smart port race,” where the ability to analyze, adapt, and innovate becomes the true measure of competitiveness.

Technical Summary

Oxagon employs an advanced mix of technologies, including fully renewable energy (solar and wind), sustainable dredging, and material recycling for carbon-neutral operations. Logistic operations use autonomous cranes and trucks integrated with a digital twin and predictive maintenance, enhancing handling efficiency and reducing downtime.
In AI, Oxagon leverages integrated AIoT, live data analytics, advanced computer vision, and systems like viAct for safety and environmental compliance monitoring. Its digital infrastructure includes a 1.5 GW data center with innovative cooling technologies, supported by companies like Oracle, providing advanced cloud solutions.
Blockchain is used to track shipments, ensuring transparency, while multi-modal trade corridors reduce time and costs. Smart inventory and operational management systems further enhance efficiency.

This unique integration makes Oxagon a leading model for future smart and sustainable ports. It is not merely a logistics facility, but a fully intelligent platform shaping the future of industry and transportation. In the global race for supply chain leadership, intelligence—not just location—will be the key competitive factor.

NEOM and Aqaba: Port Competition in the Middle East

Oxagon is a massive logistics and industrial hub relying on full automation, AI, and renewable energy, located in northwest Saudi Arabia on the Red Sea, close to Aqaba, making it a direct competitor. As part of a unique floating industrial city, it aims to be the fastest and most efficient port in the region. Already, a trade route with Cairo has shortened shipping time to Baghdad by 20%, and the overland route via Saudi Arabia is about 300 km shorter than the Aqaba–Amman–Baghdad path, giving it a competitive advantage in attracting investment and transshipment traffic.

Aqaba Port, despite its strategic position as Jordan’s sole maritime gateway and a cargo transit hub for Iraq and Syria, still largely relies on traditional operations with some recent upgrades, leaving it at risk of losing market share if it does not accelerate digital transformation and provide smart or specialized services that complement Oxagon rather than compete head-on.

Ports of the Future: A Digital Transformation Beyond Geography

Oxagon exemplifies what future ports should be: not merely physical gateways, but smart decision-making and analytics platforms, competing on technological innovation rather than geographic size.
Traditional ports like Aqaba face existential challenges and must modernize infrastructure and adopt intelligent operational models to stay relevant.

The Future of Maritime Navigation: Toward a New Marine Map

With rapid innovation, Oxagon redefines the concept of a port in the 21st century: robots, algorithms, and digital clouds replace just docks and warehouses.
For developing nations, Oxagon is not only an ambitious Saudi project but also a call to rethink maritime policies and engage in the “smart port race,” where the ability to analyze, adapt, and innovate becomes the true measure of competitiveness.