Page 37 - Logistics News - September October 2023

SA UD I AR AB I A

(RSGT) and the introduction of commercial
routes linking seaports and airports are
examples of the many government initiatives
designed to expand the Kingdom’s logistics
operations to make it a global transhipment hub.

Saudi Arabia is also creating greenfield
industrial sites and cities, a notable highlight of
which is King Abdullah Economic City at Rabigh,
near Jeddah. Primarily focused on industry
and logistics, the city has its own seaport, the
King Abdullah Port, with a current capacity of
5.5 million TEUs and a goal of expanding to 10 Jazan Economic City
million TEUs in the near future.
The 2021 Global Container Ports Performance Index report by
The size of the Kingdom’s maritime sector has doubled the World Bank and S&P Global Market Intelligence placed King
in the past decade. As of April 2021, 53,000 marine vessels Abdullah Port in the first spot as the most efficient container port
registered in 150 countries were transporting 11 billion tons of in the world, among 370 global ports. Two more ports made the
cargo annually through the country’s system. cut as well – Jeddah Islamic Port and King Abdulaziz Port ranked
eighth and 14 , respectively.
th
Saudi Arabia can boast more than 2,200km of coastline,
much of which overlooks two of the world’s busiest global Another measure of success is the Kingdom being elected to
shipping routes. It also is uniquely situated geographically the prestigious Council of the International Maritime Organisation
between Asia, Africa and Europe, making it a convenient hub for for 2022-23. This is helping Saudi Arabia achieve its market share
the region and the wider world as they strive to tap into global goals in regional transhipments; it currently holds a 32 percent
demand. share of the regional logistics market and aims to have the largest
share of transit maritime trade in the Red Sea. Its aim by 2030 is to
The Kingdom’s consistent upward progress in the maritime hold a more than 50 percent share of the regional trans-shipment
sector is reflected in the UNCTAD’s Liner Shipping Connectivity container market.
index, where Saudi Arabia is moving up every quarter, reaching
16 position globally and first in the Arab world in the first and Last year, the Kingdom nearly doubled its general cargo
th
second quarter of 2023. With three of its ports featured among throughput, reaching more than one million tons in 2022 versus
the 100 largest ports in the world, the Kingdom is significantly 500,000 the year before, leading to a greater than 50 percent
raising the performance of its seaport network, making it one of year-on-year share increase in the regional container transhipment
the fastest-growing destinations for container ships. market.

King Abdullah Port.