Page 38 - Logistics News - September October 2023

S A UD I A R ABI A

Moving on to the Kingdom’s air sector, MOTLS is working closely with
Saudi Arabia attracted investments worth the public and private sectors to
2.4 billion riyals in 2022. In addition, it strengthen local supply chains and
signed several investment contracts integrate local SMEs with large
to further enhance the freight handling strategic industries to maximise
capabilities of King Abdulaziz International local content in national products
Airport, including the establishment of an and develop industrial value chains.
express parcel services area, providing air
cargo handling service, and expanding the Keeping in line with Vision
‘SAL’ station. 2030, the Kingdom is planning
to establish 59 logistics zones
In addition, four of the Kingdom’s to facilitate the development of
airports were featured among the top 100 local supply chains and enhance
airports globally and among the top 10 connectivity with regional and
in the Middle East. In 2022, King Khalid global supply chains under the
International Airport in Riyadh received the Skytrax International National Transport and Logistics Strategy along with NIDLP and
Award as the best-developed airport in the world, while King the Global Supply Chain Resilience Initiative.
Fahd International Airport, Dammam was named among the
best regional airports in the Middle East. As part of the initiative, agreements worth more than
SR1-billion will be signed to boost private-sector investment
Finally, Saudi Arabia Railways (SAR) ranked among the in domestic and global supply chains and stimulate industrial
safest railway companies, according to the International Union and economic growth. From among these zones, 19 will be
of Railways. SAR also is enjoying commercial success, having transformed into broader industrial zones to aid and accelerate
entered into an agreement with the global chemical company the growth of the Kingdom’s logistics sector. This will involve a
SABIC to transport polymers via railways from Jubail Industrial constellation of PPPs and an initial investment of SR29-billion.
City to King Fahd Industrial Port in Dammam for 25 years.
The GSCRI will continually assess potential partnerships to
This agreement is expected to lead to the transportation advance and ‘future-proof’ Saudi Arabia’s logistics and transport
of more than 300,000 containers via rail. This will lead to an assets and processes. It also will attract and assess investment
estimated 19 percent reduction in carbon emissions annually as in these sectors. One example of success is the nine agreements
well as ensure that roads will last longer. negotiated to develop and operate cargo facilities at several Saudi
airports. One of those, at the Jeddah Islamic Port, resulted in an
Reforms in governance structures and regulations across investment of SR9-billion.
the Saudi logistics ecosystem are paving the way for market
liberalisation and private sector participation and leading to A second example is the merger of the General Corporation
enhanced operational safety and efficiency. for Railways into Saudi Arabia Railways; this not only promotes
privatisation in the transport sector, it also increases efficiency
Another critical effort is well underway to attract and resilience while enhancing connectivity.
investment into the Kingdom’s logistics sector by boosting
public-private partnerships (PPP). Launched in 2022, the Global All these developments are supported by strategic
Supply Chain Resilience Initiative (GSCRI) aims to bring global investments by the Saudi government – more than SR550-billion
industrial companies to invest and set up in the Kingdom. in more than 300 projects in the transport and logistics sector by
Led by the Saudi Prime Minister and Crown Prince HRH 2030 – and the private sector.
Mohammed bin Salman, GSCRI’s targets include securing
$10.6-billion in investments in its first two years, leveraging Following the launch of its powerful Vision 2030 and
the Kingdom’s resources and infrastructure, and allocating subsequent specialist strategies designed to deliver against it,
$2.7-billion in financial and non-financial incentives for Saudi Arabia is poised to achieve its goal of becoming a global
participating companies and investors. logistics hub. •

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