Saudi Arabia launches plan to become global logistics hub

Saudi Crown Prince and Prime Minister Mohammed bin Salman, who is also chairman of the Supreme Committee for Transport and Logistics, has launched the master plan for logistics centers to make Saudi Arabia a global logistics hub.

The master plan aims to develop the infrastructure of the Kingdom’s logistic sector, as well as to diversify the local economy, and enhance the status of the Kingdom as a leading investment destination and a global logistics hub, the Saudi Press Agency reported.

The Crown Prince stressed that the plan is part of a package of ongoing initiatives set as targets by the National Transport and Logistics Strategy (NTLS) with the aim of developing the logistical sector to support the economy, as well as to increase the local, regional and international connections of the international trade networks and global supply chains. It also aims to boost the partnership with the private sector, and thus increase the opportunity to generate jobs, and make Saudi Arabia a global logistics hub, given its geographical location among three important continents: Asia, Europe and Africa.

The master plan for logistics centers stipulates 59 centers with a total area of more than 100 million square meters, including 12 in Riyadh region; 12 in Makkah region; 17 in the Eastern Province, and 18 distributed in the rest of the Kingdom. There are currently 21 centers under various phases of implementation and all centers will be completed by 2030.

The centers will also enable local industries to export Saudi products with high efficiency, support e-commerce by facilitating a rapid link between logistics centers and distribution centers in the Kingdom’s various regions, cities and governorates, as well as to provide high traceability and facilitate the issuance of licenses to practice logistic activity. This is especially after the launch of the unified logistics license and the licensing of more than 1,500 local, regional and international logistics companies, and the launch of the Fasah initiative, which is an e-system integrated in Saudi customs, in cooperation with the concerned government agencies.

The logistics services sector represents one of the promising pillars of economic diversification and development in the Kingdom. It is currently witnessing many important initiatives and major developments aimed at developing the sector and expanding its economic and developmental contributions. The Ministry of Transport and Logistics seeks to develop the logistics industry, enhance the export strategy, expand investment opportunities, and seal partnerships with the private sector.

 

Saudi Arabia to support supply chain growth

Minister of Transport and Logistics Eng. Saleh Bin Nasser Al-Jasser has confirmed that they are working to inaugurate 59 logistic areas in Saudi Arabia in order to support the prosperity and the growth of the supply chains and logistic services.

Eng. Al-Jasser made these remarks during his speech at the Supply Chain Conference, where he stated that the 59 logistic areas would also enable Saudi Arabia to play a regional and global role.

He added that 18 industrial areas have been chosen in order to expand the scope of its work, to become a logistic industrial region that serves the arrival of the products into Saudi Arabia's regions and the export portals with high efficiency.

Crown Prince Mohammed Bin Salman's launch of the National Transport and Logistics Strategy (NTLS) has contributed in unifying the destination and charting the paths towards a brighter future of the Kingdom, Eng. Al-Jasser said.

He added that the NTLS has also empowered Saudi Arabia to be a global logistics center linking the three continents, in addition to the fact that it has enabled the Kingdom to be a model for a sustainable transport.

The presence of integrated logistic services is an important factor so as to achieve the national targets of the industrial and mining sectors, he noted.

Additionally, it also would decrease the cost of transporting and storing goods of Saudi origin, which will encourage local industries and support the goals of the national industry.

Eng. Al-Jasser pointed out that the transport and logistics services' system is working in developing the legislative system, and also improving the business environment in order to attract investments and modern technologies to meet the needs of several sectors.

At the conference, Deputy Minister of Industry and Mineral Resources Eng. Osama Al-Zamil announced the launch of the Developing the Local Supply Chain Development initiative.

The initiative aims in achieving clarity in the industrial supply chains, and also developing the industrial value chains for products, to be possible in increasing the investment for the integration of local supply chains, and their connection with the global and regional supply chains.