LogiPoint set for phenomenal expansion, buoyed up by Saudi Arabia’s farsighted ‘Vision 2030’ ambitions
LogiPoint has been in the forefront in transforming Saudi Arabia’s maritime, logistics and supply chain, a vital stakeholder and player in supporting the endeavour to boost the Kingdom’s capabilities of becoming a major logistics hub serving the global markets.
LogiPoint, operating a network of integrated Logistics Parks and notably the first and largest bonded and re-export zone Saudi Arabia, is all set to expand its investment base in the Kingdom by building capacities and broadening its presence and services in 2020.
“2020 is slated to become a turning point year for LogiPoint as we seek to enlarge our footprint, widen product offerings and expand operations across Saudi Arabia. Our strategy envisions the provision of a high degree of professionalism, high efficiency, high performance standards, streamlining systems, developing our IT infrastructure, building capacity and portfolio of services,” affirmed Farooq Ahmed Sheikh, CEO, LogiPoint.
The multi-award winning LogiPoint is a subsidiary of Saudi Industrial Services Co– SISCO, a joint stock company listed on the Tadawul, the country’s Stock Exchange. Thanks to rapid takeoff, the company is witnessing heavy demand for its warehousing solutions, both for pre-built and for the ‘Built-to-Suit’ facilities.
According to Sheikh, this projected and cascading demand will drive LogiPoint’s investments to acquire additional warehousing space of about 55,000sqm and add substantially to the number and capacity of the warehouses.
Growth plans
He further elaborated that in its quest to extend across the Kingdom, LogiPoint will invest considerably in developing new state-of-the-art Logistics Parks and completing outstanding construction projects in the Jeddah Logistics Hub in 2020.
The company has recently signed a long-term agreement with Aramex, a leading global provider of comprehensive logistics and transportation solutions, for the construction of ‘Build-to-Suit’ facilities for Aramex’s Western Province ground operations.
LogiPoint currently has a total of 72,000sqm multipurpose warehousing area customised to client needs, fully equipped with sophisticated features such as: round-the-clock temperature monitoring with remote alert and battery back-up; redundant HVAC systems to ensure continuous operation; security systems with video surveillance and alarms; epoxy-sealed floors to ensure dust-free environment; full GMP and GDP compliance; pest control procedures; quality control processes and many more.
In addition, new buildings of about 55,000sqm are being built, which will be ready in 2020-21, Sheikh revealed.
Advantage Jeddah
Located in Jeddah Islamic Port, the busiest commercial port and leading gateway to the Kingdom, the one million sqm logistics hub provides services such as lead-logistics, trucking, warehousing, port services, turnkey supply chain integration from the port terminal to the distribution center, specialised handling, labeling and co-packaging.
“We ensure a seamless and smooth logistics operation for goods transportation into and outside the warehouses for all clients by providing professionally trained personnel who are equipped with all necessary equipment and supported by our custom-built IT infrastructure. This helps ensure reliable and consistent levels of efficiency across all operations at all times for all our clients,” he continued.
Meanwhile, as developers of logistics zones and parks, LogiPark has completed the Phase 1 of Jeddah Logistics Hub and has begun handing over units to clients. The company’s Logistics Parks- Modon 1 is spread over 120,000 sq m, located in the heart of the Jeddah Industrial Area, and close to the Jeddah Islamic Port, and the Logistics Parks South Jeddah, is spread across 662,900 sq m and located in Al-Khumra (the second largest logistics hub in the Kingdom).
From starting out as Saudi Arabia’s first bonded and re-export zone (BRZ), how has LogiPoint transformed the Saudi maritime and supply chain landscape over the last 20 years.
Pioneers
LogiPoint prides in being pioneers in the conceptualization and introduction of bonded and re-export services in the Kingdom. “By closely interfacing with the industry stakeholders and other Government institutions like the Ports and Customs Authorities in addition to other logistics service providers, we have enabled and empowered the Saudi supply chain sector to bring about far-reaching changes in the manner we serve our local and the international clients,” asserted Sheikh.
The year 2019 has been fruitful for LogiPoint with many accomplishments. The company signed an agreement with Aramco Chemicals Trading Company to become the strategic export logistics hub for the world’s leading petrochemicals organisation.
On the other hand, with an eye on the future, LogiPoint emerged as the strategic logistics partner for one of the global e-commerce giants, as well as leading local service provider Naqel.
Both signed up with LogiPoint to develop their supply chain solutions for the burgeoning Saudi market. As developers of logistics zones and parks, in the recent past, LogiPoint also completed the Phase 1 of Jeddah Logistics Hub and began handing over units to clients.
Innovative Services
One of the landmark new services that LogiPoint introduced last year was the cross-border multimodal movement for shipments into the GCC. Eastbound shipments from the Western origins can now be discharged in Jeddah and moved via bonded trucking to their final destinations in the GCC.
This helps reduce the transit time for the imports into the region by approximately seven to 10 days and introduces unprecedented efficiencies for the regional logistics sector. On the flip side, West-bound shipments originating from the East can now be discharged on the regional ports in the Arabian Gulf on the East, and moved under bond to Jeddah for onward multimodal movement to final destinations in Africa, Europe and the Americas.
LogiPoint is constantly re-evaluating its value-added services for its clients to see how it can bring greater new efficiencies, cost savings and better profits to their business. “Regional exporters can now avail our value-added services to serve their export markets in the Mena region and beyond when they use LogiPoint as their regional logistics hub,” observed Sheikh.
Strategic Alliances
LogiPoint works extensively with industry stakeholders to explore new facilities and solutions for its clients. These collaborations happen with local as well as international stakeholders and include leading international shipping companies, ports and customs authorities as well as Saudi airports. This is especially important for developing LogiPoint as a corridor for integrated sea-air shipments.
Some of LogiPoint’s planned alliances and joint ventures focus on International Freight Forwarders’ Networks which have thousands of members across the world, and which are looking to facilitate their members when it comes to doing business in and through the Kingdom.
Targets
“2020 is set to be the year when we take our expansion plans to the next level. We will look to expand our footprint across the Kingdom with our logistics parks and zones, while we grow with the needs of the sectors and clientele that we serve. Our focus will remain on offering second to none services to our customers by investing in building our capacity and IT infrastructure,” noted Sheikh.
LogiPoint’s contribution to the Saudi market has been remakable. Twenty years ago, when it commenced operations, the bonded zone was an unfamiliar concept to the logistics industry in the Kingdom. Today, the industry is able to plan, develop and deliver highly sophisticated logistics solutions to the market because of the initiatives the company has been pioneering and introducing over the years.
In this way, LogiPoint has attracted extensive new investments into the Kingdom, enabling the freight forwarding and logistics industry to offer cost-effective and efficient services to the market.
“We continue to see our role as one of making active contribution to the ‘Saudi Vision 2030’ through enabling the logistics and supply chain industries,” emphasized Sheikh.
BOX OUT
LogiPoint enters strategic partnership with Aramco for petrochemicals exports from Kingdom
Stakeholders Jeddah Islamic Port and Saudi Customs will re-structure and facilitate the export processes
In a major milestone accomplishment, LogiPoint recently concluded a key agreement with Aramco Chemicals Company (ACC).
With extensive support from stakeholders Saudi Customs and Jeddah Islamic Port, the country’s principal and busiest port, to re-engineer the export processes, this agreement provides ACC with a strategic export logistics hub.
Furthermore, this helps eliminate the need to use an intermediary overseas hub for storage and onward shipping of their cargoes therefore enhancing its ability to provide cost-effective solutions.
The cargo is then dispatched directly to the target market, ensuring efficient services and reduction of the export processing time from one week to one day thereby increasing the demand and appeal for Saudi products.
This agreement is aligned with the ‘Saudi Vision 2030’ and the ‘National Industrial Development and Logistics Programme’ (NDLIP) under the supervision of the Saudi Logistics Hub.
