The JV will drive innovation leveraging existing R&D efforts
NEOM and DSV have announced a US$ 10bn exclusive logistics joint venture to support the development of the ambitious projects taking shape in NEOM, Saudi Arabia. The partnership will focus on providing logistics services for NEOM in the coming years.
Under the agreement, the joint venture will provide end-to-end supply chain management, development and investments in transport and logistics assets and infrastructure as well as transport and delivery of goods and materials within NEOM. NEOM will hold 51% of the joint venture with DSV holding the remaining 49%, according to a corporate press communique.
NEOM envisions unparalleled demand for construction logistics through to December 31, 2031, with sustained growth in non-construction logistics thereafter. In addition to its impact on the logistics landscape, the venture is expected to boost the Saudi economy, through infrastructure development and creating more than 20,000 job opportunities.
Expertise and know-how
“This partnership not only shows the reality of NEOM and its vision, but also the private sector’s level of confidence to join us on this journey. Working alongside one of the world’s leading logistics companies, the joint venture with DSV will build on expertise and know-how to drive innovation and sustainability throughout the logistics value chain,” explained Nadhmi Al-Nasr, CEO, NEOM.
“The economic benefit to this partnership will not only provide tens of thousands of jobs, but it will also enable growth to capture local and regional market share. It is a living example of Saudi Vision 2030 in action, fostering job creation and building a future-leaning economy,” he added.
Complex project
“NEOM is one of the largest and most complex projects in the world. It provides a unique opportunity for DSV to support a development that is at the forefront of innovation, technology and digital transformation. DSV already has a strong presence in Saudi Arabia, and this is a significant growth opportunity for us in the region and we look forward to working with NEOM Company and bringing our logistics capabilities to the table,” commented Jens Bjørn Andersen, Group CEO, DSV.
NEOM and DSV are committed to driving innovation and will allocate a portion of the JV’s revenues to foster the development of groundbreaking technologies and commercialize new sustainable next-generation logistics solutions. The vision extends further by establishing a dedicated innovation centre at NEOM.
