JV enables CEVA to continue growth in key geographical market
CEVA Logistics has announced that it has signed a Joint Venture (JV) agreement with Almajdouie Logistics, one of the leading logistics providers in the Kingdom of Saudi Arabia (KSA).
The signed agreement now awaits review and approval by the necessary regulatory authorities. CEVA Logistics would control the majority of the newly established joint venture, according to a press communication.
The JV would mark a major milestone in both companies’ growth strategies. Almajdouie Logistics would benefit from CEVA’s strong global network, allowing it to serve its growing portfolio of customers with end-to-end integrated logistics solutions anywhere in the world.
Growth strategy
At the same time, CEVA Logistics would continue building an established and strong presence in Saudi Arabia to fulfill its regional growth strategy. Once completed, the JV organization would have around 2,000 employees in KSA and a local fleet of more than 2,000 assets.
The JV would target various industry verticals ranging from the conventional Saudi energy and petrochemicals industry to automotive, e-commerce, consumer and retail.
Offering end-to-end global and local logistics services would respond to a thriving Saudi market and support the Saudi Vision 2030. With most of the cargo used for the Saudi Arabia’s giga projects coming from overseas, seamless logistics is paramount and a key enabler of Vision 2030.
Investment
The Saudi Ports Authority invested SAR 17bn ($4.5bn) in the Kingdom’s maritime, logistics and port sector in 2023, and signed agreements to create new logistics parks on both coasts of Saudi Arabia – in the East at King Abdulaziz Port in Dammam, and at Jeddah Islamic Port in the West.
“By pooling our expertise and resources through this partnership, we aim to strengthen our competitive advantage and offer an integrated and comprehensive suite of logistics services enabling us to capitalize on the opportunities presented by the Kingdom’s vibrant and rapidly evolving business landscape,” affirmed Mohammed Almajdouie, CEO, Almajdouie Logistics,
“CEVA is extending our local knowledge for the benefit of our customers. We have worked successfully with Almajdouie Logistics over the past decade, and with the growing market in Saudi Arabia, this joint venture would strengthen our local presence,” commented Mathieu Friedberg, CEO, CEVA Logistics.
