The Kingdom has spent SAR 4.5bn to upgrade ports across Saudi Arabia
On the recent occasion of the 94th celebration of Saudi Arabia’s National Day, the Kingdom’s Ministry of Transport and Logistic Services reflected on the central role that Saudi Arabia has played in the journey of the international logistics sector, and shared how Saudi Vision 2030 is driving the creation of the next generation of logistics within the Kingdom.
This comes ahead of the Global Logistics Forum (GLF), to be held under the esteemed patronage of the Custodian of the Two Holy Mosques, King Salman Bin Abdulaziz Al Saud, which the Ministry of Transport and Logistic Services is hosting in Riyadh from October 12-14, 2024, at the King Abdullah Financial District. Bringing together more than 100 speakers including ministers, industry experts and private sector champions, GLF 2024 promises to tackle the industry’s most pressing challenges and uncover new opportunities.
“Saudi Arabia has always sat at the crossroads of three continents, serving as a vital trade route between Asia, Africa, and Europe for thousands of years,” stated HE Ahmed S. Alhassan, Assistant Minister of Transport and Logistic Services.
“In recent years, led by Saudi Vision 2030 and its theme of creating ‘A Thriving Economy’, Saudi Arabia has striven to significantly develop its logistics sector, securing the Kingdom as the north star of modern global logistics,” he added.
Saudi Vision 2030
Under the Saudi Vision 2030 theme of ‘A Thriving Economy’, strategic objectives, which include the creation and improvement of logistics hubs, improvement of local, regional and international connectivity of trade and transport networks, and enhancement of the ease of doing business, have set the direction for the growth and expansion of the logistics sector within Saudi Arabia.
Moreover, the 2024 Agility Emerging Markets Logistics Index continues to rank Saudi Arabia highly across several key measures and shows the impact of the agenda set forth by Saudi Vision 2030. Saudi Arabia ranks sixth for International Opportunities in the logistics sector, moving up three places from 2023. In Business Fundamentals and Digital Readiness, Saudi Arabia ranks third and sixth respectively, demonstrating the strong standing of the Kingdom in global measures logistics leadership.
These efforts have resulted in Saudi Arabia advancing 17 positions in the World Bank’s Logistics Performance Index, reflecting the Kingdom’s status as a global logistics leader.
Driven by the National Transport and Logistics Strategy, which outlines a slew of mega projects across the sector, investment and activity in the logistics industry has grown rapidly in Saudi Arabia. The results of this sectoral expansion are already clear. In just two years, Saudi Arabia has jumped nine places to become the 15th biggest handler of shipping containers globally in the 2024 Lloyd’s List report, cementing it as a vital global leader in international shipping.
Upgrade
The Kingdom has spent SAR 4.5bn to upgrade ports across Saudi Arabia, enabling this growth and unlocking future potential. King Abdullah Port, located on the Red Sea, is leading the shift towards green port operations, with solar energy systems and water-efficient practices reducing the port’s carbon footprint by over 20 per cent while increasing its efficiency and effectiveness.
Underpinning the significant investments in the logistics sector is a growing enthusiasm across Saudi Arabia to become part of it. New business registrations in the sector increased by a remarkable 76 per cent in Q2 2024, the fastest-growing sector in Saudi Arabia, and a reflection of the desire to contribute to the future of logistics in Saudi Arabia and globally.
At GLF 2024, that future will take shape, as new opportunities are grasped and challenges addressed.
