HE The President of the General Authority of Civil Aviation (GACA) presents the Integrated Logistics Bonded Zone
A landmark, well-atttended introductory forum was recently held at the Fairmont Hotel in the Saudi Arabian capital Riyadh under the patronage of the President of GACA, HE Abdulhadi Al-Mansouri.
Present on this important occasion were senior Government and GACA officials along with high-ranking officers from local, regional and international foreign companies and potential investors.
Creating opportunities for the logistics and supply chain sectors
The logistics investments, supply chain, storage and distribution opportunities in Saudi Arabia were reviewed to demonstrate the scope and potential of this promising sector.
The creation of the Integrated Logistics Bonded Zone (ILBZ) at Riyadh’s sprawling and busy King Khalid International Airport enables and empowers the partnership of private investors and related logistics services providers with the government sector,
This move creates an appealing modern work environment by facilitating all the procedures, creating the appropriate infrastructure and regulatory and oversight mechanisms.
In his keynote address HE Al-Mansouri assured the efforts of the Logistics Hub Executive Committee and taskforce to overcome all the obstacles in the logistics sector, to attain the ambitious Saudi Vision 2030 initiated by HM Mohammed Bin Salman Al Saud, Crown Prince, Kingdom of Saudi Arabia.
HE Al-Mansouri added that the Saudi leadership totally supports all efforts to transform the Kingdom into a significant logistics hub connecting three continents—Asia, Europe and Africa and a bridge between the corresponding hinterlands.
Good potential
Furthermore, he called on all interested parties and stakeholders to optimize and harness the offerings and potential of the burgeoning Saudi logistics network. The Kingdom boasts the massive air and surface cargo traffic as the largest country and the biggest economy in the region and the most populated country in the GCC.
Saudi Arabia has developed the logistic sector with SR 400bn (US$ 107bn) capital investments by raising the capacity of the land, air and maritime cargo and streamlining and automating all the export / import procedures to empower this sector in the local economy thereby raising the regional competitiveness.
Currently, the volume of the logistics market in Saudi Arabia is US$ 18bn, which constitutes over half—55% of the total GCC logistics services’ market. By 2020, the value of this sector is expected to be US$ 25bn, making it one of the the fastest-growing markets worldwide.
Committed to expansion
GACA is in the process of launching several key economic projects to revive this sector as exemplified by the Integrated Logistics Bonded Zone (ILBZ) at King Khalid International Airport in Riyadh, one of which is the first logistic area in Saudi Arabia. There are plans for more areas to be developed in the near future.
“At this current stage, we are laying the cornerstone in the process of stimulating and expanding the logistics sector in the Kingdom of Saudi Arabia. We are also issuing appropriate guidelines and regulations for this vital industry sector. I wish to emphasize the efforts of the Logistics Committee supported by all government sectors and in all aspects to make these projects a global exemplary model,” HE Al-Mansouri concluded.
It is worth noting that the enabling of the Kingdom of Saudi Arabia as a major regional logistics hub is one of the initiatives of the ‘National Industrial Development and Logistics Programme’ launched earlier this year, and it is one of the largest projects and an important component of the lofty Saudi Vision 2030, that aims to transform the Kingdom into a leading industrial power and an international logistics nucleus.
