Saudi Arabia reveals comprehensive blueprint for logistics centers

 

Saudi Arabia reveals comprehensive blueprint for logistics centers

Saudi Arabia's Crown Prince, Mohammed bin Salman, has introduced an expansive master plan aimed at bolstering the kingdom's logistics centers. This strategic initiative aims to enhance the infrastructure of Saudi Arabia's logistics sector, promote economic diversification, and elevate the nation's global standing as a hub for logistics, according to the Saudi Press Agency (SPA).

The master plan outlines the construction of 59 logistics centers spanning a combined area exceeding 100 million square meters across the kingdom. This undertaking is a key component of the broader National Transport and Logistics Strategy. Riyadh will host 12 of these logistics centers, while Makkah will accommodate 12, the Eastern region will host 17, and the remaining 18 will be distributed across other parts of the country.

SPA stated, "There are currently 21 centers being worked on, and all centers will be completed by 2030."

By capitalizing on its strategic geographical location, situated amidst Asia, Europe, and Africa, Saudi Arabia aims to transform itself into a global logistics epicenter, fostering job creation and enhancing connections within international trade networks and global supply chains.

The comprehensive logistics development, including the expansion of ports, rail systems, and road networks, is projected to elevate the transport and logistics sector's contribution to the nation's Gross Domestic Product (GDP) from 6 percent to 10 percent.

The envisioned logistics centers are set to empower local industries to efficiently export Saudi products, bolster e-commerce through streamlined connections between distribution and logistics centers, provide meticulous traceability, and facilitate logistics activity licensing.

Evolving Saudi Arabia's Logistics Landscape

Saudi Arabia's logistics services sector constitutes a pivotal element of the Vision 2030 economic diversification blueprint. Over the years, the nation has undertaken various initiatives and significant strides to advance this sector, fostering economic growth and development.

At the heart of Saudi Arabia's national transport and logistics strategy is the aim to elevate the sector's contribution to the nation's annual non-oil revenues to approximately $12 billion by 2030. As part of this strategy, the launch of Riyadh Air, the kingdom's second national airline, is slated for 2025. It is expected to serve more than 100 global destinations by 2030, adding an estimated $20 billion to Saudi Arabia's non-oil GDP and generating over 200,000 direct and indirect jobs.

In November 2022, plans were unveiled to transform Riyadh Airport into a sprawling aviation hub, complete with six parallel runways capable of accommodating up to 120 million travelers by 2030. Additionally, King Salman International Airport is projected to create 103,000 direct and indirect jobs, serve 185 million travelers, and process 3.5 million tons of cargo by 2050.

Saudi Arabia's forward-looking logistics endeavors are strategically aligned with the nation's aspirations for economic diversification, enhanced global connectivity, and sustainable growth.

Source: https://gulfbusiness.com/