Saudi NEOM and DSV of Denmark form $10 billion logistics partnership

 

Saudi NEOM and DSV of Denmark form $10 billion logistics partnership  

Saudi Arabia's visionary city, NEOM, has joined forces with Denmark's DSV in a groundbreaking $10 billion logistics collaboration, dedicated to fortifying its ambitious initiatives. This partnership's primary focus is on delivering logistics services for NEOM's monumental project in the years ahead.

As per the agreement, the joint venture will oversee comprehensive supply chain operations, invest in transportation and logistics assets and infrastructure, and manage the movement and delivery of goods and materials within the NEOM region.

 

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NEOM will maintain a majority stake of 51% in the joint venture, while DSV will possess the remaining 49%, as stated in a company announcement.

Nadhmi Al-Nasr, NEOM's CEO, expressed, "This collaboration not only underscores the reality of NEOM and its visionary goals but also reflects the high level of confidence from the private sector in joining us on this remarkable journey."

He emphasized that NEOM's projected demand for logistics, both in construction and non-construction sectors, positions it as one of the world's most substantial customers. This partnership empowers NEOM to harness that demand effectively.

 

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Al-Nasr highlighted that this partnership with DSV, a renowned logistics company, will leverage its expertise to drive innovation and sustainability across the entire logistics value chain.

Furthermore, he stressed the economic advantages, including job creation and the promotion of a forward-looking economy in alignment with Saudi Vision 2030.

NEOM envisions robust demand for construction logistics until December 31, 2031, followed by sustained growth in non-construction logistics. This venture is also expected to bolster the Saudi economy, advance infrastructure development, and generate over 20,000 employment opportunities.

 

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Jens Bjørn Andersen, the CEO of DSV Group, remarked, "NEOM stands as one of the world's most extensive and intricate projects. It offers a unique opportunity for DSV to support a development that pioneers innovation, technology, and digital transformation."

He revealed that DSV has already established a substantial presence in Saudi Arabia, and this collaboration signifies a significant growth prospect for the company in the region.

Both NEOM and DSV are deeply committed to driving innovation, with a portion of the joint venture's earnings allocated for groundbreaking technologies and sustainable logistics solutions. This vision extends to the establishment of an innovation center at NEOM.

This new joint venture signifies a momentous development, showcasing NEOM's dedication to revolutionize Saudi Arabia's logistics sector and uphold sustainable logistics solutions in line with Vision 2030's objectives.

Source: Arab News