Neom + DSV form USD 10 bn logistics JV: Saudi Arabia’s mega project Neom and Danish transport logistics firm DSV are establishing a USD 10 bn logistics joint venture to provide logistics services for Neom, according to a press release. The shareholders have committed some USD 5 bn in funding until 2031 for the JV, which is expected to create some 20k jobs.

Ownership breakdown: Neom will hold a 51% stake in the JV, while DSV will hold the remaining 49%, according to the release.

The details: The JV will provide ground, sea, and air logistics services for the delivery of goods within the city, as well as supply chain management, development, and investments in infrastructure and logistics and transport assets. A portion of the JV’s revenues will also be allocated to developing technologies and commercializing new sustainable next-generation logistics solutions, including establishing an innovation center at the Neom’sOxagon, according to the press release.

The rationale: Neom is expecting high demand for construction logistics up until 31 December 2031, as well as sustained growth in the non-construction logistics sector later, according to the statement.

The timeline: The partnership is awaiting regulatory approvals that are expected to be obtained in 2Q 2024, according to the press release, which does not indicate the timeline for kicking off the JV’s operations.

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