Regional logistics players signed several more agreements at the Global Logistics Forum in Saudi Arabia, which wrapped yesterday. The agreements cover raising storage capacity across the Kingdom, improving logistics innovation, and streamlining trade operations, among other areas.

REFRESHER- Saudi Arabia reportedly inked 69 agreements worth over SAR 17 bn during the first day of the forum in Riyadh on Sunday.

THE SECTOR IN NUMBERS-

The Kingdom’s targets: Saudi Arabia has its sights on becoming a global logistics hub by 2030, with plans to funnel a whopping SAR 1 tn into its logistics sector, Saudi Transport and Logistics Services Minister Saleh bin Nasser Al Jasser said at the opening ceremony of the forum in Riyadh on Sunday, according to state news agency SPA. SAR 200 bn of this amount has already been allocated under the National Transport and Logistics Strategy launched in mid-2021.

In numbers: The Kingdom’s air freight sector grew 53% y-o-y, and is projected to reach 1.2 mn tons of freight by the end of 2024, Al Arabiya reports. Saudi Arabia also aims to increase its air cargo volume to 4.5 mn tons by 2030 from 0.8 mn tons in 2023 by investing some USD 100 bn in airport developments, including expanding ground handling facilities and integrating digital platforms for cargo handling.

TRANSPORT-

Almajdouie + CEVA finalize JV: Saudi Arabia’s Almajdouie Logistics inked a final agreement to form a joint venture (JV) with France-based CMA CGM’s logistics arm CEVA Logistics to boost logistics and transport services in the Kingdom, according to a press release. The JV — which will be headquartered in Dammam — will provide around 2k jobs in Saudi Arabia and maintain a local fleet of over 2k assets.

Background: Almajdouie Logistics announced it was forming a JV with CEVA Logistics back inJuly. No investment ticket was specified. CEVA Logistics will hold majority control over the JV, though the exact ownership split has not been disclosed.

WAREHOUSES + INFRASTRUCTURE-

#1- Building warehouses in Jazan: Saudi Arabia’s Royal Commission for Jubail and Yanbu (RYJY) inked an MoU with Dhahran-based logistics firm Cheetah Logistics to build warehouses in KSA’s Jazan Special Economic Zone (SEZ), according to a statement. The partnership — intended for primary and downstream industries — aims to bolster logistics infrastructure, increase storage capacity, and improve trade operations across the Kingdom.

#2- Saudi Transport + SIDF partner up on logistics development: The Saudi Transport and Logistics Services Ministry signed an MoU with the Saudi Industrial Development Fund to improve the Kingdom’s connectivity to global markets and support logistics infrastructure development, according to a statement.

#3- Yanbu Industrial City gets an operational push: Globe Group signed an MoU with RYJY to operate Yanbu Industrial City’s container yard, a multi-modal logistics hub project, according to a statement. No further details were provided on the agreement.

DEVELOPING LOGISTICS OPERATIONS + EFFICIENCY-

#1- Saudi Transport + Nupco to boost logistics efficiency: The Saudi Transport and Logistics Services Ministry signed an MoU with PIF-backed medical supplier Nupco to optimize procurement and streamline logistics services across the Kingdom to boost efficiency in the Kingdom’s logistics industry, according to a statement.

#2- A new logistics studio: The National Industrial Development and Logistics Program will launch a new Logistics Innovation Studio to address challenges in the logistics sector by integrating advanced tech and adopting environmental sustainability practices, SPA reports. No further details on the studio were provided.

#3- Modon + Aramex to explore joint logistics projects: The Saudi Authority for Industrial Cities and Technology (Modon) inked an MoU with UAE-based logistics provider Aramex to explore developing joint logistics projects and encouraging investment in Saudi Arabia’s industrial cities, according to a statement.

UPDATES-

EWpartners announces investment figure for KSA-Sino Logistics Zone: PIF-backed EWPartners is looking to attract USD 2 bn for the initial development of the e-commerce and logistics special economic zone within King Salman International Airport, Managing Partner Cliff Chau told Bloomberg. The full investment ticket for the 4 sqm zone — scheduled to launch at the end of the year — is yet to be determined.

Background: King Salman International Airport Development Company inked anMoU with EWpartners to explore the development of the special economic zone at King Salman International Airport.

MORE AGREEMENTS-

SLA + Qassim University partner up for logistics education: The Saudi Logistics Academy (SLA) inked an MoU with KSA’s Qassim University to work on developing expertise, knowledge, and skills to enhance the Kingdom’s logistics sector. (Statement)

SLA also inked an MoU with Saudi’s Municipal and Rural Affairs Ministry to share logistics knowledge to support innovation and efficiency across the Kingdom’s logistics landscape. (Statement)

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