Agility said it will build a large logistics park for storage and distribution near Jeddah as part of a land-concession agreement announced by Saudi Arabia’s State Properties General Administration (SPGA).
In a statement, Agility said the project at Jeddah- Al Mahjar calls for the construction of a modern warehousing complex on a 576,760 SQM parcel south of Jeddah, starting in Q1 2023.
Opening of the Agility Logistics Park – Jeddah is anticipated in Q1 2025.
"Under terms of its agreement with SPGA, Agility will invest 611 million SAR (US$163 million) to build the park and have the right to operate it for 25 years," the statement said, adding that Agility currently operates Saudi Arabia's "most advanced logistics parks" – Agility Logistics Parks in Riyadh (870,000 SQM) and Dammam (200,000 SQM).
Global logistics centre ambition
The announcement comes days after the Saudi government unveiled a sweeping plan to transform the Kingdom into a global logistics centre as part of Saudi Arabia's broad Vision 2030 strategy.
Saudi Arabia's Global Supply Chain Resilience Initiative (GSCRI) is intended to attract US$11 billion in fresh investment in its first two years and position the country as a key link in global supply chains through the development of logistics and industrial infrastructure, economic cities, and green energy, innovation and manufacturing.
Agility said this step will help the SPGA pursue and achieve its strategic objective of efficient management of its real estate assets in a way that maximizes the benefits for the development of the economy.
Agility said the park in Jeddah will serve international and local customers in the retail, consumer goods, technology, automotive, energy and e-commerce sectors.
"Agility's Jeddah complex will accelerate Saudi economic growth and make it easier for international and local companies to expand in the Kingdom," said Michel Saab, CEO of Agility Logistics Parks/Global Operations.
"Ultra-efficient warehousing and distribution are a huge competitive advantage. Companies operating from these parks shorten their time-to-market, reduce cost and risk, increase inventory turns and boost productivity," Saab added.
Agility noted that its Logistics Parks are connected, 24/7 complexes with Grade A, international-standard warehouses designed with advanced engineering and sustainability features. Recently, for example, its warehouse in Riyadh received a post-construction EDGE Advanced certification (Excellence in Design for Greater Efficiencies) which notes that the building is "zero-carbon ready" that is at least 40% more energy efficient than others in the market.
