Saudi Arabia is aiming to become a global logistics hub with eye-catching plans outlined in a new National Transport and Logistics Strategy.
The strategy is led by massive infrastructure development supplemented by equally extensive plans for new platforms and logistics zones. These will use advanced models and systems and be effective partnerships between the government and the private sector, the Strategy’s launch was told.
The project has been priced at US$147 billion with a timeline through 2030. Tellingly, the Ministry of Transport is to be renamed as the Ministry of Transport and Logistics Services – a bold but clear bid to rebrand Saudi Arabia as a hub.
Key to the hardware part is a proposed “land bridge” of more than 1,300km which will connect ports on the Arabian Gulf with those on the Red Sea Coast. This will be done by increasing the country’s rail network to 8,080km from the current 5,330km.
The plan is for rail to transport 50 million tons of freight and maritime to move 40 million containers annually. This means more investment in port infrastructure, enhanced integration with the logistics sector, expanded connectivity with international shipping lines and improved integration with rail and road networks, which will be made safer.
The rail route, which is to be double tracked, will be from Al Jubayal along to Dammam on the Gulf Coast inland to Al Hufuf where the line will split with one branch heading to Riyadh and another to Haradh. The lines re-merge at Riyadh before heading to Jeddah on the Red Sea Coast.
Air cargo is also set to double its capacity to more than 4.5 million tons.
“This strategy will strengthen human and technical capabilities in the transport and logistics sector in the Kingdom,” Saudi Arabia’s Crown Prince Mohammed bin Salman said, launching the strategy.
“Transport and logistics are a major focus of the programs of the Kingdom’s Vision 2030 and a vital enabling factor for economic sectors toward sustainable development,” he added.
Riyadh also has several other goals – one being a top ten ranking in the world logistics performance index. Another, the crown prince noted, is to increase the contribution of the transport and logistics sector to national gross domestic product from the current 6% to 10%.
Michael Mackey
