Crown Prince unveils transport, logistic services strategy

Crown Prince Mohammed bin Salman 

Crown Prince Mohammed bin Salman launched today, June 29, the national strategy for transport and logistics services. 

The strategy aims to enhance the Kingdom’s position as a global logistic hub that links the three continents. It also aims to improve the transport services and enhance integration of the logistics services system and modern means of transport to support the Kingdom’s development. 

It includes a package of large projects to achieve economic and social targets and adopt effective governance models to strengthen institutional work in the transport system. 

“This strategy will strengthen human and technical capabilities in the transport and logistics sector in the Kingdom. It will enhance the connection with the global economy and enable our country to invest its geographical position in the middle of the three continents. This will help diversify our economy by establishing an advanced logistics services industry, building high-quality systems of services, and applying competitive business models to enhance productivity and sustainability in the logistics sector,” the Crown Prince said.

“Transport and logistics are a major focus of the programs of Vision 2030 and a vital enabling factor for economic sectors towards sustainable development,” he added.

The strategy focuses on developing infrastructure, launching several platforms and logistic zones in the Kingdom, implementing advanced operating models and systems, and strengthening effective partnerships between the government and the private sector to achieve four main goals.

The goals are transforming Saudi Arabia into a logistics hub, enhance livability across the Kingdom, enhance fiscal sustainability, and improve public entities performance.

It also aims to help Saudi Arabia become the fifth largest globally for air transport and transit passengers, which in turn, will increase the number of international destinations to more than 250.

It also aims to launch a national carrier to help other sectors, such as Hajj, Umrah and tourism, realize their national objectives. Moreover, it seeks to add new capacities in the air transport sector and double the air cargo sector’s capacity to over 4.5 million tons.

With regards to the maritime transport sector, the Crown Prince said: “The strategy enables us to reach a capacity of more than 40 million containers annually, including all associated investments in developing port infrastructure and enhancing its integration with the logistic areas in the Kingdom, as well as expanding its connectivity with international shipping lines, integrate with rail and road networks, which contributes to improving the efficiency of the transport ecosystem and its economics.”

Moreover, the railways provide services for the passenger and freight transport sector through a network of 5,330 kilometers (km) of track, out of which 450 km is in the Haramain high-speed railway between Mecca and Madinah, which is the largest high-speed transport project in the region.

The strategy will also increase the total length of future railways estimated at 8,080 km, including the "land bridge" project, spanning more than 1,300 km. It will have a capacity to exceed 3 million passengers and transport more than 50 million tons of freight annually to connect the ports on the coast of the Arabian Gulf and the Red Sea. This will open new and promising opportunities for the rail network by passing through modern logistic centers, economic hubs, industrial cities, and mining activities.

This will improve the logistic performance index of the Kingdom to be among the top 10 countries in the world, including an open market for operators and investors in railways. This will encourage the achievement of an important regional goal and interconnection with the Gulf states by a railway line, positioning the Kingdom as an influential player in regional and international transport economies.

It aspires to increase the sector's contribution to GDP to 10% from 6% and boost its non-oil annual revenue to nearly SAR 45 billion in 2030.