Eastern Province eyes to become key logistics hub: Official

Omar Alabdullatif, CEO of Sharqia Development Authority (SDA)

Sharqia Development Authority (SDA) is working on several capabilities, programs, and initiatives to develop the logistics sector to make the province a major logistics hub through a rapid implementation with a direct impact, said CEO Omar Alabdullatif told Argaam.

On the sidelines of the Logistics Integration Forum 2024, Alabdullatif said the authority is currently working on developing several comprehensive plans, which take into account the importance of the logistics sector. The plans include building a long-term path with a strategic impact, as well as developing an initiative to activate the Dammam Regional Logistics Center (RLC) over an area exceeding eight million square meters (sqm) adjacent to a highway network.

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The center is planned to have a dry port, a quality logistics services area, and a direct connection to the railway and other services, the CEO said.

He stressed that the initiative would contribute to achieving the national target for container handling until 2030, adding that the logistics center is targeted to cover 55% of the total logistical activities in the province, especially as the center is nearby King Fahd International Airport and King Abdulaziz Port in Dammam.

The importance of the province's logistics sector comes from the launch of the general plan for logistics centers by Crown Prince Mohammed bin Salman to make the Kingdom a global logistics hub, the top official said. He added that 17 out of 59 logistics areas were approved in the Eastern Province, which is the highest target number for provinces in Saudi Arabia.

Alabdullatif noted that the Eastern Province has a distinct geographical location adjacent to five GCC countries, in addition to having three airports and four commercial ports.

"Thus, nearly 37% of the Kingdom’s imports are carried out through the Eastern Province’s ports, topped by King Abdulaziz Port with 25%. In addition, King Fahd Airport accounts for 24% of the Kingdom's total air freight business," the CEO said, pointing out that the logistics sector, accordingly, came second on the comparative advantage rankings for the Eastern Province, according to the Ministry of Economy and Planning’s 2023 report.

Commenting on the latest developments of Dammam public bus transport project, the top executive said the municipality is currently operating eight routes linking cities and neighborhoods of Dammam, in cooperation with the committee formed by the Eastern Province Municipality and in partnership with the SDA and some concerned parties to follow up on the project.

He added that the project is the core of the comprehensive public transport project that the SDA is working on, noting that the project will include express buses and the metro, in addition to the expansion of the bus rapid transit project.

The authority seeks to achieve sustainable and strong growth in the value of investments through adopting multi-level strategies, the most important of which is expanding the scope of such investments. The strategies also include developing the authority's relationships with partners and investors, benefiting from the opportunities arising from the province's comparative edge, and raising the Kingdom’s position on the Logistics Performance Index. This is in addition to increasing foreign direct investments to achieve growth and sustainable returns in the long term.

The logistics sector represents a key comparative advantage for the Eastern Province, and the authority is working through a development strategy to make the province a primary driver of logistics services. Further, the SDA seeks to provide capabilities that enhance accessibility, meet the needs of current operators, and encourage investment in the sector.

The governorates and cities of the Eastern Province have comprehensive development plans in the pipeline and are continuously working to meet the needs of community members, enhance the quality of life, and achieve comprehensive development in the province.

Moreover, the authority worked on the comprehensive plan for Hafar Al-Batin, Qatif, and Al Bayda governorates. It is currently working on comprehensive plans for the other governorates. The authority focuses on comprehensive development and infrastructure improvement.

The SDA is working with development partners to boost the efficiency of roads and improve transportation networks through the projects to develop the axes of Khobar and Dammam and the transportation model.

The authority exerted efforts to lure different investments to support the local economy and provide job opportunities. It is also working on some development projects that enhance Eastern Province’s competitive advantage through developing tourist and entertainment areas to attract more tourists and enhance the province’s tourism sector, Alabdullatif concluded.