An innovative and efficient logistics sector forms the crucial backbone of any nation’s foreign trade framework. In an attempt to boost its regional reach, and global participation in trade and commerce, Saudi Arabia has sanctioned the development of 18 new logistics zones.

Saleh Al-Jasser, minister of transport and logistics, along with other senior officials, recently confirmed significant investments into KSA’s logistics sectors at the sixth edition of the Supply Chain Conference in Riyadh. The minister sounded off the development of 18 new logistics zones across the KSA, with investments exceeding $2.66 billion.

KSA’s growing prominence in the global supply chain has led to optimistic international rankings such as the Liner Shipping Connectivity Index, under which Saudi Arabia gained an additional 231 points by adding 30 new maritime shipping lines to its logistics network.

According to Al-Jasser, in order to accelerate Saudi Arabia’s logistical capabilities, investments into an “advanced network of regional and international airports, a robust series of highly efficient ports, and modern railway and road networks will accelerate shipping, handling, and export activities, linking the KSA to global markets.”

Investments into “various transport modes—such as ports, airports, and railways will form a unified and efficient system” that will link KSA to the world at large. Al-Jasser emphasized that “the focus will remain on bolstering maritime shipping routes, expanding air freight operations, increasing rail freight capacities, and activating logistics centers to support sustainable development, further cementing the KSA’s role as a global logistics hub and a vital link in international supply chains.”

The minister also stressed on the importance of implementing sustainable practices within its burgeoning logistics sector, that will align with Saudi Arabia’s National Transport and Logistics Strategy and Vision 2030.

Bander Alkhorayef, Minister of Industry and Mineral Resources, explored the ripple effects of these investments in Saudi Arabia’s economy. “The presence of robust supply chains and logistics services is of utmost importance in reducing costs for manufacturers and investors, while enhancing the KSA’s overall competitiveness,” he said.

Hyper-connected and streamlined logistics freezones will allow local industries to instantly access the KSA’s abundance of natural resources such as oil, gas, petrochemicals, and minerals. Strategic investments into logistics will usher in a new wave of demand for products from key global industries such as food security, water management, and pharmaceuticals.

Developments in Saudi Arabia’s Northern Train Line

The Northern Train Line acts as a crucial vein in the KSA’s distribution network. The Line connects Saudi Arabia’s nascent mining sector that poses potential for global supply in the following years. Al- Jasser mentioned plans to duplicate the Northern Train Line in a bid to link the KSA’s railway and eastern ports to mining sites to boost exports and global trade.

The Supply Chain Conference in Riyadh invited international experts from across the globe to share valuable insights on logistics innovations and supply chain best practices. In addition to drafting a multi-faceted supply chain that caters to global demand, senior officials also stated the importance of empowering female participation in the KSA’s ambitious logistical goals.