Saudi Arabia’s Crown Prince Mohammed bin Salman on Tuesday launched a new strategy that aims to make the kingdom a global logistics hub and boost the sector’s contribution to non-oil revenues, according to reports. The plans include an “ambitious package of mega-projects” and focuses on aviation, rail, and maritime shipping and logistics, according to the SPA.
Called the National Transport and Logistics Strategy, the Kingdom is seeking to boost the transportation and logistics sector’s annual contribution to GDP by 45 billion riyals ($12 billion) by 2030, state media said. The comprehensive strategy “aims to solidify the Kingdom’s position as a global logistics hub connecting the three continents,” the SPA said, and added that it will “uplift and improve all forms of transport services and strengthen the integration of logistical services and future technologies, supporting and enabling the Kingdom’s national development plans.”
The plans include an ambitious package of mega-projects, according to the SPA.
Part of the new strategy includes a new national airline “to increase the number of international destinations to over 250 and double air cargo capacity to more than 4.5 million tons.” The creation of another flag carrier “would catapult Saudi Arabia into the 5th rank globally in terms of air transit traffic, official state media reported,” without giving details on when and how the airline would be created, according to Reuters.
“This strategy will contribute to advancing technical capabilities and human capital in the Transport and Logistics Sector,” Crown Prince Mohammed bin Salman was quoted as saying in the SPA. “It will invest our country’s strategic position at the heart of three continents, further concreting our integral part of global economies; by creating advanced logistical industries, ensuring high quality services and applying competitive business models, we will strengthen productivity and sustainability in the logistics sector.”
The plan also focuses on maritime shipping. “We set a target to achieve an annual container capacity of over 40 million containers, including the associated value chain investments, in developing ports’ infrastructure, enhancing integration with logistics zones, expanding connectivity with international shipping routes and integrating this all with rail and road networks,” the Crown Prince said.
“By enhancing the entire value chain, we ensure the effectiveness and efficiency of the transport ecosystem and its economics.”
The Crown Prince highlighted rail transportation as another important target for growth. The Kingdom’s current railway network provides services for passengers and freight across a track of 5,330km, 450km of which are the Haramain high-speed railway –the largest high-speed transport project in the region – between the two holy cities of Mecca and Madinah.
The strategy will increase the total future length of railways to an estimated 8,080km, the Crown Prince said, including the flagship “Land Bridge” project, spanning more than 1,300km, with a capacity of over 3 million passengers and 50 million tonnes per annum and connecting the Kingdom’s ports from the Arabian Gulf to the Red Sea.
