Under the patronage of His Highness the Prince of the Eastern Province and in the presence of His Excellency the Minister of Transport
"Logistics Integration 2024" highlights the role of the logistics sector in the national economy.
His Royal Highness Prince Saud bin Nayef bin Abdulaziz Al Saud, the Prince of the Eastern Province, inaugurated, in the presence of His Excellency the Minister of Transport and Logistics, Engineer Saleh bin Nasser Al-Jasser, the activities of the Logistics Integration Forum 2024, yesterday, Monday, April 29, 2024. The forum was organized by the Asharqia Chamber to shed light on the present and future of the logistics sector and its role in the national economy, and its potential contribution to the comprehensive development system witnessed by the Kingdom. It also discussed the possibility of benefiting from the Eastern Province and its relative advantages as a gateway to the Gulf states and to all Asian countries.
During his tour of the accompanying exhibition, the Prince of the Eastern Province expressed his happiness with the economic activity in the region, noting that the Eastern Province is qualified to become one of the most important logistics regions in the Kingdom due to its distinctive geographical location and the relative advantages it offers for investment in various sectors.
The forum was attended by His Excellency the Minister of Transport and Logistics, Engineer Saleh bin Nasser Al-Jasser, many government officials, elite businessmen, local and international academics, experienced specialists, and interested parties in the field of logistics services. They agreed on the necessity of enhancing principles of partnership, localization, and automation in the sector to achieve logistics integration goals. They considered this the appropriate time to coordinate efforts to benefit from the advantages of the Eastern Province, emphasizing that the logistics sector is one of the most important supporting economic sectors for all other sectors, particularly in the Eastern Province, where it enjoys promising investment and operational prospects.
His Excellency the Minister of Transport and Logistics highlighted the significant support provided by the transportation and logistics system from the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince to support developmental and service initiatives in the sector. He explained that logistic integration and partnership between the public and private sectors are a key focus in the national strategy for transportation and logistics. Minister Al-Jasser emphasized the substantial growth in logistics sector activities and the significant leap the Kingdom has made, jumping 17 places in the Logistics Performance Index (LPI).
He stated that the transportation and logistics system is working to enhance integration between maritime, rail, and air transport modes. This includes transporting the first container shipment from Jubail Commercial Port to Riyadh, as well as ongoing logistic connections for Jeddah Islamic Port between maritime and air outlets, and rail connections for the internal rail network in Jubail. He confirmed that the ongoing development at King Abdulaziz Port in Dammam, including new navigation lines and increased handling rates, provides an additional boost to support logistic operations and supply chains with higher monthly handling.
Regarding the general plan for logistic centers, Minister Al-Jasser mentioned that the ministry will collaborate with the private sector to develop local, regional, and international connections through these centers. These centers will support international trade networks, contribute to growth, and generate employment opportunities. He noted that the general plan for logistic centers will enable local industries to export national products efficiently and support e-commerce to facilitate rapid connections between logistic centers and distribution centers within the Kingdom's regions, cities, and provinces.
He also discussed the relationship between the transportation and logistics system and the private sector, stating that it is a key element in achieving the targets of the national strategy for transportation and logistics. Minister Al-Jasser affirmed that the private sector is a primary partner and a fundamental pillar in the national strategy for transportation and logistics, serving as a cornerstone for sustainability.
Badr bin Sulaiman Al-Riziza, the Chairman of the Asharqia Chamber, expressed appreciation for the interest and support of the Prince of the Eastern Province for the private sector and his continuous care for it. He stated that the state is currently implementing an economic vision based on diversifying national income sources to ensure long-term sustainability, prompting continued efforts towards developing the structures of the national economy, with logistics services at the forefront as a crucial pillar for sustainable growth. He affirmed that advancing logistics services is an indicator of development and progress in countries, given its integrative role with all other sectors, saying, "Balanced growth for any country cannot be envisioned without leveraging its geographic potentials."
He pointed out that the country has embarked on significant expansion in logistic projects, greatly facilitating the movement of goods and products and increasing investment and job opportunities among the national workforces. He emphasized that the strategy introduced in mid-2021 for transportation and logistics, along with its included development projects, accelerated the achievement of logistic objectives ahead of schedule and opened broad prospects for private sector partnership in these projects. He asserted that the strategy and the subsequent launch of the general plan for logistic centers in August of last year represented a qualitative leap for advancing the logistic sector in the Kingdom, which undoubtedly will improve the quality of life in all regions and cities of the Kingdom.
Regarding the economic power equation, Rakan bin Abdulrahman Al-Otaishan, the Chairman of the Logistics Committee at the Asharqia Chamber, stated that the logistics sector represents a vital cornerstone for the national economy and is the main driver of economic development. He urged all public and private entities to integrate to achieve logistic sector objectives.
He affirmed that the logistics industry is the foundation upon which all our ongoing development programs rely, given its importance, significant role, and clear impact on all areas. He said, "The logistics industry has become one of the elements of the Kingdom's future economic power equation on the global map since the launch of Vision 2030." He pointed out that the country has enhanced its logistic targets in recent years by launching the National Strategy for Transportation and Logistics, reflecting the keen interest of our wise leadership in the logistics industry by placing it within the framework of massive national projects that enhance the Kingdom's competitiveness and make it one of the most effective countries, including projects and solutions for investors based on its strategic location in the heart of the world.
He said that the General Forum comes in support of the development stage witnessed by the logistics sector in all its fields, and aims to achieve integration and enhance the efficiency of infrastructure in keeping with the developments and growth of the logistics sector, and comes as a review of the investment aspects available in the sector, especially in the eastern region, which represents the capital of industry and stands on its territory there are many industrial complexes
The forum reviewed the most prominent updates and developments in the logistics zones in the Eastern Region, and the investment opportunities provided by the logistics and economic zones in the Kingdom. His Excellency the Secretary of the Eastern Region, Engineer Fahd Al-Jubeir, and His Excellency the Deputy Minister of Transport and Logistics and the Acting Chairman of the General Authority for Transport participated in its first session. Dr. Rumaih Al-Rumaih, and the CEO of the Eastern Region Development Authority, Engineer Omar Al-Abdul Latif.
Al-Jubeir stressed that the Eastern Province Secretariat is working in partnership and integration with the government and private sectors to overcome all the difficulties facing the logistics sector and create appropriate investment opportunities. He pointed out that the Secretariat has offered more than 400 opportunities with an area exceeding 8 million square meters.
For his part, Al-Rumaih explained that the transport and logistics system is always keen to issue appropriate legislation to support the private sector. It also emphasizes fair competition through the periodic regulations it issues, and that the system strives to serve the logistics sector in the Eastern Region, as it strives in the Logistics Partnership Council, which includes more than From 40 representative members from the government and private sectors to offer solutions to the challenges and overcome obstacles facing the logistics sector, as more than 140 existing challenges were addressed.
For this part, Al-Abdul Latif stated that the eastern region contains several comparative advantages, including three airports, including a main airport, four commercial ports, and 6 land ports, and more than 60% of exports and 37% of Saudi imports originate from the eastern region, and the region It contains more than 17 logistics areas and is considered the largest.
In the second session, the Executive Vice President of Strategic Planning at SAR Company, Engineer Tariq Al-Aqeel, explained that the Eastern Region has a distinguished infrastructure for the freight and passenger sectors, which is integrated through the investment opportunities launched by the Saudi Railways (SAR), and we seek at SAR to stimulate the private sector that... It is considered supportive and enabling of supply chains, especially logistics services, and the investment opportunities are attractive because they are easy to implement on the ground due to the presence of capabilities and a targeted industrial, export and import sector.
For his part, the Director General of the General Administration of Investment Development at the Royal Commission in Jubail, Engineer Muhammad Al-Zahrani, said that the Royal Commission for Jubail and Yanbu has been working since its inception to overcome the obstacles facing the logistics sector, and one of the most prominent services it has worked on is in shipping and exporting basic industries, including the establishment of the King's Port. Fahd Industrial and transportation service for basic industries to reduce the use of trucks, and to connect factories to each other to facilitate the process of transporting their products, as the pipeline corridor is now estimated at 110 square kilometers in length, and the factories have also been linked to the railway network in the commercial and industrial ports in Jubail.
While the Director of the Strategic Planning Department at the Modon Authority, Abdul Mohsen Al-Salem, confirmed that the Saudi Authority for Industrial Cities and Technology Zones "Modon" focused on the logistics services system in addition to its primary role, which is establishing industrial cities and technology zones, as "Modon" is working to establish and operate more than 17 A logistics center out of the 59 centers that were approved earlier, we expect it to generate more than 80,000 direct jobs, more than 210,000 indirect jobs, a volume of direct foreign investments exceeding one billion riyals, and a local return exceeding 2.6 billion riyals.
