Economic development authorities in Saudi Arabia have launched a master plan to build dozens of logistics centers “with the aim of transforming the Kingdom into a global logistics hub,” the country said yesterday.
The nation plans to capitalize on its strategic geographical location connecting the continents of Asia, Europe, and Africa. To get there, Saudi Arabia’s Ministry of Transport and Logistics Services (MOTLS) says it seeks to develop its logistics services industry, enhance export strategies, expand investment opportunities, and establish partnerships with the private sector.
More specifically, its “Master Logistics Centers Plan” outlines 59 centers with a total area exceeding 1 billion square feet. These include 12 logistics centers for the Riyadh region, 12 for the Makkah region, 17 for the Eastern Province, and 18 across the remaining regions of the kingdom. Current development work is focused on 21 centers, with the goal of completing them all by 2030.
According to Saudi Arabia, the finished centers will enable local industries to efficiently export Saudi products, as well as support e-commerce by facilitating rapid connections between logistics centers and distribution hubs within various regions, cities, and provinces. The plan also facilitates high-level tracking and eases the process of obtaining logistic activity licenses, particularly with the introduction of a “unified logistic license.”
So far, Saudi Arabian authorities have granted 1,500 of those licenses to local, regional, and international logistics companies. One of those license holders is Kuehne+Nagel, the Swiss freight forwarder that announced it had gained such a title in 2021.
According to Saudi leaders, their investments have already helped the country rise 17 places globally in the World Bank's Logistics Performance Index (LPI), advancing to the 38th position in the international ranking of logistics efficiency. The country says one of the top goals of its National Transport and Logistics Strategy (NTLS) is to reach the top 10 by 2030.
On the World Bank's current list of logistics capabilities in 139 countries, the U.S. is ranked 18th for its LPI score, trailing the top 10 of: Singapore, Finland, Denmark, Germany, Netherlands, Switzerland, Austria, Belgium, Canada, and Hong Kong.
