The Saudi Minister of Transport and Logistics Services, Saleh Al-Jasser, has confirmed that the Riyadh Metro will begin operations this year, making it the largest metro project worldwide to be constructed in a single phase. This announcement aligns with the Royal Commission for Riyadh City’s earlier statement. Al-Jasser discussed the significance of this project during an interview with Al-Arabiya Business at the inauguration of the Maersk logistics zone in Jeddah. The collaboration between the Saudi Ports Authority and Maersk involved an investment of SR1.3 billion, with the logistics zone expected to handle 200,000 standard containers annually and create over 2,500 job opportunities.
The newly launched Maersk logistics zone in Jeddah’s Islamic Port is designed to streamline supply chain operations and offer integrated logistics solutions. This development is part of the national strategy for transport and logistics services led by Crown Prince Mohammed bin Salman, with the goal of transforming Saudi Arabia into a global logistics hub. With its strategic location, the Maersk Logistics Zone’s 225,000-square-meter facility can handle various goods, including refrigerated items at temperatures as low as -25 degrees Celsius, chemicals, and other products.
In 2023, Saudi Arabia rose to 17th place globally in the Logistics Performance Index, demonstrating significant progress in maritime connectivity over the past three years. This advancement complements improvements in air connectivity and multi-modal transportation integration. Al-Jasser commended the rapid completion of the Maersk Logistics Zone within 18 months, showcasing substantial private sector investment. This facility is one of 18 signed logistics projects across the Kingdom, with plans to expand to 59 logistics zones by 2030 from the current 22, including collaborations with international companies.
Private sector investments in logistics zones within Saudi ports have surpassed SR10 billion, with 12 additional agreements anticipated in the coming years to enhance the logistics network further by integrating with the nation’s road and airport systems. The minister emphasized the government’s efforts to boost the logistics sector, creating job opportunities and driving economic growth. With ongoing developments in infrastructure and partnerships with global players, Saudi Arabia aims to become a key player in the global logistics industry, leveraging its strategic location and resources. The completion of the Riyadh Metro and the Maersk logistics zone signify significant milestones in the country’s journey towards becoming a global logistics hub.
