Saudi Arabia launches plan to develop logistics centres

The government of Saudi Arabia has launched a master plan for logistics centres. The plan aims to develop the infrastructure of the logistics sector in the country, diversify the local economy, and strengthen its position as a global logistics hub.

The logistics centers master plan is part of the National Transport and Logistics Strategy (NTLS). The country is trying to capitalize on its geographical location connecting three major continents: Asia, Europe, and Africa.

The plan outlines 59 centres, spread across the key regions of Saudi Arabia, with a total area exceeding 100 million square metres. These include 12 logistics centres for the Riyadh region, 12 for the Makkah region, 17 for the Eastern Province, and 18 across the remaining regions of the Kingdom.

The ongoing work is focused on 21 centres, with the goal of completing all centres by 2030.

The facilities will enable local industries to efficiently export Saudi products, as well as support e-commerce by facilitating rapid connections between logistics centres and distribution hubs within various regions, cities, and provinces of the Kingdom.

The plan also facilitates high-level tracking and eases the process of obtaining logistics activity licenses, particularly with the introduction of a unified logistics license. So far, the license has been granted to more than 1500 local, regional, and international logistics companies, in addition to launching FASAH, the two-hour licensing initiative in collaboration with relevant government entities.

In April 2023, the country achieved a significant accomplishment in the transport and logistics system by jumping 17 places globally in the World Bank’s Logistics Performance Index, advancing to the 38th position among 160 countries in the international ranking of logistics efficiency.

The Ministry of Transport and Logistics Services (MOTLS) also recently launched a series of initiatives in the logistics sector to improve performance efficiency, re-engineer processes, and implement best global practices in the sector to enhance the country’s position as a global logistics hub. These initiatives include the launch of the integrated private logistics zone at King Salman International Airport in Riyadh, with Apple being the first international investor in the zone. One of the key priorities of the NTLS is to place the Kingdom among the world’s top 10 countries in the Logistics Performance Index by the year 2030.