RIYADH: Chinese and Japanese firms have inked logistics agreements with the Saudi Authority for Industrial Cities and Technology Zones, also known as MODON.
The organization has partnered with AJEX Co. to operate logistic services through a Saudi-Chinese collaborative effort and Kintetsu World Express via a Saudi-Japanese accord.
These partnerships aim to designate ready-to-use logistic modules in the burgeoning industrial epicenter of Dammam.
MODON has also reached an agreement with Saudi Arabia’s TAD Logistics, focusing on the development of logistic territories in both Riyadh and Dammam. This initiative promises a surge in national investments, the Saudi Press Agency reported.
The announcement came during the Supply Chain and Logistics Services Conference, which took place from Oct. 22-23 in Riyadh.
This year’s conference theme was “Towards a Sustainable Supply Chain to Enhance the Circular Economy,” emphasizing the Kingdom’s drive to bolster its position as a pivotal global logistics hub, as outlined in Saudi Vision 2030.
In August, Crown Prince Mohammed bin Salman unveiled the General Plan for Logistics Centers. A feature of this plan is the incorporation of logistics centers spread across 17 pivotal industrial cities under MODON’s banner. A notable 11 are slated to serve as core internal distribution hubs.
At the exhibition accompanying the conference, MODON showcased its logistic services.
Catering to both public and private sectors, the focus remained on the incentives ripe for exploration within the Kingdom’s industrial cities.
The initiative is expected to draw significant interest from domestic and international industrial conglomerates, underpinning the national economy and supercharging the logistics sector.
A testament to MODON’s pursuit of excellence was evident in its 2023 milestones. The authority reported a surge in cumulative investments, surpassing SR400 billion ($106 billion).
Furthermore, the authority has been instrumental in increasing the number of operational factories to over 6,000, spread across a sprawling 202 million sq. meters in 36 distinct industrial cities.
