Experts call for enhanced incentives to boost EV adoption at Saudi auto show

Experts at a panel discussion titled ‘Charging Ahead: Building the Backbone of Saudi Arabia’s EV Revolution.’ AN photo
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Updated 17 September 2024
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Experts call for enhanced incentives to boost EV adoption at Saudi auto show

  • EV Auto Show in Riyadh underscores Saudi Arabia’s Vision 2030, highlighting its commitment to electric vehicles and sustainable technology

RIYADH: The Saudi government holds the key to developing the necessary infrastructure for electric vehicles, a top official said on the first day of the EV Auto Show underway in Riyadh.

Speaking at a panel discussion titled “Charging Ahead: Building the Backbone of Saudi Arabia’s EV Revolution,” Mansour Al-Makahlas, head of the eMobility division at Solutions Valley, a part of Saudi Electric Co., outlined the essential steps needed to advance the market.

Al-Makahlas stressed the importance of expanding charging infrastructure to encourage participation from chief product officers.

“In order to attract users to come to Saudi (Arabia) or to buy this vehicle, they need to release the incentive. They need to build more charging stations; they need to support the CPO to get into this market.”

He continued:, “There must be an incentive from the government, such as the case in Europe and the US. CPOs know that the return on investment is long-term. It’s not short-term. So an incentive must be there.”

During the same discussion, Alhareth Al-Hisan, founder and CEO of iCharge, noted that Saudi Arabia has a strong foundation for EV adoption globally. “It has the grid capacity, it has the political will, and it has the ability for the customer to spend on the expensive electric vehicle.”

Al-Hisan pointed out that planning is a primary concern in the regional EV industry and suggested that Saudi Arabia could benefit from Europe’s approach to infrastructure development. “When the infrastructure for electric vehicles started in Europe, it was heavily planned and very detailed where to place them, how to place them,” he said.

Wolfgang Ademmer, chief marketing officer at the sustainable mobility firm Alpitronic, also encouraged Saudi Arabia to follow Europe’s lead. “There’s a learning from Europe for other markets. I’m always a big fan of shortcutting learning curves, and we can do this in Saudi Arabia.”

Ademmer emphasized the need for a comprehensive plan to support industry participants and ensure their success in the EV sector. “Coming up with a clear plan, giving confidence to all market players, including those inherently starting the business right now. Encourage them to stay and invest with the right guidelines, and then also convince, subsequently, the users, the car drivers, to use and to drive EVs.”

Li Bo, vice president of Huawei Digital Power Strategy and Marketing for the Middle East and Central Asia, and director of Huawei EV Charging Business for the same region, predicted a rise in the vehicle-to-EV charging ratio.

Li noted that renewable energy development is advancing in Saudi Arabia and expects that new regulations will lead to a greater focus on renewable sources and storage solutions for EV charging stations.

Toward the end of the panel discussion, Al-Makahlas predicted significant growth in the EV market. “So, I believe that the market will double by next year. You will be shocked by next year; I can guarantee you.”

The EV Auto Show in Riyadh underscores Saudi Arabia’s Vision 2030, highlighting its commitment to electric vehicles and sustainable technology. The exhibition serves as a key event for the Kingdom’s burgeoning EV ecosystem, attracting 10,000 attendees from 50 countries, including industry leaders, automotive manufacturers, charging solution providers, and policymakers, to discuss the future of mobility in the region.


Saudi Post set to unveil region’s largest super sorting center

Updated 13 October 2024
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Saudi Post set to unveil region’s largest super sorting center

RIYADH: Saudi Arabia’s national postal company is preparing to launch the region’s largest super sorting center by early next year as part of its transformation strategy.

Anef Abanomai, president of Saudi Post, shared details about the new center with Arab News during the inaugural Global Logistics Forum in Riyadh.

The official said the facility is expected to significantly enhance supply chain capabilities, reduce delivery times, and support the Kingdom’s growing role as a global logistics hub.

“We have a plan. We’re hoping to be launching our design phase for our super sorting center toward the end of this year, early next year, as soon as we’re done with some permits and logistics challenges there,” Abanomai said.

The president emphasized that the launch of the upgraded sorting center, the largest in the region, will significantly boost productivity and services while also reducing costs and improving delivery times.

Abanomai noted that the organization is transitioning from traditional manual sorting methods to an automated, robotics-based system as part of its digital transformation strategy.

Previously, sorting was performed by staff who manually categorized and redirected items, making the process labor-intensive and susceptible to human error.

“That’s not the most efficient way to do it. It’s very challenging in terms of scalability and introduces a lot of risk for inconsistency, and mistakes happen that increase the cost,” Abanomai said.

He added: “Part of our digital transformation and automation roadmap was the introduction of robotics as a solution to improve our sorting, operation and process, which has been successful in deployment. Now, we’ll begin to gauge the impact on our efficiency cost to serve the resiliency of the service.”

According to Abanomai, Saudi Post is undergoing a significant transformation from a traditional postal operator, focused primarily on letters and stamps, to a comprehensive logistics provider.

This shift aligns with Saudi Arabia’s Vision 2030, leveraging the Kingdom’s strategic geographical position to connect three continents and enhance trade across various sectors.

Abanomai emphasized the necessity to expand and invest in various capabilities, particularly in logistics.

“When we talk about ports—seaports, airports, and land ports—there is a need to enhance and develop these areas to facilitate a more efficient and effective movement of goods and people, ultimately improving connectivity,” he stated.

He continued: “That will have a positive impact on many different industries, whether it’s trade, industrial manufacturing, mining, any industry, you can think of potentially will have an impact, through these capabilities that are being brought and invested in the country.” 

Another key catalyst for SPL’s transformation was the pandemic, which accelerated the organization’s shift and prompted the development of healthcare logistics solutions.

Abanomai explained that during COVID-19, government hospitals faced challenges in providing medications to patients due to restrictions on visits. In response, SPL implemented a rapid solution to deliver medications directly from hospital pharmacies to patients’ homes. Beyond healthcare, SPL has also expanded into innovative logistics operations.

“Over the past year, we’ve moved not just letters, electronics, and medications but also horses for the Saudi Cup, the world’s most prestigious horse race,” Abanomai said. 

He added: “This is just one example of how our logistics arm is helping position SPL as a leader in multiple sectors.”

The transformation involves leveraging existing capabilities and new investments to offer a broader range of services beyond what is typically expected from a postal operator.

One key example that he provided is SPL’s involvement in e-commerce logistics. The organization supports merchants by improving their access to customers, particularly through enhanced last-mile delivery solutions and sorting capabilities.

One of the biggest challenges facing the postal and logistics industry today is meeting evolving customer expectations, according to Abanomai.

“There’s always demand for faster, bigger, and less expensive services,” he said. 

Customers are also seeking more control, customization, and flexibility in the services they receive, which adds significant pressure on logistics providers. Balancing these demands with the operational realities is also complicated.

“The way logistics operations work is really through economies of scale,” Abanomai said.

To remain efficient, companies must invest in large-scale solutions and standardized processes, which can create tension as customers increasingly expect tailored and flexible services. A significant challenge for SPL and other logistics providers is the need to adapt swiftly to these changing expectations while maintaining operational efficiency.

“How do we create these solutions that are customizable, more efficient, and allow the control, at least the perception of control, for our clients and give them that ability to customize to their needs, without disrupting these standardized processes that the logistics providers have,” Abanomai said.

 


Saudi Arabia records 55% surge in container transshipment volume over 6 years, official says

Updated 10 sec ago
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Saudi Arabia records 55% surge in container transshipment volume over 6 years, official says

RIYADH: Saudi Arabia’s container transhipment volume between 2017 and 2023 witnessed a 55 percent surge, according to the president of the Saudi Ports Authority, or Mawani. 
During his presentation titled “Shaping Saudi Arabia’s Maritime Future” on the first day of the Global Logistics Forum taking place at the King Abdullah Financial District in Riyadh from Oct.13 — 14, Omar Hariri highlighted that the Kingdom saw a 31 percent increase in container import and export volumes over the same period.

This falls in line with Mawani’s goal to double the capacity of its ports, from the current 20 million containers to more than 40 million. 

It also aligns well with its aim to grow the market share of regional transhipment from around 32 percent to 45 percent and to lift the port occupancy rate to 70 percent.

“Between 2017 and 2023, we witnessed a 31 percent increase in container import and export volumes and a 55 percent surge in container transhipment,” Hariri said.

“These gains reflect both our economic growth story, as well as our success in improving port infrastructure and streamlining related operations in collaboration with you, our partners,” he added. 

During his speech, Hariri also shed light on the advantages of Saudi Arabia’s geographical position. 

“Our geographic location, bordered by the Red Sea and the Arabian Gulf, offers direct access to key maritime channels, which facilitate nearly 30 percent of the world’s container trade volume. This prime position strengthens Saudi Arabia’s ability to act as a bridge between the East and West, driving regional and global commerce,” the president said. 

“As the economic engine of the region, it generates 15 percent of the GCC’s (Gulf Cooperation Council) GDP (gross domestic product). In every way, our strategic location and economic strength make Saudi Arabia a country that can play an important role in shaping the future of global trade,” he added. 

As part of the event, President of the Saudi General Authority of Civil Aviation Abdulaziz Al-Duailej participated in a fireside chat titled “The Role of Air Cargo in Saudi Arabia’s Vision for Global Logistics Leadership,” in which he highlighted the importance of the sector in global supply chain and how it cannot be overstated.

“In an era where speed, reliability, and safety are paramount, air cargo has a distinct advantage over other modes of transport,” Al-Duailej said. 

“First, air cargo is essential for time-sensitive goods, from health care goods to electronics. We’ve seen its importance in a crisis like COVID-19, where GACA’s commitment to overcoming logistical challenges allowed the transportation and distribution of more than 53,000 kgs of vaccines,” he added. 

The GACA president underlined that globally, air cargo handles approximately $5.6 trillion, or 35 percent, of world trade by value despite accounting for less than 1 percent by volume.

“In 2023, the global air cargo volume was 58 million tonnes with $138 billion in revenue for airlines. In 2024, the global air cargo volume is expected to increase to 61 million tonnes with $120 billion revenue for airlines. This indicates a 5.2 percent increase in air cargo volume,” Al-Duailej said.

“Saudi Arabia has also witnessed significant growth in air cargo in 2024, with a 53 percent increase compared to 2023. For the first time, the country’s airports are expected to surpass the 1 million tonnes mark with a total volume of 1.2 million tonnes of air cargo anticipated,” he concluded in that regard.

Speaking in a separate panel titled “The New Map of Global Logistics Corridors, Putting the Pieces Together,” Chief Commercial Officer at Riyadh Air, Vincent Coste, revealed that the airline received its last certification flight with GACA. 

“Riyadh Air had quite an amazing achievement today because we completed our last certification flight with GACA. It has been a fantastic adventure with GACA since we started this. So, in the coming weeks, we will have hopefully this stamp from GACA saying we are an official airline, so that’s a great step,” Coste said. 

“The next step is summer 2025 when we are planning to start operating. We will operate in the summer to a few destinations, but starting from summer 2025 until the end of 2030, we’ll have the fastest growth that any commercial airline has experienced, with an average of two destinations opened every month and will be at over 100 destinations by 2030,” he added. 

Speaking during the same panel discussion, the CEO of Vietnam SuperPort at YCH Group, Yap Kwong Weng, explained the company’s offers. 

“And I’m also the CEO of the Vietnam SuperPort, a multi-modal logistics port that focuses on bonded warehouses cargo and also, you know, a spectrum of other activities that facilitate and push toward a sustainable outcome,” Weng said. 

“And here we are talking about cost competitiveness. We are talking about, you know, building new advantages. And that’s what logistics is all about, reducing cost, increasing efficiency,” he added.

GLF24 brings together global logistics leaders to discuss the latest trends, challenges, and opportunities in the sector.

Participants will explore future cooperation between stakeholders, focusing on reshaping the future of global logistics services. 

The two-day event aims to boost international collaboration and drive growth in the logistics sector by highlighting the latest technologies and innovative solutions. The event will also launch several initiatives to strengthen global communication and contribute to developing more efficient, sustainable, and flexible supply chain services. 

The first edition of the Global Logistics Forum is a pivotal event for the Ministry of Transport and Logistics Services, as it aims to revolutionize global trade by enhancing efficiency and profitability.


Closing Bell: Saudi main index closes in green at 12,069

Updated 13 October 2024
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Closing Bell: Saudi main index closes in green at 12,069

  • MSCI Tadawul Index increased by 6.27 points, or 0.42%, to close at 1,510.67
  • Parallel market Nomu surged, gaining 600.43 points, or 2.45%, to close at 25,123.38

RIYADH: Saudi Arabia’s Tadawul All Share Index surged on Sunday, gaining 74.99 points, or 0.63 percent, to close at 12,069.21. 

The total trading turnover of the benchmark index was SR5.69 billion ($1.51 billion), as 189 of the listed stocks advanced, while 35 retreated.  

The MSCI Tadawul Index increased by 6.27 points, or 0.42 percent, to close at 1,510.67. 

The Kingdom’s parallel market Nomu surged, gaining 600.43 points, or 2.45 percent, to close at 25,123.38. This comes as 48 of the listed stocks advanced, while 20 retreated. 

The best-performing stock of the day was Fawaz Abdulaziz Alhokair Co., with its share price surging by 9.98 percent to SR13.44. 

Other top performers included Development Works Food Co., which saw its share price rise by 9.86 percent to SR140.40, and Batic Investments and Logistics Co., which saw a 9.38 percent increase to SR4.08. 

The worst performer of the day was Al-Baha Investment and Development Co., whose share price fell by 9.52 percent to SR0.38. 

Al Majed Oud Co. and Anaam International Holding Group also saw declines, with their shares dropping by 5.95 percent and 2.16 percent to SR158 and SR1.36, respectively. 

Saudi Advanced Industries Co. has announced its estimated financial results for the period ending on Sept. 30. ​​SAIC’s shares advanced in today’s trading session, surging by 4.95 percent to reach SR37.10.

According to a Tadawul statement, the firm recorded a net profit of SR285.53 million in the first nine months of the year, reflecting a 156.84 percent surge compared to the same period in 2023. 

The rise in net profit for the current period, compared to the same period last year, is driven by higher revenue, despite increases in general and administrative expenses, financing costs, and zakat expenses. 

The Saudi Exchange has also announced the issuance of its resolution approving Shatirah House Restaurant Co. request to transfer from Nomu to the main market, with a capital of SR35 million and 35 million shares.  

The company’s shares will continue to be traded in the parallel market until the end of the period for publishing the transfer document, accordingly, the issuer must publish the transfer document within three trading sessions following the announcement of Saudi Exchange’s approval of the transfer request. 

The transfer document will be available to the public for viewing on the websites of the issuer, Saudi Exchange and the financial adviser for a period of ten trading sessions.

Accordingly, the trading of the issuer’s shares will cease starting from the day following the end of the period for publishing the transfer document for a period not exceeding five trading sessions, and the transfer procedures will begin. 

Saudi Exchange will also announce the cease of trading the shares and the start date of listing the issuer’s shares in the main market as soon as the procedures are completed. 

Tamkeen Human Resources Co., one of Saudi Arabia’s premier providers of innovative human resources solutions, has announced the price range for its initial public and the commencement of the institutional book-building period for participating parties. 

The price range for the offering has been set between SR46 and SR50 per share. The institutional book-building period commenced Oct. 13 and will end on Oct. 17. 

The offering will also consist of a secondary offering of 7.95 million offer shares, representing 30 percent of the company’s total issued share capital. 

It’s net proceeds will be distributed to the selling shareholders. The company will not receive any part of the proceeds from the offering. 

The final price at which all subscribers in the offering will purchase shares will be determined at the end of the book-building period.


Saudi Arabia aims for global logistics hub status by 2030 with tech investments 

Updated 14 October 2024
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Saudi Arabia aims for global logistics hub status by 2030 with tech investments 

RIYADH: The King Salman International Airport Development Co., a Saudi wealth sovereign fund-owned company, announced it had signed an agreement with ewpartners, a firm specializing in private investment, strategic alliances, and asset initiatives.

The partnership with the Public Investment Fund aims to leverage Saudi Arabia’s location as a link between three continents to drive growth and enhance operational excellence in the logistics sector, reported the Saudi Press Agency.

The parties will explore establishing an economic center for e-commerce and distribution, which is one of the hubs announced by the Ministry of Transport and Logistics Services.

This initiative aims to improve supply chains and facilitate investment and trade, thereby achieving the goals of the National Transport and Logistics Strategy and the objectives of Saudi Vision 2030.

The agreement strives to establish a logistics center at King Salman International Airport, designed to strengthen distribution management ties between China and Saudi Arabia.

This will play a significant role in positioning the Kingdom as a key regional hub for air freight, as per SPA.

The center is expected to enhance the efficiency and capabilities of distribution at the regional and international level, establishing the airport as a global logistics hub and reflecting the strategic role of Saudi Arabia in global services.

Marco Mejia, the acting CEO of KSIADC, commented that this partnership represents an important step toward realizing its vision of making KSIA a primary logistics center that serves regional and global companies and supports the country’s trade expansion.

He added: “Through our collaboration with ewpartners, we aim to enhance the Kingdom’s logistical infrastructure, increase operational efficiency, and create new opportunities that contribute to economic growth in the Kingdom and the region.”

Jerry Li, founder and managing partner of ewpartners, highlighted that the strategic location of the airport, along with its extensive regional commercial capabilities, will open new avenues for growth and innovation in the logistics and e-commerce sectors in the Kingdom.

The news agency underlined that partners would work to enhance various areas, including infrastructure, digital services, advanced manufacturing, and logistics.


Green practices in logistics offer profit, efficiency amid disruptions, says Al-Jubeir

Updated 13 October 2024
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Green practices in logistics offer profit, efficiency amid disruptions, says Al-Jubeir

RIYADH: Saudi Arabia’s commitment to developing an environmentally friendly logistics sector was highlighted by Minister of State for Foreign Affairs and Climate Envoy Adel Al-Jubeir during a fireside chat at the Global Logistics Forum in Riyadh.

Al-Jubeir outlined the substantial advantages of adopting green practices in logistics, stating, “Being green is profitable. Being environmentally friendly can be extremely lucrative. There’s often confusion stemming from the emotional discussions surrounding climate change; people conflate these emotions with reality. The reality is that investing in renewable energy is highly profitable.”

He also pointed out the efficiency of alternative energy sources, noting, “Ships powered by hydrogen and other alternative fuels are more efficient.” He acknowledged the growing pressure on countries to embrace sustainable practices but reassured that the shift toward environmental responsibility is beneficial because “it pays.”

According to a report by McKinsey & Co., the global green logistics industry is projected to grow significantly from $50 billion in 2025—about 2 percent of total logistics spending—to $350 billion by 2030, representing 15 percent of the broader sector.

A report from SAP, a German multinational software company, further supports this trend, indicating that green logistics enhances long-term profitability. “While initial investments are necessary to realize the benefits of green logistics, the long-term gains far exceed the costs,” the report stated.

Al-Jubeir concluded by underscoring the importance of efficiency in the logistics sector, emphasizing its critical role in achieving success in a competitive global marketplace.

“Efficiency is critical. The saying goes, ‘the future belongs to the efficient,’” stated Al-Jubeir, emphasizing that a company's ability to produce, package, transport, and market goods efficiently directly influences its sales performance.

He underscored the importance of optimizing every aspect of the logistics process, from the efficiency of ships and ports to the speed of loading and unloading containers and delivering goods to consumers. “Companies will become more efficient because that drives profit,” he added, linking operational efficiency to both commercial success and environmental sustainability.

Al-Jubeir also highlighted a global trend toward increased integration. While acknowledging potential conflicts at the micro level between specific countries or sectors, he stressed that the overarching historical trajectory is one of growing interconnectedness. “The world is more connected today than it ever has been, and it will continue to be as we move forward,” he asserted.

Despite the turbulence accompanying major transitions, such as the current shift from the information age to a post-information era, he expressed confidence in humanity’s capacity to adapt and solve problems. He pointed out that, throughout history, societies have consistently managed to progress despite disagreements and challenges.

Moreover, Al-Jubeir emphasized the importance of embracing diversity and cooperation in a multicultural world. He argued that shared universal values should foster mutual respect rather than the imposition of values on others.

In discussions surrounding trade and multilateral issues, he noted that disagreements often arise from a focus on competition rather than collaboration. “We need to focus on the problem and find solutions,” he said, expressing optimism that with the right technology, capital, and collective effort, the global community is well-equipped to tackle its challenges.

In another panel titled “The Resilience of Logistics Services in the Face of Disruption in the Red Sea,” top officials addressed the impacts of instability in one of the world’s most crucial maritime routes.

Rumaih Al-Rumaih, vice minister of transport and logistic services, underscored the importance of resilience in global trade routes, especially in light of recent disruptions in the Red Sea.

“The Red Sea is one of the main arteries for global trade,” Al-Rumaih explained, noting that disruptions in this vital route can have significant local, regional, and global repercussions. He highlighted the rise in maritime freight costs and the extended travel times as vessels are forced to reroute around the Cape of Good Hope, which can add up to 15 days to their journeys.

Reflecting on lessons learned from the COVID-19 pandemic, Al-Rumaih stated: “We should not take things for granted,” emphasizing that the Kingdom is now better equipped to handle such disruptions. He also discussed Saudi Arabia’s initiatives to diversify its logistics and transport networks to reduce reliance on any single route.

He pointed to the increased utilization of Gulf ports during the Red Sea disruptions and emphasized the Kingdom’s robust road and rail connectivity, which has played a crucial role in mitigating the impact of these challenges.

Osama Rabiee, chairman and managing director of the Suez Canal Authority, echoed concerns regarding significant disruptions faced by the canal. He reported that delays in shipments and rerouted vessels have caused Suez Canal revenues to drop from $9.4 billion last year to $7.2 billion.

Rabiee also highlighted the environmental implications, noting that ships traveling longer routes burn more fuel, which contributes to higher emissions. Despite these challenges, he affirmed the ongoing safety and reliability of the Suez Canal, stating, “The Suez Canal remains the safest and shortest route for global maritime traffic.”

Bud Darr, executive vice president of Maritime Policy and Government Affairs at MSC Group, addressed the broader challenges facing the shipping industry due to regional instability. “I don’t think anyone could say we’re on a pathway towards de-escalation in the region,” Darr remarked, emphasizing that the safety of seafarers influenced MSC’s decision to reroute vessels.

He pointed out the environmental and operational costs associated with longer routes, including increased emissions and impacts on service reliability and capacity.

Darr stressed the importance of building resilience into the supply chain, revealing that MSC had invested in additional capacity even before the current disruptions, enabling the company to adapt more effectively. “It’s not about the bare minimum; it’s about being ready for the next Black Swan event,” he added.