JEDDAH: Saudi Arabia has inaugurated the world’s largest truck marshalling area, spanning 1 million sq. meters, at Jeddah Islamic Port while the Saudi Ports Authority signed seven agreements with companies worth investments exceeding SR1 billion ($266.9 million) on the sidelines of the launch.
The marshalling area, inaugurated by Minister of Transport and Logistics Services Saleh Al-Jasser, has been designated as the first transit point for trucks heading to Jeddah Port before proceeding to gates 4-9, and will increase operational capacity, reduce congestion, and improve the flow of truck traffic.
Al-Jasser told Al-Eqtisadiah that the new truck area at the port raises the efficiency of logistics operations and trade movement, affirming that the logistics sector has adapted to shifts in global shipping traffic by redirecting trade to the western coasts.
Regarding logistics zones, he explained that with the signing of the new agreements, the total number of logistics zones within Saudi ports rises to 34, with investments amounting to SR15 billion fully funded by the private sector.
The agreements included establishing a logistics center to support commercial activities and maritime services, and another integrated center to support import and export operations and logistics services.
He highlighted among the most prominent projects the expansion of Maersk’s logistics zone at Jeddah Port, which is the company’s largest logistics zone worldwide.
The prominent projects also include the Chinese company GD Logistics signing its largest investment outside China, through two projects in Jeddah Port and Al-Khumrah area, in addition to five leading national companies signing contracts to establish new logistics zones.
Saudi Arabia defies crises with a flexible logistics system
Al-Jasser affirmed that the Kingdom has proven during crises that it possesses strong infrastructure and a flexible logistics system, backed by major investments and effective partnerships with the private sector, which enabled it to efficiently redirect trade movement according to regional changes.
He said the logistics sector succeeded in adapting to the shifts witnessed in shipping traffic, as the Kingdom’s trade previously moved to the eastern coasts amid Red Sea developments, before being redirected to the western coasts in light of recent events, and it not only served its own trade but also contributed to supporting the trade movement of neighboring countries, cementing its role as a main artery for global trade.
The new truck area represents, according to Al-Jasser, a model for integration between the transport system, security agencies, the Zakat, Tax and Customs Authority, and the private sector, and aims to raise the efficiency of logistics operations, organize the entry and exit movement of trucks, and provide a safe and comfortable environment for drivers, in addition to reducing congestion within the city of Jeddah given the entry of tens of thousands of trucks daily.
Saudi Arabia reaps the fruits of investment
Al-Jasser said that the reforms witnessed by the logistics sector in recent years have begun to bear fruit, which has been reflected in the Kingdom’s ability to deal with changes and raise the efficiency of supply chains and logistics services.
For his part, Mawani President Suleiman Al-Mazroua affirmed that the logistics centers aim to maximize the added value of goods and services, in a way that enhances the benefit to local markets and the markets of countries bordering the Red Sea.
He pointed out that the goal is for Saudi ports to become a pivotal point providing integrated logistics services for ships and goods, rather than merely a transit station. According to Al-Mazroua, 17 out of 34 logistics centers are located in Jeddah.
He also revealed new investments expected in the Al-Khumrah area, alongside work on developing an economic zone there, which opens up new horizons and investment opportunities in the coming period.
