TRANSPORT

LOGISTICS EMERGES AS DRIVER OF ECONOMIC GROWTH FOR SAUDI

In October, Saudi Arabia inaugurated a major bus transport project in Riyadh, aimed at connecting 200 cities and provinces and accommodating six million passengers annually.

The project, managed by the Transport General Authority (TGA), operates through three international alliances covering 76 routes, utilising modern buses equipped with advanced technology.

The project aims to create over 35,000 job opportunities and contribute SAR 3.2 billion to the country’s GDP, while enhancing services and fostering private sector partnerships. The project is also the first foreign investment in this sector.

Such undertaking will go a long way in connecting the capital to the further reaches of the kingdom, and unlocking new growth opportunities and mobility for Saudi citizens and residents.

It is part of the overarching Master Plan for Logistics Centers, which seeks to augment local and international trade networks, and foster private sector partnerships. It aims to position Saudi Arabia as a global logistical powerhouse, leveraging its strategic location in bridging Asia, Europe, and Africa.

Outlined within the master plan are 59 centres sprawled across a cumulative area exceeding 100 million square metres (sq m) , with significant clusters in Riyadh, Makkah, and the Eastern Region. Currently, 21 centres are under development, with all slated for completion by 2030.

These centres are poised to facilitate the effcient export of Saudi products, bolster e-commerce connectivity, streamline logistics licensing procedures, and enhance traceability. Notable initiatives such as the unified logistics license, which has authorised over 1,500 domestic and international logistics firms, along with the Fasah initiative – an integrated e-system within Saudi customs – further underscoring the kingdom's commitment to optimise logistical operations.

POWERED BY HYDROGEN

TGA also unveiled the kingdom's inaugural hydrogen truck in collaboration with Almajdouie Logistics. The groundbreaking initiative underscores TGA's resolute commitment to foster a carbon-neutral environment and contribute to the National Strategy for Transport and Logistics, in line with the ambitions of Saudi Vision 2030.

"The hydrogen truck boasts zero carbon emissions and perfectly aligns with the Kingdom's sustainable development initiatives. It is purposefully designed and equipped to safely transport goods over long distances, exceeding 400 km [kilometres]," according to TGA. Additionally, the truck operates on hydrogen fuel with a capacity of up to 35 kilograms (kg) and a gas pressure of up to 350 bar.

The launch materialised through a strategic partnership between Almajdouie Logistics and Air Products Company, aimed at creating an environmental solution for hydrogen transportation in Saudi Arabia and bolstering the hydrogen transportation sector in the region.

The collaboration between TGA, Almajdouie Logistics, and Air Products Qudra Company includes design, financing, construction, operation, and maintenance of hydrogen-related infrastructure, including hydrogen refuelling stations spread across various locations in the kingdom. The agreement forms part of a comprehensive feasibility study aligned with Saudi Vision 2030 and the Saudi Green Initiative.

TGA also announced the trial operating license for the hydrogen train,seen as a leap forward in the kingdom's journey towards sustainable and innovative railway transportation.

The introduction of hydrogen trains represents a significant advancement in rail transport, as these trains generate the energy needed for operation without producing carbon emissions. This achievement is in line with the National Strategy for Transport and Logistics, which targets a 25% reduction in carbon emissions from transport activities by 2030.

The adoption of hydrogen train technology is a crucial step in bolstering the kingdom's position as a premier logistics hub. It promises to enhance the eciency of commercial transport and promote sustainability in the railway transportation systems. Moreover, this initiative aligns perfectly with the goals of the Saudi Green Initiative, which advocates for environmental equilibrium and supports national sustainability endeavours.

NEW GATEWAY

In February, the Saudi Ports Authority, or Mawani, said it had completed the Red Sea Gateway Terminal at Jeddah Islamic Port, resulting in a substantial increase in its capacity. This milestone, achieved through a SAR 1 billion investment in partnership with the Red Sea Gateway Terminal (RSGT), is set to enhance the port's operational capabilities, bolster its capacity, and elevate the effciency of logistics services.

The terminal is now equipped with advanced features such as Optical Character Recognition (OCR) technology and a diverse range of equipment to enhance operations. The rehabilitation of infrastructure, covering over 1.5 million sq m and 11 berths equipped with 24 shore-to-ship cranes (STS), has expanded the terminal's northern channel to accommodate giant ships with a draft of up to 17 metres.

Aligned with the National Transport and Logistics Strategy (NTLS), the development of Jeddah Islamic Port's North Container Terminal under the build-operate-transfer (BOT) contract signifies a strategic effort to position the port as a leader in maritime excellence.