Saudi Arabia: Forging a Global Logistics Gateway at the Crossroads of East and West

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Saudi Arabia: Forging a Global Logistics Gateway at the Crossroads of East and West

At the recent Global Logistics Forum (GLF) held in Riyadh in mid-October, the Kingdom of Saudi Arabia reaffirmed its ambition to become a global logistics powerhouse. With significant investments, large-scale infrastructure projects, and a strategic geographic position along the Red Sea and the Arabian Gulf, the Kingdom now has direct access to 30% of global container trade, further strengthening its role as a gateway between East and West.

National Transport and Logistics Strategy: Saudi Arabia's Journey Towards Global Logistics

Initiated in 2021 by H.R.H. Crown Prince Mohammed bin Salman, the National Transport and Logistics Strategy is designed to establish Saudi Arabia as a global logistics hub. Of the anticipated $250 billion investment, $50 billion has already been allocated, yielding significant progress. According to the Saudi Minister of Transport and Logistics H.E. Saleh Al-Jasser, these investments have enabled the country to climb 17 places in the World Bank’s Logistics Performance Index (LPI), rising from 55th to 38th place between 2018 and 2023. To reach its target of ranking within the top 10 by 2030, the Kingdom has launched several major initiatives, including the expansion of King Salman International Airport in Riyadh and enhancements to its rail and port infrastructures.

Saudi Arabia’s inclusion in the India-Middle East-Europe Economic Corridor (IMEC), announced at the 2023 G20 Summit, further presents an opportunity to strengthen its position at the crossroads of global trade. Interconnection projects such as the GCC Railway and the IMEC Corridor aim to link the Arabian Peninsula with the Indian subcontinent and Europe, reinforcing Saudi Arabia’s role as a key gateway for international commerce.

Growth and Modernisation of Saudi Ports

The Saudi Ports Authority (Mawani), reported a 55% increase in container transshipment volumes from 2017 to 2023, a growth driven by modernisation efforts and the Kingdom’s strategic location. This 55% rise highlights the increasingly important role of Saudi ports as regional hubs, enhancing their position within global logistics networks. With a goal to double port capacity from 20 to 40 million containers by 2030, Saudi Arabia aims to boost its share of the regional container transshipment market from 32% to 45%. It is also noted that container import and export volumes rose by 31% over the same period.

An Expanding Railway Sector

Saudi Arabia’s rail network is a cornerstone of Vision 2030, aimed at improving regional connections and supporting the tourism sector. The Kingdom plans to triple its rail network, expanding from 3,650 km of operational tracks to approximately 11,000 km. Key projects underway include the $7 billion Saudi Landbridge, linking the east coast (Dammam) with the west coast (Jeddah) and entailing the construction of 2,178 km of new track. This strategic project also includes seven logistics hubs, enhancing goods transportation across the country.

Saudi Rail Conference and Exhibition: Fostering Collaboration in Rail Development

On 20–21 November, Riyadh will host the inaugural Saudi Rail Conference and Exhibition, held under the auspices of Minister of Transport and Logistic Services and Saudi Arabia Railways (SAR) Chairman H.E. Saleh Al-Jasser. The event will bring together over 200 exhibitors, creating a vital space for networking and knowledge exchange among leading industry figures. In pursuit of the National Transport and Logistics Strategy, Saudi Arabia aims to attract and establish cutting-edge rail technologies, fostering collaboration with both local and international partners. European firms, renowned for their expertise in engineering, construction, logistics management, and maintenance, are well-suited to support these regional integration efforts.

Conclusion

In a region where the geopolitical landscape may be subject to fluctuations, the Kingdom of Saudi Arabia continues to uphold its ambitions and fully backs them with the necessary resources, firmly positioning logistics and transport development at the heart of Vision 2030. European companies, bringing high-level expertise, have considerable opportunities to contribute to the Kingdom’s logistics transformation.