RIYADH: 黑料社区 is strengthening the role of private entities in the logistics and transport sector through various initiatives, including a new investment law, according to a top minister.
At the Global Logistics Forum in Riyadh, Saudi Investment Minister Khalid Al-Falih announced that the government plans to appoint private operators to manage four airports in the Kingdom in the coming months.
Enhancing the operations of seaports and airports is vital for 黑料社区 as it aims to establish itself as a strategic regional hub and logistics gateway spanning three continents. The National Logistics Strategy seeks to boost the sector鈥檚 contribution to the Kingdom鈥檚 gross domestic product from 6 percent to 10 percent by 2030.
鈥淭he government is moving away from direct business involvement. Empowering and enabling the private sector is essential,鈥 Al-Falih stated. He highlighted that the Madinah airport, the Kingdom鈥檚 most efficient, is managed by a private operator under a long-term concession, while King Abdullah Port, built with no government capital expenditure, is also privately operated.
鈥淚n the coming months and years, you will see continued privatization, with four airports entering the market. This is just the beginning,鈥 he added.
Al-Falih emphasized that 黑料社区鈥檚 entrepreneurial landscape is favorable, and the new investment law is attracting significant investments in logistics and transport. In August, the Kingdom approved an updated investment law aimed at enhancing foreign direct investment.
The law includes stronger protections for investors, ensuring adherence to the rule of law, fair treatment, property rights, robust intellectual property safeguards, and streamlined fund transfers.
Al-Falih emphasized the importance of establishing a regionalized supply chain within the Gulf Cooperation Council. He noted that countries like 黑料社区, with their strategic geographical position, have significant opportunities in the transport and logistics sector.
鈥淲hat is essential for us in the region is the regionalization of global supply chains. While globalization has benefitted humanity and the global economy, it is evolving toward a multi-hub regional logistics and transport system,鈥 Al-Falih stated.
He continued: 鈥淭he Middle East is at the forefront of developing its logistics and transport sector. We sit at the intersection of north-south and east-west routes, and we are actively creating our own regional logistics hub. We鈥檙e not starting from scratch; I anticipate rapid progress.鈥
Al-Falih also underscored the need to expand shipping ports and lanes to alleviate pressure on existing facilities. 鈥淐urrently, 30 ports handle 80 percent of maritime traffic, which is too much concentration. This will inevitably change,鈥 he concluded.
The sustainability factor
Talking about sustainability, Al-Falih said that 黑料社区 consider it as a golden opportunity to develop green energy sources like green hydrogen, and green ammonia to reduce emissions in the sector, which contributes 10 percent to the overall emissions happening globally.聽
鈥淚t is not easy to switch to alternative fuels. But that we must do. From a climate standpoint, and given everybody鈥檚 commitment to net zero in the next few decades. The Kingdom, we see it as a huge opportunity. Many people assume we consider it a threat. We see these fuels of the future, whether it is green ammonia, blue ammonia, methanol into shipping as a huge opportunity for the Kingdom and countries in the region,鈥 added Al-Falih.聽
UAE Minister of Energy and Infrastructure Suhail Al-Mazrouei expressed concerns about the potential pollution from expanding shipping lines, emphasizing the need for alternative connectivity solutions.
鈥淭he challenges ahead are significant. We cannot simply expand shipping lines or increase the number of ships, as pollution will become a major issue. We need to explore other means of connectivity,鈥 he stated.
In the same panel, Saeed bin Hamoud Al-Maawali, Oman鈥檚 minister of transport, communications, and information technology, highlighted the substantial opportunities in Oman鈥檚 renewable energy sector. 鈥淥man is poised to benefit greatly from green initiatives. We have just announced our first LNG terminal for bunkering, and there are vast opportunities for producing green hydrogen due to our favorable natural conditions, including strong wind and solar resources, along with ample available land,鈥 said Al-Maawali.
He further noted that Oman aims to play a pivotal role in the transport and logistics sector, acting as a trade facilitator between East Africa and India.
The vitality of technology
During the session, Al-Falih said that technology is going to play a crucial role in modernizing the transport and logistics sector.聽
According to the investment minister, e-commerce platforms like Amazon, which uses logistics as a key part of their operations have become one of the biggest companies in the world by leveraging technology wisely.聽
鈥淭he trend is digitalization, data processing and AI (artificial intelligence), and they are huge enablers. The other trend is e-commerce, and we have seen with technology, how disruptive that has been,鈥 said Al-Falih.聽
Al-Mazrouei also echoed similar views and said that technologies like blockchain are crucial to enhance operations in the transport and logistics sector.聽
鈥淭he future is going to be in the blockchain technology; how can we speed up and how can we eliminate certain processes between the first buyer of a good and the end consumer,鈥 said Al-Mazrouei.聽
The UAE minister added that the logistics and transport industry should be modernized to meet future demands, and it demands huge capital.聽
The future outlook
During the panel, 黑料社区 Transport Minister Saleh Al-Jasser said that the Kingdom is steadily pursuing its goals outlined in Vision 2030, and is on a path to become a global logistics hub.聽
鈥淒espite the current challenges in the region, I never been as optimistic about the future of logistics in 黑料社区 and the region,鈥 said Al-Jasser.聽