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Logistics is key pillar of Saudi economic diversification plan

The transport and logistics sector represents one of the key pillars of the Kingdom’s economic diversification strategy, said Saudi Minister of Transport and Logistics Saleh Al-Jasser.
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The transport and logistics sector represents one of the key pillars of the Kingdom’s economic diversification strategy, said Saudi Minister of Transport and Logistics Saleh Al-Jasser.
The minister highlighted the opportunities available in this sector in the Kingdom at the recent International Investment Summit held in Dhaka.

Al-Jasser said the Kingdom’s transport and logistics sector is undergoing rapid transformation. He highlighted the Kingdom’s National Transport and Logistics Strategy at the event, which was attended by investment companies and experts in the field.

Saudi Arabia expects its new transport and logistics strategy to generate SR550 billion ($150 billion) in investments by 2030 in areas such as public transport, railways, and airports expansion and development.

The government would provide 35 percent of the needed investments, and the rest would come from private investors. The strategy would have multiple benefits on economic activities because it would connect many sectors, such as Hajj and tourism, as well as industries.

A host of projects are planned to help achieve the strategy’s economic and social goals, including the launch of a second national airline, along with improved governance to enhance the work of the organizations involved. The new strategy also seeks to improve the capabilities of the Kingdom’s air cargo sector by doubling its capacity to more than 4.5 million tons. It includes a land bridge project that will span more than 1,300 km and connect the Kingdom’s ports on the coast of the Arabian Gulf with those on the Red Sea coast. It will have the capacity to transport more than 3 million passengers and 50 million tons of freight annually, opening up new opportunities in the areas it passes through.

Al-Jasser also visited the Chittagong Port, Bangladesh’s largest port, and held meetings with key officials to discuss ways to enhance cooperation in the sector.

Saudi investment
Saudi company Engineering Dimensions will invest $1.75 billion in Bangladesh, a Bangladesh official was quoted as saying by the local media.
Sirajul Islam, chairman of Bangladesh Investment Development Authority, said the Saudi company will jointly invest in two companies in the country.

Engineering Dimension has already invested in power generator production and a large scale cement factory.
Local media quoted Al-Jasser as saying many public and private companies of Saudi Arabia were keen to invest in Bangladesh in infrastructure development, power, port, energy and renewable energy sectors.

Source : Arab News

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