Saudi Arabia on Thursday launched the world's largest truck marshalling area at Jeddah Islamic Port, covering an area of 1 million square meters, while the Saudi Ports Authority signed seven agreements with companies with investments exceeding 1 billion riyals on the sidelines of the launch.

The marshalling area, inaugurated by Minister of Transport and Logistics Services Saleh Al-Jasser, has been approved as the first checkpoint 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 enhances the efficiency of logistics operations and trade movement, stressing that the logistics sector has adapted to shifts in global navigation 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 will rise to 34, with investments amounting to 15 billion riyals, fully funded by the private sector.

The agreements included the establishment of a logistics center to support commercial activities and maritime services, and another integrated center to support import, export, and logistics services.

He highlighted among the major projects the expansion of the logistics zone of Maersk in Jeddah Port, which is the company's largest logistics zone worldwide.

Notable projects also include Chinese company GD Logistics signing its largest investment outside China, through two projects in Jeddah Port and Al-Khumra area, in addition to five leading national companies signing contracts to establish new logistics zones.

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Saudi Arabia challenges crises with flexible logistics system

Al-Jasser affirmed that the Kingdom has proven during crises that it possesses strong infrastructure and a flexible logistics system, supported by large investments and effective partnerships with the private sector, which enabled it to efficiently redirect trade movement according to regional changes.

He said that the logistics sector successfully adapted to the transformations witnessed in navigation traffic, as the Kingdom's trade previously shifted to the eastern coasts with developments in the Red Sea, before being redirected to the western coasts in light of recent developments, not only serving its trade but also contributing to supporting the trade movement of neighboring countries, cementing its role as a main artery for global trade.

According to Al-Jasser, the new truck area represents a model of 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 of trucks, 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.

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Saudi Arabia reaps the fruits of investment

Minister Al-Jasser said that the reforms witnessed by the logistics sector in recent years have begun to bear fruit, which was reflected in the Kingdom's ability to deal with changes and raise the efficiency of supply chains and logistics services.

He pointed out that among the most prominent of these projects is the expansion of the logistics zone of Maersk in Jeddah Islamic Port, which is the company's largest logistics zone worldwide, alongside Chinese company GD Logistics signing its largest investment outside China, through two projects in Jeddah Port and Al-Khumra area, in addition to five leading national companies signing contracts to establish new logistics zones.

For his part, President of Mawani (Saudi Ports Authority) Sulaiman Al-Mazroui affirmed that the logistics centers aim to maximize the added value of goods and services, enhancing the benefit of local markets and markets of countries overlooking the Red Sea.

He pointed out that the goal is for Saudi ports to become a pivotal point offering integrated logistics services for ships and goods, not just a transit station.

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According to Al-Mazroui, 17 out of the 34 logistics centers are located in Jeddah.

He revealed the existence of upcoming new investments in the Al-Khumra area, along with work on developing an economic zone there, opening new investment horizons and opportunities in the coming period.