Transport
From The Report: Saudi Arabia 2016
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Since 2008 the Saudi authorities have invested heavily in transport infrastructure projects as part of efforts to expand and diversify the economy as well as reduce automotive transport for both passengers and cargo. Ports have been built, airports expanded and upgraded, and railway and metro projects initiated – and in some cases already completed. Tens of billions of dollars have already been spent, and many more billions have been earmarked over the next few years. In public transport alone, $141bn will to be spent on infrastructure and operations in the next decade, including the $22.5bn Riyadh Metro project, set for completion in 2019. Despite a scale-back of government expenditure in 2016 due to lower global oil prices, spending on transport infrastructure will likely continue to be prioritised as well-developed networks are seen as key to economic and social growth. The National Transformation Plan announced in June 2016 includes a number of strategic goals and benchmarks for transport in Saudi Arabia.

This chapter contains interviews with Suleiman Al Hamdan, Minister of Transport; Nabeel Al Amudi, President, Saudi Ports Authority; and Faysal Elhajjami, Country General Manager, DHL.

Articles from this Chapter

Overview

Opportunity knocks: Large-scale projects move ahead despite budget constraints, creating openings for private sector investment
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Saudi Arabia has a landmass of more than 2m sq km, making it the largest country in the Middle East. With a population of 31m and industries and urban centres scattered across the coastline and interior, it has a strong need for an integrated transport infrastructure network with connecting logistics. However, the Kingdom’s geography and desert landscape have presented challenges. Since 2008 the Saudi authorities have invested heavily in transport infrastructure projects as part of efforts to expand…

Interview

Greater integration: OBG talks to Suleiman Al Hamdan, Minister of Transport
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Interview:Suleiman Al Hamdan What are the main objectives of the privatisation of the Kingdom’s airports? SULEIMAN AL HAMDAN: We have several primaryobjectives in privatising the Kingdom’s airports. We aim to raise the level of services provided by the airports and other sectors for our clients. The airports will work according to a set of competitive criteria that will enable them to maintain financial and sustainable growth. It will also reduce overall expenses, especially in…

Interview

Balancing the flow: OBG talks to Nabeel Al Amudi, President, Saudi Ports Authority (SPA)
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Interview:Nabeel Al Amudi To what extent has privatisation played a role in the development of port operations ? NABEEL AL AMUDI: Since the creation of the SPA almost 40 years ago, the privatisation of port operations has taken different shapes. The last two privatisation projects were carried out on a build-operate-transfer basis, one in Jeddah and one in Dammam. This model has been implemented by the SPA as part of its recent privatisation efforts. Overall, the privatisation efforts have…

Analysis

A new era: The first steps towards privatisation are being taken
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Saudi Arabia’s aviation sector is undergoing a period of robust year-on-year growth, as well as expansions and potential airport privatisations that could significantly alter the aviation sector in the years to come. The Kingdom’s two largest international airports, King Abdulaziz International Airport (KAIA) in Jeddah and King Khalid International Airport (KKIA) in Riyadh, are both currently undergoing substantial expansion projects. Improvements at KAIA will raise its annual capacity from 17m…

Interview

Delivering on expectations: OBG talks to Faysal Elhajjami, Country General Manager, DHL
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Interview:Faysal Elhajjami In what ways can Saudi Arabia become more competitive as a trading and shipping centre? FAYSAL ELHAJJAMI: Saudi Arabia is an inbound market: the express sector averages anything between six and 10 inbound shipments for every outbound shipment. More and more companies are looking at Saudi Arabia as an attractive market, but there are several areas that require some streamlining or alignment with the international standards that companies are used to elsewhere. Customs…

Analysis

A vital role to play: Port infrastructure and developments are key to national wealth
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In recent years Saudi Arabia has been on a drive to grow its network of ports, as part of what has become a period of transformation for the Kingdom’s port infrastructure. One of the main targets under the national development strategy, Vision 2030, is to replace oil exports with other, mainly petrochemicals, exports, requiring a substantial increase of seaport and logistical infrastructure for containerised exports. The government has been pushing, among other things, for the upgrading of ports…

Analysis

The path ahead: Public-private partnerships set to rise as major infrastructure projects get under way
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Despite lower government spending, transport infrastructure projects are set to continue in the Kingdom, with increasing opportunities for private sector involvement, whether through privatisation, private contracts or public-private partnerships (PPPs). PPP In 2015 the authorities revealed a 10-year expansion programme for the public transport sector, which will see $91bn spent on infrastructure and $51bn on operations. The programme includes new bus routes, metro lines in major cities, and thousands…