Transport
From The Report: Saudi Arabia 2018
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In a push to diversify its economy, Saudi Arabia is determined to increase the role of the private sector in the development of its transport infrastructure, as well as in the operation of seaports, airports and related supply chains. Public-private partnerships are being pursued to fund several key schemes, while a number of the country’s publicly operated facilities, such as airports, are being readied for full privatisation. However, there are a series of challenges ahead in the Kingdom’s pursuit to meet its Saudi Vision 2030 objective of leveraging its location at the crossroads of three continents. Faced with a decline in the country’s ranking among global indices of competitiveness and logistics since 2016, when the national development plan was unveiled, the budget for 2018 – introduced in December 2017 – includes an 86% increase in planned government expenditure on infrastructure and transportation, from SR29bn ($7.7bn) to SR54bn ($14.4bn).

This chapter contains an interview with Nabeel Al Amudi, Minister of Transport; Rumaih Al Rumaih, President, Public Transport Authority; and Saleh bin Nasser Al Jasser, Director-General, Saudi Arabian Airlines.

Articles from this Chapter

Overview

Far and wide: Plans are in full swing to move people and goods more efficiently around the Kingdom
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In a push to diversify its economy, Saudi Arabia is determined to increase the role of the private sector in the development of its transport infrastructure, as well as in the operation of seaports, airports and related supply chains. Public-private partnerships (PPP) are being pursued to fund several key schemes, while a number of the country’s publicly operated facilities, such as airports, are being readied for full privatisation. However, there are a series of challenges ahead in the…

Analysis

On track: Expanding the rail network is expected to be of benefit to both traveller and freight movements
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A rapidly developing railway network has the potential to transform movement around Saudi Arabia, resulting in less road congestion, an improved travel experience for millions of pilgrims and faster delivery of industrial freight. According to a report by Terrapinn Middle East for the Middle East Rail 2017 event, it is estimated that the Kingdom accounts for $130bn of the $240bn worth of spending planned for rail infrastructure projects across the GCC. The first passenger services on the…

Interview

Better connected: Nabeel Al Amudi, Minister of Transport, on the new strategy for infrastructure development
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Interview:Nabeel Al Amudi Which projects are likely to improve the competitiveness of Saudi Arabia’s infrastructure? NABEEL AL AMUDI: Each transport sector entity in Saudi Arabia is now focusing on the National Transport Strategy (NTS), which aims to integrate road planning operations with railways, ports and airports in order to achieve better connectivity of multimodal transport. The strategy will take into consideration the strategic objectives of Saudi Vision 2030, and its economic,…

Interview

Better connected: Nabeel Al Amudi, Minister of Transport, on the new strategy for infrastructure development
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Interview:Nabeel Al Amudi Which projects are likely to improve the competitiveness of Saudi Arabia’s infrastructure? NABEEL AL AMUDI: Each transport sector entity in Saudi Arabia is now focusing on the National Transport Strategy (NTS), which aims to integrate road planning operations with railways, ports and airports in order to achieve better connectivity of multimodal transport. The strategy will take into consideration the strategic objectives of Saudi Vision 2030, and its economic,…

Interview

Heading in the right direction: Rumaih Al Rumaih, President, Public Transport Authority (PTA), on new projects and regulatory systems for public surface transportation
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Interview:Rumaih Al Rumaih What impact will the National Transformation Programme (NTP) have on the transport sector? RUMAIH AL RUMAIH: Vision 2030 and the NTP have given Saudi Arabia a clear direction. We must diversify beyond hydrocarbons; major Vision 2030 initiative is to transform Saudi Arabia into an international logistics hub. The backbone of logistics is transport, and the Kingdom is a major trade shipping route between Asia, Africa and Europe. We want to capitalise on this by becoming…

Analysis

Making room: Airports and airlines are expanding capacity to accommodate growing demand
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One of the keys to unlocking Saudi Arabia’s potential as a global transport hub is the development of its aviation sector, and there are significant changes taking place that will provide opportunities for international investors. Across the country, airports are expanding to meet growing passenger demand, and those same terminals are being prepared for privatisation. At the same time, three new airlines are planning to begin operations, offering more choice in price and destinations. Expansion…

Analysis

Unified procedures: The Kingdom has joined a number of international agreements to standardise freight handling operations
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In its efforts to become a logistics trading hub linking Asia, Africa and Europe, Saudi Arabia has taken concrete steps to comply with the highest international standards in freight handling. In July 2016 the Kingdom signed the World Trade Organisation’s Trade Facilitation Agreement (TFA) and in March 2017 it announced its decision to join the UN Economic Commission for Europe’s International Road Transport (Transports Internationaux Routiers, TIR) Convention. Both provide frameworks…

Interview

Reaching new heights: Saleh bin Nasser Al Jasser, Director-General, Saudi Arabian Airlines, on low-cost carriers and aviation expansion
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Interview: Saleh bin Nasser Al Jasser Which international markets is Saudi Arabia hoping to enter for aviation services expansion? SALEH BIN NASSER AL JASSER: We currently serve a diverse range of markets, flying to four continents and 89 destinations overall. During the last 18 months we expanded our network, adding the Maldives, Ankara, Algiers, Munich, Multan, Port Sudan, Mauritius, Baghdad and Thiruvananthapuram. The newest routes are those to Mauritius, Baghdad and Thiruvananthapuram, Saudia…

Analysis

Soft improvements: Ports begin to adapt digital systems and streamline processes
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The Kingdom’s long-term development plan, Saudi Vision 2030, gives a special place to the transport and logistics sector, aiming to leverage the country’s unique location on global shipping routes to make the maritime industry a cornerstone of national development. This means a much greater focus on domestic ports, with many projects already under way that should see major harbour-side progress in the years ahead. However, port development requires a range of soft infrastructure advances,…

Analysis

Moving the masses: Large cities are planning and implementing public transport projects with the aim of improving quality of life
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Under the National Transformation Programme (NTP), launched in 2016, one of the key areas highlighted for the transport sector is the development of public transport systems in larger cities. Public transport development simultaneously addresses a number of strategic objectives, ranging from improving the quality of life for citizens to environmental conservation and energy saving. A well-integrated public transport system can also boost economic efficiency, while providing jobs and bringing…