Transport
From The Report: Saudi Arabia 2019
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The government’s vision is for both domestic and international transport to play a key role in the diversification and modernisation of the economy. The authorities are aiming at making the country a regional and international logistics centre. To achieve this goal, they envisage working closely with leading global logistics companies via public-private partnerships. One aspect of the new approach is the increased promotion of special economic zones in different parts of the country, creating industrial clusters with multi-modal freight links to a range of international destinations. As a result levels of both domestic and foreign investment are rising, particularly with regard to major infrastructure projects. This chapter contains interviews with Nabeel Al Amoudi, Minister of Transport; Rumaih Al Rumaih, President, Public Transport Authority; and Abdullah Aldubaikhi, CEO, Bahri.

Articles from this Chapter

Overview

Extensive overhaul: Expanding transport infrastructure and special economic zones to attract foreign and domestic investment
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The government’s vision is for both domestic and international transport to play a key role in the diversification and modernisation of the economy. The authorities are aiming to make the country a regional and international logistics centre. To achieve this goal, they envisage working closely with leading global logistics companies via public-private partnerships (PPPs). One aspect of the new approach is the increased promotion of special economic zones (SEZs) in different parts of the…

Interview

Better links: Nabeel Al Amoudi, Minister of Transport, on expanding and integrating the Kingdom’s rail, road and air networks
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Interview:Nabeel Al Amoudi What sectors will benefit most directly from the integration of road and rail networks? NABEEL AL AMOUDI: Integration provides more options in terms of mobility and transportation, and this has a positive impact on the movement of goods across a variety of sectors in the country. In particular, the petrochemical, mining, defence, manufacturing, heavy industries and other industrial sectors will all be able to take advantage of this integration and achieve greater…

Interview

Driving connections: Rumaih Al Rumaih, President, Public Transport Authority (PTA), on improving freight and passenger flow efficiency
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Interview:Rumaih Al Rumaih How can the country’s intermodal transport options be leveraged to boost trade? RUMAIH AL RUMAIH: Saudi Arabia is a cornerstone and a bridge connecting three continents: Asia, Africa and Europe. One of the main objectives of Vision 2030 is for Saudi Arabia to become a global logistics hub. The country can leverage its geographical location and benefit from both the Red Sea and the Gulf. On the logistic performance index, Saudi Arabia is currently ranked 55th out…

Analysis

Attractive proposition: New special economic zones (SEZs) offer a range of fiscal and logistics benefits to companies
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A key element of the Vision 2030 strategy is the establishment of SEZs offering fiscal and other incentives in competitive locations for promising sectors, among them ICT, logistics, tourism, and industrial and financial services. The SEZs are intended to capitalise on Saudi Arabia’s location, fewer than seven hours’ flying time from major cities across three global regions: Europe, Asia and MENA. Integrated Logistics Bonded Zone A new SEZ is to be set up adjoining the King Khalid International…

Interview

Logistics gateway: Abdullah Aldubaikhi, CEO, Bahri, on the benefits that new technologies and policy reforms will bring to maritime transport
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Interview:Abdullah Aldubaikhi To what extent is the maritime shipping sector able to cope with rising demand? ABDULLAH ALDUBAIKHI: The maritime shipping sector saw some capacity management activity in the first half of 2018 in an effort to ease excess cargo in the market. As a result, we have seen an improved supply-demand balance. However, the ongoing recovery of the global economy and the growth of emerging and developing economies are expected to drive further momentum in domestic and…

Analysis

Royal roads: A substantial increase in road-building has improved connectivity and generated employment
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In recent years Saudi Arabia has been extending and upgrading its national road and highway network to meet the combined demands of a growing population, urbanisation, economic growth and a sharp increase in motor vehicle use. There has been major public and private investment in multi-modal transport spanning railways, metros, traffic systems, buses, bridges and roads. The road system now covers more than 68,000 km in total. Given extremely high temperatures, the authorities have had to…

Overview

Skybound: Rapid expansion of global aviation industry propels investment
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The aviation sector is experiencing rapid growth worldwide, propelled by booming tourism industries, lower air fares and the push for greater connectivity in an increasingly globalised economy. Middle-class expansion has also spurred growth in air travel, as more people are able to afford flights for holidays or business-related travel. According to Boeing, commercial airlines experienced annual average passenger growth of 6.2% between 2012 and 2017. The manufacturer also estimated that by 2036 an additional 41,000 plane deliveries will need to be fulfilled in order to meet service needs for both passengers and cargo. To accommodate these…

Overview

Skybound: Rapid expansion of global aviation industry propels investment
OBG
plus

The aviation sector is experiencing rapid growth worldwide, propelled by booming tourism industries, lower air fares and the push for greater connectivity in an increasingly globalised economy. Middle-class expansion has also spurred growth in air travel, as more people are able to afford flights for holidays or business-related travel. According to Boeing, commercial airlines experienced annual average passenger growth of 6.2% between 2012 and 2017. The manufacturer also estimated that by 2036 an additional 41,000 plane deliveries will need to be fulfilled in order to meet service needs for both passengers and cargo. To accommodate these…