b'34American Journal ofTransportation ajot.comACL AJOT_SailSchedule_2020_ACL2/27/209:33 AMPage 1KSA inks logistics companies ONE SHIPBy Stuart Todd, AJOT ONE SHIPSeveral international logistics players have made strides in KSA this year. C ontainers, RORO, RORO, Br, Breakbulk Ceakbulk CarargogoContainersOften at the vanguard of international trade development, US express transportation giant, FedEx Express signed a collab-oration agreement with the Saudi Export Development Author-ity designed to unlock more trade opportunities by providing the countrys exporters with greater access to global markets.Our goal is to help them (manufacturers and exporters) grow and transform into powerhouses that drive the growth of the Saudi economy, said Taarek Hinedi, vice president of FedEx Express Middle East Africa operations.FedEx will invest US $400 million over the next 10 years through talent management and local operations and infrastructure.DanishshippinggiantA.P.Moller-MaerskandMawani have broken ground on Saudi Arabias largest integrated logis- A SERVICE AL1 SERVICE AL2 SERVICE RORO Customer Servicetics park at JIP. The $346 million project will offer customersCuto Friday Cuto Thursday Cuto Monday 877-918-7676Export Customer Serviceextensive infrastructure for warehousing & distribution, coldFROM NEW YORK LOLO RORO LOLO LOLO 800-225-1235storage, e-commerce and serve as a hub for transshipments,TO Transit Time Transit Time Transit Time Transit Time Export Documentation petrochemical consolidation, air freight and LCL. ANTWERP 1620 18888-802-0401DUBLIN 12 South Koreas CJ Logistics announced the construction ofBELFAST 13Import Customer ServiceSaudi Arabias first hub dedicated to e-commerce. Located atGTEBORG 21888-802-0403LogisticsRiyadh Airport it is scheduled to open in 2024. HAMBURG 13 17 15 22 866-821-7449TheSaudie-commercemarkethastherichestgrowthLE HAVRE17 Credit & CollectionsLIVERPOOL 9 13potential in the Middle East and the geographical advantage ofLONDON GATEWAY20 19 888-225-7747connecting Africa and Europe, said company CEO, Kang Sin- ROTTERDAM11 20ho, CEO of CJ Logistics.whichisdrivingcoldchaininvestments being the estab- logistical growth.(VISIONcontinued fromwill be to diversify economiclogistics. lishmentofthreekeygate-page 32) activity,increasingnon-oilHe believes there is roomwaysinRiyadh,Dammam,o Ceanh ubP orteconomiccities,liftingGDP from 16% to 50%. for a second global logisticsand Jeddah, according to SueTurning to Saudi Arabias demandforbothindustrialThis will result in signifi- hub in the Middle East. Donoghue, CEO Arab Clus- potential as a major hub for andconsumergoods,amidcant demand from heavy indus- SaudiArabiahastheter, DHL Global Forwarding ocean freight, Dean Davison, projected population growth,trialsectorssuchascement,resourcesandambitiontoThesegatewaysplayhead of maritime advisory at resultinginthedemandforchemicals,plastic,glassandbecomeamajorregionalavitalroleinfacilitatinginfrastructuredevelopment additional cargo volumes. steel.Themarketsaccesstoand global hub over the nexttheefficientflowofglobalconsultancy Infrata, sees this SaudiArabiaslogisticscheap oil and gas will allow itdecade - a conduit for tradetradebetweenSaudiArabiafocusing on the Red Sea ports ambitionsappeargrandiosetobenefitfromconsiderablebetween some of the fastestand its international partnersof King Abdullah Port (KAP) intermsofthescale/costforeigninvestmentinenergy- growing markets in Asia andandhavehelpedstrengthenand Jeddah Islamic Port (JIP) oftheinfrastructure/facili- intensive sectors. Africa, as well as serving theSaudi Arabias position in thewhichalreadyboastmajor ties it is planning. So whereHowever, there will also berest of the Middle East andglobal logistics landscape. container facilities.isdemandlikelytocomeincreased demand forlogisticspartsofEurope.ItslargeDonoghueunderlinedThe geographic location frominthenextdecadeorfrom consumer goods manu- domestic and export marketthatoneoftheKingdomsisagoodoneboxroutes sotojustifysuchmegafacturersasthepopulationwillgiveitanadvantagesignificantadvantagesliesbetweenAsiaandEurope/resources,especiallywhenrisesandincomeinequalityoverotherhubportsintheinitsstrategicgeographicMediterranean(andtoa Dubai is already the hub inreduces. As well as transportregionwhichfocuslargelylocation.Ithasaccesstolesserextent,basedonvol-the Middle East? related services, this will alsoof transshipments. key waterways like the Gulf,umes and ship sizes, Asia to According to John Man- resultinstrongdemandforManners-Bellisntthethe Red Sea, and the IndianNorthAmericaEastCoast) ners-Bell, chief executive ofbetterwarehousingfacilitiesonly believer in the value ofOcean,complementedbyaneed to use the Suez Canal. TransportIntelligence(TI),serving the contract logisticsa Saudi logistics hub.well-developedinfrastruc- So, vessels serving two mas-a UK-based market researchmarket.Inaddition,thereThe DHL Group is deeplyture,particularlyinports,sive trading blocs and regions company specialized in trans- has been high demand in theinvolvedinabroadspec- railways,androads.Thisofhighconsumption(North port and logistics, part of thepharmaceuticalssectorastrumoflogisticsoperations,existing infrastructure servesAmericaandEurope)are goals of Saudis Vision 2030well as for perishables goodswith one of its substantialasastrongbaseforfurthersailing past the front door of KSAs Red Sea ports.These are important fac-tors in generating routes and links between KSA and both east and west trades. Jeddah andKAPalsooffertrans-shipment opportunities in the region such as East Africa.Commentingonthe objectivesetoutinVision 2030 for a four-fold increase in the number of TEU, Davi-sonsaid:Itcertainlyisan aggressive total and target. The key question is the extent towhichtheprogramwill generate future containerized cargo demand growth.The initiatives are extremely widespreadandincludethe developmentofnewcities andinfrastructure.Butthe exact level of growth is not somethingthatcanbefore-castedandwilllikelybe accompanied by a number of relevant caveats.a irC argoC enterAs for KSA emerging as aleadinghubforaircargo (VISIONcontinued on page 35)'