Transport & Logistics

Transport & Logistics Overview

Saudi Arabia is a G20 economy, sitting at the crossroads of major international trade routes. The Kingdom’s transport and logistics sectors lie at the heart of the transformation envisioned by Vision 2030, aiming to turn the Kingdom into a global logistics hub.

Saudi Arabia’s location is optimal for the distribution of goods within the Arabian Peninsula, the Levant, and East Africa; an area with an aggregated GDP of $2.41 trillion and 647 million consumers. The Kingdom sits directly on the Asia-Europe trade route, with the Red Sea capturing 12% of global container trade moves annually.

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Transport & Logistics Sector

  • $26BN
    annual growth forecast prior to 2030
  • $18BN
    total market size
  • 12%
    CAGR by 2030
  • $30BN
    public sector investments expected over the next decade

Value Proposition

One of the world’s fastest growing aviation industries

  • $34BN aviation industry, with 99 million passengers passing through Kingdom’s the airports.
  • 90% of Saudi population lives within a 2-hour drive of the nearest airport thanks to 28 airports comprising of 6 international, 9 regional, and 12 domestic airports.
  • The Kingdom connects to 81 airports in 45 countries, with plans to increase that to 250 destinations.
  • 5 hours’ flight distance from half of the world’s population.

A dominating maritime industry along one of the busiest trade routes

  • 13 million twenty-foot-equivalent-units (TEUs) handling capacity across 10 primary harbors for non-oil trade, including 200 piers, and 216 berths.
  • 15,000 ships received by the Kingdom’s ports annually.
  • 90% of Red Sea and 30% of East African regional trade transits dominated by Saudi ports.
  • King Abdullah Port at King Abdullah Economic City (KAEC) is the fastest growing port in the world, with an annual capacity of 4 million TEU.

An extensive rail network connecting the Kingdom’s main cities

  • 10.4 million tons of minerals cargo transported by the North-South railway.
  • 350,000 TEU volume of container transported by the Riyadh-Dammam railway.
  • 1,065 km land bridge project is to have a direct link between the Red Sea and the Arabian Gulf.

World-class road connectivity network

  • Saudi Arabia ranks 1st in the WEF’s road connectivity index, with 200,000 km of roads, including 66,000 km of roadways connecting major cities and providing access to railways, ports and airports.
  • 3,500 km new roads set to link the Kingdom’s main urban centers.
  • 5,000 km of highways and bridges provide extensive means of transport.
  • 138.5 million tons of goods transported via the Kingdom’s road network in 2021.
  • $587 million value of 23 road safety projects by the Ministry of Transport and Logistic Services.

A growing global logistics hub

  • $18 billion logistics market size, 55% share of the total GCC market.
  • $1.01 billion contract logistics market size in 2019, with 3% CAGR growth rate over the period 2019 to 2024.
  • 6 economic and industrial cities designated to move cargo freely between one another are under development.

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