National Transport and Logistics Strategy

The National Transport and Logistics Strategy is a sectoral strategy launched by the Kingdom of Saudi Arabia to advance the transport and logistics sector, develop its infrastructure, and raise its efficiency; its scope covers the land, sea, air, and rail transport modes along with roads, postal services, and logistics services.[2]

It rests on four pillars and four main objectives, and it seeks to raise the Kingdom's ranking among the world's top 10 countries on the Logistics Performance Index by 2030, through developing infrastructure, enabling investments, facilitating procedures, and achieving integration across all elements of the supply chain.[1][2]

In mid-2021, His Royal Highness the Crown Prince and Prime Minister, Chairman of the Supreme Committee for Transport and Logistics, announced the launch of the National Transport and Logistics Strategy.[2]

The strategy aims to achieve four main objectives: strengthening the Kingdom's position as a global logistics hub, improving quality of life in Saudi cities, achieving balance in the State's public budget, and raising the efficiency of the government system's performance.[2]

Its four pillars are consolidating the Kingdom's position as a global logistics hub, upgrading quality of life in Saudi cities, achieving balance in the public budget, and improving the performance of the government apparatus.[1]

Among the strategy's most prominent targets is raising the Kingdom's ranking into the world's top 10 countries on the Logistics Performance Index by 2030.[2]

The targets also include increasing the infrastructure capacity of ports to reach 40 million containers, alongside improving integration with the various transport modes, and developing local content equivalent to 33% of the sector's costs in support of sustainable development.[3][5]

In August 2023, the launch of the Master Plan for Logistics Centers was announced, aimed at developing the logistics sector's infrastructure, diversifying the local economy, and strengthening the Kingdom's position as a leading investment destination and a global logistics hub.[2]

The plan provides for establishing 59 logistics centers over a total area exceeding 100 million square meters, distributed as 12 centers in Riyadh Region, 12 centers in Makkah Region, 17 centers in the Eastern Province, and 18 centers across the rest of the Kingdom's regions; work was under way on 21 of these centers at the time of the announcement, with all of them to be completed by 2030.[2][4]

Implementation continues, as the number of activated logistics centers rose to 23 centers over a total area of 34.6 million square meters, compared with 22 centers in 2023, with the goal of completing all centers by 2030.[2][6]

To keep pace with the strategy, the Unified Logistics License was launched in 2021, under which more than 1,500 licenses were granted to local, regional, and international logistics companies.[2]

The “Fasah” initiative followed to accelerate customs clearance within two hours, helping to facilitate the movement of trade and supply chains.[2]

In April 2023, the Kingdom advanced 17 places in the logistics index issued by the World Bank, reaching 38th out of 160 countries in the international ranking of the Logistics Performance Index.[2]

The Ministry of Transport and Logistics Services oversees the land, sea, air, and rail transport modes, roads, postal services, and logistics services in the Kingdom.[2]

The entity's establishment dates back to 1372 AH (1953), when the Ministry of Communications was created to oversee all matters relating to transport, including roads, railways, and ports.[2]

The Kingdom has 27 airports, including 5 international airports, 12 regional airports, and 10 domestic airports.[2]

Q: What is the National Transport and Logistics Strategy? A: A sectoral strategy launched by the Kingdom to develop the transport and logistics sector and raise its efficiency; its launch was announced by His Royal Highness the Crown Prince and Prime Minister in mid-2021.[2]

Q: What are the strategy's objectives? A: Strengthening the Kingdom's position as a global logistics hub, improving quality of life in Saudi cities, achieving balance in the State's public budget, and raising the efficiency of the government system's performance.[2]

Q: What are the strategy's most prominent targets? A: Raising the Kingdom's ranking into the top 10 countries on the Logistics Performance Index by 2030, increasing the infrastructure capacity of ports to 40 million containers, and developing local content equivalent to 33% of the sector's costs.[2][3][5]

Q: What is the Master Plan for Logistics Centers? A: A plan announced in August 2023 to establish 59 logistics centers over an area exceeding 100 million square meters, of which 23 centers have been activated so far, with the goal of completing them by 2030.[2][4][6]

Q: How many airports does the Kingdom have? A: 27 airports, including 5 international airports, 12 regional airports, and 10 domestic airports.[2]

The National Transport and Logistics Strategy forms a national framework for developing an integrated transport sector and strengthening the Kingdom's position as a global logistics hub, through numeric targets and a master plan for logistics centers whose implementation extends to 2030.[1][2] Related topics on the platform include Saudi Vision 2030 and the National Industrial Development and Logistics Program, alongside the National Transformation Program and the National Investment Strategy.