#Infographic_Sarmad | Saudi Arabia secures supplies for the Gulf during the Strait of Hormuz crisis - Sarmad
Kuwait officials announced that Minister of Transport and Logistics Saleh Al-Jasser inaugurated the world’s largest truck marshalling area in Jeddah on Thursday, coinciding with the General Ports Authority signing seven agreements to establish new logistics centers in the city with investments exceeding 1 billion riyals ($266 million).
Sulaiman Al-Muzawwa, Chairman of the General Ports Authority, clarified that the agreements involve the creation of logistics centers with contracts lasting up to 25 years. He noted that two of the agreements were signed with two global companies, while the remaining five were allocated to Saudi facilities with international expansion ambitions.
According to a statement issued on Thursday, the agreements aim to enhance the Kingdom’s logistics capabilities and consolidate Jeddah’s position as a global hub for supply chains.
The Chairman revealed that the Ministry of Transport and Logistics issued urgent directives at the beginning of the Strait of Hormuz crisis in February last year to prepare ports on the western coast to receive supply chains destined for the Kingdom and Gulf countries, confirming that all relevant entities worked in an integrated manner to implement these directives.
Al-Muzawwa stated that the Ports Authority focused on several pathways to ensure the continuity of trade flow, the most prominent of which was enhancing maritime services by adding more than 27 new services in the western region. This provided additional capacity exceeding 200,000 containers per month to compensate for the shortage in eastern region ports during the crisis.
The second pathway involved improving port readiness by streamlining operational procedures in coordination with the Zakat, Tax and Customs Authority and operators, alongside increasing equipment and facilities with investments exceeding 640 million riyals (approximately $171 million) within just three months, to boost operational efficiency and accommodate rising demand, the Chairman added.
Accommodating 40,000 Trucks Daily
In a related development, the Transport Minister announced the inauguration of the world’s largest truck marshalling area in Jeddah, explaining that the project aims to improve logistics movement efficiency and reduce congestion and unregulated traffic flow within the city.
He clarified that the area can accommodate 40,000 trucks daily, and that gate capacity was increased from 10 to 18 lanes.
Al-Jasser also revealed the creation of a new area for storing empty containers after the number of containers exceeded the capacity of previous sites in Jeddah.
The Transport Minister emphasized that integration between government entities and partnership with the private sector played a pivotal role in enhancing the resilience of the Kingdom’s logistics infrastructure, thereby supporting its ability to handle regional changes and maintain the smooth flow of trade.
These projects come within the framework of the Kingdom’s strategy aimed at strengthening its position as a global logistics hub, in line with “Vision 2030,” by expanding investments in ports, improving supply chain efficiency, and attracting local and international investments, which supports economic diversification goals and increases the competitiveness of the transport and logistics sector.
