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Third Edition
Saudi Transport and Logistic Services
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Message from Maxwell Stamp
KSA
We are witnessing together with the population of Saudi Arabia huge economic reforms driven around the Vision 2030 and its initiatives. Led by His Majesty Crown Prince Mohammed this is opening Saudi Arabia to a prosperous and empowered future.
“Nothing is more inspiring than to see the nation’s youth take hold of their destiny and join a prolific economic ecosystem”
Andrew Lippett General Manager
Message from Riyadh Exhibitions Company
We at Riyadh Exhibitions Company Ltd. Aligning our
mission with the Saudi Vision 2030, by positioning the
Saudi Transport and Logistic services Exhibition to be a
hub of communication and planning as the entire
industry comes together to prepare for the
transformation of the Kingdom. The exhibition
represents a worthy step to enter the Saudi market and
an important initiative to touch on issues that are
affecting the economic movement in the Kingdom.
It also helps to support the dissemination of modern
knowledge regarding developments in transport, traffic
and logistics services as per the Kingdom's Vision 2030,
and to highlight best practices and introducing leaders’
experiences and global models. It is worth noting that
the exhibition aims to keep pace with the continuous
development in the transport and logistic services
industry, in order to achieve the goals of Vision 2030 in
making the Kingdom a global logistical center mainly
dependent on transport in its various sectors.
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Saudi Arabia Projects Current Projects in Saudi Arabia Future projects in Saudi Arabia
Key Players About Us Riyadh Exhibitions Company overview Maxwell Stamp KSA overview Saudi Build summary & fact and figures from 2019 Conference Editorial Team: Andrew Lippett, Sumeera Iqbal Design: Nada Shahwan
Contents
Introduction Market Overview
Logistics Sector
Sector Growth
Innovation and Trends - Logistics Company - Inventory Management Systems - Robotics in Warehousing - Shipping Agents - Warehouse management systems
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Market Overview
By: Matthew Lippett
The Kingdom of Saudi Arabia logistic markets such as the third-party, freight, automotive
and warehousing is expected to see exponential growth within the next forecasting period
from 2020-2025. There are numerous factors which are enabling the development of the
logistic markets. The third-party logistics market is forecasted to grow 6.5% between 2020
and 2025, 3PL has gained traction catering to cross-border trade routes with other countries
within the GCC and beyond.
Factors driving growth, are such as an increase of industrialization and the introduction of
industrial zones that accelerating development within this market.
Freight and logistics market within the Kingdom have an estimated value of USD 22.95 bn
with a compound annual growth rate of 7.35% during the period of forecasting. Making one
of the Saudis largest industries that are both state-led, and funded through investments in
rail, road, the infrastructure of air transportation and logistics. The main driving factor to
this industry is economic growth within the Kingdom of Saudi Arabia pushing itself to
develop the private sector and diversify its economy from oil.
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Moreover, the automotive logistics industry in Saudi Arabia and the GCC region forecasts an
expected compound annual growth rate of 4.5% with Saudi Arabia holding a critical market for U.S.
automakers. MassTmarket production cars from low-spec carmakers to the premium market, brands
are looking to gain increased market share within Saudi Arabia and other countries within the GCC.
Saudi Arabia accounts for 40% of vehicles sold within the Middle East.
Finally, the warehousing and distribution logistics market are also due to see exponential growth
within its forecast period. Factors of this growth being, increase in warehousing infrastructure,
increase in private and public government investments with aims of developing a logistics hub within
the Kingdom of Saudi Arabia.
With the future plans of Vision 2030, the Kingdom has already started to diversify its non-oil
economy, one of the most significant pillars of this vision is to transform the Kingdom into the
preferred logistics hub in the surrounding area
Saudi Arabia is a freight-forwarding leader that holds the largest logistics market in the GCC. It is a
market that has consistently grown at a rate of 5% per year and that maintains a bullish outlook.
KSA’s logistics infrastructure is also well-established and is positioned to flourish with the largest
maritime network in the Middle East. By 2030, Saudi Arabia is anticipated to be among the most
important logistics hub in the area, contributing about 38% of gross domestic product and 21%of the
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population in the area.With the future plans of Vision 2030, the Kingdom has already started to
diversify its non-oil economy, one of the most significant pillars of this vision is to transform the
Kingdom into the preferred logistics hub in the surrounding area
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Innovations and Trends
Most prominent Logistics Companies in the Kingdom
Al Khodari
“A joint venture with a leading well-established contracting company in the Eastern
Province has paved the way for LV to operate a full door to door logistics service throughout
Saudi Arabia. “
Aramex
“Is a leading global provider of comprehensive logistics and transportation solutions.”
ATCO
“Owned by Abdulrahman Ali Al-Turki. ATCO is ranked among the largest companies in Saudi
Arabia.”
DB Schenker
“It combines all logistic and transport activities, employing over 91,000 staff spread across
about 2,000 locations in about 130 countries.”
DHL
“A Part of the World´s Leading Logistics Group. Deutsche Post DHL offers integrated services
and tailored, customer-focused solutions for managing and transporting letters,
information, and goods.”
GAC
“GAC Saudi Arabia has grown from a single operational office at Ras Tanura to today’s
operations at the major ports of Dammam, Yanbu, Jubail, Ras Tanura, Al Khafji, Ras Al-Khafji,
Jeddah, and Rabigh, as well as the dry port in Riyadh.”
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IFFCO
“Maintaining a reliable, responsive, and cost-efficient product and material supply chain in
today’s highly competitive business environment is often a crucial factor for success.”
MML
“Modern Maritime Logistics was founded in 2001 by a well-known Saudi Holding company
with an unmatched commercial, maritime, and navigational experience.”
NTF group
“A logistics service provider in KSA and surrounding GCC region with operations employing
over 100 people. Delivering bulk shipping, food, high value added and complex products
across KSA, GCC, and surrounding region, and globally
Saudi Logistics
“A member of Saudi Import Co. Holdings. It is a Saudi Arabian based third party logistics
company offering a unique lead to companies whose products are marketed in the Kingdom
of Saudi Arabia.”
TNT
“TNT ensures that its customers documents, parcels, and freight items are delivered safely
and on time across the globe.”
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Logistics Sector
By: Shaden Alhamoud, Hatoun Abdullah Alshafi, & Nada Shahwan
Inventory Management Systems The tracking of inventory from manufacturers to warehouses and from these facilities to
point of sale is considered a critical element of the supply chain. The ultimate objective of
inventory management is to have the right product in the right place at the right time. This
involves inventory visibility, knowing when to reorder, how much to order and where to
store stock.
An accurate view of inventory is necessary for businesses to guarantee fulfilment of
customer orders, minimize stockouts, reduce shipment turnaround times, and oversells and
markdowns. Technology and globalization are changing the way businesses manage
inventory. Supply chain operators will use technologies that provide significant insights into
how supply chain performance can be improved
An inventory management system can simplify the process of storing, ordering, and using
inventory by automating end-to-end production. Advanced inventory tracking software
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have replaced hand-counted stock levels, spreadsheets, and manual order placement.
Intelligent, self-correcting AI will make inventory monitoring more accurate and reduce
material wastage. Disparate parties will be connected through a unified and immutable
record of all transactions. An exceptional computational power will solve previously
unsolvable problems. Data from IoT sensors will provide insight into inventory status and
location. Supply chains will master inventory visibility with improved demand automation
and forecasting.
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Robotics in Warehousing
Robotics is a branch of engineering and science that deals with the design, construction,
operation and use of robots that can be programmed to do certain tasks such as picking,
receiving, and put-away with new capabilities of movement, visual recognition, and the use
of motion-sensitive technology. These robots can then replace humans by performing
repeatable tasks in a consistent manner and can also be used in hazardous environments in
place of humans as well as operating for 24/7.
This improves employee engagement and retention rates by relieving employees from the
dullest and most repetitive tasks. Instead, employees will tackle other roles such as
customer service, maintenance, and operational analysis. This also results to a safer
warehouse, as automation keeps humans away from the heavy equipment, machineries,
and all types of hazardous working environments such as heat.
Amazon has started the use of Kiva robots that automate the picking and packing process at
large warehouses. Kiva robots have cut operating expenses by about 20%, quoting Amazon
exec Dave Clark, adding that it would translate to roughly $22 million in cost savings for
each fulfilment centre. Also, cycle times have been cut from 60 to 75 minutes to roughly 15
minutes after deploying Kiva robots, while inventory space grew 50% due to smarter use of
space
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Shipping Agents
Shipping agents are who deals with the transactions of a ship in every port that the ship
visits or docks. Also, they are entrusted with taking care of every need and requirement of
the crew like getting local currency, getting the mail, any repairmen in case the ship requires
major repairing, refilling the food and water containers and many other such duties.
Shipping agents help businesses thrive even in challenging times through providing the best
in shipping, logistics, and marine services with the resources, reach, expertise, and
infrastructure to support shipping operations.
GAC Saudi Arabia is one of the Kingdom’s leading shipping agencies, providing services and
professional support at all the country’s major ports.
The GAC Saudi Arabia advantage:
• Full coverage of all Saudi Arabian ports
• Tailored solutions to meet your needs
• Round-the-clock availability
• Professional support at competitive prices
• Unsurpassed local experience and expertise
• TRACE and ISO-certified
• GPS monitored fleet and vehicles
• Controlled access locations
• Availability of crew rest areas
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Warehouse Management System
A warehouse management system (WMS) consists of software and processes that allow
organizations to control and administer warehouse operations from the time goods or
materials enter a warehouse until they move out. Warehouses sit at the center of
manufacturing and supply chain operations because they hold all of the material used or
produced in those processes, from raw materials to finished goods. The purpose of a WMS
is to help ensure that goods and materials move through warehouses in the most efficient
and cost-effective way. In moving to the cloud, warehouse management systems can meet
the connected consumer with a connected fulfillment solution that offers real time visibility,
scalability, and market reactivity.
One common theme that leads to failures when implementing a warehouse management
system (WMS) is lack of communication. In order to prevent this, a company should acquire
a project manager who is capable of balancing all of the requirements of the WMS.
Oracle Warehouse Management System is implemented in King Fahad Specialty Hospital
and it has features such as regularly scheduled updates and no IT infrastructure costs, an
almost immediate return on investment and a lower total cost of ownership. With the
cloud, there is no need for hardware, software, and IT specialists. It comes ready to
integrate with multiple systems to connect all logistics processes from end-to-end. It also
supports integration with host enterprise resource planning (ERP), merchandising (MMS),
and supply chain solutions (SCM).
Online trading and E-commerce
E-commerce, online trading, and disruptors is changing global trade enormously, alongside
customer behavior. Logistics needs to keep pace with developments to meet up customer
expectations. The sharp increase in demand for services and goods created by COVID-19
anticipates that many businesses will increase inventory while many will not be able to
cope.
Virtual Warehouses
The communication and coordination between the individual warehouses and the company-
wide inventory management system is highly important as it must always be clear which
goods are at which location and which quantity. Otherwise, problems such as over-sales
quickly arise, leading to unsatisfied customers. Overselling is considered tricky, If the
cancellation rate rises above a particular level, this can lead to a lower ranking or even to
the account being blocked. Carriers who establish high-performance information technology
and functioning interfaces to connect to the inventory control systems of their customers,
will defiantly benefit through long-term business perspectives.
Artificial Intelligence & Autonomous Logistics
Artificial intelligences have crucial potentials for the logistics industry since carriers can use
them to facilitate data collection, avoid downtime, and design more efficient processes. In
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networked warehouses all objects transmit information on their current condition and
location. Smart refrigerators can place orders for consumers in eCommerce. Intelligent
delivery solutions collect highly accurate information on the delivery status of a package.
Warehouse robots can be used at logistics centers right next to human workers for loading
and unloading delivery trucks, robots might also become important factors in the future of
supply chain. Self-driving fork-lift trucks could also do heavy-duty work inside the
warehouses. Self-driving delivery vehicles can drive for 24 hours without having to observe
resting times for the drivers and even in poor weather conditions. There will be a poetical
opportunity to save fuel while having the automatic driving mode.
Multichannel Logistics
All industries must rely on a dependable road network, the traffic infrastructure causes a lot
of problems in the logistics industry. Multichannel logistics is a key, with greater
diversification of the distribution logistics channels and a broader position, the risks of
delays can be reduced, and logistics processes can made more secure.
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Current Projects
Source: Al Madina newspaper
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Riyadh Airport Cargo Village By: Shoug Alderwish
Project overview The air cargo village project in Riyadh is one of the largest projects, and it is the
model cargo village in the support area at King Khalid International Airport. It is
one of the strategies of the Kingdom's Vision 2030, which aims to transform some
cities in the Kingdom into a global logistical and economic zone such as Riyadh,
Dammam, Jeddah, and several cities.
The Kingdom aims to be a logistical platform and advance from 49 to 25 globally
and be the first in the region by 2030. The project will facilitate transportation and
express freight services, solve problems of delay, raise quality, and attract
logistical operations from the Gulf countries and neighbouring countries. It is
carrying capacity is estimated at 1.6 million tons.
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Facts and Figures
Location: Riyadh
Land: 119.665 M2
Announced: N/a
Date of start: 2018
Date of completion: 2020
Duration: 2 years
Investment: N/a
Special Features:
• Its carrying capacity is estimated at
1.600.000 million tons.
• Designed to the highest standards
and specifications air freight for
express transportation.
• The highest standards of security,
safety, and technology.
• The growth rate is estimated at
300%.
• It has 10 aircraft stands.
• The handling capacity is 450,000
tons per year.
• It is capable of handling dangerous
materials, handling medicines,
handling bags, etc.
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Riyadh investment park By: Shoug Alderwish
Project overview
The Riyadh Investment Park project will be established in Saudi Arabia similar to
the Dubai Investment Park in the Emirate of Dubai. The Dubai Investment Park is
considered the first unique complex in Dubai dedicated to industrial, educational,
entertainment, commercial and tranquillity uses.
This project meets all the needs of investors in the Arab Gulf region and provides
them with world-class facilities and services to enhance manufacturing, housing,
education, research and development, distribution, and logistics services.
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Facts and Figures
Location: Riyadh
Land: 11,000,000 M2
Announced: 2017
Date of start: 2018
Date of completion: N/a
Duration: N/a
Investment: 612 million SAR
Special Features:
• Warehouses
• Logistical facilities
• Offices
• Residential complexes
• Commercial showrooms
• Facilities for workers
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Future Projects
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Modern Stores By: Shoug Alderwish
Project overview This project consists of storage units and has several facilities and services that
meet all the desires of investors, traders, and operating companies and are used
in various fields for trade, retail, and wholesale.
The units can be used as storage and sale outlets at the same time and meet all
the needs of the tenants. The project location is great as it is surrounded by more
than 20 markets, warehouse cities and ports, Jeddah Islamic and Al-Khomrah
logistics area.
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Facts and Figures
Location: Jeddah
Land: 145,000 M2
Announced: N/a
Date of start: 2018
Date of completion: 2020
Duration: 2 years
Investment: N/a
Special Features:
• Private parking
• Restaurants
• Various storage spaces
• Integrated infrastructure
• Central refrigerator
• security service
• Offices and showrooms for each
unit
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Binzigar Logistics Park By: Shoug Alderwish
Project overview
Binzagr has established a logistics center, which is considered one of the largest in
the region. It is qualified and equipped with the latest technologies and
international standards in order to satisfy customers and provide the best
services, speed of transportation and quality to all parts of the Kingdom, and the
project aims to distribute products, especially fast consumer products, such as
chilled and frozen products, food and drinks, and it will be via a land bridge. It will
be located between Riyadh and King Abdullah Economic City, and more than one
billion riyals have been invested in the center. It has been equipped according to
the latest international standards to facilitate operations, distribution,
transportation, storage and value-added services.
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Facts and Figures
Location: Jeddah, King Abdullah
Economic City
Land: 163,453M2
Announced: 2017
Date of start: 2018
Date of completion: 2020
Duration: 2 years
Investment: N/a
Special Features:
• 70 shipping and storage gates
• 600 containers per day
• Two separate storage buildings
• All operations are automatic
• Goods handling of all kinds.
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Key Players
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Key Players
By: Shrooq Alselmi & Hanadi Alahamari
Logistar
Logistic warehouses city, Logistar One of Ajlan and Brothers Company projects. Logistar is
the largest project dedicated to warehouses in the Kingdom of Saudi Arabia. Ajlan and
Brothers Co. seek to enhance the logistics services industry and achieve the goals of the
Kingdom's 2030 vision. Logistics Warehouse City Logistar understands that the requirements
among its customers are different and therefore Logistar is implemented to fulfil the needs
of its customers by providing ready lands or warehouses either by purchase or rent.
Albahri
Established in 1978. It is one of the largest companies that are leading internally and
internationally in maritime logistics services and is considered the largest transportation
company and the fleet contains the Bahri Company on 88 advanced and modern ships that
were designed with the highest standards and the Bahri company managed to serve more
than 150 ports around the world.
Platinum shipping
Established in 2006 and based in the Kingdom of Saudi Arabia. Platinum Transport
Company, Local Delivery, and International Shipping Services performs many services such
as logistics and freight services with distinction at the international level and has a strong
network with shipping agents around the world.
Alasmary
Established in 1977. Al-Asmary for customs clearance and shipping services is considered
one of the largest leading customs clearance companies with extensive experience in
business and logistics services. The company also provides loading services, express
transportation, warehousing and clearance of customs transactions, air freight, sea freight,
land freight and car freight.
Deugro
It was founded in 1924. Deugro is a highly specialized expert in shipping and project logistics
solutions for clients around the world, focusing on identifying customer needs, designing
distinctive solutions and providing the best in terms of cost and service with more than 70
company-owned offices in more than 40 countries.
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Lusco
Established in 1977. Lusco started from Al Rabeh Trading Group, a company with long
experience in the field of transportation and logistics. Lusco has 42 years of experience in
the logistics industry. It provides basic logistics services for warehousing, transportation,
packaging and related services. It has worked since then to activate its services to be highly
efficient, in order to win the confidence of its customers in the government and private
sectors.
Arabco
Arabco Logistics Company was established in 1979. It is one of the leading global companies
providing logistics services in the Kingdom of Saudi Arabia and the Gulf Cooperation Council
countries. Arabco provides air and sea freight and in all associated logistics services,
specialize in road transport. Its close link between all transport companies allows it to
provide a wide range of services during 35 years of experience in the Kingdom setting
unparalleled standards in customer service.
Al-Samaani Company
Al-Samaani Company for Metal Industries has more than 25 years of experience. It is a
national company and one of the leading companies in the field of storage solutions. The
company also provides logistical services and warehouse solutions, including warehouse
shelves - warehouse shelves - warehouse processing.
Ajwad
Established in 2010. Ajwad specializes in transport and logistics services providing the
highest levels of service to individuals and companies. It has transport and warehouse
vehicles with the highest standards of security, safety, fire prevention, ventilation, and
hygiene.
Public Warehousing Company
The Public Warehousing Company was established in 1989 with a capital of 30 million Saudi
riyals. The company's primary activity focuses on developing warehouse infrastructure,
modernizing and strengthening logistics centers. The company expands its activities outside
the Kingdom to reach the Kingdom of Bahrain and the Sultanate of Oman through its two
subsidiary companies (Gulf Maalem, the Bahrain Real Estate Company) and (spaces for
warehousing and logistics projects).
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About Us
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About Us
Riyadh Exhibitions Company
Riyadh Exhibition Company (REC) was launched in 1980’s in Riyadh, Saudi Arabia. It has been a
major contributor offering a range of organizing services for trade shows, conferences,
conventions, and events. REC has planned and executed more than 440 events in different
economic sectors in the Kingdom. The vision is to support the Saudi Market by bringing together
supply and demand through organized events. Supporting the Mission and the Vision, REC
emphasis on 5 core values, Diversity, Collaboration, Trust, Development and Creativity.
REC has done exhibitions for different sectors and industries including Healthcare, Electricity,
Agriculture, Plastic and Petrochemicals, Print and Packaging, Transport and logistics and Saudi
Build for Construction.
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Maxwell Stamp KSA
With a long and successful track record, Maxwell Stamp is committed to providing high-quality
consulting services across the Middle East. As part of this commitment we have established
regional offices in Riyadh and Abu Dhabi, staffed by a mix of expatriates and locals.
Our regional presence and long track record give us a clear understanding of local markets and
practices. We also have a network of contacts throughout the public and private sectors in most
countries in the region. Our Middle East offices have a strong record of delivery in Saudi Arabia,
and we have worked extensively elsewhere in the GCC and the wider MENA region.
As an economics consultancy, applying sound economic principles to problem-solving is at the
heart of what we do. However, the scope of our work and the range of our clients have diversified
well beyond the traditional fields in which economists operate. We have developed expertise
across a wide range of competencies and policy areas, ranging from international trade to rural
livelihoods, from privatisation to revenue administration, from health to financial sector analysis.
Andrew Lippett, General Manager
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Riyadh Exhibitions Company Ltd
6709 Al Ulaya – Al Muruj Dist.
Unit No. 19, Riyadh 12281 – 2576
Tel: +966 920024020
Fax: +966 11 229 5612
E-mail: [email protected]
Websites: www.recexpo.com www.sauditransport-expo.com
Maxwell Stamp KSA
Al Hayat Center, Olaya Street,
P.O Box 3310, Riyadh 11471
Email: [email protected]
Website: www.maxwellstamp.sa
Tel: +966 11 200 6255
#MSKSA