9 minute read
Saudi Arabia—Transport & Logistics Metrics
MAWANI
The Saudi Ports Authority (MAWANI) also comes under the purview of the Ministry. The authority seeks to enhance capabilities of Saudi ports to make them more competitive, using the best practices to reduce and mitigate the adverse effects that port activities have on the environment. Its mission is to create a safe environment for individuals, assets, and cargoes.
Additionally, the Ministry supervises the Saudi Arabia Railway Company (SAR), which focuses on providing streamlined state-of-the-art railway services, while encouraging local companies and increasing local content. It is also focused on recruiting highly qualified professionals, investing in the construction and development of a unified railway infrastructure in the Kingdom and reducing its carbon footprint.
The launch by HRH The Crown Prince of the National Transport and Logistics Strategy (NTLS), the most prominent event witnessed recently by the transport sector, has provided a new impetus to the transport and logistics sector. NTLS aims to strengthen Saudi Arabia’s position as a global logistics hub, connecting three continents.
It seeks to enhance all transport services and means of transportation and promote integration among the logistics sector and the modern modes of transportation to support the comprehensive development of the Kingdom. The strategy primarily focuses on the infrastructure development and launch of many platforms and logistic areas, as well as the implementation of advanced operations.
It also strengthens effective publicprivate partnerships to achieve four key objectives including to promote Saudi Arabia’s position as a global logistics hub, enhance quality of life in Saudi cities, achieve balanced general budget and improve performance of government authorities.
Ambitious objectives
The national strategy comprises many major projects and ambitious objectives, which include putting the Kingdom at the sixth place globally in road quality and reducing road deaths to less than eight fatalities per 100,000 population by 2030. The strategy also aims to achieve the handling of 40 million containers, transportation of 330 million passengers via Saudi airports, as well as increasing air freight transport capacity to 4.5 million tons.
Additionally, the NTLS aims to establish a new national carrier and a new airport in Riyadh, increase public transport market share to 15 percent and reduce carbon emissions by 25 percent. It also aims to increase sector’s GDP contribution to 10 percent, and implement many projects to expand the railway network, including the construction of the Land Bridge that connects east of Saudi Arabia to the west, in addition to many major projects that will benefit the whole nation.
HRH The Crown Prince is the Head of the Higher Committee for Transport and Logistics, which reflects his firm belief in the important role played by the Transport and Logistics Sector and development opportunities it offers to uplift the Kingdom’s economy, enable and support different sectors in the country.
Saudi Vision 2030
Under Saudi Vision 2030, the Kingdom’s Transport and Logistics sectors have made several inroads and key accomplishments during the past few years. The first and the foremost among them is the Kingdom’s rise to the top position in the global road connectivity index for 2021 by the Global Competitiveness Report.
It also ranked first in the Arab region in the installation of rumble strips,
according to the GCC-STAT report. Additionally, the sector saw a 75,000km long expansion in the country’s road networks and a drop in traffic deaths with 13 fatalities per 100,000 population. The sector also launched the Saudi Road Code initiative and implemented many road projects to enhance road safety and improve the maintenance to ensure raising the standard of life through enabling a reliable transportation and a higher level of safety and quality.
The Transport General Authority (TGA)
Regarding the public transport sector, the regulatory environment was developed with a series of executive legislations and decisions. The Transport General Authority (TGA) won NDLP Award of Excellence in 2021, as well as the award of the top five government authorities for integration across the logistics sector.
As part of its efforts to combat the pandemic, the transport sector launched an initiative to offer free rides to vaccination centers in partnership with the Ministry of Health. It approved 17 ride-sharing applications, resulting in 65.5 million trips.
Also, the sector opened 18 business service centers across the Kingdom, serving more than 80,000 beneficiaries. The Unified Electronic Contract for car rental services was launched and made mandatory for car rental companies. The automated public transport traffic violations monitoring system and violations appeal service were launched. Freight brokers were obliged to use electronic shipping documents.
The sector scored 82 percent on the overall regulatory compliance index and also carried out following programmes and initiatives to improve its overall services: • Implemented an operational life expectancy requirement for foreign vehicles imported to the Kingdom. • Launched a human capital transformation project. • Achieved 100 percent on the index of employment data quality; implemented an initiative for licensing privately-owned vehicles for public transportation. • Issued more than 17,000 licenses for road transport activities. • Launched a project for scheduling truck entry to main cities.
Implemented the recommendations of the transport sector’s anticoncealment committee; introduced 18 new regulations and laws. Reduced the minimum allowed model year of
trucks designed for transporting goods that are imported to the Kingdom. • Achieved full nationalization of the ride-sharing sector and registered more than 300,000 male and female new drivers in the sector.
With regard to air transport, the sector accomplished many successes including classification of King Abdulaziz International Airport in Jeddah, King Fahd International Airport in Dammam and Prince Mohammad Bin Abdulaziz International Airport in Madinah among the world’s top 100 airports, according to SkyTrax’s 2021 World Airport Survey as well as being classified among the top 10 airports in the Middle East. Saudi Arabia also won the membership of the Executive Council of the Arab Civil Aviation Organization. Saudi Air Navigation Services (SANS) ranked fifth in the world safety award.
The Saudi Academy of Civil Aviation won the membership and seat of the Global Aviation Training Office of the International Civil Aviation Organization (ICAO) and was accredited by the Airports Council International (ACIATI). The electronic portal for passenger service was launched. The sector also worked on a corporate transformation project for airports to promote governance of the air transport sector.
The renamed Saudi Arabian Ministry of Transport and Logistic Services was established in 1953 to oversee all aspects of transport: roads, railways, and ports. In 1975 the Kingdom’s ministries and its public institutions went through a reformation process that led to establishing the Saudi ports, the Saudi railways and the ministry have become responsible for planning, designing, constructing and maintaining the roads and the bridges.
Later, a specialized agency for transport was established for planning and supervising the sectors of land and maritime transport and coordinate between its different means, also, to set the regulations governing various transport sectors and issue the necessary licenses for land and maritime transport activities.
In 2003 the Ministry of Transportation became the Ministry of Transport. In 2016, the Council of Ministers’ decree stated that the Minister of Transport should have supervisory role on the air transport sector, with the title of President of the General Civil Aviation Authority.
The authority is responsible for overseeing the operational and safety regulations, the air navigation services and the operations at the Kingdom’s airports. It is worth mentioning that the Kingdom’s airports are 27 airports: five international airports, 12 regional airports, and ten domestic airports, all of which offer all needed services for air travellers.
HE Engineer Saleh Bin Nasser Bin Ali Al-Jasser is the current Saudi Arabian Minister of Transport and Logistics Services, appointed in October 2019.
Additionally, Saudi Arabia signed an agreement with the International Air Transport Association (IATA) for the establishment of a headquarters in the Kingdom. The sector also launched an extension of the new SAL air cargo terminal at King Abdulaziz International Airport in Jeddah and launched a classification program for air transport and airport service providers.
Regarding the maritime transport sector, the Kingdom ranked fifth as world’s fastest country in handling container ships, according to the UNCTAD index. Saudi Arabia also ranked first in the Arab World and 20th globally in terms of shipping tonnage. It also won International Maritime Organization’s (IMO) council membership.
Global classification of Saudi Ports’ performance
The global classification of Saudi ports’ performance increased to rank 16 in terms of handled cargo, according to Lloyd’s List annual report. Jeddah Islamic Port, King Abdullah Port and King Abdulaziz Port were listed among the world’s largest 100 ports.
The sector also signed an agreement for the establishment of Middle East’s largest integrated logistics zone in Jeddah Islamic Port with full investment by Maersk shipping company. Another contract was signed for the establishment of Middle East’s largest terminal for grain and feed import and processing. Additionally, the sector announced investment opportunities for developing and operating multipurpose terminals at eight Saudi ports.
With regard to railway, all sector’s regulatory operations were completed and integrated and assets transferred to the Saudi Railway Company (SAR). A concession agreement for operation of Riyadh Dry Port was signed to enhance operational efficiency and achieve transportation of 1.5 million containers between Riyadh and Dammam by 2030. Al-Qurayyat passenger railway station was launched and fully integrated with the North-South Railway Line.
Additionally, Haramain High Speed Railway was fully reoperated. The sector also fully automated the technical connection between SAR East, North, Haramain High Speed Railway networks. On another front, SAR managed to transport 21 million tons of minerals and goods in 2021, saving some 1.2 million truck trips, which reduced carbon emissions by more than 1,200 tons.
Saudi Railway Company
SAR also transported more than 3 million passengers across its three railway lines and obtained risk management ISO 22301 certification and quality ISO 9001 certification. It was also granted the local content certificate by the Local Content and Government Procurement Authority.
Regarding the logistics sector, the Council of Ministers approved a decision concerning the establishment of the Logistic Services Agency. The unified logistics license was launched to streamline process for investors with more than 34 local and international companies getting licenses to conduct logistic activities in the Kingdom. As part of this, seven activities were integrated into one process. The Saudi Logistics Academy was also inaugurated.
HRH The Crown Prince’s support had a profound impact on the realization of such achievements made by the sector as it seeks to achieve the objectives of the ambitious Vision of the Kingdom and its wise forward-looking leadership that created opportunities and enabled people to actively contribute to the development and welfare of their country.
The transport and logistics sector will move forward to deliver new successes through its planned projects and programs and in line with set schedules, for achieving the objectives of the National Transport and Logistics Strategy, which is a key pillar of Saudi Vision 2030 programmes.
