Saudi Minister of Transport and Logistics Services Saleh Al-Jasser told Asharq Al-Awsat that the recent crisis involving the Strait of Hormuz demonstrated the Kingdom's strong infrastructure and substantial investments, many of which have been implemented in partnership with the private sector. He said the crisis also highlighted the flexibility of Saudi Arabia's logistics system and its ability to respond to changing circumstances by redirecting trade flows as needed, stressing that the Kingdom serves as a vital artery for global trade. His remarks came during the signing of several agreements at Jeddah Islamic Port, including the launch of Bahri Logistics' bonded storage zone. The facility belongs to Bahri Logistics, a business unit of Saudi shipping firm Bahri, and was inaugurated in cooperation with the Zakat, Tax and Customs Authority and the Saudi Ports Authority (Mawani). Al-Jasser said Saudi Arabia has been undergoing a rapid logistics transformation since Crown Prince and Prime Minister Mohammed bin Salman launched the National Transport and Logistics Strategy. He noted that the current regional crisis provides a real opportunity to assess the progress made since the strategy's launch, adding that it has clearly demonstrated the sector's enhanced preparedness. Al-Jasser explained that before 2023, most of Saudi Arabia's trade activity was concentrated on the Kingdom's western coast, with approximately two-thirds of trade passing through eastern ports. However, disruptions in the Red Sea during 2023 prompted the transfer of a significant share of Saudi trade to the eastern coast. With the emergence of the latest regional crisis, trade has now been redirected back to the western coast. He stressed that this logistical flexibility benefits not only Saudi Arabia's own trade but also that of neighboring countries, adding that reforms implemented across the sector are now beginning to produce tangible results. Commenting on the newly established truck logistics zone, Al-Jasser said it reflects the speed of response and the integrated coordination between the transport sector, customs authorities, and the private sector. He explained that the sharp increase in the number of ships and trucks created the need for the facility, which is designed to improve logistics efficiency, particularly as operational capacity has expanded significantly. The new zone will streamline truck entry and exit procedures, provide a safer and more organized environment for truck drivers, improve traffic management, and reduce congestion caused by the tens of thousands of trucks entering Jeddah Islamic Port each day. Al-Jasser also announced the signing of seven contracts for new logistics zones at the port. Among them is the largest overseas investment by Chinese company JD Logistics, which will establish operations inside the port. Another agreement covers a logistics project in the Al-Khumrah area south of Jeddah, while five leading Saudi companies have also signed agreements to develop additional logistics zones. He noted that the number of logistics zones across Saudi ports has now reached 34, supported by approximately SAR15 billion in private-sector investments. Saudi Ports Authority (Mawani) President Suliman Al-Mazroua told Asharq Al-Awsat that additional investments are expected in the Al-Khumrah area as part of a major economic zone designed to attract further investment, noting that several promising opportunities are currently under development. Al-Mazroua said the real value of logistics hubs lies not simply in serving as cargo transit points, but in the integrated services they provide, transforming Saudi ports into value-added platforms that enhance the competitiveness of global supply chains. He explained that shipping companies increasingly choose to call at Jeddah Islamic Port because of the value-added services offered by its logistics centers, which remain the port's primary competitive advantage. Al-Mazroua added that Jeddah Islamic Port has evolved beyond being merely a point of arrival and departure for ships. It has become a preferred destination for international shipping companies thanks to its advanced logistics infrastructure. Saudi Arabia now operates 34 logistics centers, including 17 located within Jeddah Islamic Port itself, underscoring the port's central role in the Kingdom's national transport and logistics network. The newly inaugurated bonded logistics zone is Bahri's first fully integrated logistics facility of its kind. It offers a range of advanced logistics solutions that support Saudi Arabia's ambition to establish itself as a global logistics hub capable of attracting cargo, facilitating international trade, and strengthening global supply chains.
