• The Seaport Authority have started an EDI platform for recording all the Import, Export and transshipment Transactions by all logistics Companies in KSA. This is expected to Streamline the process of sea freight by Automation
  • The Government is spending SAR 135 Bn for transport Infrastructure in Next 11 years including Rail freight for cheaper mode of transportation for Bulky Goods
  • Due to Covid, Online retailing and E commerce is getting extremely Popular in KSA and is expected to flourish in next 5-10 years.

Infrastructural Advancement: Government is introduced trade zones such as Jizan Economic city with additional Duty Exemptions, Subsidies and Benefits, New infrastructure such as Jazan Airport, Neom Airport, SPARK zone, expansion in the Red Sea Gateway Terminal (RSGT), Introduction of commercial routes linking Seaports and airports to transport and re-export goods are few of initiatives by government to expand KSA logistics Operations making it a global transshipment hub aligned to National Logistics Policy.

Increasing scope of Retail and E commerce logistics: KSA Government opened the retail and wholesale sectors to 100% foreign ownership and has launched a large privatization programme. This is primarily done to reduce the Oil Revenues dependency and expansion to other sectors aligned with Vision 2030. Due to COVID, People prefer online purchases more than Physical visit to the stores making E- Commerce and online retailing quite popular in KSA. Big retailers for instance, Carrefour and Abu Dawood reported surge in online sales of up to 200-300% in 2020 and further expect an escalating growth trajectory in the long-term.

Advancement in Technology: Technologies such as GPS tracking, RFID Tags and control towers are still not very popular in Saudi Arabia and are used by companies with additional costs as per the Client requirements. Other upcoming technologies include real time fuel management system, Platooning, ASRS, warehousing management system, cargo management systems and communication and information systems such as EDI which can be used to reduce paperwork and minimize time taken for compliance procedures.

Source: www.openpr.com