Saudi dry port aims to enable connection

Saudi Arabia is giving its Eastern Province a big boost on the world map after the King Salman Energy Park, or SPARK, announced its logistics zone will begin operations next year to become the first private dry port in the region.

The zone is among the many headline-grabbing projects that the Gulf powerhouse has introduced in recent years, as part of its grand Saudi Vision 2030 aimed at transforming its oil-dependent economy.

A dry port is an inland terminal linked to a seaport by road or rail.

Once operational, it will feature the first private and largest dry port in the Middle East, on-site customs clearance services and bonded warehouses.

Last week, Saif Al Qahtani, president and CEO of SPARK, emphasized the significant milestone of establishing the logistics zone. This move aims to build an integrated, world-class ecosystem for investors and tenants, intending to attract significant investment and opportunities.

Operated and maintained by SPARK Logistics, a joint venture between SPARK and Hutchison Ports, the zone will serve as a gateway for the regional energy sector, ease global market access and enable businesses to seize the growing demand for energy-related products.

Master plan

At full capacity, it is expected to handle up to 10 million metric tons of cargo utilizing fully automated rubber-tired gantry cranes and gates, with noninvasive scanning equipment to expedite cargo clearance.

Before the SPARK announcement, Saudi Crown Prince Mohammed bin Salman Al Saud, chairman of the Supreme Committee for Transport and Logistics, unveiled the Master Plan for Logistics Centers on Aug 27.

Under the plan, Saudi Arabia will construct 59 logistics centers with a total area of more than 100 million square meters.

Currently, there are 21 centers being worked on, and all are expected to be completed by 2030, according to the Saudi Press Agency.

The centers will enable local industries to export Saudi products with high efficiency, and support e-commerce by facilitating a rapid link between logistics and distribution centers in the kingdom's various regions, cities and governorates, the agency reported.

Saudi Arabia's logistics sector has been growing in recent years, with current investment volume reaching $559 million, Arab News reported in April.

Saudi Arabia's Ministry of Transport and Logistics Services has laid out an ambitious strategy to expand the logistics sector's market size to $15.31 billion by 2030 and position it as a global logistics hub.