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Saudi Minister of Transport and Logistic Services, Saleh Al-Jasser
The land bridge project, which will link the western and eastern parts of the Kingdom, is one of Saudi Arabia’s mega projects, awarded to an 11-firm international consortium led by a Chinese company, said Saudi Minister of Transport and Logistic Services, Saleh Al-Jasser.
Al-Jasser indicated that the project designs were completed, and talks are going on the project’s value and funding. However, in case no deal is reached with the alliance, an agreement may be signed with the Public Investment Fund (PIF) to undertake the project, he added at the second edition of the Municipal Investment Forum (Furas) in Riyadh.
The project will include seven logistic centers, the minister noted, adding that 22 out of 59 logistics hubs have been so far established, 13 of which are for industrial purposes.
Last year, agreements were sealed with international companies to establish six logistics centers in the ports region.
The world’s transport and logistics sector is entirely ready for privatization, and the Kingdom made progress in this regard, Al-Jasser said, adding that there are sectors developing mechanisms for integrating with the private sector.
To implement the investments of the transport and logistic services sector, the Kingdom should leverage the different sources of financing, including public-private partnerships (PPPs), in line with Saudi Arabia’s National Transport and Logistics Strategy (NTLS).
The partnerships with the private sector included Prince Mohammad Bin Abdulaziz International Airport in Madinah, which is a quantum leap for Madinah. They also included three contracts in Jeddah Islamic Port and King Abdulaziz Port in Dammam with the private sector to invest in developing and operating container terminals over 30 years, with investments worth nearly SAR 17 billion.
Al-Jasser also noted that there are 22 privatization opportunities available on several of the government platforms such as “Furas”, including aviation and airports, in addition to others in the roads and logistics sectors.
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