Sultan Logistics pursues expansions: COO

Abdulaziz Al Qahtani, Chief Operating Officer at Sultan Logistics Co

Abdulaziz Al Qahtani, Chief Operating Officer at Sultan Logistics Co., said the company is pursuing expansions in the Saudi logistics sector, with plans to grow operations in Jazan as well as in Al-Haditha and the Iraq-Saudi border crossing.

Speaking to Argaam on the sidelines of the Supply Chain and Logistics Conference, Al Qahtani said the expansion at the Iraq crossing comes despite challenges that differentiate it from other land ports, in line with ongoing development of land border facilities.

He noted that the company was founded more than 52 years ago and began operations in the Eastern Province before expanding with branches in Riyadh, Jeddah, Jubail, Rabigh and Yanbu.

Al Qahtani said Sultan Logistics provides integrated logistics services, including customs clearance, transportation and storage, as well as owning and operating warehouses. The company also offers distribution and delivery services, container cleaning and repair, and container terminal operations.

He added that the company employs more than 2,000 staff and operates a fleet exceeding 1,000 trucks and trailers, noting that 50–60% of the fleet is renewed periodically, with the oldest truck models dating back to 2018–2019.

On listing plans, Al Qahtani said the company is studying a potential IPO on the Saudi Exchange for around three years, but its current focus remains on expansion and growth. He noted that a stable governance structure and reliance on self-financing have contributed to postponing the decision.

Commenting on the level of competitiveness in the sector, Al Qahtani said that the regulatory environment in the transport and logistics sector has improved significantly in recent years, under the supervision of the Ministry of Transport and Logistics and the Transport General Authority, with the issuance of regulations that have helped curb illegal practices. He stressed that the Saudi market has room for various companies operating in the sector.

The COO also revealed that the company has signed agreements with Korean and Chinese shipping firms to act as a shipping container agent, with details to be officially announced early next year.

Moreover, Sultan Logistics signed investment agreements with ports to develop logistics zones covering an area of approximately 200,000 square meters in the Port of Dammam, in addition to 200,000 square meters in the Jeddah Port. The total volume of the company's investments in recent years ranges between SAR 400-500 million, and the first phase of the Dammam project will commence operation in early 2025, he added.

As regards the company's performance in the past period, Al Qahtani said that the market has witnessed remarkable growth over the past five years, driven by increased demand for logistics services as a result of projects related to Vision 2030, in addition to geopolitical developments in the Red Sea, noting that the market has witnessed relative stability during the recent period with improved navigation traffic.