RIYADH: The Saudi Ports Authority on Sunday signed an agreement worth SR1 billion ($0.26 billion ) with Jeddah Chamber of Commerce and Industry to develop an integrated logistics area in Al-Khumra region south of Jeddah.
The aim of the logistics zone is to support economic development, boost investments and encourage the private sector to play its due role in the sector.
The integrated logistics zone spans over 3 million sq. m, and is divided into three sub-areas of shared modular warehouses, single warehouses, large yards, and on-demand warehouses.
In addition to providing administrative, commercial, and residential areas, the zone will fulfill the storage needs of importers and exporters.
According to an official statement, the zone will provide basic services including “ready-made warehouses, storage yards, areas for re-export, specialized storage, multiple logistical sites, and subsidiary services consisting of commercial units, housing units and resting places for workers.”
The zone’s development will also support the Kingdom’s infrastructure, as well as cultivate the urban landscape and afforestation.
Saudi Arabia intends to utilize its ports to diversify its assets and companies, as well as create over 10,000 new direct and indirect jobs in the logistics sector.