BACK ON THE RIGHT TRACK

he logistics sector will play an important role in advancing economic growth in the local economy as a catalyst for the adoption of Industry 4.0. In this sector, we will see how technologies applied to value chains and economic cities can increase production efficiency and establish new business models under the transformational goals of Vision 2030.

The adoption of AI and technical innovations could also foster so-called “smart industries,” boost trade, enhance B2B engagements, and develop applications in the transport sector. AI could also enhance the productivity of humans, all of which are stated goals of the National Industrial Development and Logistic Plan (NIDLP) announced in January 2019.

Through the enabling power of technology, foreign industry players have the possibility to take up an active role in the development of intelligent infrastructure. That infrastructure could be capable of providing important information on the export of the 172 commodities prioritized in the National Export Strategy, including re-exports and services. Meanwhile, the government has been tasked with ensuring the alignment of growth initiatives in the industrial and services sector to meet export goals.

TAside from the official launch of NIDLP, all stakeholders agreed that the main element spearheading growth was the agreement signed in February 2019 between Saudia Cargo and King Abdullah Port. That agreement seeks to establish an air-sea-air cargo corridor with surrounding airports, ensuring the smooth flow of cargo to the port and re-export it by the air.

More importantly, the agreement marks the gradual and low-profile focus shift from the east to west coast, as part of Saudi Arabia’s economic strategy. Saudi planners consider the Red Sea coast to be safer and better connected with the major trading destinations.

The lack of infrastructure to support local industry has long caused headaches for manufacturing firms seeking international markets for exported goods and services. This issue is further complicated by a lack of free trade agreements with foreign countries.

Last but not least, the land transportation sector saw the official launch of the Haramain Railway connecting Mecca to Medina through Jeddah and King Abdullah Economic City. Meanwhile, the strategic masterplan for the Jeddah Metro is again underway. ✖