Safe havens • Chapter summary
The transport sector faced a similar set of challenges seen in our aviation chapter owing to the need to implement necessary measures and restrictions that had the effect of stymying the number of passengers on transport services. More engaging and far reaching was the effect the pandemic had on logistics. The early shock the pandemic had on global supply chains served as a hard lesson on the need for greater resiliency in the logistics sector. In this chapter, this lesson is demonstrated time and again with particular contribution coming from the private sector.
The story of King Abdullah Port is the standout over the past year. Funded through the Port Development Company, King Abdullah Port has managed to become the country’s biggest port in the space of only a few years. There is a larger story about digitalization and reform here, too. The King Abdullah Port has set records almost every year because of its fully digital customs procedure, which set the standard for the entire country. The Saudi Ports Authority (Mawani) and Saudi Customs adopted fully digital procedures before the pandemic as part of the Vision 2030 program, which included 24-hour clearance goals. Those goals were first achieved at the King Abdullah Port and played a crucial role in their 7% growth over 2020. This remarkable figure, in the words of Abdullah Dannounn, Acting General Manager of the Board, “is not an exceptional case,” and goes onto contextualize their efforts as “aggressively contributing to Vision 2030 on two fronts: increasing the volume of non-oil exports and diversifying Saudi Arabia’s sources of income.” The case of King Abdullah Port reflects the huge potential of private enterprise unbound by public sector bureaucracy but nonetheless working systematically toward national objectives.
The example set is one that is already paying dividends across the country. In its bid to turn the kingdom into a logistics hub for the region, Saudi Customs has made some impressive gains in operational efficiency following a lean transformation project, shortening processing and clearance times. The achievement of its 24 hours customs clearance goal during the pandemic is particularly impressive given the notoriety of its customs bureaucracy as clunky and interminably slow. Internal reorganization and digital advances have been the order of the day for both private and public logistics companies. Now with the pandemic in the rear-view mirror and the economy rebounding, these companies are well positioned to prosper going forward.