Pushing e-commerce in Jeddah
Aramex and Naqel Express are expanding their presence in the port of Jeddah, making use to this end of Logipoint’s logistics facilities. The efforts are a part of the overall Saudi strategy of making logistics a key pillar of a reformed post-oil economy.
Saudi Arabia’s plans to fortify its logistics sector are slowly but surely bearing fruit. The latest project undertaken in this context is a collaborative effort between Naqel Express and Logipoint, which already operates various logistics facilities in Saudi Arabia.
Saudis want to attract online traders
The latter will set up a customs warehouse for express consignments in the port of Jeddah for the former, a subsidiary of the Saudi post office. According to Logipoint this will be the first establishment of its type in the country that concentrates on e-commerce and express consignments. Once the facility is completed it will handle maritime, air and road shipments. Logipoint CEO Farooq Sheikh said that “Saudi Arabia’s logistics sector is currently changing massively. The contract we’ve signed with Naqel Express shows that Logipoint can share into this development with its extensive logistics facilities and all of its experience.”
Naqel Express, in turn, wants to improve its access to other markets as well as its e-commerce activities. “We’re continuously improving services for online traders and want to ensure that target markets in Saudi Arabia as well as in other Middle Eastern countries can be served more easily,” as Naqel Express CEO Mohammed Al Bayati elaborated.
Aramex also investing in Jeddah
Another contract that Logipoint signed in October, with Aramex, illustrates how the Saudi logistics sector is continuing to open up at a steady pace. The logistics corporation from the United Arab Emirates is set to commence operations in a facility in the port of Jeddah, which Logipoint is realising in a ‘build-to-suit’ process. Aramex will use the 20,000 m² compound to further promote last-mile activities and road haulage services in western Saudi Arabia.