المنظومة اللوجستية.. غرفة الرياض تعلق الجرس !

I was struck by the statement issued by the Riyadh Chamber, which included the Logistics Sector Committee's call to accelerate integration among the components of the logistics system, considering it a priority that supports the competitiveness of the Saudi economy and contributes to enhancing the efficiency of supply chains and facilitating the flow of goods and trade. It was notable that there are some operational challenges facing the sector and investors, and I thought these might have been overcome with the development witnessed in the sector since the launch of Saudi Vision 2030!

Among the most prominent operational challenges are the weak multimodal connectivity and the need to transport goods in coordination among multiple transport modes to reduce costs, shorten transit times, and improve the reliability of supply chains. There is also a clear limitation in the capacity of stations, due to insufficient facilities at ports, airports, or warehouses to handle the volume of trade flows, in addition to the continued reliance on trucks in what is known as the "last mile," which represents the most costly and impactful link in supply efficiency!

This, in turn, negatively affects the final cost borne by the consumer, making the call to accelerate integration among the components of the logistics system a priority, not only to enhance the efficiency of supply chains, facilitate the flow of goods, and reduce costs, but also to establish the Kingdom's position as a global logistics hub, which is one of the key targets of the Vision!

It is important to address the observations mentioned in the Chamber's statement, as the expansion of automation, artificial intelligence, and real-time tracking of trucks contributes to speeding up business operations and reducing the costs of transporting and storing goods, which positively impacts many vital sectors, such as e-commerce, industry, and mining, by linking industrial cities with advanced transport networks. The logistics sector today accounts for between 6% and 12% of GDP in many global economies!

In short, developing the logistics services system is an economic and developmental pillar linked to attracting investments, increasing the competitiveness of national exports, stimulating economic growth, and enhancing the reliability of supply chains; it is indeed the backbone of the economy, as this importance became evident during the recent crisis, in terms of the actual need to develop the port sector and rail connectivity and transport in general!