His Excellency the Minister of Industry and Mineral Resources, Mr. Bandar bin Ibrahim Al-Khorayef, emphasized the importance of the transport and logistics sector in the development of the industrial and mining sectors, and in cementing the Kingdom's position as a global logistics hub, in line with the objectives of "Saudi Vision 2030."
He stated that linking industrial cities in the Riyadh and Eastern regions with a railway network would enhance the efficiency of logistics operations in the industrial sector and open new trade and export routes. He made these remarks during his speech at the signing ceremony of two memoranda of understanding and several investment contracts between the Saudi Authority for Industrial Cities and Technology Zones (MODON) and the Saudi Railway Company (SAR), supported by the National Industrial Development and Logistics Program (NIDLP).
His Excellency stressed that the NIDLP plays a crucial role in maximizing the benefits derived from the four sectors it oversees: industry, mining, energy, and logistics. He pointed out that it is impossible to achieve optimal benefits across these economic components without joint collaboration between these sectors. He also noted that transportation costs are a key factor in the access of industrial goods to local and global markets. Furthermore, railway transportation is considered one of the best options in terms of cost, product pricing, and environmental impact.
He explained that the signed memorandums of understanding aim to enhance integration and partnership between the industrial and transport sectors, facilitate supply chains for the industrial sector in the central and eastern regions, support supply chains with global standards, and enhance trade lines and logistics operations. Additionally, they aim to increase the benefits derived from industrial facilities in the Jubail Industrial City and the industrial plants in Dammam that depend on SABIC products and iron products from Jubail.
It is worth noting that the memoranda of understanding between MODON and SAR aim to leverage complementary capabilities and shared expertise in several areas of cooperation. This includes linking a new logistics area, covering one million square meters, to be developed in the second industrial city of Dammam, with the Northern and Eastern railway networks. This will provide access to King Abdulaziz Port in Dammam, Riyadh Dry Port, and the ports of Jubail and Ras Al-Khair, facilitating supply chains for the industrial sector in the central and eastern regions, and easing access to local, regional, and global markets.
The agreements also include establishing a partnership framework between the two parties to build a passenger transport station in the Sudair Industrial and Business City, linking it to the Northern Railway Network. The goal is to align with the investment and developmental activities in the industrial city, increase passenger train capacity, and enable access to new destinations.
