海角直播

海角直播鈥檚 transportation boom opens doors for private investment

RIYADH: 海角直播鈥檚 rapidly expanding transportation sector is unlocking new investment opportunities for private players, both local and global, experts have told Arab News.

Central to the Kingdom鈥檚 Vision 2030 strategy, transportation development is seen as a key enabler for economic diversification and the drive to position 海角直播 as a global logistics, tourism, and business hub.

With a growing emphasis on public-private partnerships, Minister of Transport and Logistic Services Saleh Al-Jasser announced during the third PIF Private Sector Forum, held in Riyadh in February,  that private entities are expected to contribute around 80 percent of the targeted investments in the country鈥檚 transport and logistics sector. 

He added that the total value of projects offered to the private sector 鈥� through privatization and other models 鈥� could reach SR240 billion ($63.95 billion).

Joseph Salem, partner and travel, transportation and hospitality practice lead at Arthur D. Little, Middle East, told Arab News that public-private partnerships are at the core of this strategy. 

鈥淧rivatization of key transport infrastructure, such as ports and airports, is creating new opportunities for private investment,鈥� he said, adding: 鈥淭he development and management of cargo terminals through PPP agreements are attracting private efficiency and capital. The construction and engineering sectors are also benefiting, with numerous megaprojects like the Riyadh Metro and Neom鈥檚 mobility network.鈥�

Alessandro Tricamo, partner at Oliver Wyman鈥檚 transportation and services practice for India, the Middle East, and Africa, echoed similar sentiments and emphasized the importance of selecting suitable assets to attract investors.

鈥淕lobally, asset classes such as airports and seaports are typically considered bankable, with the potential to generate strong returns and attract private investment. Conversely, railways and public transport systems often require structured support from the government to become commercially viable,鈥� said Tricamo.

He added: 鈥淚n the Kingdom, there鈥檚 still a need to refine how these projects are structured and presented to the private sector, as expectations are sometimes misaligned with market realities. Clear, realistic frameworks will help unlock greater private sector involvement and broaden the Kingdom鈥檚 business landscape.鈥�

The Kingdom鈥檚 logistics infrastructure is expanding rapidly. According to a report released by the General Authority for Statistics in December, the number of logistics facilities in the country has increased by 267 percent since 2021, with the Eastern Province leading in logistics hubs spanning 6.3 million sq. meters.

鈥淧rivate companies are seizing opportunities in trucking, warehousing, freight forwarding, and e-commerce delivery services. Technology firms are also entering the market, offering solutions in AI, electric vehicles, and autonomous transport,鈥� said Salem.

He added: 鈥淥verall, the transportation revolution in 海角直播 is creating a more diversified and competitive business environment. Private sector involvement is key to realizing the Kingdom鈥檚 ambitious Vision 2030 goals.鈥�

Transportation as a growth enabler

Anthoine Barthes, vice president of Al-Futtaim Automotive, told Arab News that transportation infrastructure underpins nearly every pillar of Vision 2030, acting as a foundation for economic growth.

According to Barthes, transportation is not only about mobility but also about creating links between economic zones, facilitating trade, drawing investment, enhancing quality of life, and boosting tourism.

鈥淎 key objective is for 海角直播 to become a global logistics hub, and this requires state-of-the-art ports, efficient rail networks, extensive road infrastructure, and modern airports capable of handling significant cargo and passenger volumes,鈥� said Barthes.

He also pointed to the Riyadh Metro 鈥� with its six lines spanning 176 km 鈥� as evidence of the Kingdom鈥檚 progress in developing effective public transport systems.

鈥淭hese efforts, alongside continuous improvements to road infrastructure and the integration of smart city mobility solutions, are crucial for enhancing the quality of life, mitigating urban congestion, and fostering sustainable urban growth,鈥� added Barthes.

Salem noted that infrastructure development supports the growth of multiple industries, including tourism and entertainment, with road upgrades linking key cities to rising destinations such as Qiddiya and Amaala.

He also highlighted how enhancements around Makkah and Madinah have improved accessibility for millions of religious visitors, reinforcing tourism and Umrah growth.

Integrated logistics backbone

Tricamo underlined that efficient logistics and supply chain management are fundamental to sustained economic development.

鈥淎 well-connected transport network that links urban and industrial centers and facilitates the smooth movement of goods and people is a key enabler of the Kingdom鈥檚 broader economic ambitions. It directly impacts the reliability, speed, and cost-effectiveness of supply chains,鈥� said Tricamo.

Arthur D. Little鈥檚 Salem believes that infrastructure modernization and the integration of advanced technologies are strengthening the Kingdom鈥檚 global supply chain footprint. He pointed to 海角直播鈥檚 rise in the World Bank鈥檚 Logistics Performance Index, climbing 17 spots to rank 38th globally in 2023.

鈥淰ision 2030 also focuses on expanding multi-modal freight capacity. The rail network will grow from 3,650 km to 8,000 km, enhancing logistics. Air cargo capacity is set to increase to over 4.5 million tonnes annually by 2030, while Saudi ports will handle up to 40 million TEUs,鈥� said Salem.

He added: 鈥淎dditionally, 40 new logistics centers across 100 million sq. meters will attract global companies, positioning 海角直播 as a logistics hub. These efforts are expected to reduce logistics costs, improve reliability, and grow the sector to $57 billion by 2030.鈥�

Impact on the business landscape

Barthes said ongoing advancements in the Kingdom鈥檚 transport infrastructure are expected to reshape the business environment.

He noted that reduced logistics costs, quicker deliveries, and agile supply chains will benefit a wide range of industries.

鈥淎 world-class infrastructure is a primary magnet for foreign direct investment. International companies are more willing to establish operations, knowing they can efficiently move goods and people,鈥� said Barthes.

Salem emphasized how transportation development enhances the ease of doing business and improves trade connectivity through upgraded logistics hubs.

鈥淭he growth of tourism, retail, and real estate sectors is another benefit. Better transportation networks make it easier for people to travel and for goods to be delivered, driving demand in these industries,鈥� said the Arthur D. Little partner.

He added that modernized ports, roads, and rail corridors are boosting trade volumes, while domestic improvements in connectivity are helping to meet growing internal demand across agriculture, retail, and construction.

Technology-driven transformation

Tricamo highlighted the vital role of digital innovation in shaping 海角直播鈥檚 future transport ecosystem.

鈥淒igital solutions 鈥� from smart ticketing and real-time tracking management systems 鈥� will be essential for building a future-ready, user-centric transport ecosystem,鈥� he said.

Salem echoed these views, noting the Kingdom鈥檚 strong push for smart infrastructure, digital logistics, and electric mobility.

He added that electric vehicles are reshaping transportation, supported by investments in thousands of fast-charging points across 1,000 locations by 2030. The goal is to have 30 percent of vehicles in Riyadh electrified by then.

鈥淪mart cities like Neom are integrating IoT sensors, AI-driven traffic management, and predictive congestion systems to optimize transportation. These technologies improve traffic flow, reduce accidents, and enhance the overall commuter experience. In logistics, automation and AI are being used to streamline freight operations, reduce errors, and optimize delivery routes,鈥� said Salem.

Overcoming challenges

Salem acknowledged that the Kingdom faces hurdles such as overreliance on road transport, the country鈥檚 vast geography, regulatory bottlenecks, skill shortages, and climate-related challenges.

He emphasized that the government is proactively addressing these with targeted initiatives.

鈥淭o reduce reliance on roads, 海角直播 is investing heavily in rail and public transit projects like the Riyadh Metro. The vast size of the Kingdom is being addressed by extending transportation networks to remote areas, ensuring equitable access to modern infrastructure,鈥� said Salem.

He added that regulatory reforms, including the establishment of the National Center for Privatization, are streamlining approval processes and attracting private sector investment. 

鈥淭hrough partnerships with global firms, 海角直播 is transferring knowledge and building local expertise to overcome skills gaps,鈥� said the Arthur D. Little partner.

Tricamo pointed to the scale of investment as the primary challenge facing transport infrastructure expansion.

鈥淚n 海角直播, the ambitious scope and accelerated timeline of Vision 2030 add further complexity, requiring multiple high-value infrastructure projects to be developed simultaneously. The private sector can play a key role in easing this burden,鈥� he said.

The Oliver Wyman partner concluded by emphasizing the need for careful asset selection to balance commercial viability and government support.