PIF seeks to raise local content in logistics to 60% by 2025-end: Official
Saudi Arabia's Public Investment Fund (PIF) seeks to enhance its partnerships with the private sector to raise the contribution of local content to 60% by the end of 2025, PIF's Head of Transport and Logistics Sector in MENA Investments Bakr AlMuhanna told Argaam in an interview on the sidelines of PIF Private Sector Forum.
He added that the transportation and logistics sector is an essential element in achieving the fund's strategy, as it contains three main pillars: maritime transport, managing and operating ports, and logistics.
AlMuhanna stressed that this sector represents a major enabler for other sectors, as it contributes to facilitating obtaining raw materials, manufacturing and distributing final products, as well as enhancing flexibility of the supply chains.
He pointed out that the fund owns stakes in several major companies that support this sector, including National Shipping Company of Saudi Arabia (Bahri), which operates nearly 95 cargo vessels, and the Red Sea Gateway Terminal Co. that runs Jeddah Islamic Port. The fund also holds 51% of Saudi Global Ports Co., that operates in Dammam Port. Additionally, the operation of Riyadh's Dry Port was announced.
He further indicated that the fund established the Folk Maritime Services Co. to meet the market needs of maritime transport operations, as it operates in regional shipping and linking the ports of the Kingdom, India, Pakistan and East African countries.
Furthermore, PIF has entered into a strategic investment with Zamil Offshore Services Co. to support maritime logistic services.
With regard to land transport, AlMuhanna referred to the fund's investment in Saudi Public Transport Co. (SAPTCO), which is going through a transitional stage after the end of the long -term contracts, which contributed to creating job opportunities and strengthening the local economy.
PIF's official additionally emphasized that the Kingdom benefits from its strategic location between three continents to enhance its position as a global logistical center, pointing out that the fund works to develop free logistical and economic zones, which enhances the Kingdom's attractiveness to foreign investment, as well as the flexibility of local supply chains to face challenges or volatility in the operational environment.
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