Latest news with #LogisticsPartnershipCouncil
Al Arabiya
2 days ago
- Business
- Al Arabiya
Saudi Arabia's NEOM port halves Cairo-Iraq trade transit times in regional trade pilot
Saudi Arabia's Port of NEOM has successfully completed a pilot program that reduced transit times by more than 50 percent on a key regional trade route connecting Egypt and Iraq, as the Kingdom seeks to establish itself as a major logistics hub under its Vision 2030 economic diversification plan. The initiative, conducted in partnership with the Logistics Partnership Council, tested an intermodal corridor spanning over 900 kilometers from Cairo via Egypt's Port of Safaga, across the Red Sea to Port of NEOM, and then overland to commercial warehouses in Erbil, Iraq. The pilot involved collaboration between Saudi government agencies including the Transport General Authority and the Zakat, Tax and Customs Authority, along with private sector partners including shipowners, importers, exporters, and logistics companies. 'The Port of NEOM is the catalyst for overall economic development for the northwest region of the Kingdom and the broader region,' said Sean Kelly, managing director at the Port of NEOM. 'The intermodal corridor opening up this historical trade lane is a primary initiative in this effort. It's been proven many times that opening up supply chain options—reducing costs, reducing transit times—accelerates regional economic development and prosperity, and the intermodal corridor can play this role.' The project represents part of Saudi Arabia's broader strategy to develop its logistics sector and reduce the economy's dependence on oil revenues. The Kingdom is investing heavily in ports, roads, and customs infrastructure to capture more of the trade flows between Asia, Africa, Europe, and the Middle East. Port of NEOM's location on the Red Sea and proximity to the Arar border crossing into Iraq positions it to serve growing trade between the regions. The success of the pilot suggests the route could offer an alternative to traditional shipping paths that currently handle Egypt–Iraq trade. The corridor is designed to be scalable and could be expanded to other regional trade routes, according to project organizers. Saudi officials say such initiatives support the Vision 2030 goal of building what they describe as a world-class integrated logistics ecosystem. The pilot's completion comes as regional countries seek to boost intra-regional trade and reduce logistics costs amid ongoing global supply chain challenges.
Arab News
2 days ago
- Business
- Arab News
Neom port cuts cargo transit time with new trade corridor
RIYADH: Neom port has completed a trial of a new multimodal regional trade corridor linking Saudi Arabia, Egypt, and Iraq, cutting cargo transit times by more than half, according to the Saudi Press Agency. The pilot, conducted in partnership with the Logistics Partnership Council, demonstrated significantly faster delivery compared to traditional shipping routes. The trial shipment originated in Cairo, Egypt, and traveled via Safaga Port across the Red Sea to Neom port. From there, it continued overland to Irbil in northern Iraq, covering more than 900 km. The initiative brought together multiple government and regulatory bodies — including the Transport General Authority and the Zakat, Tax and Customs Authority — alongside private sector stakeholders such as shipowners, exporters, importers, export councils, and logistics firms. The successful test comes as Neom port accelerates infrastructure upgrades and moves toward full automation. In June, it received Saudi Arabia's first remote-controlled ship-to-shore and electric rubber-tyred Gantry cranes. Operated from ergonomic control rooms, the cranes mark a milestone in the development of Terminal 1. A 900-meter quay wall has also been completed, and the port's access channel has been deepened to 18.5 meters, enabling it to accommodate the world's largest container ships. As part of Neom's workforce development strategy, the crane operations program includes training Saudi women in advanced technical roles. According to SPA, the new trade corridor achieved high levels of operational efficiency across each stage of the journey, offering an integrated logistics solution that enhances competitiveness. 'This pilot project is a pivotal step in implementing a long-term vision to enhance Neom port's role as a major logistics and maritime hub in the Kingdom of Saudi Arabia,' the agency stated. Strategically located on the Red Sea and near the Arar border crossing — a key entry point into Iraq — Neom port aims to become a regional gateway connecting global trade routes and streamlining movement across Asia, Africa, Europe, and the Middle East. The corridor project aligns with Saudi Arabia's Vision 2030 objective of building a world-class logistics ecosystem by integrating ports, land crossings, and customs centers. It also presents a scalable model to strengthen domestic logistics connectivity and reinforce the Kingdom's position as a central player in regional and international trade.
