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Third Edition

Saudi Transport and Logistic Services

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Message from Maxwell Stamp

KSA

We are witnessing together with the population of Saudi Arabia huge economic reforms driven around the Vision 2030 and its initiatives. Led by His Majesty Crown Prince Mohammed this is opening Saudi Arabia to a prosperous and empowered future.

“Nothing is more inspiring than to see the nation’s youth take hold of their destiny and join a prolific economic ecosystem”

Andrew Lippett General Manager

Message from Riyadh Exhibitions Company

We at Riyadh Exhibitions Company Ltd. Aligning our

mission with the Saudi Vision 2030, by positioning the

Saudi Transport and Logistic services Exhibition to be a

hub of communication and planning as the entire

industry comes together to prepare for the

transformation of the Kingdom. The exhibition

represents a worthy step to enter the Saudi market and

an important initiative to touch on issues that are

affecting the economic movement in the Kingdom.

It also helps to support the dissemination of modern

knowledge regarding developments in transport, traffic

and logistics services as per the Kingdom's Vision 2030,

and to highlight best practices and introducing leaders’

experiences and global models. It is worth noting that

the exhibition aims to keep pace with the continuous

development in the transport and logistic services

industry, in order to achieve the goals of Vision 2030 in

making the Kingdom a global logistical center mainly

dependent on transport in its various sectors.

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Saudi Arabia Projects Current Projects in Saudi Arabia Future projects in Saudi Arabia

Key Players About Us Riyadh Exhibitions Company overview Maxwell Stamp KSA overview Saudi Build summary & fact and figures from 2019 Conference Editorial Team: Andrew Lippett, Sumeera Iqbal Design: Nada Shahwan

Contents

Introduction Market Overview

Logistics Sector

Sector Growth

Innovation and Trends - Logistics Company - Inventory Management Systems - Robotics in Warehousing - Shipping Agents - Warehouse management systems

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Market Overview

By: Matthew Lippett

The Kingdom of Saudi Arabia logistic markets such as the third-party, freight, automotive

and warehousing is expected to see exponential growth within the next forecasting period

from 2020-2025. There are numerous factors which are enabling the development of the

logistic markets. The third-party logistics market is forecasted to grow 6.5% between 2020

and 2025, 3PL has gained traction catering to cross-border trade routes with other countries

within the GCC and beyond.

Factors driving growth, are such as an increase of industrialization and the introduction of

industrial zones that accelerating development within this market.

Freight and logistics market within the Kingdom have an estimated value of USD 22.95 bn

with a compound annual growth rate of 7.35% during the period of forecasting. Making one

of the Saudis largest industries that are both state-led, and funded through investments in

rail, road, the infrastructure of air transportation and logistics. The main driving factor to

this industry is economic growth within the Kingdom of Saudi Arabia pushing itself to

develop the private sector and diversify its economy from oil.

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Moreover, the automotive logistics industry in Saudi Arabia and the GCC region forecasts an

expected compound annual growth rate of 4.5% with Saudi Arabia holding a critical market for U.S.

automakers. MassTmarket production cars from low-spec carmakers to the premium market, brands

are looking to gain increased market share within Saudi Arabia and other countries within the GCC.

Saudi Arabia accounts for 40% of vehicles sold within the Middle East.

Finally, the warehousing and distribution logistics market are also due to see exponential growth

within its forecast period. Factors of this growth being, increase in warehousing infrastructure,

increase in private and public government investments with aims of developing a logistics hub within

the Kingdom of Saudi Arabia.

With the future plans of Vision 2030, the Kingdom has already started to diversify its non-oil

economy, one of the most significant pillars of this vision is to transform the Kingdom into the

preferred logistics hub in the surrounding area

Saudi Arabia is a freight-forwarding leader that holds the largest logistics market in the GCC. It is a

market that has consistently grown at a rate of 5% per year and that maintains a bullish outlook.

KSA’s logistics infrastructure is also well-established and is positioned to flourish with the largest

maritime network in the Middle East. By 2030, Saudi Arabia is anticipated to be among the most

important logistics hub in the area, contributing about 38% of gross domestic product and 21%of the

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population in the area.With the future plans of Vision 2030, the Kingdom has already started to

diversify its non-oil economy, one of the most significant pillars of this vision is to transform the

Kingdom into the preferred logistics hub in the surrounding area

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Innovations and Trends

Most prominent Logistics Companies in the Kingdom

Al Khodari

“A joint venture with a leading well-established contracting company in the Eastern

Province has paved the way for LV to operate a full door to door logistics service throughout

Saudi Arabia. “

Aramex

“Is a leading global provider of comprehensive logistics and transportation solutions.”

ATCO

“Owned by Abdulrahman Ali Al-Turki. ATCO is ranked among the largest companies in Saudi

Arabia.”

DB Schenker

“It combines all logistic and transport activities, employing over 91,000 staff spread across

about 2,000 locations in about 130 countries.”

DHL

“A Part of the World´s Leading Logistics Group. Deutsche Post DHL offers integrated services

and tailored, customer-focused solutions for managing and transporting letters,

information, and goods.”

GAC

“GAC Saudi Arabia has grown from a single operational office at Ras Tanura to today’s

operations at the major ports of Dammam, Yanbu, Jubail, Ras Tanura, Al Khafji, Ras Al-Khafji,

Jeddah, and Rabigh, as well as the dry port in Riyadh.”

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IFFCO

“Maintaining a reliable, responsive, and cost-efficient product and material supply chain in

today’s highly competitive business environment is often a crucial factor for success.”

MML

“Modern Maritime Logistics was founded in 2001 by a well-known Saudi Holding company

with an unmatched commercial, maritime, and navigational experience.”

NTF group

“A logistics service provider in KSA and surrounding GCC region with operations employing

over 100 people. Delivering bulk shipping, food, high value added and complex products

across KSA, GCC, and surrounding region, and globally

Saudi Logistics

“A member of Saudi Import Co. Holdings. It is a Saudi Arabian based third party logistics

company offering a unique lead to companies whose products are marketed in the Kingdom

of Saudi Arabia.”

TNT

“TNT ensures that its customers documents, parcels, and freight items are delivered safely

and on time across the globe.”

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Logistics Sector

By: Shaden Alhamoud, Hatoun Abdullah Alshafi, & Nada Shahwan

Inventory Management Systems The tracking of inventory from manufacturers to warehouses and from these facilities to

point of sale is considered a critical element of the supply chain. The ultimate objective of

inventory management is to have the right product in the right place at the right time. This

involves inventory visibility, knowing when to reorder, how much to order and where to

store stock.

An accurate view of inventory is necessary for businesses to guarantee fulfilment of

customer orders, minimize stockouts, reduce shipment turnaround times, and oversells and

markdowns. Technology and globalization are changing the way businesses manage

inventory. Supply chain operators will use technologies that provide significant insights into

how supply chain performance can be improved

An inventory management system can simplify the process of storing, ordering, and using

inventory by automating end-to-end production. Advanced inventory tracking software

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have replaced hand-counted stock levels, spreadsheets, and manual order placement.

Intelligent, self-correcting AI will make inventory monitoring more accurate and reduce

material wastage. Disparate parties will be connected through a unified and immutable

record of all transactions. An exceptional computational power will solve previously

unsolvable problems. Data from IoT sensors will provide insight into inventory status and

location. Supply chains will master inventory visibility with improved demand automation

and forecasting.

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Robotics in Warehousing

Robotics is a branch of engineering and science that deals with the design, construction,

operation and use of robots that can be programmed to do certain tasks such as picking,

receiving, and put-away with new capabilities of movement, visual recognition, and the use

of motion-sensitive technology. These robots can then replace humans by performing

repeatable tasks in a consistent manner and can also be used in hazardous environments in

place of humans as well as operating for 24/7.

This improves employee engagement and retention rates by relieving employees from the

dullest and most repetitive tasks. Instead, employees will tackle other roles such as

customer service, maintenance, and operational analysis. This also results to a safer

warehouse, as automation keeps humans away from the heavy equipment, machineries,

and all types of hazardous working environments such as heat.

Amazon has started the use of Kiva robots that automate the picking and packing process at

large warehouses. Kiva robots have cut operating expenses by about 20%, quoting Amazon

exec Dave Clark, adding that it would translate to roughly $22 million in cost savings for

each fulfilment centre. Also, cycle times have been cut from 60 to 75 minutes to roughly 15

minutes after deploying Kiva robots, while inventory space grew 50% due to smarter use of

space

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Shipping Agents

Shipping agents are who deals with the transactions of a ship in every port that the ship

visits or docks. Also, they are entrusted with taking care of every need and requirement of

the crew like getting local currency, getting the mail, any repairmen in case the ship requires

major repairing, refilling the food and water containers and many other such duties.

Shipping agents help businesses thrive even in challenging times through providing the best

in shipping, logistics, and marine services with the resources, reach, expertise, and

infrastructure to support shipping operations.

GAC Saudi Arabia is one of the Kingdom’s leading shipping agencies, providing services and

professional support at all the country’s major ports.

The GAC Saudi Arabia advantage:

• Full coverage of all Saudi Arabian ports

• Tailored solutions to meet your needs

• Round-the-clock availability

• Professional support at competitive prices

• Unsurpassed local experience and expertise

• TRACE and ISO-certified

• GPS monitored fleet and vehicles

• Controlled access locations

• Availability of crew rest areas

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Warehouse Management System

A warehouse management system (WMS) consists of software and processes that allow

organizations to control and administer warehouse operations from the time goods or

materials enter a warehouse until they move out. Warehouses sit at the center of

manufacturing and supply chain operations because they hold all of the material used or

produced in those processes, from raw materials to finished goods. The purpose of a WMS

is to help ensure that goods and materials move through warehouses in the most efficient

and cost-effective way. In moving to the cloud, warehouse management systems can meet

the connected consumer with a connected fulfillment solution that offers real time visibility,

scalability, and market reactivity.

One common theme that leads to failures when implementing a warehouse management

system (WMS) is lack of communication. In order to prevent this, a company should acquire

a project manager who is capable of balancing all of the requirements of the WMS.

Oracle Warehouse Management System is implemented in King Fahad Specialty Hospital

and it has features such as regularly scheduled updates and no IT infrastructure costs, an

almost immediate return on investment and a lower total cost of ownership. With the

cloud, there is no need for hardware, software, and IT specialists. It comes ready to

integrate with multiple systems to connect all logistics processes from end-to-end. It also

supports integration with host enterprise resource planning (ERP), merchandising (MMS),

and supply chain solutions (SCM).

Online trading and E-commerce

E-commerce, online trading, and disruptors is changing global trade enormously, alongside

customer behavior. Logistics needs to keep pace with developments to meet up customer

expectations. The sharp increase in demand for services and goods created by COVID-19

anticipates that many businesses will increase inventory while many will not be able to

cope.

Virtual Warehouses

The communication and coordination between the individual warehouses and the company-

wide inventory management system is highly important as it must always be clear which

goods are at which location and which quantity. Otherwise, problems such as over-sales

quickly arise, leading to unsatisfied customers. Overselling is considered tricky, If the

cancellation rate rises above a particular level, this can lead to a lower ranking or even to

the account being blocked. Carriers who establish high-performance information technology

and functioning interfaces to connect to the inventory control systems of their customers,

will defiantly benefit through long-term business perspectives.

Artificial Intelligence & Autonomous Logistics

Artificial intelligences have crucial potentials for the logistics industry since carriers can use

them to facilitate data collection, avoid downtime, and design more efficient processes. In

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networked warehouses all objects transmit information on their current condition and

location. Smart refrigerators can place orders for consumers in eCommerce. Intelligent

delivery solutions collect highly accurate information on the delivery status of a package.

Warehouse robots can be used at logistics centers right next to human workers for loading

and unloading delivery trucks, robots might also become important factors in the future of

supply chain. Self-driving fork-lift trucks could also do heavy-duty work inside the

warehouses. Self-driving delivery vehicles can drive for 24 hours without having to observe

resting times for the drivers and even in poor weather conditions. There will be a poetical

opportunity to save fuel while having the automatic driving mode.

Multichannel Logistics

All industries must rely on a dependable road network, the traffic infrastructure causes a lot

of problems in the logistics industry. Multichannel logistics is a key, with greater

diversification of the distribution logistics channels and a broader position, the risks of

delays can be reduced, and logistics processes can made more secure.

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Current Projects

Source: Al Madina newspaper

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Riyadh Airport Cargo Village By: Shoug Alderwish

Project overview The air cargo village project in Riyadh is one of the largest projects, and it is the

model cargo village in the support area at King Khalid International Airport. It is

one of the strategies of the Kingdom's Vision 2030, which aims to transform some

cities in the Kingdom into a global logistical and economic zone such as Riyadh,

Dammam, Jeddah, and several cities.

The Kingdom aims to be a logistical platform and advance from 49 to 25 globally

and be the first in the region by 2030. The project will facilitate transportation and

express freight services, solve problems of delay, raise quality, and attract

logistical operations from the Gulf countries and neighbouring countries. It is

carrying capacity is estimated at 1.6 million tons.

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Facts and Figures

Location: Riyadh

Land: 119.665 M2

Announced: N/a

Date of start: 2018

Date of completion: 2020

Duration: 2 years

Investment: N/a

Special Features:

• Its carrying capacity is estimated at

1.600.000 million tons.

• Designed to the highest standards

and specifications air freight for

express transportation.

• The highest standards of security,

safety, and technology.

• The growth rate is estimated at

300%.

• It has 10 aircraft stands.

• The handling capacity is 450,000

tons per year.

• It is capable of handling dangerous

materials, handling medicines,

handling bags, etc.

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Riyadh investment park By: Shoug Alderwish

Project overview

The Riyadh Investment Park project will be established in Saudi Arabia similar to

the Dubai Investment Park in the Emirate of Dubai. The Dubai Investment Park is

considered the first unique complex in Dubai dedicated to industrial, educational,

entertainment, commercial and tranquillity uses.

This project meets all the needs of investors in the Arab Gulf region and provides

them with world-class facilities and services to enhance manufacturing, housing,

education, research and development, distribution, and logistics services.

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Facts and Figures

Location: Riyadh

Land: 11,000,000 M2

Announced: 2017

Date of start: 2018

Date of completion: N/a

Duration: N/a

Investment: 612 million SAR

Special Features:

• Warehouses

• Logistical facilities

• Offices

• Residential complexes

• Commercial showrooms

• Facilities for workers

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Future Projects

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Modern Stores By: Shoug Alderwish

Project overview This project consists of storage units and has several facilities and services that

meet all the desires of investors, traders, and operating companies and are used

in various fields for trade, retail, and wholesale.

The units can be used as storage and sale outlets at the same time and meet all

the needs of the tenants. The project location is great as it is surrounded by more

than 20 markets, warehouse cities and ports, Jeddah Islamic and Al-Khomrah

logistics area.

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Facts and Figures

Location: Jeddah

Land: 145,000 M2

Announced: N/a

Date of start: 2018

Date of completion: 2020

Duration: 2 years

Investment: N/a

Special Features:

• Private parking

• Restaurants

• Various storage spaces

• Integrated infrastructure

• Central refrigerator

• security service

• Offices and showrooms for each

unit

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Binzigar Logistics Park By: Shoug Alderwish

Project overview

Binzagr has established a logistics center, which is considered one of the largest in

the region. It is qualified and equipped with the latest technologies and

international standards in order to satisfy customers and provide the best

services, speed of transportation and quality to all parts of the Kingdom, and the

project aims to distribute products, especially fast consumer products, such as

chilled and frozen products, food and drinks, and it will be via a land bridge. It will

be located between Riyadh and King Abdullah Economic City, and more than one

billion riyals have been invested in the center. It has been equipped according to

the latest international standards to facilitate operations, distribution,

transportation, storage and value-added services.

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Facts and Figures

Location: Jeddah, King Abdullah

Economic City

Land: 163,453M2

Announced: 2017

Date of start: 2018

Date of completion: 2020

Duration: 2 years

Investment: N/a

Special Features:

• 70 shipping and storage gates

• 600 containers per day

• Two separate storage buildings

• All operations are automatic

• Goods handling of all kinds.

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Key Players

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Key Players

By: Shrooq Alselmi & Hanadi Alahamari

Logistar

Logistic warehouses city, Logistar One of Ajlan and Brothers Company projects. Logistar is

the largest project dedicated to warehouses in the Kingdom of Saudi Arabia. Ajlan and

Brothers Co. seek to enhance the logistics services industry and achieve the goals of the

Kingdom's 2030 vision. Logistics Warehouse City Logistar understands that the requirements

among its customers are different and therefore Logistar is implemented to fulfil the needs

of its customers by providing ready lands or warehouses either by purchase or rent.

Albahri

Established in 1978. It is one of the largest companies that are leading internally and

internationally in maritime logistics services and is considered the largest transportation

company and the fleet contains the Bahri Company on 88 advanced and modern ships that

were designed with the highest standards and the Bahri company managed to serve more

than 150 ports around the world.

Platinum shipping

Established in 2006 and based in the Kingdom of Saudi Arabia. Platinum Transport

Company, Local Delivery, and International Shipping Services performs many services such

as logistics and freight services with distinction at the international level and has a strong

network with shipping agents around the world.

Alasmary

Established in 1977. Al-Asmary for customs clearance and shipping services is considered

one of the largest leading customs clearance companies with extensive experience in

business and logistics services. The company also provides loading services, express

transportation, warehousing and clearance of customs transactions, air freight, sea freight,

land freight and car freight.

Deugro

It was founded in 1924. Deugro is a highly specialized expert in shipping and project logistics

solutions for clients around the world, focusing on identifying customer needs, designing

distinctive solutions and providing the best in terms of cost and service with more than 70

company-owned offices in more than 40 countries.

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Lusco

Established in 1977. Lusco started from Al Rabeh Trading Group, a company with long

experience in the field of transportation and logistics. Lusco has 42 years of experience in

the logistics industry. It provides basic logistics services for warehousing, transportation,

packaging and related services. It has worked since then to activate its services to be highly

efficient, in order to win the confidence of its customers in the government and private

sectors.

Arabco

Arabco Logistics Company was established in 1979. It is one of the leading global companies

providing logistics services in the Kingdom of Saudi Arabia and the Gulf Cooperation Council

countries. Arabco provides air and sea freight and in all associated logistics services,

specialize in road transport. Its close link between all transport companies allows it to

provide a wide range of services during 35 years of experience in the Kingdom setting

unparalleled standards in customer service.

Al-Samaani Company

Al-Samaani Company for Metal Industries has more than 25 years of experience. It is a

national company and one of the leading companies in the field of storage solutions. The

company also provides logistical services and warehouse solutions, including warehouse

shelves - warehouse shelves - warehouse processing.

Ajwad

Established in 2010. Ajwad specializes in transport and logistics services providing the

highest levels of service to individuals and companies. It has transport and warehouse

vehicles with the highest standards of security, safety, fire prevention, ventilation, and

hygiene.

Public Warehousing Company

The Public Warehousing Company was established in 1989 with a capital of 30 million Saudi

riyals. The company's primary activity focuses on developing warehouse infrastructure,

modernizing and strengthening logistics centers. The company expands its activities outside

the Kingdom to reach the Kingdom of Bahrain and the Sultanate of Oman through its two

subsidiary companies (Gulf Maalem, the Bahrain Real Estate Company) and (spaces for

warehousing and logistics projects).

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About Us

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About Us

Riyadh Exhibitions Company

Riyadh Exhibition Company (REC) was launched in 1980’s in Riyadh, Saudi Arabia. It has been a

major contributor offering a range of organizing services for trade shows, conferences,

conventions, and events. REC has planned and executed more than 440 events in different

economic sectors in the Kingdom. The vision is to support the Saudi Market by bringing together

supply and demand through organized events. Supporting the Mission and the Vision, REC

emphasis on 5 core values, Diversity, Collaboration, Trust, Development and Creativity.

REC has done exhibitions for different sectors and industries including Healthcare, Electricity,

Agriculture, Plastic and Petrochemicals, Print and Packaging, Transport and logistics and Saudi

Build for Construction.

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Maxwell Stamp KSA

With a long and successful track record, Maxwell Stamp is committed to providing high-quality

consulting services across the Middle East. As part of this commitment we have established

regional offices in Riyadh and Abu Dhabi, staffed by a mix of expatriates and locals.

Our regional presence and long track record give us a clear understanding of local markets and

practices. We also have a network of contacts throughout the public and private sectors in most

countries in the region. Our Middle East offices have a strong record of delivery in Saudi Arabia,

and we have worked extensively elsewhere in the GCC and the wider MENA region.

As an economics consultancy, applying sound economic principles to problem-solving is at the

heart of what we do. However, the scope of our work and the range of our clients have diversified

well beyond the traditional fields in which economists operate. We have developed expertise

across a wide range of competencies and policy areas, ranging from international trade to rural

livelihoods, from privatisation to revenue administration, from health to financial sector analysis.

Andrew Lippett, General Manager

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Riyadh Exhibitions Company Ltd

6709 Al Ulaya – Al Muruj Dist.

Unit No. 19, Riyadh 12281 – 2576

Tel: +966 920024020

Fax: +966 11 229 5612

E-mail: info@recexpo.com

Websites: www.recexpo.com www.sauditransport-expo.com

Maxwell Stamp KSA

Al Hayat Center, Olaya Street,

P.O Box 3310, Riyadh 11471

Email: info@msksa.sa

Website: www.maxwellstamp.sa

Tel: +966 11 200 6255

#MSKSA