Advanced warehousing complex boosts Saudi Arabia’s aim to be global logistics center
Agility recently confirmed it will build a large logistics park for storage and distribution near Jeddah as part of a land-concession agreement announced by the Saudi Arabia’s State Properties General Administration (SPGA).
The project at Jeddah-Al Mahjar calls for construction of a modern warehousing complex on a 576,760sqm parcel south of Jeddah, starting in Q1-2023. The opening of the Agility Logistics Park – Jeddah is anticipated in Q1-2025.
Under the terms of its agreement with SPGA, Agility will invest 611mn SAR (US$ 163mn) to build the park and have the right to operate it for 25 years. Agility currently operates the Kingdom’s most advanced logistics parks—Agility Logistics Parks in Riyadh (870,000sqm) and Dammam (200,000sqm).
The announcement comes days after the Saudi government unveiled a sweeping plan to transform the Kingdom into a global logistics center as part of Saudi Arabia’s broad Vision 2030 strategy Saudi Arabia’s Global Supply Chain Resilience Initiative (GSCRI) is intended to attract US$ 11bn in fresh investment in its first two years and position the country as a key link in global supply chains through development of logistics and industrial infrastructure, economic cities, and green energy, innovation and manufacturing.
“This step will help the SPGA pursue and achieve its strategic objective of efficient management of its real estate assets in a way that maximizes the benefits for the development of the economy,” asserted Ihsan Bafakih, Governor, SPGA.
“The SPGA is studying its real estate portfolio and working towards transforming its assets into lucrative investment opportunities by providing suitable property for sustainable, pioneering projects with private-sector partners,” he continued.
Bafakih stressed that initiatives such as the Agility facility in Jeddah offer an opportunity to enhance the contribution of the country’s real estate assets to GDP while increasing the value of the government-held property, developed infrastructure and sustainable buildings.
Agility officials said the park in Jeddah will serve international and local customers in the retail, consumer goods, technology, automotive, energy and e-commerce sectors.
Accelerating Saudi economy
“Agility’s Jeddah complex will accelerate Saudi economic growth and make it easier for international and local companies to expand in the Kingdom,” affirmed Michel Saab, CEO, Agility Logistics Parks / Global Operations.
“Ultra-efficient warehousing and distribution are a huge competitive advantage. Companies operating from these parks shorten their time-to-market, reduce cost and risk, increase inventory turns and boost productivity,” he added.
Agility Logistics Parks are secure, connected, 24/7 complexes with Grade A, international-standard warehouses designed with advanced engineering and sustainability features. Agility recently received post-construction EDGE-Advanced certification (Excellence in Design for Greater Efficiencies) for a warehouse at its Riyadh Park. EDGE Advanced buildings are ‘zero-carbon ready’ structures that are at least 40% more energy efficient than others in the market.
The contract was signed by Hamza Al-Askar, Deputy SPGA Representative, and Maher Jaber Al Thabit, Vice President, Agility Logistics Parks, at the SPGA headquarters in Riyadh.