The General Authority of Civil Aviation (GACA) in Saudi Arabia has signed an agreement with CJ Logistics to build a dedicated e-Commerce Global Distribution Centre at Riyadh Integrated. It will be housed in the kingdom’s first Special Integrated Logistics Zone and will be completed by 2024.

 

The proposed facility is a state-of-the-art logistics centre with a gross floor area of 18,000 sq m and a daily throughput capacity of 15,000 boxes. It will serve as a forwarding base and hub for logistics in the region, connecting the Middle East, Africa and Europe. 

 

CJ Logistics recently signed an eight-year long-term contract with iHub before establishing the Global Distribution Centre. The new Centre will offer international delivery of iHerb products to the Middle East, one of the largest online retailers for health and wellness products.

 

Key milestone

GACA President Al Duailej said: “This marks an important milestone for Riyadh Integrated - Saudi Arabia’s Special Integrated Logistics Zone. We look forward to CJ Logistics having a strong presence in the kingdom, with this Global Distribution Centre being their main hub in the region.

 

“Riyadh Integrated is a testimony to the Saudi Aviation Strategy under Vision 2030, positioning the kingdom as a global logistics hub connecting three continents to the Kingdom as our logistics sector is transformed.

 

“As a vital enabler for Saudi Arabia’s logistics sector, the Special Integrated Logistics Zone will strengthen Saudi Arabia’s position as the largest, fastest growing market and leading strategic trading nation in the Middle East and continue Vision 2030’s mission to connect the kingdom to the world.”

 

Kang Sin-ho, CEO of CJ Logistics, added: “The Saudi e-commerce market has the richest growth potential in the Middle East and the geographical advantage of connecting Africa, Middle East and Europe. 

 

Logistics hub

"We will support the state-of-the-art logistics technology and infrastructure so that the GDC can become a logistics hub that leads the Middle East e-commerce market."

 

The Special Integrated Logistics Zone was launched in October 2022 in Riyadh by HE the Minister of Transport & Logistics and the General Authority for Civil Aviation. The Zone is truly integrated, with a value proposition that has been developed alongside its first batch of investors. 

 

The strategically located Special Integrated Logistics Zone will serve billions of potential customers in easy reach in Africa, Asia and Europe and help to significantly increase Saudi’s cargo capacity to more than 4.5 million tonnes per annum. It will also strengthen Saudi Arabia’s competitive position as the largest, fastest growing and leading trading nation in the Middle East, continuing Vision 2030’s mission to connect the kingdom to the world.

 

As part of the wider transformation of the kingdom’s logistics sector, by 2030 Saudi Arabia is significantly increasing its cargo capacity to more than 4.5 million tonnes per annum and increasing the contribution of the transport and logistics sector to national gross domestic product from the current 6% to 10%. This will help to fuel business growth, attract inward investment, and increase the sector’s non-oil revenues to about SR45 billion ($12 billion) a year by 2030.-- TradeArabia News Service