The Saudi Authority for Industrial Cities and Technology Zones (Modon) has sealed an investment agreement with Medlog, the logistics arm of the Mediterranean Shipping Company (MSC), for the establishment of an integrated logistics zone in the Third Industrial City in Jeddah.
The key logistics zone will include container yards and warehouses, being set up at an estimated initial investment of SAR137 million ($36.5 million), in line with the model preliminarily approved in the agreement, said a statement from Modon.
Medlog is among the world’s leading logistics service companies, operating in more than 80 countries and managing infrastructure exceeding 8.5 million sqm area, making this partnership a strategic step toward supporting the objectives of the National Transport and Logistics Strategy.
The agreement was signed at the company’s headquarters in Geneva by Modon CEO Eng. Majed Al Argoubi, following extensive discussions with company leaders on strengthening cooperation.
The collaboration comes within the kingdom’s efforts to cement its position as a global logistics hub by developing infrastructure and enhancing the logistics services ecosystem.
The key logistics zone will include container yards and warehouses, being set up at an estimated initial investment of SAR137 million ($36.5 million), in line with the model preliminarily approved in the agreement.
As per the deal, Modon has allocated logistics facilities spanning 100,000 sq m area for the project which, once operational, will handle around 60,000 twenty-foot equivalent units (TEUs) per annum by 2038.
The key facility will also provide integrated logistics solutions, including storage, distribution, handling, and customs clearance services.
Modon pointed out that the project represents a qualitative addition to the national economy, as it is expected to contribute about SAR44 million to gross domestic product (GDP) and create approximately 200 direct jobs, alongside the company’s gradual expansion of operations in the kingdom.-TradeArabia News Service
