Saudi Arabia’s Vision 2030 programme seeks to transform the Kingdom into a global logistics powerhouse as it seeks to diversify its economy away from oil. The country aims to maximise the geographical advantage of its strategic position connecting Asia, Europe and Africa and provide cost-effective, transparent, and agile logistics services to streamline operations.
In part, those ambitions will be reached through bold infrastructure projects, such as upgrading existing ports and terminals and developing new ones, to quadruple its annual container throughput to 40 million TEU by 2030. Saudi Arabia has also set its sights on enhancing the number and quality of its logistics zones and modern warehouses to meet the growing supply chain demands and boost its international trade credentials.
But, while infrastructure is vital, implementing suitable technology will be just as crucial if Saudi Arabia is to realise its vision. “Logistics in 2024 will be defined by data, diversity, collaboration, and transparency,” says Kumar Ganesan, Managing Director of GAC Saudi Arabia. “To reap the benefits, technology will play an even greater role in the sector, not just in Saudi Arabia but across the entire region.”
With its head office in Dammam, GAC Saudi Arabia has a network of operational bases at critical ports across the Kingdom, offering industry-leading shipping, logistics and marine services, mainly focusing on the energy, project and offshore sectors. As part of the GAC Group’s global network, it taps into the Group’s freight tracking system and digital solutions to improve operational effectiveness for shore-based logistics, freight forwarding, offshore supply support and more.
As Kumar explains, these solutions are vital for logistics providers operating in Saudi Arabia if they are to play a part in its Vision 2030 logistics sector: “The integration of real-time tracking systems and so-called ‘Internet of Things’ systems to facilitate better traceability and real-time decision making are now ‘must haves’ for any logistics provider looking to make their mark in Saudi Arabia’s developing logistics sector. Further, growing adoption of Blockchain technology to boost security and trust in logistics processes, particularly for supply chain management, will take those operating in the Kingdom to the next level.”
Digitalisation and adaptability
Saudi Arabia has long touted the use of automation, artificial intelligence, robotics and more as a means to allow faster and more efficient connections within the supply chain while also improving the security, transparency, control and efficiency of its import-export process. The rise of digital strategies is a natural evolution of the logistics sector.
“The last few years have shown the importance of supply chain resilience and the need for logistics providers to assess and monitor their performance to mitigate any potential risks,” Kumar adds.
“This is where digitalisation comes in. Data analytics tools can offer insights into supply chain performance, identify areas for improvement and optimise data-driven decisions.”
With Saudi Arabia’s rising prominence in the global logistics market, operators in the Kingdom who are not adapting their workflows and processes accordingly risk becoming irrelevant and losing out to more forward-thinking competitors.
Kumar cautions: “End-to-end logistics is complex with multiple aspects and parties involved, especially for projects. The digital transition is a step-by-step process, just like any business change. We need to think about humans and machines in tandem, considering change management and the psychology behind how to make people adapt. There’s little value if we provide a digital tool without considering the human element.”
Long-term resilience
As Saudi Arabia looks to build its logistics sector as part of Vision 2030, digital solutions will add long-term resilience to supply chains facing geopolitical and inflationary headwinds.
“Collaboration and transparency between partners go a long way to promoting a more interconnected and complex supply chain landscape by sharing data and information, building trust and improving end-to-end supply chain coordination,” says Kumar. “Building supply chain resilience requires all stakeholders to take ownership of their role and work together to realise and implement improvement methods. This is a core value for us at GAC as we realise there is no room for complacency. The minute we start to feel comfortable, we need to examine what we are doing and how we can build upon or improve that for the benefit of our customers.”