Saudi Arabia Marks A Milestone With 248 Points In Liner Shipping Connectivity Index For Q1 2024

The Kingdom of Saudi Arabia, through the efforts of the Saudi Ports Authority (Mawani), has achieved a significant milestone in the global maritime sector. According to a recent report by the United Nations Conference on Trade and Development (UNCTAD) for the first quarter of 2024, Saudi Arabia scored 248 points on the Liner Shipping Connectivity Index (LSCI). This achievement underscores the Kingdom's commitment to ensuring the continuous flow of goods, maintaining supply chains, and providing logistic services efficiently.

Mawani has been at the forefront of enhancing Saudi Arabia's maritime connectivity, launching 31 new maritime shipping services with major global shipping lines throughout 2023. The momentum continued into 2024, with seven additional shipping line services introduced. Furthermore, in collaboration with leading national and international companies, Mawani has established and inaugurated nine integrated logistics parks and hubs at strategic locations including Jeddah Islamic Port, King Abdul Aziz Port in Dammam, and King Fahd Industrial Port in Yanbu. These initiatives represent investments exceeding SAR6 billion.

Investments in infrastructure development have been a key focus for Mawani. Notably, the authority has initiated development and operation projects for two container terminals at King Abdul Aziz Port in Dammam under a Build-Operate-Transfer (BOT) system, with an investment value of SAR7 billion. Additionally, Jeddah Islamic Port's North Container Terminal is undergoing enhancements with investments of SAR1 billion riyals to boost operational capabilities. These efforts align with the National Transport and Logistics Strategy (NTLS) objectives to establish the Kingdom as a pivotal global logistics hub connecting three continents.

Improving operational efficiency is another critical area of focus for Mawani. The authority is launching initiatives to automate port operations, employing modern operational equipment, and streamlining import and export procedures. These measures aim to bolster national exports, support global maritime trade, reduce operational costs at ports, and attract more regional and international shipping lines and large vessels.

In response to evolving trends in maritime transport and global shipping industries, UNCTAD adjusted the LSCI index in 2024. This revision aims to more accurately reflect current container port characteristics, applying these changes to the previously approved calculation methodology. This adjustment ensures that the index remains relevant and keeps pace with industry growth and the expanding logistics services sector.

This series of strategic developments and investments by Mawani not only enhances Saudi Arabia's maritime infrastructure but also significantly contributes to its vision of becoming a leading global logistics hub. Through these concerted efforts, Saudi Arabia is poised to play an increasingly vital role in international trade and logistics, reinforcing its position on the global stage.

With inputs from SPA