PIF seeks to raise local content in logistics to 60% by 2025-end: Official

Bakr AlMuhanna, PIF’s Head of Transport and Logistics Sector in MENA Investments 

The Public Investment Fund (PIF) seeks to enhance its private-sector partnerships to raise the contribution of local content to 60% by the end of 2025, Head of Transport and Logistics Sector in MENA Investments Bakr AlMuhanna told Argaam in an interview on the sidelines of PIF Private Sector Forum.

He added that the transportation and logistics sector is a core element in achieving the fund's strategy, anchored by three main pillars: maritime transport, ports management and operation, and logistics.

AlMuhanna stressed that this sector represents a key enabler for other sectors, contributing to facilitating procurement of raw materials, manufacturing and distribution of end products, and enhancing supply chain flexibility.

PIF, according to the official, owns stakes in several heavyweights of support to this sector, including National Shipping Company of Saudi Arabia (Bahri), which operates nearly 95 cargo vessels, not to mention the Red Sea Gateway Terminal Co. that runs Jeddah Islamic Port.

The fund also holds 51% of Saudi Global Ports Co., operator of Dammam Port. Additionally, the operation of Riyadh’s Dry Port was announced.

He further indicated that the fund established Folk Maritime Services Co. to cater to maritime transport operations. This subsidiary operates in regional shipping, while also linking the ports of Saudi Arabia with India, Pakistan and East African countries.

Furthermore, PIF has entered into a strategic investment with Zamil Offshore Services Co. to support maritime logistic services.

As for land transport, AlMuhanna pointed to the fund's investment in Saudi Public Transport Co. (SAPTCO), which is undergoing a transitional stage after some long-term contracts, which contributed to creating job opportunities and strengthening the local economy.

He also emphasized that the Kingdom leverages its strategic location between three continents to enhance its position as a global logistical hub.

The fund, per the official, is undertaking the development of several free logistical and economic zones Kingdom-wide, which in turn lures foreign investment, while bolstering local supply chains to face challenges or volatility in terms of operations.

Meanwhile, he stressed the importance of cooperation with the private sector to achieve the targets of the Saudi Vision 2030 and to boost the role of Saudi Arabia in the global logistical services sector.