Middle East’s Largest Logistics Park Runs on Renewable Energy in Western Saudi Arabia

 The logistics park will offer a set of clean logistical solutions that would connect and facilitate the movement of supply chains. (Asharq Al-Awsat)
The logistics park will offer a set of clean logistical solutions that would connect and facilitate the movement of supply chains. (Asharq Al-Awsat)
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Middle East’s Largest Logistics Park Runs on Renewable Energy in Western Saudi Arabia

 The logistics park will offer a set of clean logistical solutions that would connect and facilitate the movement of supply chains. (Asharq Al-Awsat)
The logistics park will offer a set of clean logistical solutions that would connect and facilitate the movement of supply chains. (Asharq Al-Awsat)

The Saudi Ports Authority (Mawani) and Maersk announced on Wednesday the launching of the biggest comprehensive logistics zone in the Middle East at the Jeddah Islamic port, in western Saudi Arabia.

In a statement, Mawani said that the logistics park, which will stretch over an area of 225,000 square meters, was being built at a total investment of SR1.3 billion ($346 million). Once operational, it will provide over 2,500 direct and indirect jobs.

The logistics park will offer a set of clean logistical solutions that would connect and facilitate the movement of supply chains, and deal with annual volumes of up to 200,000 containers of various products. The project is expected to be completed during the first quarter of 2024.

The area operates using renewable energy and applying solutions to decarbonize logistics services to achieve net zero emissions by 2040. It will be powered by 100 percent solar energy generated from rooftop panels spread over 65,000 square meters.

The trucks used for transportation will be electric cars to effectively reduce emissions.

According to the statement issued by Mawani, the zone will operate based on an advanced warehouse management system that applies modern technologies and digital solutions to manage inventory efficiently and provide unit-level tracking.

Moreover, the zone will have an advanced dashboard, which will improve competencies and build a competitive advantage for the beneficiaries of importers, exporters and shipping agents, in addition to an internal women’s academy that provides specialized training programs for women.

Omar Hariri, President of Mawani, emphasized the importance of the project, which he said would contribute to achieving the goals of the national strategy for transport and logistics services.

The zone will include storage and distribution areas that accommodate exports and imports of general merchandise, warehouses for refrigerated food products, in addition to an area for transshipment, air freight, and LCL goods, and an e-commerce center.

The project falls within the framework of the initiatives launched by Mawani to develop and offer investment opportunities for the private sector, and increase the number of logistical regions that include re-export to reach 30 zone by 2030.

It also comes in line with the objectives of the National Strategy for Transport and Logistics Services, which aim to consolidate the Kingdom’s position as a global logistics center.

The statement noted that the comprehensive logistics zone at the Islamic port of Jeddah would support the growth of the logistics industry, contribute significantly to the economy and increase the volume of the Kingdom’s non-oil export share by 50%, creating growing career opportunities in the logistics sector.



Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil Prices Rise as Concerns Grow over Supply Disruptions
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Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil prices climbed on Tuesday reversing earlier declines, as fears of tighter Russian and Iranian supply due to escalating Western sanctions lent support.

Brent futures were up 61 cents, or 0.80%, to $76.91 a barrel at 1119 GMT, while US West Texas Intermediate (WTI) crude climbed 46 cents, or 0.63%, to $74.02.

It seems market participants have started to price in some small supply disruption risks on Iranian crude exports to China, said UBS analyst Giovanni Staunovo.

In China, Shandong Port Group issued a notice on Monday banning US sanctioned oil vessels from its network of ports, according to three traders, potentially restricting blacklisted vessels from major energy terminals on China's east coast.

Shandong Port Group oversees major ports on China's east coast, including Qingdao, Rizhao and Yantai, which are major terminals for importing sanctioned oil.

Meanwhile, cold weather in the US and Europe has boosted heating oil demand, providing further support for prices.

However, oil price gains were capped by global economic data.

Euro zone inflation

accelerated

in December, an unwelcome but anticipated blip that is unlikely to derail further interest rate cuts from the European Central Bank.

"Higher inflation in Germany raised suggestions that the ECB may not be able to cut rates as fast as hoped across the Eurozone, while US manufactured good orders fell in November," Ashley Kelty, an analyst at Panmure Liberum said.

Technical indicators for oil futures are now in overbought territory, and sellers are keen to step in once again to take advantage of the strength, tempering additional price advances, said Harry Tchilinguirian, head of research at Onyx Capital Group.

Market participants are waiting for more data this week, such as the US December non-farm payrolls report on Friday, for clues on US interest rate policy and the oil demand outlook.