The air freight and logistics sector in Saudi Arabia is witnessing qualitative leaps and rapid developments, taking advantage of the economic growth in the Kingdom, which has become one of the most developed and attractive global markets for major international companies.
The General Authority of Civil Aviation (GACA) has undertaken many initiatives that contribute to developing the air freight system in the Kingdom and liberalizing its services to give the logistics sector the necessary flexibility to increase its capacity in implementation of the civil aviation strategy that aims to enable air freight and double its capacity to 4.5 million tons of goods, and increase international destinations to more than 250 destinations.
The Model Cargo Village at King Fahd International Airport in Dammam aspires to be one of the important economic drivers in the shipping and logistics sector in the Kingdom. It provides high-efficiency freight and merchandise services, as the village deals with a large share of the region’s freight market.
The village seeks to be the first among its counterparts at the regional level, and an advanced logistics center that provides all means for logistics service providers and technical support companies, and to enhance operational efficiency in the field of air freight. This is in addition to being the first shipping village in the Kingdom to provide innovative and creative solutions through its vision of connecting all strategic and major sites with multiple access points and connect them to the outside world by land, sea and air.
The shipping village includes many warehouses, logistics sites, and a deposit and re-export area. Moreover, the express shipping service is one of the most important services provided by the village, in addition to various incentives for companies, most notably the competitive prices for renting spaces designated for storing goods and other uses for companies. This is in addition to the availability of model infrastructure, and a wide range of unique facilities and services, the village is also characterized by flexibility and efficiency in operational procedures, and the number of express shipping companies currently operating in it is five companies.
The logistics zone in the Cargo Village provides a wide range of warehouses with different types of storage and distribution operations, and extends over a total area of 500,000 square meters, including 300,000 square meters dedicated to warehouses and storage facilities, and 200,000 square meters for services. This in addition to an import and re-export area at an area of 100,000 square meters, where investors were able to store and re-export air, land and sea shipments without the need to pay customs duties with the ability to re-assemble and partially clear goods.
GACA seeks to achieve its strategy emanating from the national strategy for transport and logistics, which came to upgrade and develop the sector and take advantage of the huge investment opportunities to be an important tributary in economic development, by developing infrastructure and operational processes, improving the quality of services and increasing the absorptive capacity in the Kingdom’s airports. All this is to achieve the objectives of Vision 2030 by implementing initiatives in support of the National Industrial Development and Logistics Services Program, and for the Kingdom to become a distinguished logistics platform between the three continents.