The Saudi Arabia Railways (SAR) has officially penned a three-year agreement with global sea shipping leader Maersk. This strategic alliance aims to amplify the volume of containers conveyed by SAR trains from King Abdulaziz Port in Dammam to the Riyadh Dry Port, marking a significant leap in transportation and logistics within the kingdom.
Bashar Khalid Al-Malik, the CEO of SAR, alongside Maersk Saudi Arabia’s CEO, Mohammad Shihab, finalized the contract which is set to intensify the container traffic through the eastern railway. The collaboration pledges to deliver secure and sustainable transport solutions, contributing to the kingdom’s edge in the global Logistics Performance Index (LPI), a move that resonates with the objectives of Saudi Vision 2030.
The alliance is not only expected to bolster operational efficacy but also to minimize the number of trucks plying the Dammam-Riyadh route. This reduction in truck traffic is forecasted to lower carbon emissions and preserve the condition of roadway infrastructure.
Al-Malik highlighted the importance of such agreements in refining the shipping industry and underscored SAR’s commitment to innovation and safety. He emphasized the aim to enhance efficiency at both King Abdulaziz Port and Riyadh Dry Port, thereby elevating the nation’s entire transportation framework.
On the other hand, Shihab underscored the contract as a progressive move towards fostering a collaborative atmosphere for digital transformation and sustainable logistics practices. He further elaborated on the deal’s potential to position Dammam Port as a pivotal hub for international trade routes, extending from the east to local markets and beyond, into the regional landscape.