The joint venture which will focus on providing logistics for NEOM in the coming years and is held 51% by NEOM and 49% by DSV.
"The joint venture will provide end-to-end supply chain management, development and investments in transport and logistics assets and infrastructure as well as transport and delivery of goods and materials within NEOM," the companies said.
NEOM, backed by the kingdom’s sovereign wealth fund, the Public Investment Fund, expects massive demand for construction logistics through to 31 December, 2031, with sustained growth in non-construction logistics thereafter.
In addition to its impact on the logistics landscape, is expected to boost the Saudi economy, through infrastructure development and creating more than 20,000 jobs.
“The projected demand in both construction and non-construction logistics will make NEOM one of the largest customers in the world, and this partnership allows NEOM to create value from its demand. Working alongside one of the world’s leading logistics companies, the joint venture with DSV will build on expertise and know-how to drive innovation and sustainability throughout the logistics value chain,” said Nadhmi Al-Nasr, CEO of NEOM
The kingdom's sovereign wealth fund, the Public Investment Fund, is the cornerstone investor in NEOM, a 26,500-square-km high-tech development on the Red Sea.
“NEOM is one of the largest and most complex projects in the world. It provides a unique opportunity for DSV to support a development that is at the forefront of innovation, technology, and digital transformation. DSV already has a strong presence in Saudi Arabia, and this is a significant growth opportunity for us in the region,” said Jens Bjørn Andersen, Chief Executive of DSV.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited.
|Add Seatrade Maritime News to your Google News feed.