Establishment:
In the year 1372 AH (1953), the Ministry of Transportation was established to oversee all aspects related to transportation, including roads, railways, and ports. In the year 1395 AH (1975), the Kingdom's ministries and their public institutions were restructured, and the General Ports Authority and the General Authority for Railways were established. Since that date, the ministry has been responsible for planning, designing, constructing, and maintaining roads and bridges. Later, a specialized transport agency was established, responsible for planning and supervising the land and maritime transport sectors, as well as coordinating between the various modes of transportation. Additionally, it is responsible for preparing regulations for different transport sectors and issuing the necessary licenses for land and maritime transport activities. In the year 1424 AH (2003), the ministry's name was changed to the "Ministry of Transport."
In the year 2016, a decision by the Council of Ministers stipulated that the Minister of Transport will have supervisory authority over the aviation sector. H.E Minister of Transport serves as the Chairman of the General Authority of Civil Aviation, which is responsible for overseeing operational and safety regulations, as well as air navigation services and operations in the Kingdom's 27 airports, including 5 international airports, 12 regional airports, and 10 domestic airports, all of which provide comprehensive services to air travelers.
In the year 2021, the Council of Ministers approved changing the name of the Ministry of Transport to the "Ministry of Transport and Logistics Services.
The Ministry's Role:
The Ministry of Transport and Logistics Services oversees various modes of transportation, including land, maritime, air, railway, roads, postal services, and logistics. It has several affiliated entities, including the General Authority of Civil Aviation, the General Authority of Transport, the General Authority of Roads, the General Authority of Ports, the Saudi Post Corporation (SPL), and the Saudi Arabia Railway Company (SAR).
The Ministry works on implementing numerous projects, programs, and initiatives aimed at facilitating people's movement through all the land, sea, and air ports inside and outside the kingdom. The transportation and logistics sector are a vital enabling sector for many national sectors such as tourism, trade, and pilgrimage, and it contributes to the prosperity of the national industry and supports the local economy.
The Kingdom's leadership has continuously shown great interest in this leading sector due to its significant impact and immense benefit in serving people and facilitating the movement of traders, goods, products, and commodities. As a result of the unlimited support from the wise leadership, the transportation and logistics sector has witnessed a qualitative leap in the past years. In mid-2021, His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister, Chairman of the Council of Ministers, and Chairman of the Supreme Committee for Transport and Logistics, announced the launch of the National Transport and Logistics Strategy (NTLS). This strategy aims to solidify the Kingdom's position as a global logistics hub connecting the three continents, enhance all transportation services and means, and promote integration in the logistics services system and modern modes of transportation to support the comprehensive development journey in the Kingdom.
The strategy includes a package of major projects that empower the achievement of economic and social targets, as well as the adoption of effective governance models to enhance institutional work in the transportation system. The strategy also focuses on developing infrastructure, launching multiple logistics platforms and zones in the Kingdom, implementing advanced operating systems, and promoting effective partnerships between the government system and the private sector to achieve four main objectives: enhancing the Kingdom's position as a global logistics hub, improving the quality of life in Saudi cities, achieving balance in the general budget, and enhancing the performance of the government system.
In August 2023, His Royal Highness the Crown Prince -may Allah protect him- announced the launch of the General Plan for Logistics Centers, which aims to develop the infrastructure of the logistics sector in the Kingdom, diversify the local economy, and enhance the Kingdom's position as a leading investment destination and a global logistics hub.
The General Plan for Logistics Centers include a total of 59 centers with a combined area exceeding 100 million square meters. This includes 12 logistics centers for the Riyadh region, 12 logistics centers for the Makkah region, 17 logistics centers for the Eastern region, and 18 logistics centers in the remaining regions of the Saudi Kingdom. Currently, work is on progress on 21 centers, with completion of all centers expected by 2030.
These logistic centers will enable local industries to efficiently export Saudi products and support e-commerce by facilitating connections between logistics centers and distribution centers within the Kingdom's regions, cities, and provinces. Additionally, they will provide high-level tracking capabilities and facilitate the issuance of logistics activity licenses, especially after the launch of the unified logistics license in 2021. Over 1,500 local, regional, and international logistics companies have been granted licenses, and the "Fasah" initiative has been launched to expedite customs clearance within two hours in cooperation with relevant government entities.
The logistics services sector represents a promising pillar for economic and developmental diversification in the Kingdom. It is currently witnessing numerous qualitative initiatives and significant developments aimed at achieving a major leap towards the growth of the sector and expanding its economic and developmental contributions.
The Ministry of Transport and Logistics Services is working according to a methodology that seeks to develop the logistics services industry, enhance export strategies, expand investment opportunities, and foster partnerships with the private sector. These efforts aim to further strengthen the logistics sector and maximize its potential in driving economic growth and development in the Kingdom.
In April 2023, the Kingdom achieved a new milestone in the transportation and logistics system by jumping 17 places in Logistics Performance Index (LPI) issued by the world Bank. It advanced to the 38th position out of 160 countries globally in terms of logistics efficiency. The Ministry of Transport and Logistics Services recently launched a package of initiatives in the logistics sector to enhance performance efficiency, reengineer processes, and implement best global practices in this vital sector. These initiatives aim to strengthen the Kingdom's position as a global logistics hub.
Among these initiatives was the launch of the Integrated Logistics Zone at King Salman International Airport in Riyadh, with Apple being announced as the first international investor in the zone. Additionally, the national strategy for transport and logistics services aims to propel the Kingdom to the list of the top 10 countries globally in the Logistics Performance Index by 2030.
The Ministry's Values:
- Excellence.
- Development.
- Innovation.
- Customer satisfaction.
The Ministry's objectives:
- Ensuring smooth and safe transportation.
- Increasing the contribution of the transport and logistics sector to the GDP.
- Enabling the integrated implementation of sector strategies and multimodal transport plans.
- Enhancing the global competitiveness of the transport and logistics sector.
- Activating logistics zones throughout the Kingdom.
- Improving legislation and simplification procedures for logistics services.
- Developing non-oil revenues.
- Increasing private sector participation and privatization.
- Achieving expenditure efficiency.
- Improving the sector's impact on the environment and society.
- Promoting operational excellence in the sector.
- Developing integrated systems and data and achieving digitization.
- Attracting, developing, and retaining local talent.
- Leading change and establishing an institutional culture focused on performance and customer satisfaction.
- Promoting the transport and logistics sector both domestically and internationally.
- Enhancing the adoption of future transportation patterns.
Ministry's Vision:
To be a leading institution that drives the transport and logistics sector, solidifying the Kingdom's position as a global logistics hub and a model for integrated transportation.
Ministry's Mission:
To provide reliable and sustainable integrated transportation through the development and regulation of the transport and logistics sector, promoting innovation and modern technologies, leveraging national capabilities, and fostering partnerships with the private sector.