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During the opening of the Saudi Supply Chain Conference with the participation of international experts
HE Dr. Nabil Mohammed Al-Amoudi, Minister of Transport, said at the beginning of this year, the ministry - with the participation of many government sectors - started to implement a strategic plan to make the Kingdom a global logistics platform linking the three continents. This step will increase the gross domestic product 5% and the employment rate in the non-oil sectors will rise to 4% by 2021.
The «Saudi Supply Chain Conference» - which started yesterday - is organized by the Ministry of Transport with the participation of some officials, decision-makers, experts, specialists in the field of supply chain and logistics, representatives of major local and international companies, in addition to interested parties inside and outside the Kingdom.
Dr. Al-Amoudi stressed that the Kingdom's decision to diversify its economic base and develop its non-oil exports is not an option at this stage, for the Saudi Vision 2030 shaped our future path. The Kingdom has a unique geographical position and its blessed with abundant resources that allows it to be a leading logistical platform in the center of the world.
HE said that the transport sector entities are working to provide competitive transport services with added economic value, developing innovative concepts of shipping and storage, developing customs procedures, integrating local and international transport companies to facilitate significant transport operations.
Dr. Al-Amoudi said that the Saudi Supply Chain Conference is a valuable opportunity to exchange views, ideas, experiences and visions on the best methods and the latest practices to improve the performance of the supply chains and logistics and raise its efficiency. The volume of global exchange that passes through the Arabian Gulf is estimated by 12%, pointing out that the Kingdom of Saudi Arabia is seeking to achieve a leap in the logistics performance index from the 49th to the 25th and increase the GDP proportion of non-oil exports from 16% to 50%.
For his part, Deputy Minister of Transport Eng. Saad bin Abdulaziz Al-Khaleb said that about 30% of East African trade passes through the Kingdom's west coast ports, and about 70% of the total goods coming to the Gulf ports are targeting customers in Saudi Arabia. During a session entitled "Modern Trends in Supply Chain Management in the Kingdom to Achieve 2030 Vision," Mr. Al-Khaleb added that the transport sector entities privatization and increasing the capacity of air cargo sector will support the establishment of a logistics platform in the Kingdom to meet the growing demand. The cargo and shipping volume at our local airports was 1.045 million tons in 2016.
The session was attended by HE Mr. Rumaih Bin Mohammed Al- Rumaih, Director General of the Public Transport Authority, and Mr. Ahmed Al-Qahbani, Director General of Customs, as the main partners of the national logistics platform. Mr. Al-Rumaih discussed the primary objectives and initiatives of the Public Transport Authority to improve logistics efficiency, including the updating of the Cargo and Freight Forwarding Regulations. Mr. Al-Hagbani explained the customs strategy in supporting logistics cities and the free zones and elaborated on the Customs' effort in facilitating the procedures for goods clearance and their tracking systems.
It is noteworthy that the "Saudi Supply Chain Conference" will discuss - over two days - the importance of international road transport (TIR) agreement updates that facilitate the customs operations to the global economy, support the movement of the products in the Kingdom and apply the international Security System. There are new directions in developing the supply chain management to achieve the Kingdom's vision 2030, integration and consolidation of port procedures in addition to advanced procurement methodologies (its indications affecting supply chain operations monitoring and control), and the core of supply chain management (Find the value added).
The conference will also discuss the importance of promoting the constructive and purposeful partnership and cooperation between the public and private sectors, developing the transport projects procedures and infrastructure, linking them to the regional environment and activate the commercial movement in the ports and the maritime transport.
During the conference, the sessions will review some papers and research on the best international practices and their application on product movement chain operations, supply information management and supply chain and logistics risks to improve inventory levels, operations, and information exchange. The conference sessions will also discuss future expectations, next phase projects, Saudi employment in supply chain logistics, women in the field of logistics, future land transportation, and future warehouses.
On the sidelines of the Saudi Supply Chain Conference, an exhibition will be held with the participation of prominent logistics and supply chain companies, headed by the Ministry of Transport, Saudi Aramco, Saudi Electricity Company and The Saudi Industrial Property Authority.