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International Logistics Performance Index (LPI)
The Ministry of Transport and Logistics Services
Logistics and Postal Sector
Enablement
Integration
Network Connectivity
Exploring What is Logistics: Optimizing Efficiency Across Diverse Transport Modes
Exploring What is Logistics: Optimizing Efficiency Across Diverse Transport Modes
Logistics is the movement of goods from Point A to Point B. Logistics oversee the flow of goods and services, and encompass various of transport modes, including road, rail, maritime, and air. Each mode plays a distinct role in the logistics ecosystem, enabling businesses to deliver products and services efficiently and effectively. Understanding the dynamics of these transport modes is crucial for optimizing logistics operations and meeting customer expectations. By understanding and optimizing each mode's unique strengths, logistics professionals can enhance supply chain efficiency, reduce costs, and improve service levels in the global marketplace. Continuous advancements in technology and infrastructure are essential for maximizing the effectiveness of logistics across all transport modes.
Aviation Mode
Aviation Logistics Sector: It is a part of global supply chains and focuses on the transportation of goods via aircraft. This sector is vital for facilitating international trade, especially for high-value goods or those requiring fast delivery. It includes: · Air Transportation: This uses aircraft to move goods between or within countries. · Airports: These serve as hubs for quickly unloading and loading cargo.
Maritime Mode
Maritime Logistics Sector: It is a part of global supply chains and includes all activities associated with the transportation of goods across the sea. It encompasses
· Maritime Transportation: This includes commercial ships that carry containers, bulk cargo, and other goods. · Ports: These facilitate the loading and unloading operations.
Railway
Rail Logistics Sector: It is a part of global supply chains and focuses on the transportation of goods via railways. This sector is considered an effective and integrated means of transporting large quantities of goods over long distances. It includes: · Rail Transportation: This uses trains to transport goods, facilitating and speeding up ground movement. · Railway Stations: These function as hubs for unloading and loading cargo.
Land Mode
Land Logistics Sector: It is the primary part of global supply chains and focuses on the transportation of goods via roadways. This sector is an effective and integrated means of transporting goods to locations that are difficult to reach by other modes of transport. It is considered a cost-effective option for moving small to medium quantities of goods and contributes to enhancing both domestic and international trade.
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Exploring What is Logistics: Optimizing Efficiency Across Diverse Transport Modes
Aviation Mode
Aviation Logistics Sector: It is a part of global supply chains and focuses on the transportation of goods via aircraft. This sector is vital for facilitating international trade, especially for high-value goods or those requiring fast delivery. It includes:
- Air Transportation: This uses aircraft to move goods between or within countries.
Airports: These serve as hubs for quickly unloading and loading cargo.
Maritime Mode
Maritime Logistics Sector: It is a part of global supply chains and includes all activities associated with the transportation of goods across the sea. It encompasses:
- Maritime Transportation: This includes commercial ships that carry containers, bulk cargo, and other goods.
Ports: These facilitate the loading and unloading operations.
Railway Mode
Rail Logistics Sector: It is a part of global supply chains and focuses on the transportation of goods via railways. This sector is considered an effective and integrated means of transporting large quantities of goods over long distances. It includes:
- Rail Transportation: This uses trains to transport goods, facilitating and speeding up ground movement.
Railway Stations: These function as hubs for unloading and loading cargo.
Land Mode
Land Logistics Sector: It is the primary part of global supply chains and focuses on the transportation of goods via roadways. This sector is an effective and integrated means of transporting goods to locations that are difficult to reach by other modes of transport. It is considered a cost-effective option for moving small to medium quantities of goods and contributes to enhancing both domestic and international trade.
Sector Aspirations
Enable developing and emerging sectors to grow and achieve their 2030 vision ambitions from logistics perspective.
Enhance Service Level Standards and Opportunities to fulfill their requirements for growth and development.
How Logistics Influences Diverse Sectorssss
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Industrial Sector
Energy Sector
Health Sector
Agricultural sector
E-commerce Sector
Entertainment Sector
Targets of the Logistics Sector
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59
Active Logistic Centers
7
Logistics centers with SEZ status
Achievements in logistics
The Ministry of Transport and Logistic Services hosted the Global Logistics Forum in October 2024.
Ministry of Transport and Logistic Services hosted the Global Logistics Forum in October 2024, signing of over 60 strategic local and international partnerships and memorandums of understanding, with a total value exceeding SAR 16 billion ($4.3 billion).
Saudi Arabia ranks 38th in the World Bank’s Logistics Performance Index for 2023.
Saudi Arabia has jumped 17 places to claim 38th rank in the World Bank’s Logistics Performance Index 2023, as the Kingdom consolidates its national logistics strategy to become a regional hub.
14.6% increase in inbound and outbound container traffic in 2023.
Saudi ports reported a 14.6% increase in outbound and inbound container traffic in 2023, compared to 2022, where the total inbound and outbound container traffic at Saudi ports exceeded five million twenty-foot equivalent units (TEUs)
Saudi Arabia ranks sixth globally in the Agility Index.
Saudi Arabia ranks 6th in Agility Emerging Markets Logistics Index, among the world’s 50 most competitive emerging markets.
The Kingdom took the eighth position in the domestic logistics category and 11th in international logistics. It also retained the third rank in business fundamentals and ranked fourth globally for digital readiness, a new category in the index.
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To enhance the efficiency of logistics services in the Kingdom of Saudi Arabia, we aim to provide all licenses and services of this vital sector to enhance the efficiency of those services increase access and improve operations provided to investors.
