Saudi Arabia Railways (SAR) has witnessed a remarkable surge in its operations, revealing a 10 percent growth in cargo transport. The impressive performance underscores its pivotal role in the kingdom’s transportation sector. With a staggering increase in passenger and cargo transport, SAR is not only reshaping the nation’s transportation landscape but also bolstering industrial and logistical efficiency.
Record-breaking figures
In a recent announcement, SAR revealed that its passenger transportation exceeded 11 million in 2023, marking a remarkable growth rate of over 50 percent. Furthermore, the company reported a substantial surge in cargo transport, moving more than 25 million tons. That is a growth rate surpassing 10 percent. This surge in rail activity has notably contributed to the removal of over 2 million trucks annually from Saudi Arabia’s roads, easing congestion and enhancing safety.
Strategic partnerships
The significance of SAR’s achievements was underscored during a ceremony where the Saudi Authority for Industrial Cities and Technology Zones (MODON) and SAR signed two Memoranda of Understanding (MoU). These agreements aim to develop rail transport and logistics solutions within industrial cities. Moreover, they align with the objectives of the National Industrial Development and Logistics Program.
During the signing ceremony, SAR highlighted that the latest international indicators revealed that Saudi Arabia is making progress in global rankings for transportation and logistics due to major projects in the country. Saudi Arabia has shown progress on indicators including the Logistics Performance Index, the Quality Interdependence Index, and the Maritime Interdependence Index.
Industrial sector support
SAR also emphasized the importance of partnerships with the industrial sector which started with the construction of roads to facilitate the development of the sector. Various projects, including the northern railway, have helped support the industrial and mining sectors. Hence, the roads connect major industrial cities like Dammam, Jubail, and Ras Al-Khair to ports in the Eastern Province. Moreover, SAR announced that more projects that will support the industrial sector are underway.
Therefore, efforts to enhance the integration of the transport and logistics systems with the industrial sector, through the National Industrial Development and Logistics Program, signify the importance of collaboration between government entities.
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Optimizing supply chains
The transportation sector not only supports the growth of the industrial sector but also aligns with Saudi Arabia’s Vision 2030. Hence, integrating industrial cities with the rail network optimizes logistical operations and expands trade opportunities, both domestically and internationally. Consequently, this consolidates Saudi Arabia’s position as a global logistics hub and opens new doors for trade and export, in line with the goals of Vision 2030. By leveraging railway transportation, the Kingdom aims to streamline supply chains, reduce transportation costs, and enhance environmental sustainability, thereby reinforcing its position as a global logistics hub.
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