Due to its strategic location and large-scale infrastructure developments, Saudi Arabia should become one of the world's leading transport and logistics hubs, according to a report from the Saudi Arabian General Investment Authority (SAGIA).
The nation already boasts several land and sea routes to eastern Europe, the Indian subcontinent, the Middle East, North Africa and East Asia.
However, SAGIA, in collaboration with domestic and international partners, is now making big investments in a sophisticated transportation network that will take advantage of the Kingdom's competitive advantages, reports Business Intelligence Middle East.
Saudi Arabian domestic cargo demand is expected to grow by a 4-5 per cent compound annual rate until 2020, while international flows are anticipated to grow at 5 and 7-8 per cent for air and sea cargo respectively.
The availability of low-cost fuel is a key factor that makes Saudi Arabia an ideal site to centralise energy intensive logistical activities, such as refueling.