King Abdullah Port, Tabadul join hands to boost logistics sector efficiency

King Abdullah Port, Tabadul join hands to boost logistics sector efficiency
Jay New, CEO of King Abdullah Port, and CEO of Tabadul, Majid bin Faleh Al-Otaibi (Tabadul)
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Updated 20 June 2023

King Abdullah Port, Tabadul join hands to boost logistics sector efficiency

King Abdullah Port, Tabadul join hands to boost logistics sector efficiency

RIYADH: Delivery times for goods passing through King Abdullah Port are set to be reduced after the facility signed a strategic partnership with the Saudi Company for Electronic Information Exchange, known as Tabadul, to develop a digital system to boost the Kingdom’s logistics sector.

The two entities signed a contract on Tuesday which will see the port’s Smart Gate System merge with Tabadul’s Truck Management System in a move that will increase efficiency.

The collaboration is in line with the objectives of Saudi Arabia’s National Transport and Logistics Strategy to consolidate the Kingdom’s position as a global freight center. 

Jay New, CEO of King Abdullah Port, said the agreement will enable the facility to access logistics and supply chain data, accelerate the transit of goods and cut delivery times significantly.

He added: “Overall, this will improve our service to importers and exporters, and add a valuable contribution to the transformation of the Kingdom into a global logistics hub connecting three continents, in line with the objectives of the National Transport and Logistics Strategy.”  

Tabadul CEO Majid bin Faleh Al-Otaibi stated that the move was made to support the growth of Saudi ports services, as well as to remain at the forefront of the latest technologies.   

The rapid expansion of the Kingdom’s logistics sector is driving a major transformation in the region, according to a top official of Kuwait-based Agility Logistics.  

Speaking at the 10th Arab-China Business Conference in Riyadh earlier this month, the chairperson of the company, Henadi Al-Saleh, praised the Kingdom’s progress in the field of logistics.  

“Saudi Arabia is leading and is at the center of a major transformation spearheading this region. It is literally pivoting and transforming the logistics landscape,” Al-Saleh said during a panel discussion.  

“Agility issues an emerging market index every year and scans 50 emerging markets and Saudi Arabia hands down ranks at the top, it is in the top five in overall markets, top five in business fundamentals, and top 10 in digital readiness,” she added.  


Oil Updates — crude prices rebound after 2 straight sessions of losses

Oil Updates — crude prices rebound after 2 straight sessions of losses
Updated 21 June 2023

Oil Updates — crude prices rebound after 2 straight sessions of losses

Oil Updates — crude prices rebound after 2 straight sessions of losses

RIYADH: Oil prices rebounded early on Wednesday, recovering after two straight sessions of losses, as expectations of a hawkish Federal Reserve meeting later in the day and possible US crude stock drawdowns outweighed China demand worries.

Brent futures gained 14 cents to $76.04 a barrel at 9:15 a.m. Saudi time. US West Texas Intermediate crude futures increased 26 cents to $71.45 a barrel.  

Colombia to continue exporting fossil fuels: minister 

On Tuesday, Finance Minister Ricardo Bonilla said Colombia would continue to extract fossil fuels for “much longer” until it has other exports to replace the revenue from oil and coal. 

He said this in the context of diversifying the country’s financing with carbon credits and green bonds.

Fossil fuels are the South American nation’s primary sources of revenue.

Investors were concerned when President Gustavo Petro came to power in August, aiming to decouple the economy from fossil fuels and make way for renewable energy, which drove the local peso to a record low against the dollar in November.

Bonilla said the switch to renewable energy would be a lengthy process.

“The energy transition is going to take 15 to 20 years, and we are going to continue exporting oil and coal for much longer,” Bonilla told Reuters.

The minister was fresh off a meeting in New York with investors, whose main concern was assurances around fossil fuel revenues.

“The most important issue is how we closed the discussion on oil exploration and exploitation, which was to show the map of where the exploration fields are in Colombia (and) the current contracts,” added the official, who was appointed in late April as Petro’s second finance minister in less than eight months.

Bonilla specified that the country has 202 hydrocarbon exploration contracts in about 17 million hectares where oil or gas has traditionally been found.

He added that Colombia has proven reserves of seven years, “but with some contingencies that oil could go up to 10 years and gas up to 20 years.”

OMV Petrom greenlights offshore Black Sea gas project Neptun Deep 

On Wednesday, Romanian oil and gas group OMV Petrom, majority-controlled by Austria’s OMV, said it made the final investment decision to develop the long-awaited Black Sea deep-water gas project, Neptun Deep.

The company, which will develop the project jointly with state-owned gas producer Romgaz, expects the first gas output by 2027.

The project is estimated to cost 4 billion euros ($4.36 billion) and will be split jointly between the two companies, with spending mostly between 2024 and 2026.

Neptun Deep is expected to hold recoverable volumes of around 100 billion cubic meters of gas.

(With input from Reuters)  


Riyadh Air to connect Saudi capital to major European cities: CEO

Riyadh Air to connect Saudi capital to major European cities: CEO
Updated 20 June 2023

Riyadh Air to connect Saudi capital to major European cities: CEO

Riyadh Air to connect Saudi capital to major European cities: CEO

PARIS: In line with its goal to serve over 100 destinations by 2030, Riyadh Air will connect the Kingdom’s capital to major cities of Europe, its CEO said.  

Speaking to Arab News on the sidelines of the Paris Air Show, Tony Douglas said the company intends to reveal something new every two months as the airline gears up for its 2025 launch.

While Saudi Arabia is one of the world’s fastest-growing economies and the highest populated country within the Arabian Peninsula, it is not globally well-connected as it needs to be.  

“The wisdom of leadership has laid out a clear vision for 2030 and how economic diversification plays a part. Having an airline that allows the citizens to be better connected to the world and Saudi Arabia is the mandate that we’re working to,” he said.

The CEO also highlighted that the airline would be a full-service carrier, focusing on enhancing the guest experience with the current level of digitalization.  

“We’ll be the world’s first-ever true digital native. We will make sure that the way people usually interact with many things they do in life through their mobile phone or handheld device. That’s how they will be able to operate with Riyadh Air,” he explained.  

Douglas also informed about plans to introduce narrowbody aircraft, besides the airline’s initial order for widebodies — 39 Boeing 787-9s with options for another 33.  

Since the airline is a new venture, it enjoys the benefit of doing away with legacy expenses and systems that usually impede airline performance, he added.  

Douglas also compared the airline’s efforts to those of Spotify and Uber, where each user has a customized flow of content and offerings. 

According to the CEO, the goal of Riyadh Air is to enhance customer data processing to better serve each flyer in a way that is not currently possible, paying attention to sustainability. 

“I don’t think there’s any question that in this day and age, environmental sustainability with commercial aviation is the biggest challenge — and anybody who doesn’t take it seriously will almost certainly fail,” he concluded.


Saudi Arabia may launch more airlines to meet growing demand, says Al-Falih 

Saudi Arabia may launch more airlines to meet growing demand, says Al-Falih 
Updated 20 June 2023

Saudi Arabia may launch more airlines to meet growing demand, says Al-Falih 

Saudi Arabia may launch more airlines to meet growing demand, says Al-Falih 

RIYADH: Within months of launching Riyadh Air, Saudi Arabia is exploring the possibility of adding more airlines to its growing aviation sector, revealed a top minister. 

In an interview with Al-Arabiya on the sidelines of the ongoing Paris Airshow, Saudi Minister of Investment Khalid Al-Falih said that the Kingdom’s aviation sector is witnessing significant growth, necessitating the country to look at the possibility of introducing more airlines to meet the rising demand.  

“The Kingdom is a large country in terms of size, population, economy, and tourism...deserving a wide range of airlines. Currently, Saudi Arabia is served by prominent airlines such as Saudia, flynas, and Riyadh Air, with more expected to be announced in the near future,” Al-Falih said, without sharing any timeline. 

The minister emphasized that the Kingdom deserves to have more airlines in order to achieve its economic objectives.  

HIGHLIGHTS

Global airliner rivals Boeing and Airbus notched up new orders from Algeria and the Philippines at the Paris Air Show on Tuesday.

Philippine Airlines will buy nine of Airbus’ A350-1000 widebody planes, while Air Algerie snapped up eight of Boeing’s medium-haul 737 MAX-9 aircraft.

Talking about the recently launched Riyadh Air, Al-Falih highlighted that the airline will greatly contribute to the economic and tourism growth of Saudi Arabia. 

“Riyadh Air complements a lot of the Kingdom’s strategies. It greatly contributes to Saudi Arabia’s tourism sector growth strategy by connecting Riyadh to the capitals of the world,” he said. 

The minister also stated that Riyadh is set to attract over 30 million visitors by 2030 which highlights the need for more airlines and aircraft. 

“Riyadh is in need of new airlines that connect the capital with over 100 cities from around the world directly without any transits.  

“The capital is also in need of new and advanced aircraft like the ones Riyadh Air received from Boeing after their recent partnership,” he said.  

The minister further elaborated that the expansion of the aviation sector will have a positive impact on logistics and supply chain operations in the Kingdom. 

Brisk business

Global airliner rivals Boeing and Airbus notched up new orders from Algeria and the Philippines at the Paris Air Show on Tuesday, after the European manufacturer snagged the biggest-ever single civilian contract.

Philippine Airlines will buy nine of Airbus’ A350-1000 widebody planes, while Air Algerie snapped up eight of Boeing’s medium-haul 737 MAX-9 aircraft.

At list prices — usually higher than discounted bulk orders — the Airbus deal is worth $3.3 billion and Boeing’s $1.0 billion.

With both plane builders’ order books well stocked, Philippine Airlines can expect delivery from 2025 while Air Algeria will have to wait until 2027.

Faced with growing demand for long-haul planes, Airbus is pushing to increase production of the A350, its latest airliner, setting a target of nine per month by the end of 2025.

Meanwhile, Boeing’s sales of the 737-MAX appear to be hauling it out of a slump triggered by both COVID-19 pandemic and the aircraft’s lengthy grounding after two fatal crashes.

Irish low-cost carrier Ryanair in May ordered 300 of the planes.

Australian carrier Qantas confirmed it would buy nine of Airbus’ smaller A220 jets, the manufacturer said.

Tuesday’s deals have yet to match the 500-plane order made with Airbus by Indian low-cost carrier IndiGo, at a list price of $55 billion.

Those planes from the A320 family are not expected to be delivered until 2030-35.

 

 


US businesses encouraged to increase investment in Iraq

US businesses encouraged to increase investment in Iraq
Updated 20 June 2023

US businesses encouraged to increase investment in Iraq

US businesses encouraged to increase investment in Iraq
  • State Department official spoke to journalists, including Arab News, following Iraq visit
  • Dilawar Syed: ‘What we’re witnessing is a country on the path to progress’

LONDON: American businesses are being encouraged to increase investment in Iraq as the country looks to move on from decades of devastation.

Speaking to journalists, including Arab News, on Tuesday following a trip to Iraq, the special representative for commercial and business affairs at the US State Department said he is “very excited” at the opportunities to be part of the rebuilding of the country.

“We arrived in Baghdad following the passage of Iraq’s highest ever national budget, with $150 billion set aside for infrastructure and other outlays,” Dilawar Syed added.

“This is a big deal and a milestone for the country, and you can sense with this — alongside the humming metropolis that Baghdad is — that what we’re witnessing is a city and country on the path to progress, but perhaps more than this, what I can sense is peace.

“Iraq has suffered so much in the past decade, and coming here with the support of the US Chamber of Commerce, I really feel the US private sector can be a force for good.”

Syed’s trip was part of what he described as a “deliberate effort” to build engagement and a strategic framework between the two countries based on business and commercial interests, with some 47 US-headquartered companies joining him as part of the delegation.

Among the represented industries were construction, education, energy, finance, health and technology, with Syed effusive on the opportunities presented through education and tech.  

“Education is an area we feel very strongly about because we believe that Iraq has a bright future, particularly when it comes to prospective technology talent, and this is something we want to support and be part of,” he said.  

“We really believe the environment in Iraq is conducive for US companies and entrepreneurs looking to invest here, and that’s why we sent this delegation; we’re very bullish about it.”

Syed acknowledged that there remained hurdles to attracting outside investment, not least convincing US interests when it came to safety, but he said he felt the delegation’s presence went some way to providing assurances.

“For us to go back into the country and spend several days there hopefully builds confidence that it’s safe and conducive to further business developments,” he added.

Syed also acknowledged that there remained further work to do on normalizing standards when it came to issues of arbitration and intellectual property, while discussions remained ongoing with the Central Bank of Iraq over mechanisms to repatriate US businesses’ profits.

“Yes, this all helps US companies be more productive in the country. However, it also helps Iraq be more productive and tackle many of its challenges,” he said.

“Every time US companies take hold in a new location they raise standards, and this was something we spoke at length about with the Iraqi delegation to make sure there are proper frameworks,” he added.

“Iraq has put significant resources for the country’s future, and our companies have opportunities to compete for these projects,” he said.

“We must remember to fight corruption. Whatever initiative Iraq puts out, we hope to compete on in an open, standards-based way.

“We compete with the world, with our friends; we believe our sector offers the best. Ultimately, we’ll be judged on deals closed.”

The US delegation left having pocketed an early win, with Syed noting that a deal had been reached with Iraq’s Health Ministry on cancer research and developing better cancer care.


World Defense Show to expand as participating nations increase: CEO

World Defense Show to expand as participating nations increase: CEO
Updated 20 June 2023

World Defense Show to expand as participating nations increase: CEO

World Defense Show to expand as participating nations increase: CEO

RIYADH: Saudi Arabia’s World Defense Show is set to get bigger in its second edition with a substantial increase in the number of participating countries, according to a top executive.

The General Authority for Military Industries recently announced that the second edition of WDS will be held in Riyadh from Feb. 4-8, 2024.

Speaking at the Paris Air Show, WDS CEO Andrew Pearcey revealed that Bahrain, Oman, Denmark and Turkiye had joined the event, adding to its growing popularity.

“We have seen burgeoning international interest, with increased pavilions from Canada, France, Italy, Nigeria, Portugal, South Korea, Spain, Sudan, and the UAE. The Greek, Chinese, and Indian pavilions have all doubled in size, while the Czech Republic is 145 percent bigger.”

Pearcey also highlighted changes in the event’s agenda, extending the show from four to five days to accommodate the increased engagement. 

World Defense Show CEO Andrew Pearcey

“Day One now is being called a preview day. So that’s for VIPs, exhibitors and hopefully any royals that come and visit and do an opening of the service,” Pearcey said. 

He added: “The first day is going to be very important. On that day, we’ve got a high-level conference called the Future of Defense Forum. It’s a leadership forum with top-level leaders coming in. We hope to have some ministers do some talks during the day. We’ll also have an opening ceremony with a bit of a flying display attached to it.” 

Pearcey further highlighted that the event’s exhibition area has expanded by 25 percent compared to the previous edition in anticipation of more exhibitors and enhanced features. 

FASTFACTS

The General Authority for Military Industries recently announced that the second edition of WDS will be held in Riyadh from Feb. 4-8, 2024.

Bahrain, Oman, Denmark and Turkiye had joined the event, adding to its growing popularity.

The event’s exhibition area has expanded by 25 percent compared to the previous edition in anticipation of more exhibitors and enhanced features. 

“The global defense landscape is evolving and the growth in the World Defense Show underscores the international focus on the Saudi Arabian market,” he added.  

The increased space aims to provide an optimal platform for showcasing the latest defense technologies and innovations. 

“We’re 90 percent sold at the show already, which is a fantastic position to be in,” he said. 

Additionally, the event will feature a dedicated arena for the space and exploration sector. 

“We’ve got a whole space arena at the show. We’ve allocated 2,000 sq. meters solely for the space sector,” Pearcey informed.

“We’ll have exhibitors showcasing the latest in space technology, and we’ll highlight Saudi Arabia’s national strategic objectives in space,” he added.

In the previous edition held in 2022, the event attracted over 750 exhibitors and received more than 100,000 trade visits, with representation from over 45 countries.