Saudi Arabian Logistics (SAL) announced a significant agreement with Air China, solidifying its position as a key player in the global logistics sector. The strategic partnership entails SAL providing comprehensive air cargo handling services for Air China. This encompasses a range of services including ground transportation within Saudi Arabia and the Gulf Cooperation Council (GCC) countries.
The deal strengthens SAL's commitment to expanding its air cargo portfolio and establishing a robust presence in the international logistics market. This collaboration is mutually beneficial, enabling Air China to leverage SAL's expertise and infrastructure to enhance its cargo handling capabilities within the Middle East.
"This agreement underscores SAL's dedication to delivering exceptional air cargo solutions and fostering strong partnerships with leading international airlines, " said Faisal Albedah, Managing Director and CEO of SAL. "We are confident that this collaboration will significantly contribute to streamlining cargo logistics and providing a seamless experience for our customers. "
The partnership is particularly timely given the ever-growing trade volume between China and Saudi Arabia. According to Trade Arabia, the value of Saudi non-oil exports to China has surpassed $47 billion over the past five years. This surge in trade necessitates efficient and reliable cargo logistics services, a gap that the SAL-Air China partnership aims to bridge.
Analysts anticipate that the deal will propel SAL's growth trajectory within the region's logistics sector. SAL's strategic geographical location positions it as a crucial gateway for cargo movement between Asia, Africa, and Europe. By partnering with a prominent airline like Air China, SAL gains access to a wider network and reinforces its reputation as a trusted logistics provider.
The agreement is expected to contribute to the development of Saudi Arabia's logistics industry, which is a key pillar of the country's Vision 2030 economic diversification plan. The plan aims to reduce Saudi Arabia's dependence on oil and foster the growth of new industries, including logistics. By attracting foreign investment and forging strategic partnerships, SAL is playing a pivotal role in achieving the objectives outlined in Vision 2030.