Officials from Agility & Saudi SPGA at the agreement signing ceremony
Agility, a Kuwait-based supply chain service, infrastructure and innovation company, has revealed plans to build a large logistics park for storage and distribution near Jeddah as part of a land-concession agreement announced by Saudi Arabia’s State Properties General Administration (SPGA).
The project at Jeddah- Al Mahjar calls for the construction of a modern warehousing complex on a 576,760 sqm parcel south of Jeddah, starting in Q1 2023. Opening of the Agility Logistics Park – Jeddah is anticipated in Q1 2025.
Under the terms of its agreement with SPGA, Agility will invest $163 million to build the park and have the right to operate it for 25 years. Agility currently operates the country’s most advanced logistics parks, Agility Logistics Parks in Riyadh (870,000 sqm) and Dammam (200,000 sqm).
The announcement comes days after the Saudi government unveiled a sweeping plan to transform the Kingdom into a global logistics center as part of Saudi Arabia’s broad Vision 2030 strategy. Saudi Arabia’s Global Supply Chain Resilience Initiative (GSCRI) is intended to attract $11 billion in fresh investment in its first two years and position the country as a key link in global supply chains through the development of logistics and industrial infrastructure, economic cities, and green energy, innovation and manufacturing.
Michel Saab CEO – Agility Logistic Parks
“Agility’s Jeddah complex will accelerate Saudi economic growth and make it easier for international and local companies to expand in the Kingdom. Ultra-efficient warehousing and distribution are a huge competitive advantage. Companies operating from these parks shorten their time-to-market, reduce cost and risk, increase inventory turns and boost productivity.”
His Excellency, Governor of the State Properties General Administration Mr. Ihsan Bafakih said that “This step will help the SPGA pursue and achieve its strategic objective of efficient management of its real estate assets in a way that maximizes the benefits for the development of the economy. The SPGA is studying its real estate portfolio and working towards transforming its assets into lucrative investment opportunities by providing suitable property for sustainable, pioneering projects with private-sector partners.”
Image: Barrett Ward @ Unsplash
Agility Logistics Parks are secure, connected, 24×7 complexes with Grade A, international-standard warehouses designed with advanced engineering and sustainability features. Agility recently received post-construction Excellence in Design for Greater Efficiencies (EDGE) Advanced certification for a warehouse at its Riyadh park. EDGE Advanced buildings are “zero-carbon ready” structures that are at least 40 percent more energy efficient than others in the market.
The contract was signed by Mr. Hamza Al-Askar, Deputy State Properties General Administration Representative, and Mr. Maher Jaber Al Thabit, Vice President of Agility Logistics Parks, at the SPGA headquarters in Riyadh.
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