NEOM and DSV have officially declared a dedicated logistics collaboration worth USD 10 billion to actively support the unfolding grand projects in NEOM, Saudi Arabia. This partnership will center its efforts on furnishing logistical services to NEOM in the upcoming years.
According to the terms of the agreement, the joint venture will assume responsibility for comprehensive supply chain management, the growth and investment in transportation and logistical assets, infrastructure, as well as the transportation and delivery of goods and materials within NEOM.
NEOM will retain a majority stake of 51% in this joint venture, while DSV will possess the remaining 49%.
NEOM anticipates an unprecedented demand for construction logistics until December 31, 2031, with continual expansion in non-construction logistics beyond that timeframe. Beyond its impact on the logistics sector, this collaboration is projected to stimulate the Saudi economy through infrastructure development and the generation of over 20,000 employment opportunities.
Nadhmi Al-Nasr, CEO of NEOM said:
“The projected demand in both construction and non-construction logistics will make NEOM one of the largest customers in the world, and this partnership allows NEOM to create value from its demand. Working alongside one of the world’s leading logistics companies, the joint venture with DSV will build on expertise and know-how to drive innovation and sustainability throughout the logistics value chain. The economic benefit to this partnership will not only provide tens of thousands of jobs, but it will also enable growth to capture local and regional market share. It’s a living example of Saudi Vision 2030 in action, fostering job creation and building a future-leaning economy.”
Jens Bjørn Andersen, Group CEO, DSV added:
“NEOM is one of the largest and most complex projects in the world. It provides a unique opportunity for DSV to support a development that is at the forefront of innovation, technology and digital transformation. DSV already has a strong presence in Saudi Arabia, and this is a significant growth opportunity for us in the region and we look forward to working with NEOM Company and bringing our logistics capabilities to the table.”
NEOM and DSV are committed to driving innovation and will allocate a portion of the JV’s revenues to foster the development of ground-breaking technologies and commercialise new sustainable next-generation logistics solutions. The vision extends further by establishing a dedicated innovation centre at NEOM’s clean and advanced manufacturing hub, Oxagon.
The new joint venture is a significant milestone demonstrating NEOM’s commitment to revolutionising Saudi Arabia’s logistics sector and paves the way for pioneering sustainable logistics solutions, marking a new chapter in its journey towards realising Vision 2030.
Completion of the partnership is awaiting customary regulatory approvals, which are expected to be obtained in the second quarter of 2024.
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