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LogiPoint: taking its expansion plan to the next level

LogiPoint: taking its expansion plan to the next level



Driving innovation in Saudi’s supply chain

The kingdom’s leading logistics services provider LogiPoint is looking at ambitious expansion across the kingdom, entrenching its leading position to drive efficient logistics solutions in the industry, writes Pummy Kaul

January 2020

LogiPoint, a leading company operating a network of integrated logistics parks and the first and largest bonded and re-export zone in Saudi Arabia, is all set to expand its investment base in the kingdom by building capacities and widening its presence and services in 2020.

The company is actively looking at expanding its network of integrated logistics parks and zones as well as warehousing space across the kingdom in the New Year, entrenching its leading position to drive efficient logistics solutions in the industry.

“2020 is set to be the year when we take our expansion plans to the next level. We will look to expand our footprint across the Kingdom with our logistics parks and zones, while we grow with the needs of the sectors and clientele that we serve. Our focus will remain on offering second to none services to our customers by investing in building our capacity and our IT infrastructure,” said the CEO of LogiPoint Farooq Ahmed Sheikh in an exclusive interview with Gulf Industry.

Sheikh pointed out that, LogiPoint (a subsidiary of Saudi Industrial Services Co– SISCO, a Saudi Joint Stock company listed on Tadawul), is seeing heavy demand for its warehousing solutions, both for pre-built and for the Built-to-Suit facilities.

“This demand will drive our investments into new warehousing space of about 55,000 sq m and add substantially to our warehouses. We will also be expanding across the Kingdom with investments in developing Logistics Parks. We will be looking to complete the construction projects in Jeddah Logistics Hub in the coming year also,” Sheikh commented.

LogiPark has completed the Phase 1 of Jeddah Logistics Hub and has begun handing over units to clients

LogiPark has completed the Phase 1 of Jeddah Logistics Hub and has begun handing over units to clients

The company has recently signed a long-term agreement with Aramex, a leading global provider of comprehensive logistics and transportation solutions, for the construction of “Build-to-Suit” facilities for Aramex’s western province ground operations.

LogiPoint currently has a total of 72,000 sq m multipurpose warehousing area customised to client needs, with features such as: 24/7 temperature monitoring with remote alert and battery back-up; redundant HVAC systems to ensure continuous operation; security systems with video surveillance and alarms; epoxy-sealed floors to ensure dust-free environment; full GMP and GDP compliance; pest control procedures; quality control processes and many more.

In addition, new buildings of about 55,000 sq m are being built, which will be ready in 2020-21, Sheikh revealed.

Located in Jeddah Islamic Port, the 1 sq m logistics hub provides services such as lead-logistics, trucking, warehousing, port services, turnkey supply chain integration from the port terminal to the distribution center, specialised handling, labeling and co-packaging.

“We ensure a seamless and smooth logistics operation for goods transportation into and outside the warehouses for all clients by providing professionally trained personnel who are equipped with all necessary equipment and supported by our custom-built IT infrastructure. This helps ensure reliable and consistent levels of efficiency across all operations at all times for all our clients,” he said. 

Meanwhile, as developers of logistics zones and parks, LogiPark has completed the Phase 1 of Jeddah Logistics Hub and has begun handing over units to clients. The company’s Logistics Parks- Modon 1 is spread over 120,000 sq m, located in the heart of the Jeddah Industrial Area, and close to the Jeddah Islamic Port, and the Logistics Parks South Jeddah, is spread across 662,900 sq m and located in Al-Khumra (the second largest logistics hub in the kingdom).

Excerpts from the interview:

 

From starting out as Saudi Arabia’s first bonded and re-export zone (BRZ), how has LogiPoint transformed the Saudi maritime and supply chain landscape over the last 20 years?

LogiPoint has been at the forefront of driving innovation in Saudi Arabia’s maritime and supply chain landscape and has played a pivotal role in supporting the kingdom’s logistics sector to take its rightful place in the region as a logistics hub serving the global markets. We have not only introduced the bonded and re-export services in the kingdom, but by working closely with the industry stakeholders like the ports and customs authorities as well as logistics service providers, we have enabled the Saudi supply chain sector to bring about wholesale changes in how the industry serves the local as well as the international clients. Our efforts and initiatives have revolutionised the way in which our clients plan their supply chain and how they serve their end customers. We have brought not only cost-savings and efficiencies for the economy but also attracted large scale international investments into the kingdom. Logistics is the lifeblood of the economy, and when we enable logistics, we enable the entire economy. 

 

What have been LogiPoint’s achievements, milestones and special developments during the year 2019?

The year 2019 has been a year of many achievements and many firsts, yet again, for LogiPoint. On one hand, we entered into an agreement with Aramco Chemicals Trading Company to become the strategic export logistics hub for the world’s leading petrochemicals organisation. On the other hand, keeping an eye on the future, LogiPoint emerged as the strategic logistics partner for one of the global e-commerce giants, as well as leading local service provider Naqel. Both signed up with LogiPoint to develop their supply chain solutions for the Saudi market. As developers of logistics zones and parks, we also completed the Phase 1 of Jeddah Logistics Hub and began handing over units to clients.

 

The first and largest Bonded and Re-Export Zone (BRZ) in Jeddah introduced by LogiPoint

The first and largest Bonded and Re-Export Zone (BRZ) in Jeddah introduced by LogiPoint

Which new services and initiatives have you introduced during the year 2019? What new concepts is LogiPoint planning to introduce in the kingdom in future?

One of the landmark new service that we introduced last year was the cross-border multimodal movement for shipments into the GCC. Eastbound shipments from the Western origins can now be discharged in Jeddah and moved via bonded trucking to their final destinations in the GCC. This helps reduce the transit time for the imports into the region by approximately seven to 10 days and introduces unprecedented efficiencies for the regional logistics sector. On the flip side, West-bound shipments originating from the East can now be discharged on the regional ports in the Arabian Gulf on the East, and moved under bond to Jeddah for onward multimodal movement to final destinations in Africa, Europe and the Americas.  

We are constantly re-evaluating our value-added services for our clients to see how we can bring greater new efficiencies, cost savings and better profits to their business. Regional exporters can now avail our value-added services to serve their export markets in the Mena region and beyond when they use LogiPoint as their regional logistics hub.

 

What collaborations does LogiPoint have with companies including those based in the West to help it in managing and delivering all types cargo including project cargo? Are you planning any new alliances/joint ventures internationally?

LogiPoint works extensively with industry stakeholders to explore new facilities and solutions for our clients. These collaborations happen with local as well as international stakeholders and include leading international shipping companies, ports and customs authorities as well as Saudi airports. This is especially important right now as we have our focus on developing LogiPoint as a corridor for integrated sea-air shipments.

Some of our planned alliances and joint ventures focus on International Freight Forwdarders’ Networks which have thousands of members across the world, and which are looking to facilitate their members when it comes to doing business in and through the kingdom. There will be some exciting news to share soon in this regard.

 

What will the company’s focus be in 2020? What are your targets and what will be your strategy to achieve those targets?

2020 is set to be the year when we take our expansion plans to the next level. We plan to expand our footprint across the Kingdom with our logistics parks and zones, while we grow with the needs of the sectors and clientele that we serve. Our focus will remain on offering second to none services to our customers by investing in building our capacity and our IT infrastructure.

 

LogiPoint: bringing international concepts in logistics efficiency to Saudi Arabia

LogiPoint: bringing international concepts in logistics efficiency to Saudi Arabia

What is your company’s contribution to the Saudi market? How is your company going to contribute to Saudi’s Vision 2030?

LogiPoint’s contribution to the Saudi market has been multifold. Twenty  years ago, when we had started, a bonded zone was an alien concept to the Logistics sector in the Kingdom – today, the industry is able to plan, develop and deliver highly sophisticated logistics solutions to the market because of the initiatives we have been pioneering and introducing over the years. In this way, we have attracted extensive new investments into the Kingdom as we enabled the freight forwarding and logistics industry to offer cost-effective and efficient services to the market.

We continue to see our role as one of making active contribution to the Vision 2030 through enabling the logistics and supply chain industries.

 

Would you say LogiPoint’s warehouse leasing programme has been a success? What reasons do you attribute for the success?

LogiPoint has been a huge success over the years. We have grown from being the kingdom’s first bonded and re-export zone to becoming developers and operators of logistics parks and zones. Today we offer solutions in leasing prebuilt warehousing as well as providing warehousing space, which is built to suit for specialised needs of our clients. In fact, this has been a cornerstone of our success – we have enabled clients to come to us with ideas and requirements and we have developed solutions that serve them best.

 

What is your growth strategy for warehouses? Do you have plans to expand the number of warehouse?

We are seeing heavy demand for our warehousing solutions, both for pre-built and for the Built-to-Suit facilities. This demand will drive our investments into new warehousing space of about 55,000 sq m and add substantially to our warehouses. We will also be expanding across the kingdom with investments in developing Logistics Parks. We will be looking to complete the construction projects in Jeddah Logistics Hub in the coming year also.




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