Saudi’s NEOM Partners with DSV on US$10bn Logistics Hub

Saudi Arabia’s gigaproject NEOM has been capturing global headlines for its sheer scale and ambition. Now, the logistics behind supplying that phenomenal challenge are also in the spotlight, with NEOM announcing a US$10bn partnership with supply chain giant DSV.

The new partnership will rightly focus on the logistics around construction of NEOM and its many mega zones, up to the end of 2031.

NEOM currently consists of four main projects:

• The Line – a city built in a straight line 170km long, 500m tall and 200m wide
• Oxagon – an industrial city serving advanced and clean industries
• Trojena – a stunning mountain leisure and sports destination
• Sindalah – a luxury island resort and marina

The joint venture agreement – with NEOM holding a majority 51% stake – will provide essential end-to-end supply chain management, development and investments in transport and logistics assets and infrastructure.

Beyond the needs of NEOM to 2031, it is expected that the new logistics hub will create some 20,000 jobs – a vital component of the Saudi Vision 2030 that aims to transform the domestic economy.

NEOM and DSV to focus on innovation and new technology

“This partnership not only shows the reality of NEOM and its vision, but also the private sector’s level of confidence to join us on this journey,” said Nadhmi Al-Nasr, CEO of NEOM.

“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.”

Al-Nasr added that working with DSV, one of the world’s leading logistics companies and headquartered in Denmark, would drive innovation and sustainability in the value chain. 

READ: 21 things to know about NEOM

For DSV, Group CEO Jens Bjørn Andersen said NEOM 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,” said Andersen.

Both NEOM and DSV are committed to developing new technologies and next-generation logistics, and will establish an innovation centre to explore future solutions.

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