USSaudiForum - Panel 4 - Ali Alireza - Transportation, Logistics and Supply Chain Systems

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The 3rd US-Saudi Business Opportunities Forum was held Sep 16-18, 2013, bringing together officials, business people, educators and specialists highlighting the U.S.-Saudi trade relationship and how U.S. companies can participate in Saudi Arabia's expansion.

Saudi Arabia is undergoing an extraordinary economic boom. Massive public investment, rapid private-sector growth and new sector initiatives are driving an expansion projected to offer more than $1 trillion in trade and investment opportunities over the next decade.

This panel of distinguished experts highlighted creating efficient transportation, logistics and supply chain systems.

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USSaudiForum - Panel 4 - Ali Alireza - Transportation, Logistics and Supply Chain Systems

  1. 1. 1 Saudi Arabia Economy And The Transport Sector 2013 Ali Alireza
  2. 2. HHA PROFILE  Company name – Haji Husein Alireza & Co. Ltd  Founded – 1906  Head Office – Jeddah , Saudi Arabia  Primary Business – Sales & Service of Passenger cars and commercial vehicles and MAN Trucks assembly plant  Sales – $640 million (2012)  Employees – 2,200
  3. 3. HHA PROFILE HHA Showrooms, Service Centers & Parts Outlets across the kingdom. Showroom Service Centers Parts outlets
  4. 4. 5 --Saudi GDP growth in 2012 reached 8.6% ($742 bn. GDP Forecast 2013) --GDP expected to grow 2.8% in 2013 --Non-oil economy to grow 5% in 2013. --Oil production expected to average 9.4 mil b/d in 2013. (one third for local consumption) --Inflation expected to remain in the 4.5% range --Net foreign asset position (official and commercial bank) will reach $870 billion by end 2013.
  5. 5. 6 - Saudi is among the top 20 recipients of Foreign Direct Investment in the world. - 15th largest exporter and 30th largest importer of goods and services in the world. - Saudi Arabia covers an area of 830,000 sq. mi. - Current population is 28.1 million with an annual growth rate of approx. 3.2%. - Ninth Saudi Development Plan announced August 2010 sets out investment spending of $385 billion in 2010-2014. -Gasoline price: $0.45/ Gallon.
  6. 6. 7 Saudi Arabia Announced Budget (In $ Billions) 2010 2011 2012 2013f Revenue 125.3 144 187.2 221 Expenditure 144 154.7 184 219 Difference -18.7 -10.7 3.2 2 2013 above is the declared budget. Actual final numbers will vary.
  7. 7. 8 Major recipients of Government Spending 2013 1)Education & Training: $54.4 bn.(24.9% of budget) An increase of 21% over 2012. - An addition of 539 new schools to existing 3900 school projects of renovation or new construction. - Over 40 new college projects under way - Over $20 bn. for more than 120,000 students studying overseas.
  8. 8. 9 2) Health and Social Affairs: $26.6 bn. (12.2% of Budget)An increase of 16% over 2012. - Unemployment benefits were introduced in 2012. - Minimum wages introduced for the public sector. - New poverty reduction programs. - 19 new hospitals added to 102 currently under construction, plus many new social centers and welfare offices.
  9. 9. 10 3) Transport and Infrastructure $17.3 bn.(7.9% of budget) An increase of 16% over 2012. - Airport expansion project in Jeddah under way. - Building additional 3,700 kilometers in 2012-2013. Plus plans for another 1,523Km - This is in Addition to current 30,200 km under construction from last year. - New projects for ports, railways, postal services, etc.
  10. 10. 11 4) Water, agriculture and related infrastructure: $15.2 bn.(7% of budget) An increase of 11% from 2012. - Need to enhance water production and water treatment networks as well as enhancing sewage network. - Population increasing to 36.5 million by 2020 and need for increase in water desalination.
  11. 11. 12 5) Municipality Services. $9.6 bn.(4.4% of budget) An increase of 23% from 2012. - Need to cater to growing population and growing cities and towns with related infrastructure.
  12. 12. 13 The National Transportation Strategy Vision: To develop and maintain a multimodal transportation system, serving the needs of society by ensuring a safe, efficient and technologically advanced transport system that promotes social and economic development and International competitiveness for the Kingdom and ensures a healthy and secure environment for its citizens.
  13. 13. 14 Six Areas Identified for Transport Investment And Development ● Transport Infrastructure Development ● Freight Transportation and Trade Facilitation ● Passenger Transport ● Transport Safety ● Environmental Protection ● Hajj Transportation
  14. 14. 15 ● Develop a cohesive integrated transport infrastructure planning for Saudi Arabia to promote better system wide efficiencies. ● Promote development of modern intermodal terminals and logistics centers. ● Encourage commercialization of infrastructure for increased private sector participation. ● Harmonize guidelines for highways and roads and commercialize management of transport services
  15. 15. 16 2) Freight Transportation and Trade facilitation ● Enhance transport operations to facilitate international trade by: -- promoting multimodal transport, -- reducing border crossing impediments, --Strengthening governance, --and professional capacities, as well as, --ensuring competition and increased market access.
  16. 16. 17 3) Passenger Transport ● Enhance and develop urban transport system. ● provide kingdom-wide passenger mobility by air, bus and railway. ● Consider transport for tourism. ● Promote competition of commercial services for all areas of transport. ● Liberalization of aviation sector and grow rail passenger services.
  17. 17. 18 4) Hajj Transport Services ● Strengthen the planning and logistics arrangements for the annual Hajj period and improve urban and intercity movements of the pilgrims.
  18. 18. 19 5) Transport safety ● Implement and strengthen institutional frameworks and capacities especially In areas of: -- engineering, enforcement, education and emergency response. ● Develop and implement Transport Safety programs for all sectors; Land Transport, Maritime and aviation ● Enhance standards for infrastructure and services provision.
  19. 19. 20 6) Environmental protection ● Minimize the negative environmental impacts and health risks brought upon by the transport sector. ● Formulate policies, regulations and standards Under the direction of the Presidency for Meteorology and Environment.
  20. 20. 21 Thank You

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