Kingdom’s logistics industry ‘undergoing major expansion’

Messe Frankfurt Middle East, one of the region’s largest exhibition organizers, is expanding its regional reach with the announcement of the inaugural Materials Handling Saudi Arabia 2016. 

The two-day conference and exhibition will take place from Nov. 28-29 in Jeddah, offering global suppliers and regional manufacturers direct access to the Kingdom’s thriving logistics, warehouse, freight and cargo industries.
Organized in partnership with Saudi-based Al-Harithy Company for Exhibitions (ACE), Materials Handling Saudi Arabia is a biennial event alternating between the flagship Materials Handling Middle East exhibition in Dubai. 
It also marks Messe Frankfurt Middle East’s second direct foray into the vast Saudi market, after the breakout success of the 1st edition of Automechanika Jeddah in Jan. 2016.
“Materials Handling Saudi Arabia is the latest development in our ongoing expansion in the Kingdom, and together with Materials Handling Middle East, we have a dual platform offering intra-logistics and supply chain players unmatched access to one of the most promising markets in the world,” said Ahmed Pauwels, CEO of Messe Frankfurt Middle East. 
“Saudi Arabia’s logistics and materials handling industry is undergoing immense expansion and change and with it challenges that are unique to the Kingdom. We felt the need to provide a dedicated trade and networking event so key stakeholders can share their experiences, understand the market realities, and prepare for future developments,” he added.
Muwaffaq Al-Harith, chairman of ACE, said: “The warehousing and logistics sector in Saudi Arabia is currently on the upswing, riding on a phase of sustained industrial and retail expansion, along with infrastructural development. Over the years we have succeeded in identifying demand for focused trade events and we look forward to continuing our association with Messe Frankfurt Middle East to bring Materials Handling Saudi Arabia to fruition.”
The inaugural edition of Materials Handling Saudi Arabia will be headlined by the two-day Supply Chain and Logistics Forum, bringing together top industry leaders, academics, and solutions providers addressing the opportunities and challenges in a rapidly evolving market. 
According to a report by Colliers International, the Saudi Arabian logistics and warehousing sector is set to witness a considerable boom, driven by the Saudi government’s push to expand the industrial sector’s contribution to the economy to 20 percent by 2020, up from the current 10 percent level.
There has been considerable expansion already in the Jeddah region with the report revealing that approximately 45 million sqm of land has been allocated by Modon, a semi-government organization that promotes investment and job creation in industrial manufacturing sector through the development of industrial cities. Of this, 25 million sq m has already been developed in Jeddah, with the remaining 20 million sqm still in the construction pipeline. 
Further expansion is on the cards, with the construction of the 4th industrial city to the north of Jeddah, and the expansion south with more facilities to become available in the 2nd and 3rd industrial cities.
Materials Handling Saudi Arabia has attracted a healthy initial response from suppliers of products and services related to intralogistics, warehousing, supply chain, ports, and port equipment.
Exhibitors already signed on include Launch Partners Swisslog, SSI Schaeffer, and Daifuku, while Industry Partners include Abdul Latif Jameel Industrial Equipment Company – the Saudi distributor for Toyota forklifts – Log Square, and Al Samaani.
Frédéric Zielinski, general manager for Swisslog Middle East, said: “Saudi Arabia is a very important and growing market for Swisslog Warehouse and Distribution Solutions. On a weekly basis, we receive requests from relevant players in the Kingdom, and it’s very inspiring to see how companies are keen to drive their businesses forward.”
Zielinski said: “We are glad to be on board Materials Handling Saudi Arabia as an innovation leader and key player in warehouse automation. We’re very open to learn about the challenges and requirements and all senior logistics and supply chain players should go there for networking and to learn from each other.”