In a strategic move to bolster its presence in key markets, CEVA Logistics has inked a Joint Venture (JV) agreement with Almajdouie Logistics, a prominent logistics provider in the Kingdom of Saudi Arabia (KSA). The deal, pending regulatory approval, will see CEVA Logistics holding a majority stake in the newly formed entity.
This partnership marks a significant milestone for both companies. For Almajdouie Logistics, the collaboration leverages CEVA’s expansive global network, enabling them to offer comprehensive, end-to-end logistics solutions to their growing customer base worldwide. Conversely, CEVA Logistics aims to solidify its foothold in Saudi Arabia, aligning with its regional growth strategy. The JV will employ around 2,000 personnel in KSA and manage a local fleet exceeding 2,000 assets.
The JV will cater to a variety of industry sectors, including Saudi Arabia’s traditional energy and petrochemicals industries, as well as the burgeoning automotive, e-commerce, consumer, and retail sectors. This blend of local expertise and global logistics capabilities will facilitate the expansion of local customers’ reach and enhance the service offering for global customers operating in the Saudi market.
This collaboration aligns perfectly with Saudi Arabia’s Vision 2030. With a significant portion of cargo for Saudi Arabia’s large-scale projects originating overseas, efficient logistics are crucial. The Saudi Ports Authority’s recent investment of SAR 17bn ($4.5bn) in the Kingdom’s maritime, logistics, and port sectors, alongside agreements to develop new logistics parks at strategic ports, underscores this need.
Mohammed Almajdouie, CEO of Almajdouie Logistics, emphasized the benefits of the JV, stating, “By pooling our expertise and resources through this partnership, we aim to strengthen our competitive advantage and offer an integrated and comprehensive suite of logistics services enabling us to capitalize on the opportunities presented by the Kingdom’s vibrant and rapidly evolving business landscape. We can accomplish together what we cannot achieve separately.”
Echoing this sentiment, Mathieu Friedberg, CEO of CEVA Logistics, highlighted the mutual advantages, saying, “Around the world, CEVA is extending our local knowledge for the benefit of our customers. We have worked successfully with Almajdouie Logistics over the past decade, and with the growing market in Saudi Arabia, this joint venture would strengthen our local presence. By combining our complimentary capabilities, the JV’s customers would have access to bespoke global solutions implemented reliably by local experts.”
This strategic alliance not only promises to enhance logistics services in Saudi Arabia but also plays a pivotal role in supporting the ambitious goals of Vision 2030, paving the way for more streamlined and efficient logistics operations across the region.
