CEVA Logistics announced that it has signed a Joint Venture (JV) agreement with Almajdouie Logistics, one of the leading logistics providers in the Kingdom of Saudi Arabia (KSA), as a part of its strategic plan.
The signed agreement now awaits review and approval by the necessary regulatory authorities.
In a statement, CEVA said it would control the majority of the newly established joint venture.
[Source: CEVA Logistics]
The JV would mark a major milestone in both companies' growth strategies.
The announcement noted that Almajdouie Logistics would benefit from CEVA's strong global network, allowing it to serve its growing portfolio of customers with end-to-end integrated logistics solutions anywhere in the world.
At the same time, CEVA Logistics would continue building an established and strong presence in Saudi Arabia to fulfil its regional growth strategy.
Once completed, the JV organization would have around 2,000 employees in KSA and a local fleet of more than 2,000 assets.
"The JV would target various industry verticals ranging from the conventional Saudi energy and petrochemicals industry to automotive, e-commerce, consumer and retail," the announcement said.
It added that the combination of regional knowledge and global solutions within the JV would allow many local customers to expand their geographic offering and allow global customers to better serve the Saudi Arabian market.
CEVA said offering end-to-end global and local logistics services would respond to a thriving Saudi market and support the Saudi Vision 2030.
With most of the cargo used for Saudi Arabia's giga projects coming from overseas, seamless logistics is paramount and a key enabler of Vision 2030.
The Saudi Ports Authority invested SAR 17 billion (US$4.5 billion) in the Kingdom's maritime, logistics and port sector in 2023 and signed agreements to create new logistics parks on both coasts of Saudi Arabia — in the East at King Abdulaziz Port in Dammam, and at Jeddah Islamic Port in the West.
"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," said Mohammed Almajdouie, CEO of Almajdouie Logistics.
Mathieu Friedberg, CEO of CEVA Logistics, noted that the company had worked successfully with Almajdouie Logistics over the past decade, and with the growing market in Saudi Arabia, this joint venture would strengthen CEVA's local presence.
"By combining our complementary capabilities, the JV's customers would have access to bespoke global solutions implemented reliably by local experts," he said.
