2019 has been a year of many milestones for LogiPoint. From introducing bonded cross-border delivery into GCC destinations to partnering with some of the world’s leading e-commerce giants to developing the sea-air and air-sea multi-modal solutions.
“We have gone from strength to strength in expanding and developing our product offering to the logistics and supply chain industry. The expectations in 2020 are to continue to build on our years of bringing innovative logistics solutions to the industry with special focus on developing and operating new economic zones across the Kingdom, so that we play our role in enabling the stakeholders of the industry,” said Mr. Farooq Shaikh, CEO of LogiPoint.
LogiPoint was developed as the new identity to reflect the ambitious growth strategy that the company has adopted for the next decade, transforming from a pioneering bonded and re-export zone (BRZ) into a leading network of integrated logistics parks across Saudi Arabia. LogiPoint provides a range of integrated logistics services such as fleet management services, steel cargo services, fleet management, freight services, and labor & equipment services.
In realizing its transformation to its new identity, LogiPoint is committed to expanding its current investment base by developing both green-field and brown-field integrated logistics facilities across Saudi Arabia, attracting international investors into the Kingdom, serving customers in all sectors through sea, air and land-based integrated logistics offerings, achieving internationally competitive service levels in Saudi Arabia, improving the reliability and efficiency of the Kingdom’s trade and supply chain and ultimately enabling Saudi Arabia to become a key hub in the global logistics value chain.
Opportunity
Over the past few years, there is a realization that opportunities exist in the KSA market for innovation, growth, and revenue, and the logistics industry has responded positively. Starting off with replicating the successful models from around the world, the participants have leveraged their experience in the local market to drive innovation and solution-development.
“At LogiPoint we have been at the forefront of this development with our constant focus on enabling the logistics industry and going the extra mile in designing solutions which translates to efficiencies, greater productivity and higher returns for our customers,” said Mr. Farooq.
LogiPoint Advantages
LogiPoint is a leading company operating a network of integrated Logistics Parks in Jeddah. As such we provide two different sets of services.
“At LogiPoint Bonded and Re-Export Zone, we provide our clients with duty-free storage for their goods through our standard and built to suit warehouses as well as container yards and open storage areas.
Complementary to that, we also provide a wide range of value-added services like labelling, packing, repackaging, and handling of goods before clearance and distribution, and we act as a liaison office between the clients and the regulatory bodies. Additionally, our clients will have the advantage of bonded corridors which we are setting up between the port and airports as well as across the GCC.
At the Logistics parks and economic zones, our product offering is driven more by the needs of our clients than a one size fits all approach on our part, and so we build our solutions by listening to the needs, aspirations and plans of our customers, because that is what a true business partner must always do,” explained Mr. Farooq.
Today, the Bonded and Re-Export Zone, which is spread over 1 Million Sqm. in Jeddah Islamic Port, is a world-class, customer-centric integrated logistics services area, where international and local clients are able to take advantage of services like port services, lead-logistics, specialized handling and storage, labeling, co-packaging, and also turn-key supply chain integration from the port terminal to the distribution center. In shipping terms, Jeddah port helps clients save 4-8 days in import or export transit time when compared with other ports in the region. This is an advantage which is reinforced through using the LogiPoint services in the Jeddah Islamic Port.
Furthermore, LogiPoint announce that phase 1 of Logistics Park Modon 1 project was completed.
Phase 1 comprises 350 truck parking spaces designed to bring Modon much needed respite from congestion and pollution through taking the parked and waiting trucks off the roads. Modon tenants and service providers will have the option of leasing truck parking space, which complies with international security and safety standards, on daily/monthly/yearly lease as per their requirement.
Modon hosts more than 400 factories in Jeddah Industrial Area. This thriving industrial base needs a state-of-the-art logistics infrastructure, which helps bring world-class efficiency to its operations. Logistics Park Modon 1 is making state-of-the-art infrastructure a reality in Modon.
Upon completion, this project is located in the heart of the Jeddah Industrial Area, will include a 20,000 Sqm of multi-temperature warehouses, which will be the only one catering to all kinds of storage requirements of the industrial city 1. It will offer customized and tailor-made support services to the clients and boost supply chain efficiency across sectors through sharing best practices and leveraging expertise and experience. The Modon investors will benefit from improved ROI because of highly professional and cost-effective storage and distribution becoming available in their vicinity.
Major Deals and Future Investments
In 2019, LogiPoint signed deals with NAQEL express, Aramex, Aramco Chemicals Company, and many more.
Mr. Farooq explained about the value proposition that LogiPoint presents to companies, “Our value proposition to each of these clients has been uniquely tailored for their specific needs. Naqel Express and Aramex are part of our focus on the express and e-commerce segments, which are the two most important segments for us going forward, while our partnership with Aramco is built on our joint focus on facilitating exports out of the Kingdom. I think what makes LogiPoint appealing to these international organizations is our ability to understand their requirements and our will to be part of the long-term supply chain solution for them.”
In terms of investment, LogiPoint have a three-pronged strategy: “We are investing in people, systems and infrastructure. We have a robust HRD which has a singular focus on finding, developing and retaining top talent, while our growth plans, which are driven by the very people, require us to constantly evaluate and invest in systems and projects which will not only keep us in tune with the needs of our clients but also help us to anticipate and address those needs in advance. Also, we are exploring to expand our foot-print nation-wide to provide customers with consistent and reliable service in all major markets in the Kingdom.”
New Logistics Landscape
In many ways LogiPoint is the new logistics landscape – they look at themselves as a platform for the logistics industry to experiment with and practice innovative logistics solutions.
“Our various partnerships with the global and national e-commerce giants as well as our current focus on developing the multimodal solutions like sea-air and cross-border bonded trucking are all part of our clear strategy to lead the way for the new logistics landscape,” said Mr. Farooq.
GCC and KSA Market
The GCC region is uniquely positioned with the Red Sea on the West and the Arabian Gulf on the East, and so while the Eastbound shipments spend ten days circling the Arabian Peninsula to reach the Arabian Gulf, the Westbound shipments spend a similar time going the other way round to cross the Suez.
“With the cross-border Gulf service, we have managed to reduce that transit time by 7-8 days with eastbound shipments being terminated at Jeddah port and trucked to the final destinations in the GCC under bond. Likewise, the exports from these regions also have a much faster route to avail using the cross-border Gulf service,” commented Mr. Farooq.
So not only does the cross-border Gulf service bring the GCC closer together by linking the supply chains together, but it brings the East and the West closer by reducing the transit times between the two halves of the world.
The KSA market is one of the more interesting markets in the world today, driven primarily by the Vision 2030 and the thrust of the Kingdom to emerge as one of the global leaders in the business world. The vision has unified the private and the public sector in pursuit of a common goal like never before and chalked out a clear path for the various sectors of the economy to follow.
“In the context of the Kingdom, this is unprecedented in many ways, and I think the social and economic infrastructure which we will build over the next decade will serve the Kingdom for many decades to come. 2020 is the beginning of a glorious journey ahead,” said Mr. Farooq.
Mr. Farooq concluded by saying: “More than the goals, it is about the journey to achieve those goals. The process that is adopted and the values that we embrace will really define if the goals that we achieve are really worth striving for. Only with this approach, we can bring sustainable change in our mind-set.”
