Transport
From The Report: Saudi Arabia 2013
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Spurred on by strong demand for services, the government is planning to bolster and upgrade infrastructure capacity across all segments of the transport industry. Indeed, with a rising population and increasing trade volumes, the sector is poised for growth. The transport, storage and communications sector accounted for 7.7% of GDP in 2011 and is growing at a rate of 10.63% per year. Planned road and rail expansions are designed to facilitate the movement of goods and develop the Kingdom as a logistics centre for the region, while several new ports are being developed and expansion plans are under way at a number of existing facilities. This should help accommodate rising levels of traffic – container volume was up around 7.5% in 2011. Such projects illustrate the importance the government is placing on the transportation sector to expedite economic growth and diversification.

This chapter includes an interview with Prince Fahad bin Abdullah bin Muhammad, President, General Authority of Civil Aviation (GACA), and Chairman of the Board of Directors, Saudia.

Articles from this Chapter

Overview

By land, sea and air: Projects in all segments position the Kingdom for change
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Spurred on by strong demand for services, the government is planning to bolster and upgrade infrastructure capacity across all segments of the industry – from aviation to ports. With this financial backing, the Kingdom’s land, sea and air transportation networks are experiencing a complete transformation and, consequently, opportunities for new operators in all segments are likely to increase in the years ahead. Market Environment The general trends in the country suggest that demand for transportation…

Analysis

Road work ahead: Keeping people and goods moving with upgrades and expansions
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As a crucial transit country for regional vehicular traffic, the government is not neglecting the upgrade and expansion of the domestic road network, despite the high priority placed on the development of a national rail network. Although traffic volumes, particularly for trucks, may dip as a result of the rail expansion, roads are sure to remain a crucial component of the country’s transport infrastructure. Road Reliance The deputy chairman of the transport committee at the Jeddah Chamber of…

Interview

OBG talks to Prince Fahad bin Abdullah bin Muhammad, President, General Authority of Civil Aviation (GACA), and Chairman of the Board of Directors, Saudia
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Interview: Prince Fahad bin Abdullah bin Muhammad What motivated the issue of the King Abdulaziz International Airport (KAIA) sukuk (Islamic bond)? PRINCE FAHAD BIN ABDULLAH BIN MUHAMMAD: At the forefront of these plans is the transformation of GACA from a government body that completely relies on the government’s budget to an independent body with its own revenues and financial resources. To accomplish this, GACA approved sources of finance apart from the government budget. Among these was the…

Analysis

Making tracks: The government has prioritised projects linking cities via rail
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When railways are mentioned in relation to Saudi Arabia, the Hejaz railway is what most often comes to mind. The line was introduced in the 19th century linking Medina to Damascus, and although sections still run in Jordan and Syria, the only remnants of it in Saudi Arabia are tourist attractions featuring stations, rolling stock and non-operational tracks. However, railways in the Kingdom will soon conjure up a different vision entirely as the government looks to build a more extensive 21st-century…