In a significant move to bolster its strategic direction, CEVA Logistics has entered into a joint venture with Almajdouie Logistics, a foremost logistics provider in Saudi Arabia. The partnership agreement is currently under the scrutiny of regulatory bodies, awaiting their green light. With the majority stake under its belt, CEVA Logistics is poised to steer the joint venture’s course.
This collaboration signifies a crucial step in the expansion plans of both entities. Almajdouie Logistics stands to gain from CEVA’s extensive global reach, enhancing its ability to offer comprehensive logistics solutions to its clientele worldwide. Concurrently, CEVA Logistics will reinforce its presence in the Saudi market, aligning with its ambitions for regional expansion. The venture is expected to combine a workforce of approximately 2,000 in Saudi Arabia and operate a substantial local fleet exceeding 2,000 units.
The joint initiative aims to serve a diverse range of sectors, from the traditional Saudi energy and petrochemicals to burgeoning fields like automotive, e-commerce, and consumer retail. By marrying regional insights with international expertise, the venture is positioned to empower local businesses to extend their reach while facilitating global entities to effectively penetrate the Saudi market.
In line with the Saudi Vision 2030 and the surge in infrastructure projects, seamless logistics is essential. The Saudi Ports Authority’s investment of SAR 17bn ($4.5bn) in 2023 and the creation of new logistics hubs emphasize the sector’s critical role in the nation’s developmental blueprint. The joint venture’s integrated logistics offerings are set to complement this dynamic progress.
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,
stated Mohammed Almajdouie, CEO of Almajdouie Logistics.
Mathieu Friedberg, CEO of CEVA Logistics, echoed this sentiment, highlighting the decade-long successful collaboration with Almajdouie Logistics and the potential to bolster CEVA’s local presence through the joint venture. By combining our complimentary capabilities, the JV’s customers would have access to bespoke global solutions implemented reliably by local experts,
he remarked.
About the Companies: CEVA Logistics, a global leader in third-party logistics, orchestrates supply chain solutions worldwide and boasts a workforce of approximately 110,000 across more than 1,500 facilities. As part of the CMA CGM Group, CEVA’s projected revenue for 2023 is US$20.2 billion.
Almajdouie Logistics, with over five decades of industry experience, is a regional leader in integrated supply chain services. The company’s impressive asset portfolio includes a vast fleet and extensive terminal and warehousing capabilities, managed by over 2,000 skilled employees.
