Europe-GCC transport periods substantially reduced
A new, far-reaching initiative by LogiPoint has hit the ground running and is already having a strong impact on delivery times on GCC bound shipments originating from Europe.
A long and well-established provider of logistics services, Saudi Arabia-based LogiPoint has an impressive track record spanning two decades of proven capabilities in the Kingdom.
“The company’s signature CBG (Cross Border Gulf) Service commenced a bold pilot project to reduce lead time for our customers and minimise uncertainties and delays due to limited carrier options for their shipments from Europe to the upper Northern Gulf,” affirmed Farooq Shaikh, CEO, LogiPoint.
The average transit time by sea from major European ports to the GCC is between 25 to 30 days with multiple trans-shipments. Given the high volumes involved, airfreight is not a cost effective option, and the journey is not long enough to warrant sea-air combination as an alternative.
Key Saudi Port
Jeddah Islamic Port is Saudi Arabia’s busiest maritime hub owing to its strategic location on the Red Sea coast, at the centre of the Europe-Middle East- Asia international shipping routes. It is estimated that over 30% of the world’s container volume passes through the Red Sea Basin annually.
“With the support from Jeddah Islamic Port and Saudi Customs Authority, and working closely with clients and their suppliers, the LogiPoint CBG team was able to craft an effective multimodal solution that made this land-bridge an operational reality,” asserted Shaikh.
The aim is to establish a bonded corridor linking the Red Sea ports in the West of the Kingdom and the Arabian Gulf in the East.
It is being publicised as the project of the future, a turning point in the Kingdom’s logistics and supply chain network that would transform the East-West trade corridors in both directions. The LogiPoint pilot has now proven to be an effective and sustainable solution for Middle East companies.
“The transit time for sea consignments from major European ports to Jeddah is between 12 to16 days. The trucking time from Jeddah to GCC nations is a mere 2 to 3 days. LogiPoint CBG has thus managed to reduce the lead-time by almost 10 days and at the same time increased the carrier choice for the client since most carriers offer direct sailing from all major ports to Jeddah Islamic Port,” observed Shaikh.
The GCC-bound cross-border solution
Since its introduction, LogiPoint CBG has already caused waves in the UAE-KSA logistics trade when it provided an alternative to time-consuming and cumbersome border clearance at the ever-busy and heavily congested Sila-Batha border with the UAE.
“Instead of enduring the long queues of laden trucks at the border and trying to resolve the inspection and customs clearance challenges more than a thousand miles away, clients now have the option to process their customs clearance at the LogiPoint Bonded and Re-Export Zone,” explained Shaikh.
“On that all-important, Jebel Ali-Jeddah corridor, this translates to a valuable 24 hour reduction in the transit time with an added advantage of expedited and much streamlined clearance process, which also minimises cargo damage in handling and pilferage,” he continued.
LogiPoint operates the largest Bonded and Re-Export Zone in the Kingdom of Saudi Arabia, with a sprawling one million square meters area located within Jeddah Islamic Port.
LogiPoint have been pioneering innovative logistics solutions in the Kingdom for almost 20 years, and have played an important role in transforming the logistics experience in the Kingdom. Indeed, over the years, they have grown from being a service provider in the logistics industry to an enabler of the industry.
Traditionally, clients have enjoyed such facilities as duty deferment, duty-free storage in open yards or LogiPoint warehouses, and convenient re-export from the Bonded Zone.
Clients can import their goods into the Kingdom saving on major handling and freight charges, with LogiPoint providing value added services including re-labeling, bundling, and re-packaging prior to custom inspection process thereby offering a streamlined and hassle-free cargo inspection and customs clearance.
According to Shaikh, LogiPoint also offers distribution and delivery to all parts of the Kingdom.
LogiPoint is a subsidiary of Saudi Industrial Services Company (SISCO), a Saudi Joint Stock company listed on the Saudi Tadawul (Stock Exchange), and was previously known as Tusdeer before it was rebranded in 2017 as LogiPoint.