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RIYADH: Sustainable investments in Saudi Arabia’s transportation and logistics services sector will see a boost after the Ministry of Investment inked an agreement with a leading French shipping firm.
According to a release by the ministry, the deal was signed with French CMA CGM Group, one of the largest companies in the targeted sector.
The signing, which was overseen by Minister of Investment Khalid Al-Falih, aims to support the firm’s investment project plans in the Kingdom and further examine potential financial opportunities.
The MoU also tackled sustainability by outlining a mutual intent to discuss opportunities in alternative fuel solutions in order to reduce emissions, transfer knowledge and global best practices, and train Saudi nationals in this subject.
The release noted that this will contribute to achieving the goals of the National Transport Strategy within the Kingdom’s Vision 2030 agenda.
As part of its strategy, the Kingdom aims to double the logistics sector’s contribution to the gross domestic product, ranking among the top 10 countries in the Logistics Performance Index.
The strategy also involves boosting the public transportation share to over 15 percent of total trips and annually reducing carbon emissions from the sector by 2 percent per capita.
Saudi Arabia is making significant strides in the mobility sector, with Public Investment Fund subsidiary TASARU Mobility signing three strategic deals to introduce “the technology of the future” into the Kingdom, aiming to enhance the efficiency of the sector.
These agreements include investments in Croatian mobility solutions company P3, Holon, a subsidiary of Benteler Group, and American tech company Recogni Inc. for the production of automated public transport vehicles.
Last month, the Royal Commission for AlUla took steps toward sustainable transport, signing a deal with Alstom, a French global leader in smart and sustainable mobility.
The agreement involves the delivery of a battery-powered tramway line, set to become the world’s longest catenary-free line.
Speaking to Arab News at that time, Mohammed Khalil, managing director of Alstom KSA, emphasized that the project demonstrates a key focus on reducing carbon emissions and promoting green transportation.
“As part of Saudi Vision 2030, (the tramway) supports the nation’s commitment to environmental stewardship,” said Khalil, emphasizing that this innovative transportation system plays a pivotal role in reducing carbon emissions and advancing green technology.