Global logistics solutions provider CJ Logistics has signed an agreement with the General Authority of Civil Aviation (GACA) of Saudi Arabia to build a global distribution centre (GDC) in Riyadh, reported TradeArabia.

To be located in the country’s first Special Integrated Logistics Zone, the GDC will be the first dedicated e-commerce logistics centre in the country.

The GDC will be completed by 2024.

The Special Integrated Logistics Zone was established by the Saudi government at King Khalid International Airport to become a global logistics hub.

With a gross floor area of 18,000m², this facility will serve as a state-of-the-art logistics centre with a daily throughput capacity of 15,000 boxes.  

It will act as a forwarding base and hub for logistics in the region, connecting the Middle East, Africa and Europe.

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CJ Logistics signed an eight-year contract with iHub prior to its announcement of building the GDC.

The new facility will serve as an international delivery hub for iHerb products to the Middle East.

CJ Logistics CEO Kang Sin-ho said: “The Saudi e-commerce market has the richest growth potential in the Middle East and the geographical advantage of connecting Africa and Europe.

“We will spare no support for state-of-the-art logistics technology and infrastructure so that the GDC can become a logistics hub that leads the Middle East e-commerce market.”

GACA president Al Duailej said: “This marks an important milestone for Riyadh Integrated – Saudi Arabia’s Special Integrated Logistics Zone. We look forward to CJ Logistics having a strong presence in the kingdom, with this global distribution centre being their main hub in the region.

“Riyadh Integrated is a testimony to the Saudi Aviation Strategy under Vision 2030, positioning the kingdom as a global logistics hub connecting three continents to the Kingdom [of Saudi Arabia] as our logistics sector is transformed.

“As a vital enabler for Saudi Arabia’s logistics sector, the Special Integrated Logistics Zone will strengthen Saudi Arabia’s position as the largest, fastest growing market and leading strategic trading nation in the Middle East and continue Vision 2030’s mission to connect the kingdom to the world.”

Launched in October 2022, the strategically located Special Integrated Logistics Zone will cater to billions of potential customers in nearby Africa, Asia and Europe.

It will also help the country to increase its cargo capacity to more than 4.5 million tonnes annually.