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MARSEILLE, France – As a part of its strategic plan, CEVA Logistics announced today that it has signed a Joint Venture (JV) agreement with Almajdouie Logistics, one of the leading logistics providers in the Kingdom of Saudi Arabia (KSA).
The signed agreement now awaits review and approval by the necessary regulatory authorities. CEVA Logistics would control the majority of the newly established joint venture.
Strategic move for both sides
The JV would mark a major milestone in both companies’ growth strategies. Almajdouie Logistics would benefit from CEVA’s strong global network, allowing it to serve its growing portfolio of customers with end-to-end integrated logistics solutions anywhere in the world. At the same time, CEVA Logistics would continue building an established and strong presence in Saudi Arabia to fulfill its regional growth strategy. Once completed, the JV organization would have around 2,000 employees in KSA and a local fleet of more than 2,000 assets.
Expertise, solutions for growing industries
The JV would target various industry verticals ranging from the conventional Saudi energy and petrochemicals industry to automotive, e-commerce, consumer and retail. The combination of regional knowledge and global solutions within the JV would allow many local customers to expand their geographic offering and allow global customers to better serve the Saudi Arabian market.
Offering end-to-end global and local logistics services would respond to a thriving Saudi market and support the Saudi Vision 2030. With most of the cargo used for the Saudi Arabia’s giga projects coming from overseas, seamless logistics is paramount and a key enabler of Vision 2030. The Saudi Ports Authority invested SAR 17bn ($4.5bn) in the Kingdom’s maritime, logistics and port sector in 2023, and signed agreements to create new logistics parks on both coasts of Saudi Arabia – in the East at King Abdulaziz Port in Dammam, and at Jeddah Islamic Port in the West.
Mohammed Almajdouie, CEO of Almajdouie Logistics, said: “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.”
Mathieu Friedberg, CEO of CEVA Logistics, said: “Around the world, CEVA is extending our local knowledge for the benefit of our customers. We have worked successfully with Almajdouie Logistics over the past decade, and with the growing market in Saudi Arabia, this joint venture would strengthen our local presence. By combining our complimentary capabilities, the JV’s customers would have access to bespoke global solutions implemented reliably by local experts.”
About CEVA Logistics
CEVA Logistics, a world leader in third-party logistics, provides global supply chain solutions to connect people, products and providers all around the world. Headquartered in Marseille, France, CEVA Logistics offers a broad range of end-to-end, customized solutions in contract logistics and air, ocean, ground and finished vehicle transport in 170 countries worldwide thanks to its approximately 110,000 employees at more than 1,500 facilities. With pro forma 2023 revenue of US$20.2 billion, CEVA Logistics is part of the CMA CGM Group, a global player in sea, land, air and logistics solutions.
About Almajdouie Logistics
A pioneer in its industry for over 55 years, Almajdouie Logistics is a leading integrated supply chain provider in the Middle East. They provide customers with unique solutions tailored to meet their specific needs, and their services span diverse sectors in many countries.
Almajdouie owns, operates, and integrates its assets, which are comprised of an expansive fleet of vehicles and trailers, and 1.2 million SQM of terminal and warehousing facilities - piloted by their skilled and well-trained workforce of over 2,000 employees. Headquartered in Dammam, Saudi Arabia, the company operates seven offices around the Kingdom.
For additional information, please visit www.cevalogistics.com or contact media@cevalogistics.com.