Modon and Medlog to Develop Integrated Logistics Zone in Jeddah

Saudi Authority for Industrial Cities and Technology Zones (Modon) and Medlog have signed a deal to establish an integrated logistics zone in Jeddah.

The planned zone comprising container yards and warehouses, is being set up at an estimated initial investment US$36.5 million and will be developed within one of Modon’s industrial cities in Jeddah. The facility will enhance supply chain efficiency, expand warehousing capacity while strengthening the Kingdom’s position as a global logistics hub.

Modon said the project aligns with Saudi Arabia’s National Industrial Strategy and the broader objectives of Vision 2030 to diversify the economy and increase non-oil exports.

Medlog, the logistics arm of Mediterranean Shipping Company (MSC), will develop and operate advanced logistics facilities within the zone, including storage yards, distribution centers, and value-added services.

The company noted that the integrated model will help streamline cargo handling and reduce transit times for both imports and exports moving through Jeddah’s ports.

Jeddah, home to Jeddah Islamic Port, is a strategic gateway for trade across the Red Sea and serves as a key entry point for goods destined for central and western Saudi Arabia.

By linking industrial production directly with port operations, the new logistics zone aims to reduce bottlenecks and support growing demand for containerized cargo.

Officials said the project will also create new investment opportunities and support local job creation in the logistics and transportation sectors. The integrated zone is expected to attract both domestic and international companies seeking modern infrastructure and seamless multimodal connectivity.

The initiative forms part of Saudi Arabia’s ongoing push to increase its Logistics Performance Index ranking and position itself among the top global logistics hubs by the end of the decade, as outlined in Vision 2030 policy documents.

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