Saudi Arabia's sovereign wealth fund (PIF) has begun preliminary discussions to consolidate its extensive portfolio of port, rail, and maritime assets (including Saudi Railway Co., Saudi Global Ports, and the National Shipping Company, valued at $8.3 billion) into a single logistics giant.
The plans, hatched before the outbreak of war between the United States and Iran on February 28, have accelerated in recent weeks due to the crisis in regional supply chains resulting from the de facto closure of the Strait of Hormuz.
The goal of the new entity, which could be opened to international investors through a subsequent IPO, is to attract billions of foreign investments and strengthen the country's role in the sector.
If approved, the project will intensify economic rivalry with the United Arab Emirates, whose hubs in Dubai (led by the giant DP World, which manages the Jebel Ali port) and Abu Dhabi (with AD Ports Group) have for years positioned themselves as the region's main trade gateways.
