Master’s Thesis Unlocking logistics Prosperity: The Crucial Role of Expansion Dry Ports Infrastructure for driving economic transformation in Saudi Arabia

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Date

2025

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amarican university of Bahrain

Abstract

The research focuses on the technical, economic and environmental feasibility of establishing dry ports in the central region of KSA to support Vision 2030 goals. The study aims at exploring the role of dry ports in increasing trade flow, diversifying the economy, and cutting down logistic expenses together with dematerialising logistical impacts on the environment. The specific objectives include examining the feasibility of developing dry ports, the economic effects, the facilitation of trade and employment, the environmental repercussions, and exploring their relevance towards the goal of turning Saudi Arabia into a logistics centre. The literature review reveal that dry ports have benefits such as increasing the flow of cargo, decreasing occupancy at ports, and promoting the economic growth. Furthermore, various studies indicate that dry ports can complement the geopolitical strategy of Saudi Arabia by improving the efficiency of its logistics network. A mixed-method approach was used, incorporating quantitative surveys and qualitative interviews with industry stakeholders, including logistics experts, policymakers, and port authorities. Multiple regression analysis was used to compare infrastructure development and the economic effect. Cronbach’s Alpha was used to validate reliability by testing internal homogeneity of the survey results. The findings of this study established that expansion of dry ports is feasible, with the participants identifying infrastructure enhancement, improved organisational performance, and digitalisation as success factors. Recommendations include smart logistics, development of rail links, and policies which will help make Saudi Arabia even more attractive for international trade and investment

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Saudi Arabia’s logistic shortcomings remain a major concern that continues to hamper the country’s strategic goal of turning the region into a major logistics hub. Some of the issues currently affecting the sector include high logistics costs, poor intermodal integration and congestion of seaports. It is encouraging to note that the Kingdom has invested in constructing new infrastructures like King Abdullah Port that is among the fastest-growing ports in the world, which showcases efforts to address these concerns. However, the lack of efficient inland distribution networks results in logistical bottlenecks that increase transportation costs and limit trade efficiency To address the logistical challenges, Saudi Arabia is considering the construction of a dry port in the central region to facilitate the efficient distribution of cargo. A dry port, also known as an inland intermodal terminal, is a key logistics hub that connects seaports to industrial and commercial areas through rail and road transport

Keywords

LOGISTICS AND SUPPLY CHAINS, DRY PORTS, Dry Ports Infrastructure, Expansion Dry Ports Infrastructure, driving economic transformation in Saudi Arabia, increasing trade flow, Saudi Arabia’s logistic shortcomings, poor intermodal integration and congestion of seaports, lack of efficient inland distribution networks, logistical challenges in Saudi Arabia

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