The Saudi Authority for Industrial Cities and Technology Zones (MODON) concluded an investment agreement with Medlog, the logistics arm of the Mediterranean Shipping Company (MSC), to establish an integrated logistics zone in the Third Industrial City in Jeddah.
The agreement was signed at the company’s headquarters in Geneva by MODON Chief Executive Officer Eng. Majed Al-Argoubi, following extensive discussions with company leaders on strengthening cooperation. The collaboration comes within the Kingdom’s efforts to cement its position as a global logistics hub by developing infrastructure and enhancing the logistics services ecosystem.
Under the agreement, MODON allocated logistics facilities spanning 100,000 square meters on which Medlog will implement a project to develop an integrated logistics zone comprising container yards and warehouses, with an estimated initial investment of approximately SAR137 million, in line with the model preliminarily approved in the agreement.
MODON explained that, based on initial estimates, the project aims to reach a handling capacity of around 60,000 twenty-foot equivalent units (TEUs) annually by 2038, while providing integrated logistics solutions, including storage, distribution, handling, and customs clearance services.
MODON affirmed that the project represents a qualitative addition to the national economy, as it is expected to contribute about SAR44 million to gross domestic product (GDP) and create approximately 200 direct jobs, alongside the company’s gradual expansion of operations in the Kingdom.
Medlog is among the world’s leading logistics service companies, operating in more than 80 countries and managing infrastructure exceeding 8.5 million square meters, making this partnership a strategic step toward supporting the objectives of the National Transport and Logistics Strategy.
