Logistics

AJEX Logistics Services partners with Africa Union Holdings

The agreement was signed at the Saudi Trade Attaché’s office in Sandton, Johannesburg. (Image source: Ajex Logistics)

AJEX Logistics Services, a specialist in express distribution and shipping solutions based in the Middle East, is collaborating with the Africa Union Trading and Africa Union Aviation, subsidiaries of Africa Union Holdings.

The agreement was signed at the Saudi Trade Attaché’s office in Sandton, Johannesburg.

This partnership supports the strategic expansion goals of both companies: Africa Union Holdings aims to extend its presence across the GCC, while AJEX plans to expand its footprint across Sub-Saharan Africa.

According to the agreement, both parties will work together to streamline operations and maximise efficiencies in shipping, airfreight, trucking, rail freight, and last-mile delivery. As part of this framework, Africa Union Holdings Group will manage all AJEX cargo destined for Africa during the final leg of delivery. Conversely, AJEX will handle all Africa Union Holdings Group cargo destined for the Middle East during the final leg.

“This partnership between AJEX Logistics Services and Africa Union Holdings Group comes at a pivotal time when trade relations between Africa and the Middle East are poised for significant growth. With both regions seeking to diversify economic partnerships and reduce dependency on traditional trade corridors, this collaboration is a forward-looking initiative that aligns with the broader goals of increasing trade volumes and enhancing economic cooperation,” Mohammed AlBayati, Group CEO, AJEX Logistics Services.

“By leveraging each other’s strengths, AJEX and Africa Union Holdings are well-positioned to capitalise on emerging opportunities in sectors such as technology, agriculture, healthcare and energy, thereby contributing to the economic prosperity of both regions,” he added.

“We are thrilled to embark on this partnership with AJEX Logistics Services, marking a new chapter in our journey towards building stronger trade and logistics ties between Africa and the Middle East. This collaboration is a testament to our commitment to enhancing our service offerings and expanding our reach, ultimately facilitating smoother, more efficient trade flows that benefit businesses and consumers alike,” said James Ndambo, CEO of Africa Union Holding.

DP World and Saudi Ports Authority begin construction on logistics park in Jeddah

The 415,000 sqm greenfield site will include 185,000 sqm of warehouse space. (Image source: DP World)

DP World and the Saudi Ports Authority (Mawani) have begun construction on a US$250mn (SAR900 million) logistics park at Jeddah Islamic Port.

The park is designed to offer cutting-edge storage and distribution facilities, aiming to boost trade in Saudi Arabia and the broader region.

The 415,000 sqm greenfield site will include 185,000 sqm of warehouse space and an expansive multi-purpose storage yard, making it the largest integrated logistics park in the kingdom, with capacity for over 390,000 pallet positions.

Solar energy

Established in 2022 under a 30-year concession, Jeddah Logistics Park will be developed in two phases, with the opening planned for Q2 2025. The facility will feature a rooftop solar plant on the warehouse, generating 20 MW of renewable energy, enhancing its sustainable design.

In addition, the collaboration between Mawani and DP World includes managing the South Container Terminal through a separate 30-year concession signed in 2020. The terminal is currently in the final phase of a comprehensive modernisation project, scheduled for completion in Q4 2024, which will increase its handling capacity to five million twenty-foot equivalent units (TEUs).

Together, these two DP World projects represent a combined investment of nearly US$1bn.

His Excellency Sultan Ahmed bin Sulayem, chairman and CEO of DP World, said, “Saudi Arabia has always been a deeply important market for DP World and this milestone represents our ongoing commitment to the Kingdom. Jeddah Logistics Park, strategically located on the vital Asia-Europe shipping route, will provide world-class multimodal connectivity and market access for our customers while supporting the ambitious aims of Saudi Vision 2030. This investment marks a significant step as we mark 25 years of operations in Jeddah and underscores our enduring commitment to facilitating the flow of trade.”

President of Saudi Ports Authority (Mawani), Omar Bin Talal Hariri, said, “This new logistics area will be connected to DP World’s South Container Terminal at Jeddah Islamic Port, facilitating growth and increasing the number of containers handled at the terminal. The project is part of Mawani’s broader efforts to expand the number of logistics centres in Saudi ports, in partnership with major national and international companies, and in line with the objectives of the National Transport and Logistics Strategy and Vision 2030.”