Deliver Your News to the World

NEOM and DSV establish USD 10 billion logistics joint venture

NEOM and DSV announce a USD 10 billion exclusive logistics joint venture to support the development of the ambitious projects taking shape in NEOM, Saudi Arabia. The partnership will focus on providing logistics services for NEOM in the coming years.


WEBWIRE
  • Multi-billion-dollar leading logistics joint venture to provide a full suite of ground, sea and air logistics services.
  • The partnership will focus on the logistics services need for NEOM, with unprecedented demand growing the joint venture and adding value to the local economy through services and jobs.
  • The joint venture will drive innovation leveraging existing R&D efforts and further push commercialisation of new solutions and technologies.


NEOM and DSV announce a USD 10 billion exclusive logistics joint venture to support the development of the ambitious projects taking shape in NEOM, Saudi Arabia. The partnership will focus on providing logistics services for NEOM in the coming years.

Under the agreement, the joint venture will provide end-to-end supply chain management, development and investments in transport and logistics assets and infrastructure as well as transport and delivery of goods and materials within NEOM.

NEOM will hold 51% of the joint venture with DSV holding the remaining 49%.

NEOM envisions unparalleled demand for construction logistics through to 31 December 2031, with sustained growth in non-construction logistics thereafter. In addition to its impact on the logistics landscape, the venture is expected to boost the Saudi economy, through infrastructure development and creating more than 20,000 job opportunities.

Nadhmi Al-Nasr, CEO of NEOM:
“The projected demand in both construction and non-construction logistics will make NEOM one of the largest customers in the world, and this partnership allows NEOM to create value from its demand. Working alongside one of the world’s leading logistics companies, the joint venture with DSV will build on expertise and know-how to drive innovation and sustainability throughout the logistics value chain. The economic benefit to this partnership will not only provide tens of thousands of jobs, but it will also enable growth to capture local and regional market share. It’s a living example of Saudi Vision 2030 in action, fostering job creation and building a future-leaning economy.”

Jens Bjørn Andersen, Group CEO, DSV:
“NEOM is one of the largest and most complex projects in the world. It provides a unique opportunity for DSV to support a development that is at the forefront of innovation, technology and digital transformation. DSV already has a strong presence in Saudi Arabia, and this is a significant growth opportunity for us in the region and we look forward to working with NEOM Company and bringing our logistics capabilities to the table.”

NEOM and DSV are committed to driving innovation and will allocate a portion of the JV’s revenues to foster the development of ground-breaking technologies and commercialise new sustainable next-generation logistics solutions. The vision extends further by establishing a dedicated innovation centre at NEOM’s clean and advanced manufacturing hub, Oxagon.

The new joint venture is a significant milestone demonstrating NEOM’s commitment to revolutionising Saudi Arabia’s logistics sector and paves the way for pioneering sustainable logistics solutions, marking a new chapter in its journey towards realising Vision 2030.

Completion of the partnership is awaiting customary regulatory approvals, which are expected to be obtained in the second quarter of 2024.

Financial impact for DSV

The business plan for the joint venture is expected to require a USD 10 billion gross investment. In accordance with the business plan, the total shareholder funding commitment up and until 31 December 2031 is USD 5 billion. NEOM and DSV commits to provide funding to realise the business plan pro rata to their respective shareholdings.

 It is expected that the return on invested capital be in line with DSV’s existing target.

 It is not expected that the joint venture will have any material financial impact on DSV for the financial year 2023.


( Press Release Image: https://photos.webwire.com/prmedia/7/312998/312998-1.jpg )


WebWireID312998





This news content was configured by WebWire editorial staff. Linking is permitted.

News Release Distribution and Press Release Distribution Services Provided by WebWire.