By: AGBI

The state-run Saudi Arabia Railways (SAR) has launched five new logistics routes to enhance supply-chain efficiency and integrate various transport modes.

The move comes as the Iran war has seen Tehran effectively block the Strait of Hormuz, roiling global energy markets and disrupting supply channels.

The company’s new routes link Arabian Gulf ports with the kingdom’s central and northern regions, extending to the Red Sea and neighbouring countries, the state-owned Saudi Press Agency reported. 

The initiative supports the national transport and logistics strategy and Vision 2030 goals by using a multimodal network of roads and rail in an effort to establish the kingdom as a global logistics hub.

The new routes facilitate the transport of petrochemicals and minerals through Riyadh Dry Port and key cargo yards in Dammam, Jubail, Ras Al-Khair, Al-Kharj, Hail and Al-Qurayyat. The network will connect local industrial centres directly to international shipping lines, reducing transit times and improving operational reliability for major industrial and mining sectors.

SAR chief executive Bashar AlMalik said the new routes will remove thousands of trucks from the roads, improving safety and reducing carbon emissions. 

He said the expansion strengthens Saudi Arabia’s role as a vital logistical corridor linking East and West, ensuring the smooth flow of international trade despite global supply-chain changes. 

Last month, SAR said it would expand logistics connectivity between ports and cargo terminals within the kingdom and neighbouring countries.

Following the effective closure of the strait on March 1, cargo that had been destined for Arabian Gulf ports was redirected to alternatives, particularly Jeddah Port. Trucking companies have had to step up operations to serve markets on the other side of the peninsula.