DSV forms $10bn logistics joint venture with Saudi Arabia’s NEOM

Danish logistics giant DSV has set up a $10bn joint venture with NEOM, Saudi Arabia’s $500bn futuristic city project.

The partnership will focus on providing a full suite of ground, sea and air logistics services for NEOM in the coming years.

“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, the companies said in a joint release.

NEOM, backed by the kingdom’s sovereign wealth fund, the Public Investment Fund, expects massive demand for construction logistics through to December 31, 2031, with sustained growth in non-construction logistics thereafter.

In addition to its impact on the logistics landscape, the venture in which DVS will hold 49%, is expected to boost the Saudi economy, through infrastructure development and creating more than 20,000 jobs.

“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,” said Nadhmi Al-Nasr, CEO of NEOM

Commenting on the deal, Jens Bjørn Andersen, chief executive of DSV, added: “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.”