DSV, Neom Establish $10 Billion Logistics Joint Venture

By Dominic Chopping

Danish transport and logistics company DSV on Tuesday announced a $10 billion logistics joint venture with Neom, the new urban area being built in Saudi Arabia.

DSV said the venture will see it provide ground, sea and air logistics services to support the development of the area 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.

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

Neom said it expects "unparalleled" demand for construction logistics through to Dec. 31, 2031, with sustained growth in nonconstruction 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, it said.

The joint venture is expected to require a $10 billion gross investment with the companies committed to fund their pro rata share.

Regulatory approval is expected to be obtained in the second quarter of 2024.

Neom is a region in northwest Saudi Arabia that its being built to include connected cities, ports and enterprise zones, research centres, sports and entertainment venues and tourist destinations.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

October 24, 2023 01:56 ET (05:56 GMT)

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