Saudi Giga Projects Demand Supply Chain Innovation

By Dennis Daniel

The massive scale of Saudi Arabia’s giga project program demands innovation and development across the whole supply chain, listeners were told during a Saudi Arabia Giga Project Update session at Breakbulk Middle East in Dubai.

Key priorities identified during the session, which was sponsored by MSC and moderated by Karim Omran, commercial director at Red Sea Gateway Terminal, included developing a reliable transportation network, optimizing warehousing and inventory management, enhancing local capacity and implementing effective contingency plans.

“Achieving Saudi Arabia’s Vision 2030 requires large-scale, well-planned projects. However, infrastructure development, generally, lags behind cargo movement, which increases bottlenecks,” said Hisham Al-Ansari, CEO of MSC Saudi. “The focus must be on developing the main infrastructure to support the giga projects and handle cargo efficiently. Fortunately, a government plan is in place to address these challenges and support future growth.”

According to the executive, connectivity is crucial if Saudi Arabia is to achieve its development goals. The kingdom currently boasts 211,000 kilometers of roads, 10 ports and 28 airports. For the CEO, a robust intermodal transportation infrastructure would link all these modes effectively to enable seamless movement and transfer of cargo.

Fellow panelist Rajith Aykkara, vice president at Bahri Line, pointed to road connectivity and trucking availability as major logistical challenges for giga projects.

He drew on his experience of working on a recent large-scale project – the Riyadh Metro. “As a carrier, we were able to delivery all the trains and equipment from Europe and Asia to Saudi Arabia for the Riyadh Metro. The biggest challenge we faced was the limitations in the road connectivity for transportation of equipment from Jeddah and Damman to Riyadh. So, the focus must be on expanding the transport infrastructure within Saudi Arabia.”

Meanwhile, Sue Donoghue, CEO of DHL Global Forwarding Saudi Arabia, said given the volume and variety of materials required for giga projects, an “immense” opportunity exists for optimizing warehouse and inventory management.

“As with any project, it is critical to have materials available when needed, at minimal cost, and with maximum efficiency. For example, modular warehousing is useful for giga projects as it enables an agile approach, allowing warehouses to be relocated and storage configurations to be adjusted according to demand,” Donoghue said.

Asked whether centralized mega-warehouses or decentralized micro-warehouses were more practical for giga projects, Donoghue said: “A hybrid approach leverages the benefits of both methods. It contributes to economies of scale while providing the flexibility and responsiveness needed for giga projects. The decision will ultimately depend on the specific requirements of each project.”

Additional opportunities for innovation flagged by panelists included the development of local supplier networks, collaboration with partners and contingency planning.

Igor Muñiz, CEO of Erhardt Projects, said that when multiple projects are executed simultaneously in one country, meticulous preparation and operational excellence were “crucial” for their success.

“In our industry, constraints are common. Therefore, we must invest and prepare in advance with a capable team and reliable partners, along with contingency plans for unexpected situations,” Muñiz said. “It is important to connect all the dots by collaborating with local authorities, port and terminal operators, site managers, project directors, and every other project stakeholder.”

Donoghue agreed, arguing that relationships between international parties and local entities provided “maximum value” through collaboration and sustainable local capacity building.

“Having performance metrics and evaluations for both parties can help ensure that both parties work as a team to achieve shared goals and that it is a win-win situation for all,” she said. “We also need to focus on collaborative platforms for suppliers, contractors and logistics providers.”

The panelists concurred on the transformative impact of investments in large-scale infrastructure, energy and technology development. Kohki Uemura, president and CEO of DENZAI, the Tokyo-based logistics firm that has started gaining ground in the Saudi market, expressed strong confidence in the kingdom’s potential to become a global leader in decarbonization.

“We are closely following the Saudi government’s initiatives on decarbonization,” he said. “Saudi Arabia is currently a major hub for importing advanced decarbonization technologies. I believe that in the next 10 to 20 years, Saudi Arabia will become a leading exporter of cutting-edge decarbonization technologies to the world.”

Donoghue was also bullish on Saudi’s potential: “If you look at the vision of the Saudi government, the speed at which the country is evolving, and its trajectory in terms of project establishment and investment, it’s clear that Saudi is the future!”


Breakbulk Middle East returns to Dubai on Feb 10-11, 2026.

Top photo: (L-R): Karim Omran, Hisham Al-Ansari, Sue Donoghue, Rajith Aykkara, Igor Muñiz, Kohki Uemura. Credit: Spaceplum