ZATCA Launches EOI, RFQ for Customs Warehouses

The Zakat, Tax and Customs Authority (ZATCA), in collaboration with the National Center for Privatization (NCP), has announced the launch of the expression of interest (EOI) and requests for qualifications (RFQs) phase for the development and operation of customs warehouses at ports and land crossings across Saudi Arabia. This initiative, announced on October 3, 2024, in Riyadh, marks a significant step in the Kingdom’s efforts to enhance its position as a global logistics hub, aligning with the objectives of Saudi Vision 2030.

Context and Background

Saudi Arabia has been actively pursuing economic diversification and infrastructure development under Vision 2030, with a strong emphasis on boosting non-oil sectors such as logistics and trade. The customs warehouse project is a key component of these efforts, aiming to streamline customs operations, reduce clearance times, and improve the overall efficiency of trade flows. By partnering with the private sector, ZATCA and NCP seek to leverage private expertise and investment to modernize and expand customs infrastructure at 38 border ports and crossings. This public-private partnership model is expected to drive innovation and operational excellence in the logistics sector.

Key Details

The project will be implemented through a contract model covering design, construction, financing, operation, maintenance, and transportation over a 15-year period, including the construction phase. The scope of work includes the design and construction of 12 new warehouses and the renovation of one existing warehouse at 13 ports and crossings across the Kingdom. Additionally, the project encompasses maintenance for 13 facilities associated with the warehouses, provision of equipment for both new and existing warehouses, and logistical support and cleaning services for all facilities. ZATCA and NCP have invited investors to obtain the RFQ document by visiting the NCP website (www.ncp.gov.sa). The deadline for submitting qualification requests is 3:00 PM on November 14, 2024, Saudi Arabia time.

Implications and Impact

This project is poised to have a substantial impact on Saudi Arabia’s trade and logistics landscape. By modernizing customs warehouses and improving operational efficiency, the Kingdom aims to reduce bottlenecks at borders, facilitate faster movement of goods, and enhance the overall competitiveness of its logistics sector. This, in turn, is expected to attract foreign investment, boost non-oil exports, and strengthen Saudi Arabia’s role as a key trade hub connecting Asia, Europe, and Africa. Furthermore, the involvement of the private sector is likely to bring in advanced technologies and best practices, further elevating the standards of customs operations.

Vision 2030 Alignment

This initiative is directly aligned with Vision 2030’s goal of transforming Saudi Arabia into a global logistics hub and increasing the private sector’s contribution to the economy. By developing world-class customs infrastructure, the Kingdom is laying the foundation for sustainable economic growth, job creation, and enhanced international trade. The project also supports the National Industrial Development and Logistics Program (NIDLP), which aims to make Saudi Arabia a leading industrial power and logistics gateway. As the Kingdom continues to invest in strategic infrastructure, such initiatives will play a crucial role in realizing the ambitious targets of Vision 2030.

20 Questions

Q1. What is the ZATCA customs warehouse project?

A1. The project involves developing and operating customs warehouses at 38 border ports and crossings in Saudi Arabia through a public-private partnership, aiming to enhance logistics efficiency.

Q2. Which entities are collaborating on this initiative?

A2. The Zakat, Tax and Customs Authority (ZATCA) and the National Center for Privatization (NCP) are jointly leading the initiative.

Q3. How many warehouses will be constructed or renovated?

A3. The project includes the design and construction of 12 new warehouses and the renovation of one existing warehouse at 13 ports and crossings.

Q4. What is the contract duration for the project?

A4. The contract period is 15 years, including the construction phase, covering design, construction, financing, operation, maintenance, and transportation.

Q5. What is the deadline for submitting qualification requests?

A5. Qualification requests must be submitted by 3:00 PM on November 14, 2024, Saudi Arabia time.

Q6. Where can investors obtain the RFQ document?

A6. Investors can obtain the RFQ document by visiting the NCP website at www.ncp.gov.sa.

Q7. How does this project align with Saudi Vision 2030?

A7. It supports Vision 2030 by enhancing Saudi Arabia’s position as a global logistics hub and increasing private sector participation in the economy.

Q8. What are the key components of the project’s scope?

A8. The scope includes design, construction, financing, operation, maintenance, transportation, equipment provision, logistical support, and cleaning services.

Q9. Which ports and crossings are included in the project?

A9. The project covers 13 specific ports and land crossings across the Kingdom, though the exact locations were not detailed in the announcement.

Q10. What is the role of the private sector in this project?

A10. The private sector will partner with the government to design, build, finance, operate, and maintain the customs warehouses under a long-term contract.

Q11. How will this project benefit traders and importers?

A11. It is expected to reduce clearance times, improve efficiency, and lower costs, facilitating smoother trade flows for businesses.

Q12. What is the expected impact on Saudi Arabia’s logistics sector?

A12. The project will modernize infrastructure, boost competitiveness, and attract investment, positioning the Kingdom as a leading logistics hub.

Q13. What is the National Center for Privatization (NCP)?

A13. The NCP is a Saudi government entity responsible for promoting and facilitating privatization initiatives across various sectors.

Q14. How many facilities will receive maintenance under this project?

A14. Maintenance will be provided for 13 facilities associated with the warehouses, ensuring they remain operational and efficient.

Q15. What types of equipment will be provided?

A15. Equipment for new and existing warehouses will be provided, though specific details were not disclosed in the announcement.

Q16. What is the expression of interest (EOI) phase?

A16. The EOI phase invites potential investors to express their interest and submit qualifications to participate in the project.

Q17. How does this project support Saudi Arabia’s trade goals?

A17. By enhancing customs infrastructure, it aims to increase trade volumes, boost non-oil exports, and strengthen the Kingdom’s role in global trade.

Q18. What is the significance of the 15-year contract period?

A18. The long-term contract allows for a comprehensive approach, ensuring sustainable operation and maintenance of the warehouses over time.

Q19. Will this project create job opportunities?

A19. Yes, the construction and operation phases are expected to generate employment opportunities for Saudi citizens and residents.

Q20. How can interested parties learn more about the project?

A20. Interested parties can visit the NCP website at www.ncp.gov.sa to obtain the RFQ document and additional information.

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