Folk Maritime CEO Asharq Al-Awsat: Saudi Arabia's Strategic Location Boosts Trade, Shipping
The Kingdom's plans aim to restructure the industry in line with current demands and evolving market dynamics. Riyadh is advancing this vision to build a more efficient future for maritime shipping as part of a broader strategy that includes various initiatives and innovations across multiple sectors.
These efforts are designed to foster growth and contribute to the development of the global economy.
Folk Maritime CEO Poul Hestbaek said the company's innovative model drives economic growth by enhancing connectivity between markets in the Middle East, the Indian subcontinent, and Africa.
This, he told Asharq Al-Awsat, reinforces Saudi Arabia's position as a key player in the global logistics network, aligning with the country's Vision 2030 strategy.
Saudi Arabia's strategic location at the crossroads of Asia, Africa, and Europe positions it as a key hub for global trade, and Folk Maritime is leveraging this advantage to create new opportunities that drive commercial growth, Hestbaek stressed.
This geographic edge, he said, facilitates faster and more efficient shipping routes while strengthening Saudi access to major global markets.
By enhancing maritime logistics and trade connectivity, Folk Maritime plays a vital role in boosting Saudi Arabia's competitive edge in international commerce, Hestbaek said.
The company's focus, he added, is on building a robust logistics infrastructure across the Red Sea, the Gulf, and East Africa, with key links to the Indian subcontinent.
Its expansion plans include growing regional hubs and fleet capacity, with a target market share of 15% to 20% by 2030 and total cargo exceeding 4 million containers to enhance service efficiency and operational resilience.
The company plans to launch new services in the southern Red Sea this year and continue integrating advanced technologies such as real-time tracking and recyclable containers to support these efforts, Hestbaek said.
Folk Maritime's strategy
Folk Maritime is focused on boosting service quality and connectivity between ports in the Red Sea, the Arabian Gulf, and India by strengthening operational stability and reliability, Hestbaek continued.
Expanding the company's fleet is a strategic priority, he added, noting that Folk Maritime plans to purchase and build new ships and containers in 2025 while adhering to environmental and sustainability standards.
These efforts align with Folk Maritime's strategic goals by increasing fleet capacity to offer direct services to clients, ensuring the long-term sustainability of the maritime transport sector and its resilience to market challenges, he remarked.
Folk Maritime launched its direct service operations in October, with a strong focus on the Saudi market and support for local content, he said.
Strengthening regional port connectivity
Folk Maritime is playing a key role in strengthening Saudi Arabia's logistics sector and supporting Vision 2030 by improving connectivity between major regional ports, Hestbaek said.
The company is contributing to Saudi Arabia's efforts to become a global logistics hub by building a strong shipping network that attracts global trade and enhances the Kingdom's infrastructure, he told Asharq Al-Awsat.
Folk Maritime recently launched a new maritime route linking India and the Gulf, connecting key ports in Umm Qasr and Dammam with India's Mundra and Nhava Sheva.
In addition to this route, it operates four other key services, including a Red Sea-India connection, an inter-Red Sea network, and a fast-shipping service between Jeddah and Port Sudan, Hestbaek said.
These services strengthen regional trade in essential goods and foster cooperation, reinforcing Saudi Arabia's position as a strategic logistics hub, he went on to say.
Hestbaek noted that while land transport remains Saudi Arabia's primary shipping method, it faces challenges such as high costs and congestion. Folk Maritime, he said, provides an alternative by operating its own fleet, offering efficient port-to-port shipping solutions, and boosting connectivity between smaller ports.
Support from the Public Investment Fund
Hestbaek emphasized that Saudi Arabia's Public Investment Fund (PIF) provides strategic and financial backing, aligning Folk Maritime's initiatives with Vision 2030.
With PIF's support, it expanded its fleet, acquired new vessels, built containers, and developed local talent—contributing to economic diversification and job creation, he said.
Folk Maritime aims to become a regional leader in feeder vessels and maritime trade lanes, ensuring seamless port connectivity and supply chain security.
By expanding the fleet and investing in technology, it is reinforcing Saudi Arabia's position as a global logistics hub, leveraging strategic partnerships and digital innovation to maintain Folk Maritime's leadership in the maritime shipping sector, he said.
Integrating advanced technology
On the company's technological strategy, Hestbaek said Folk is focused on two main objectives: enhancing customer experience and improving operational efficiency through data-driven solutions.
Artificial intelligence plays a crucial role in achieving this, he said. Customers demand transparency and real-time shipment tracking, which is why it built an entirely new digital system from the ground up, avoiding the limitations of outdated platforms.
Folk Maritime has implemented Internet of Things (IoT) technology and equipped all containers with GPS tracking, improving fleet management and ensuring greater transparency.
Discussing Folk Maritime's role in supporting regional and global trade, Hestbaek outlined a two-tiered approach.
At a global level, it is developing a network linking major ports such as Jeddah Islamic Port, King Abdullah Port, and King Abdulaziz Port in Dammam, he said. This connectivity extends beyond the Red Sea and Gulf coasts to smaller Saudi ports, enabling safer and more environmentally friendly transport by shifting cargo from roads to ships.
Regionally, Folk Maritime is empowering cargo owners through digital solutions that capitalize on the region's booming trade landscape.
India, with its diverse exports to the Middle East, East Africa, and beyond, is a key focus for Folk Maritime, Hestbaek said. The company is expanding services in these markets to support India's growing export sectors.
While India remains a priority, Folk Maritime is also targeting other trade corridors, such as Egyptian exports, to improve connectivity between primary and secondary ports.
As part of Vision 2030, Saudi Arabia is building major logistics hubs, and Folk Maritime is committed to playing a vital role in realizing this ambitious vision, Hestbaek stressed.
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