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Business Recorder
17 hours ago
- Business
- Business Recorder
Unlocking Pakistan's Logistics Potential on National Logistics Day
TEXT: As we mark National Logistics Day, it is time to reflect on the backbone of Pakistan's economy — the logistics and transportation sector — and to chart a path forward. Currently, this sector contributes over 12% of GDP and employs 6% of the country's workforce, handling 98% of Pakistan's transportation needs. Yet, despite its significance, Pakistan's road logistics sector is mired in inefficiency, underinvestment, and outdated governance frameworks. The latest Pakistan Business Council (PBC) report 'Pakistan Road Logistics, Challenges, Opportunities and Policy Response'-2025 paints a sobering picture: Pakistan's Logistics Performance Index (LPI) has dropped from 2.42 in 2018 to 2.3 in 2025, ranking far behind regional countries India (rank 44), Iran (100), and Bangladesh (64). The above report echoes the same policy recommendations as detailed in this article in its 'Prioritized Recommendations'. The lack of an integrated national transport policy and a dedicated Ministry of Transport and Logistics has hampered coordinated action. Responsibilities are fragmented across federal, provincial, and quasi-government entities, leading to poor planning and execution. This structural weakness allows informal operators, backed by politically influential sectors to evade regulations — further distorting the market and discouraging formal players. In the PBC Report: 'Dedicated Ministry or Focal Authority for the Logistics Sector: It is important to realize that logistics is an interconnected sector, and one mode is not independent of the other. Therefore, a focused approach is required to help the sector grow. One glaring issue is the non-implementation of Axle Load regulations. Overloading is a major cause of premature road infrastructure failure and road accidents. The World Bank estimates that road accidents cost Pakistan 4.5% of GDP, equivalent to $12.5 billion annually. Strict enforcement of Axle Load laws, including vehicle impoundment and cargo seizure for violations, is essential to safeguard both infrastructure and lives. In the PBC Report: 'Axle Load Enforcement: 1) Strengthen Regulations: Enforce axle load limits uniformly across all regions to minimize road damage and extend infrastructure lifespan. 2) Monitoring and Penalties: Implement weighbridges equipped with automated systems for accurate load monitoring and impose strict penalties for violations'. Despite the best intentions, investments in Pakistan's motorways have largely failed to deliver their intended economic benefits. Many motorways built under BOT arrangements either prohibit overloaded trucks—to protect the infrastructure for which investors are liable—or allow such vehicles, resulting in severe damage and escalating repair costs (major maintenance now required in the second year, instead of the seventh). The motorway network has thus become a white elephant, unable to service its debts or justify the public and private investments made. Motorways cannot be financially viable on passenger traffic alone. Their full commercial and economic potential depends on carrying freight traffic. Yet freight operators avoid these roads, preferring to run overloaded on national highways where axle load limits are not enforced—causing massive damage to both highway infrastructure and the public exchequer. Another pressing need is the modernization of Pakistan's trucking fleet. With only 300,649 registered trucks — compared to India's 12.5 million — the sector suffers from outdated, fuel-inefficient vehicles that raise costs, emissions, and road safety risks. The PBC recommends developing green financing tools to support fleet renewal with Euro-5 compliant and electric vehicles, a move that would also align with emerging global climate regulations like the EU Green Deal. In the Pakistan Business Council Report: 'Fleet Modernization and Financing: Expand Access to Credit: Develop low-interest loan schemes and financial products tailored to small and medium-sized operators, enabling them to upgrade their fleets'. The logistics firms are under immense pressure of excessive rate of taxes, the federal government's recent decision in the 2025-2026 budget to increase the withholding tax on logistics services from 4% to 6%. The 6% on revenue translates to more that 50% of the thin profit margin in this sector. Normal tax rate for companies is about 29% of the profit in Pakistan for other businesses. Even 4% was excessive than 29%. This decision, if implemented, will deal a devastating blow to the service sector — particularly to an already struggling goods transport industry that plays a critical role in Pakistan's economy. This increase will push small and medium-sized transporters out of the formal tax net in a desperate attempt to keep their businesses afloat. This will inevitably undermining both government revenue collection and the rule of law. Roadside security is another concern. Roadside robberies and thefts pose serious risks, particularly in key bottleneck areas. The government must step up security patrols and protect the lifelines of our economy. The path forward is clear: • Enforce Axle Load limits strictly • Provide targeted green financing for fleet upgrades • Establish a unified Ministry of Transport and Logistics to drive reforms • Set a supporting Rate of Tax to logistics, similar to other businesses and industries. By tackling these issues with urgency, Pakistan can transform its logistics sector into a regional powerhouse — supporting exports, creating jobs, and enhancing national competitiveness. On this National Logistics Day, let us commit to unlocking the sector's full potential. RanaAsimShakoor Chairman, FOAP Copyright Business Recorder, 2025
Zawya
20-05-2025
- Business
- Zawya
Saudi: Hail airport set for expansion to accommodate 2.2mln passengers a year
HAIL — The Ministry of Transport and Logistics is working to expand Hail International Airport with increasing its capacity to more than 2.2 million passengers annually. This is part of a comprehensive development project aimed at developing air transport infrastructure in the northern part of Saudi Arabia and enhancing the efficiency of vital facilities in the region. This was revealed by Director General of the General Administration of Privatization at the Ministry of Transport and Logistics Eng. Saud Al-Arifi while attending a dialogue session titled "Investment opportunities in the transport and logistics sector" at the Hail Forum. He said that the project represents a key pillar of the ministry's plan to transform Hail into an integrated logistics center. Al-Arifi said that the ministry, in cooperation with the Hail Region Development Authority, is also working on a massive logistics center project spanning an area exceeding 374,000 square meters. This project aims to serve supply chains and facilitate the movement of goods between various Saudi regions, he said. Work is underway on a roadside services development project to provide integrated facilities that meet the needs of travelers and support the safety and efficiency of regional roads. These projects are in line with Hail's geographical position as a central hub connecting the north, center, and west, enhancing its ability to play a pivotal role in the future of transportation and logistics services in the Kingdom. It is noteworthy that Hail International Airport is only 60 minutes away from 11 Arab capitals and 200 minutes away from Central Europe. This is a geographical advantage that has qualified the airport as a major hub for logistics services. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Saudi Gazette
19-05-2025
- Business
- Saudi Gazette
Hail airport set for expansion to accommodate 2.2 million passengers a year
Saudi Gazette report HAIL — The Ministry of Transport and Logistics is working to expand Hail International Airport with increasing its capacity to more than 2.2 million passengers annually. This is part of a comprehensive development project aimed at developing air transport infrastructure in the northern part of Saudi Arabia and enhancing the efficiency of vital facilities in the region. This was revealed by Director General of the General Administration of Privatization at the Ministry of Transport and Logistics Eng. Saud Al-Arifi while attending a dialogue session titled "Investment opportunities in the transport and logistics sector" at the Hail Forum. He said that the project represents a key pillar of the ministry's plan to transform Hail into an integrated logistics center. Al-Arifi said that the ministry, in cooperation with the Hail Region Development Authority, is also working on a massive logistics center project spanning an area exceeding 374,000 square meters. This project aims to serve supply chains and facilitate the movement of goods between various Saudi regions, he said. Work is underway on a roadside services development project to provide integrated facilities that meet the needs of travelers and support the safety and efficiency of regional roads. These projects are in line with Hail's geographical position as a central hub connecting the north, center, and west, enhancing its ability to play a pivotal role in the future of transportation and logistics services in the Kingdom. It is noteworthy that Hail International Airport is only 60 minutes away from 11 Arab capitals and 200 minutes away from Central Europe. This is a geographical advantage that has qualified the airport as a major hub for logistics services.
Morocco World
15-05-2025
- Automotive
- Morocco World
Morocco Advances AI in Transport with New Research Partnerships
Rabat – Morocco is taking a strategic step toward incorporating AI deeper into its transport systems. On Wednesday, the Ministry of Transport and Logistics signed three tailored agreements with the Foundation for Research, Development and Innovation in Science and Engineering (FRDISI), with the presence of Minister of Transport Abdessamad Kayouh and Royal Advisor André Azoulay. The ceremony, held in Rabat, signaled a clear intent to turn Morocco's transport, airport, and logistics infrastructure into a testing ground for homegrown innovation. These agreements follow a broader framework established in June 2024 between the ministry and FRDISI that reflects a long-term vision to bolster the role of scientific research in vital sectors. Each agreement serves a specific goal. The first, between FRDISI and the National Railway Operator (ONCF), lays the groundwork for integrating AI into the management of intermodal transport. It also includes plans to automate how surface defects are identified on high-speed trains, an effort that could raise safety and efficiency on the country's rail network. The second agreement connects FRDISI with the National Airports Office (ONDA). It centers on enhancing cognitive performance in air traffic operations, a move designed to sharpen vigilance and reinforce safety. The project also includes the development of a real-time mobile application to ease passenger flows inside Moroccan airports. The third partnership, between FRDISI and the National Company of Transport and Logistics (SNTL), introduces machine learning to fleet management. The goal is to improve vehicle maintenance and performance through data-driven insights. Read also: Morocco Revamps Transport Sector with New Safety and Service Quality Standards Kayouh described the initiative as part of Morocco's broader ambition to promote innovation in key economic areas. He also noted that FRDISI, with over 40 inventions to its name, would provide valuable support to national efforts to stay ahead of global developments. He also underlined the importance of empowering Moroccan researchers and engineers to design solutions tailored to the country's needs, rather than relying on imported technologies that may not always fit local realities. For André Azoulay, the moment represents a meaningful change. He called the agreements 'a turning point,' adding that they allow FRDISI's network of top-tier scientists to work directly with public institutions on strategic projects. With its public utility status, FRDISI stands at the crossroads of research, training, and industrial development. It also supports the innovation ecosystem through startup incubation, collaborative projects, and the launch of new small enterprises. This move aligns with Morocco's broader development goals, which place innovation and self-reliance at the core of national progress. As the country prepares to co-host major international events such as the 2025 Africa Cup of Nations and the 2030 FIFA World Cup, the integration of advanced technologies into transport and logistics is expected to play a key role in ensuring efficiency, safety, and global readiness.
NDTV
08-05-2025
- NDTV
Saudi Arabia's Highway 10: A Guide To The 'Longest Straight Road' Trip In The World
Are you fond of long drives and love the smell of adventure? If you quickly nod your head in agreement, gear up to drive on the longest straight road in the world. A part of Guinness World Records, the road is located in the east of Saudi Arabia and runs through the Rub' al Khali region, also known as the "Empty Quarter", one of the largest sand deserts in the world. The route passes through flat desert land, without any curves or bends. Imagine driving for 240 kilometres without a single bend - just endless desert, and the hum of your engine guiding you into what feels like infinity. Sounds easy or challenging? While driving straight into a desert can seem new and challenging, if you plan it right, you can complete this incredible 2-hour drive while enjoying scenic views and experiencing driving without turning your steering wheel for any twists on the road! A Royal Road Turned Bucket-List Adventure Originally built for King Fahd, the fifth king of the Kingdom of Saudi Arabia, Highway 10 wasn't always meant for public joyrides. It was a private road connecting strategic regions across the kingdom. Today, it's a favourite among truckers, thrill-seeking road trippers, and the occasional Instagram-loving wanderer chasing the perfect desert sunset shot. Understanding The Route Of Highway 10 The 1,480 kilometres long Highway 10 begins in Ad Darb on the Red Sea coast and runs all the way to the Al-Batha Border Crossing with the UAE. But the real star of the show is the record-holding stretch between Haradh and Al-Batha - an uninterrupted 240-km line through stark desert nothingness. What's It Like To Drive Here? This straight as an arrow road is flanked on either side by shifting dunes and endless plains of sand. Driving here can be a surreal, almost hypnotic driving experience. The road is fully paved and heavily used for transporting goods across the desert. The long highway offers a sense of serenity or monotony, depending on how you embrace this experience. In any case, remember not to doze off! Keep engaging with your company, snack whenever hungry and enjoy the spectacular view. How Safe Is Highway 10? The Ministry of Transport and Logistics has significantly enhanced the safety of Highway 10. The road features asphalted shoulders with improved slopes, clearly painted road edges and medians, reflective markers ("cat's eyes"), protective barriers and kilometre markers, as well as directional, warning, and guidance signage. It is important to follow all traffic rules and stick to the speed limit at 120 km/h, or you'll have to pay fines. Radar cameras don't take breaks, even in the desert. Best Time To Hit The Road November to February is your golden window. Temperatures are milder, visibility is better, and your AC won't be working overtime to fight off 50 degrees celsius desert heat. Daytime drives are safest as the desert can drop to near-freezing levels at night. Road Trip Essentials For Highway 10: 1. How To Rent A Car There are several car rental companies from where you can get a good car for your trip, such as Yelo and Keys. To rent a car in Saudi Arabia, foreign residents need to carry the following documents: A valid driver's license. An International Driving License or a valid Saudi driving license. A valid credit card for electronic payments, with sufficient funds to cover rental fees and refundable deposits. A valid insurance card. A valid passport. A valid residency permit (Iqama) or a visit visa. 2. Ensure The Car Is In Good Condition Before hitting the road, check your car is completely road-trip-ready. Check air in tires, tire quality, engine oil, brake and fuel. Pack a spare tyre, jumper cables, and an emergency kit. 3. Fill Your Gas Tank Completely Petrol stations are rare on this route, especially along the straight stretch. Fill up early and maybe even carry an extra fuel can, just in case. 4. Things To Pack It is important to carry everything you need for a comfortable and enjoyable road trip. Carry a first aid kit, plenty of water and snacks, phone chargers, a torch, a fully charged GPS device and comfortable clothes for long stretches of driving. 5. Be Prepared For Surprises Be prepared for weather conditions like extreme heat, cold, or sandstorms. Keep an eye out for stray camels and kangaroos (occasionally) that suddenly appear on the road from the desert and pose unexpected risks. Planning a road trip that's part thrill, part endurance test, and fully one-of-a-kind? Saudi Arabia's Highway 10 is calling.
