A significant development has emerged for trade between Saudi Arabia, Southeast Asia, and India. VASI Shipping Pte Ltd, a freight and logistics company, has launched a new shipping service named "IMS" at the King Abdulaziz Port in Dammam. This service directly connects the port with crucial hubs in Southeast Asia and India, fostering a more efficient trade corridor.
The introduction of IMS aligns with the strategic goals of the Saudi Ports Authority (Mawani). According to a press release issued by Mawani, the service aims to strengthen partnerships with major international shipping lines. This, in turn, will bolster the maritime sector within Saudi Arabia and contribute to the nation's overall economic growth.
The new service marks a milestone for the King Abdulaziz Port, solidifying its position as a key player in maritime transport and logistics. The route offers regular weekly sailings, connecting Dammam with five key ports: Klang (Malaysia), Surabaya and Jakarta (Indonesia), Nhava Sheva (India), and Jebel Ali (United Arab Emirates). With a capacity of up to 1,800 TEUs (Twenty-foot Equivalent Units), IMS caters to the movement of a substantial volume of containerized cargo.
This development comes on the heels of another achievement for the King Abdulaziz Port. In February 2024, the port processed a record-breaking 235,820 TEUs, showcasing its capability to handle large volumes of cargo efficiently. The port's modern infrastructure and comprehensive operational services further enhance its role as a vital maritime trade gateway.
The launch of IMS is expected to have a positive impact on trade between the regions. Businesses in Saudi Arabia will gain easier access to markets in Southeast Asia and India, allowing for the import of a wider variety of goods and the export of Saudi products. Similarly, Southeast Asian and Indian companies will benefit from a more streamlined route for reaching Saudi Arabian consumers.
This enhanced connectivity is anticipated to stimulate economic activity across all three regions. Increased trade flows will generate new business opportunities, potentially leading to foreign investment and job creation. The improved logistics network will also contribute to reduced transportation costs, making goods more affordable for consumers.
The inauguration of the IMS service signifies a significant step forward in strengthening trade ties between Saudi Arabia, Southeast Asia, and India. By fostering a more efficient and cost-effective trade corridor, this development has the potential to unlock new avenues for economic growth and regional collaboration.