Saudia Cargo and China Cargo Airlines have signed a Memorandum of Understanding (MoU) that will aim to develop interline agreements and capitalise on trade growth between Saudi Arabia and China.
The two companies said the MoU establishes a framework for enhanced collaboration, including strengthening interline cooperation and building upon existing and future sales and purchase agreements.
This includes joint marketing and promotional activities, the execution of joint marketing strategies, and a focus on harmonising cargo service operations, pricing, and the provision of specialised cargo handling for sensitive goods.
In a press release, the two cargo firms said the agreement aimed to forge "a strategic alliance to enhance trade between Saudi Arabia and China”.
"The partnership aims to optimise export operations, provide advanced logistics services, and capitalise on growing global market demands, aligning with Saudi Vision 2030 and China’s Belt and Road Initiative, ensuring resilient supply chains in today’s interconnected world,” the airlines said.
Loay Mashabi, chief executive and managing director of Saudia Cargo, said: “This MoU with China Cargo Airlines represents a significant milestone for Saudia Cargo. We are setting our sights on elevating shipping capabilities and broadening our export footprint in the Chinese markets."
Wang Jianmin, president of China Cargo Airlines, added: “We firmly believe that by uniting our strengths and resources, we can generate substantial value for our customers, enhance trade connectivity between Asia and the Middle East."
The two companies will establish an executive team comprised of representatives from both organisations to implement the MoU.
Saudia Cargo said that China is Saudi Arabia’s primary merchandise trading partner with exports reaching SAR16.1bn in 2023, representing 17% of the Kingdom’s total exports.
"This underscores the increasing importance of this trade corridor and the potential for further growth," the airline said.
The agreement was signed at last week's IATA World Cargo Symposium.
