Saudia Cargo has announced a joint venture (JV) agreement with Hong Kong-headquartered GSSA TAM Group to establish a ”Saudia Cargo Global” entity that will focus on enhancing commercial reach, service capabilities, and customer engagement in Greater China and Asia-Pacific (APAC).
Saudia Cargo Global will introduce enhanced services specifically tailored to the diverse needs of the Greater China market, with plans to further expand into APAC, said Saudia Cargo.
These services include optimised freighter operations leveraging Hong Kong’s strategic location, advanced e-commerce logistics solutions to capitalise on the region’s e-commerce trade, plus specialised pharmaceutical shipment services.
TAM Group will offer its market knowledge, relationships, and operational skills to optimise the local execution of Saudia Cargo's plans.
The JV follows a Memorandum of Understanding (MoU) between Saudia Cargo and China Henan Aviation in May to work on developing new cargo services.
And in April, Saudia Cargo and China Cargo Airlines signed an MoU aimed at developing interline agreements and capitalising on trade growth between Saudi Arabia and China.
Loay Mashabi, chief executive and managing director of Saudia Cargo, said: “Saudia Cargo Global marks a transformative step in our global expansion, underscoring our deep commitment to the dynamic Greater China market as well as the wider APAC region.
"Our partnership with TAM Group is a strategic evolution reflecting our long-term dedication to the region and our sustainable global growth. Leveraging TAM Group’s expertise and our robust network, Saudia Cargo Global will unlock new opportunities, enhance customer agility, and significantly strengthen regional and international trade through five dedicated freighter hubs.
"This venture, aligned with Saudi Arabia’s Vision 2030, is crucial for diversifying our economy, boosting non-oil exports, and accelerating the Kingdom’s rise as a global logistics hub.”
Tam Wing Kun, founder and chairman of TAM Group, added: “We are immensely proud to partner with Saudia Cargo in this transformative venture, which marks a significant milestone in our longstanding relationship.
"Since 1986, TAM Group has worked hand-in-hand with Saudia Cargo, and this joint venture is a natural next step in our shared commitment to the region’s growth. The Greater China market, with Hong Kong at its heart, is a vibrant, rapidly evolving landscape, and we’re confident Saudia Cargo Global will become a dominant force in its air cargo industry.
"Looking ahead, our combined strengths, deep market insights, and unwavering commitment to excellence will enable us to provide customers with innovative, efficient, and reliable logistics solutions that drive their success.
"Hong Kong’s incredibly crucial position allows us to serve the Greater China region and beyond, including Southeast Asia and key worldwide markets while also aligning perfectly with the Hong Kong SAR government’s initiatives to strengthen ties with the Middle East.”
