Scan Global Logistics adds first Saudi Arabia offices

Source: Scan Global Logistics

Scan Global Logistics (SGL) has continued its expansion with the opening of its first offices in Saudi Arabia.

The forwarder has established two offices in the country – in Riyadh and Jeddah – and has plans to open a third later in the year in Dammam.

The new offices will start with 20-25 employees in the first year and are expected to grow to 50 employees in the second year.

SGL said that the Riyadh and Jeddah offices would give it a presence in the economic central and west provinces while the Dammam opening would extend its reach into the east.

“Establishing our local presence in Saudi Arabia provides access to one of the fastest-growing economies globally,” the company said in a press release.

“This expansion is driven by Saudi Arabia’s strategic location as a central gateway to the Gulf Cooperation Council (GCC) countries, Europe, Asia, and Africa, which makes the country an ideal distribution hub for these regions.”

The firm’s global chief executive, Allan Melgaard, added that by establishing its own organisation in the country it can better control the service offerings to customers.

The opening of the office comes as Saudia Arabia invests in infrastructure projects to diversify its economy and minimise its dependence on oil.

“Furthermore, Saudi Arabia’s growing buying demand requires more logistics,” said SGL. “The country’s well-established transportation infrastructure, including air, ocean, and road networks, makes trade and commerce seamless and efficient, facilitating businesses’ ability to reach regional and international markets easily.”

Mohamed Afifi has been appointed as SGL’s managing director of Saudi Arabia.

“By carefully selecting and handpicking a team of highly skilled logistics experts with a deep understanding of the local culture and business practices, we gain a significant competitive advantage in the Saudi market with our own operations,” Aiffi said.

The last few years have seen SGL rapidly expand through a series of acquisitions.

However, at the start of the year, SGL said that it would switch its acquisition strategy from adding new markets to growing in key existing markets.

The forwarder said that it will pursue a targeted M&A strategy ensuring all key countries and markets required to service global customers are covered in terms of SGL presence.

“The industry remains fragmented, and SGL still sees significant room for consolidation, with SGL increasingly positioned as a company that is the acquirer of choice,” SGL said.

Scan Global Logistics plans for further acquisitions

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Damian Brett

Damian Brett
I have been writing about the freight and logistics industry since 2007 when I joined International Freighting Weekly to cover the shipping sector. After a stint in PR, I have gone on to work for Containerisation International and Lloyds List - where I was editor of container shipping - before joining Air Cargo News in 2015. Contact me on [email protected]