RED SEA INTERNATIONAL AIRPORT
The First Airport in the Region to Earn the Net Zero Carbon Emissions Distinction
“ Operationally, we require all service providers at the airport to report on their emissions and draw up strategies to reduce and offset them to achieve net zero emissions.
RED SEA INTERNATIONAL AIRPORT
In an exclusive interview, John Pagano, CEO of Red Sea Global provided Industry Aviation Magazine with an in site into how Red Sea International embodies Red Sea Global’s ethos of regenerative tourism and responsible development.
1. In your own words, please can you give me an overview of the airport and the thoughts behind the design?
Red Sea International Airport is a full-scale, boutique airport built to handle all sizes of aircraft, from private jets to the Airbus A380. It will also be the only airport in the region with a dedicated runway for seaplanes.
The design concept, developed by globally renowned architectural firm Foster + Partners, was to create an iconic landmark that will give our guests an overwhelmingly positive first impression when they arrive and a lasting memory when they depart. The gracefully curving roof of the main terminal building is inspired by sand dunes, and it blends with the nature and the spirit of the site. The landscaping around the terminal recreates the feeling of the local wadis (creeks) and oasis. The special ambience inside the terminal is achieved with the use of natural materials such as stone and wood and with loose furniture rather than typical commercial airport seating.
RSI embodies the same sustainability ethos as each of the resorts that we’re developing at our flagship destinations, The Red Sea and Amaala. It will be powered exclusively by renewable energy once it’s fully operational. Its innovative design includes natural ventilation and shading areas to minimize the need for air conditioning. Its structure in the form of five mini-terminals, or pods, will allow areas to be closed during quieter periods to conserve energy. The airport will make maximum use of natural daylight to reduce artificial lighting requirements, and its main terminal building and welcome center at arrivals will be LEED gold certified.
2. Was it purely a Foster + Partners design, or did they work closely with you?
The Foster + Partners team worked closely with us to understand our vision and values for the design. F+P presented a series of potential themes, and our Board of Directors selected the final concept, taking into account factors such as function, form and sustainability inherent in the design, construction and operation of the airport.
3. When did the foundations get laid? And what were the reasons behind the strategically picked location?
The Red Sea destination is some two hours’ drive from the nearest international airports at Yanbu and Al Ula, so Red Sea International Airport will bring domestic and international guests to our very doorstep. RSI was deliberately located about 20km from environmentally sensitive lagoons and islands -- home to precious mangroves and coral reefs --- on an open plain situated between coastal dunes and mountains. We wanted the airport to be close enough to minimize guest journeys while at the same time avoid any nuisance from flight paths.
We broke ground in September 2020 for construction of the runway, taxiways and aprons. We completed excavations for the main terminal building in January 2022, before awarding contracts for delivery of the terminal and auxiliary facilities.
4. When is the airport expected to be up and running for visitors? And how many visitors are you looking at being able to handle/ accommodate?
We are on track to open the airport this summer. Once completed, RSI will accommodate up to 1 million arriving passengers each year, with capacity to serve 900 passengers an hour. This annual number is limited not by the scale of the airport but by our commitment to cap visitor numbers at our destinations to mitigate the potential impact of over-tourism on our natural environment.
5. The virtual control tower is Saudi Arabia’s first ever. How did this get decided, and who is providing the high-level camera technology?
We worked closely with Saudi Air Navigation Services (SANS) to select the appropriate technology for air traffic control. Global experience and expertise in virtual control towers have reached a level of maturity, reliability, and cost-effectiveness. We decided, therefore, that RSI’s remote location, together with our projections for initially modest traffic volumes and limited aircraft types, provided a strong case for us to become one of the Kingdom’s early adopters of virtual control towers. SANS aims to roll out a similar approach at other remote airports in the country.
Due to the critical importance of uninterrupted operations at RSI, our air traffic controllers will run the remote tower from a nearby control room. They will also run a mobile tower situated close to the mast-mounted cameras. Eventually,
the mobile tower will be removed, leaving only the virtual control tower. INDRA of Spain is providing the camera technology; they already provide air-traffic-control equipment and air-traffic-management systems elsewhere in the Kingdom.
6. Has the development stayed on track, with all sections completed on time?
We have had some challenges during the construction phase, largely as a result of COVID, but with the dedication and hard work of our staff and contractors, we were able to mitigate any impacts. We made our first take-offs and landings on the 3.7km main runway in the third quarter of 2022. We are poised to complete development on schedule, and we look forward to welcoming our first passengers this year.
7. What will the airport offer its visitors which is unique to other airports? What will make the passenger experience so good?
Our commitment to regenerative tourism will be evident from the moment arriving passengers step off their aircraft. Instead of entering the terminal building through conventional air bridges, they will walk through lush, landscaped gardens that act as a thermal buffer between the interior of the terminal building and the outdoors.
A unique feature of the terminal building is its distinctive pods, which are designed to give passengers a more intimate experience than they would get at a typical airport. Passengers arriving at RSI on commercial jets will feel as if they are stepping into a luxury hospitality resort. One of the terminal’s pods will
be reserved exclusively for private jets, and passengers who use it will experience a whole new level of comfort and service.
We believe that RSI is the only airport in the world that will run 100% on renewable energy through the night as well as during the day. A few other airports, in India and the U.S., for example, can operate on renewables in daylight but must then draw power from a grid to operate at night. RSI is completely different. It will be off the grid 24/7, like everything else at The Red Sea.
Also, thanks to our seamless baggage-handling technology, guests arriving at RSI won’t need to touch their bags until reaching their hotel rooms. This technology will minimize the time they need to spend at the airport, and they won’t have to wait at baggage carousels. Later, when their stay is over, a smart check-in and baggage transfer facility will let our guests maximise their time at the resorts and arrive at the airport at their chosen time before departure.
In fact, we aim for the airport’s overall level of service to exceed the best rating now available under the framework defined by IATA, the world governing body for airlines.
8. What work will be done around the airport operations to enhance experience?
We are customizing services to enhance our guests’ experience upon arrival. I already mentioned our smart technology for handling luggage. We’re also putting more staff on the ground to assist passengers and promote a level of service that goes well beyond industry norms, for example, to shorten processing times at each stage in the passenger’s journey through RSI.
We’re working with Saudi Arabia’s General Authority of Civil Aviation (GACA) to test new technologies that
would make it easier for passengers to arrive at and depart from the airport. One example is ‘Smart Gates,’ possibly using biometric scanners, which aren’t in use anywhere else in the Kingdom.
To monitor RSI’s performance in catering to our guests, we have adopted ACI World’s Airport Service Quality standard, a global benchmark for gauging passenger experience. The results are widely publicized and can be a unique selling point for RSI. We will also use other industry benchmarking tools such as Skytrax to strengthen RSI’s position and reputation. Internally, we are developing a unique set of key performance indicators to be embraced by daa International, RSI’s operator, as well as our other airport stakeholders.
9. The airport will run its very own seaplane service. How successful do you think this will be?
We have high expectations for our seaplane business. It’s the first of its kind in Saudi Arabia, and it will be integral to the passenger experience at RSI. Our seaplanes are the optimal way for guest arriving at the airport to reach our many island resorts. We took delivery of our first seaplane in March, and we plan eventually to operate a fleet of more than 20 of these aircraft. By 2030, we expect to operate 10,000 seaplane flights per year.
Our seaplanes will have customized interiors similar to the interior of a luxury private jet. For example, our Cessna Grand Caravan aircraft will seat
6-8 passengers in a customized business-class configuration. They will enable us to offer seaplane flights for less than half the price, on average, of the Maldives, which operate an economy- class configuration with 12-15 seats.
As I noted, we will operate a dedicated seaplane terminal at RSI once the airport is fully operational. And we are designing flight paths so that our seaplanes will avoid flying over guest accommodations as well as sensitive natural habitats for birds, turtles and other wildlife. 10. Delivering a seamless experience for your passengers will be a priority. How will this be offered, and how will security be worked with to maximise this?
Our smart luggage-handling system will track guests’ bags at every stage of the journey between RSI and the resorts. This includes all transfers to and from seaplanes, boats and electric vehicles. I mentioned earlier that our arriving guests won’t need to touch their luggage until it reaches their hotel rooms, and departing guests can check in their luggage at their hotel and not have to bother with it again until their flight reaches its destination.
Cybersecurity will safeguard these operations and uses of data and will optimize the guest experience. For example, outbound guests will be able to track their bags and know when their bags will reach the airport. We will align operations relating to the passenger/luggage journey with the Kingdom’s National Civil Aviation Security Program, and we are discussing the unique security details with GACA to secure its approval.
11. We talk a lot about the passenger experience, but how will you ensure a good experience for your employees?
Our employees will enjoy many of the same comforts and conveniences as our guests. They will live at Turtle Bay, our ocean-front community. Turtle Bay has LEED-certified facilities and ample shopping and leisure options to ensure a positive experience for people living there. The setting is idyllic, with palm trees, a pristine beach and blue skies giving Turtle Bay a resort-like vibe of its own.
Our staff members will also be able to use the same airport facilities as our guests. We provide a monthly travel allowance for employees who need to fly from The Red Sea to other places in the Kingdom.
12 .Baggage handling is a crucial component of air travel. Will your airport be implementing automated baggage systems, RFID tracking and real time data analytics?
The surge in baggage-handling mishaps at many airports in the world last summer reminded us all of just how important it is for us to get this detail right at RSI. We will deploy technologies that enable us to go beyond IATA Resolution 753 – the international standard for tracking bags between airports. Our technology will allow for the seamless handling of baggage arriving at RSI -- from airport to ground transportation to seaplane and finally to each guest’s hotel. This has not been done in a single, integrated flow of information anywhere else in the world.
Our technology will ensure that guests can track their bags if they choose to; we will either push notifications to the guest via SMS or email, or we will invite guests to access The Red Sea app to track their bags. The point is to reassure our guests by providing traceability and not to bombard them with information.
We will use bar-code scanning ability all through the baggage-handling process, at various touchpoints. The scanning will be done automatically, and we will use real-time data analytics. Our baggage-handling system will be operational at the multi-use air taxi terminal from Day One.
13. What company is providing your airport with the baggage handling system?
We are now in the final stages of selecting our preferred partner to deliver the necessary hardware and software. We should be able to announce our decision shortly.
14. Staff roles are very important to every company. What role does training and recruitment play at the airport?
Employee recruitment can be a challenge because operating an airport is a highly specialized business. But our recruitment experience has been smooth overall because we’re finding that so many Saudis want to work with us. Aviation plays an important part in Saudi Arabia’s Vision 2030 strategy to diversify the economy, and this contributes to the enthusiasm we see in our local job applicants.
Our training is extensive, especially for customer-facing roles. For example, we enrolled 125 students in a two-year, diploma-level training program in airport operations delivered by The Saudi Academy of Civil Aviation and King Abdulaziz University. We designed the curriculum ourselves, with help from our airport operator daa International. These students will be ready to join the airport team by mid-June of this year.
In addition, we’ve taken on board a lot of young Saudis who have joined us as members of our Elite Graduate Program from among top university graduates.
15. What are the plans for an air taxi terminal? How will that run in parallel with seaplane operations?
We are building an air taxi terminal near our main terminal, and the two facilities’ elegant architectural styles complement each other. As our first hotels open in 2023 and 2024, the air taxi terminal will handle seaplanes as well as commercial passenger planes and private jets. The RSI main terminal is planned to open at the end of 2024, and our air taxi terminal will shift to handling seaplane transfers exclusively.
16. How do you better the environment? Do you have strategies in place to reduce your carbon footprint?
Our airport prioritizes people and planet, just like our resorts and all our other facilities. It embodies Red Sea Global’s ethos of regenerative tourism and responsible development. For example, RSI will operate solely on renewable energy, 24 hours a day. It will almost certainly be the only airport in the world to do so.
We’ve committed to achieving net zero carbon emissions at RSI by 2030. In fact, we hope for RSI to be the first airport in the region to earn this distinction. Operationally, we require all service providers at the airport to report on their emissions and draw up strategies to reduce and offset them to achieve net zero emissions. This is important because aviation
alone causes around 17% of total travel carbon emissions, according to the World Travel & Tourism Council.
By 2025 or 2026, RSI aims to achieve Level 4 status of carbon accreditation as certified by Airports Council International. Level 4 is one of the highest levels of carbon-emissions management. We are also working with ACI to create a new and higher standard -- Level 5, for ‘net zero’ emissions – by 2030.
Separately, we will seek to obtain ISO 55001 Life Cycle Asset Care accreditation by 2027, after RSI’s first two years of full operations.
All equipment at RSI will be powered by electricity where the technology exists. We’ve purchased electrical ground service equipment, despite significant challenges and limited availability, as proof of our continued commitment to sustainability.
RSI’s main terminal building is organized into five mini-terminals, or pods, allowing areas to be closed in quieter periods to prevent energy waste. We’ve eliminated the need for air-conditioned air bridges, which connect to planes at most airports. Instead, passengers arriving at RSI will enter the main terminal building through landscaped gardens that provide a thermal buffer between the outside and the terminal’s interior.
RSI’s main terminal building will be LEED gold certified, and we are investing in the latest environmental monitoring technology to ensure that the airport’s impact on the environment is scrutinized and addressed.
RSI will also supply planes with Sustainable Aviation Fuel (SAF). RSG plans to be at the forefront of SAF in the country – we aim to be Saudi Arabia’s first airport to provide SAF. We are currently working with GACA to introduce the Kingdom’s first emissions charge to encourage airlines to operate the most environmentally friendly aircraft
possible.
Also, our seaplanes will only operate from 6:00 a.m. to 6:00 p.m. to mitigate noise pollution at night.
17. What about safety? How important is this to your airport, and how is it managed?
Aviation safety and security are utmost priorities for the Kingdom. RSI adheres to regulations set by the General Authority of Civil Aviation and the National Civil Aviation Security Program. GACA must give its approval for RSI’s safety/ security manuals, concept of operations, safety management systems and airport security program.
GACA will also conduct rigorous inspections at RSI, with a focus on safety and security, before issuing an Aerodrome Certificate,
which is renewable every three years. Going forward, RSI will perform regular inspections of its own to ensure that the airport, its staff and its diverse stakeholders maintain our strict standards for safety and security across the RSI site.
18. Do you have a partnership in place with a Saudi Airline carrier? And do you have confirmation of a local seaplane operator?
We are currently in talks with a Saudi carrier, and we expect to announce a partnership soon. As I mentioned earlier, we are operating our own seaplane business.
19. What do the first 1-2 years look like for the airport?
RSI will have a gradual soft opening, with passengers arriving initially at our air taxi terminal. This terminal’s smaller setting will make for a more intimate passenger experience for our first guests. RSI’s seamless baggage handling system will operate from Day One, whisking each arriving passenger’s luggage from the airport directly to his or her hotel room – and then back again, just as seamlessly, when they depart. As we build up the main terminal, we are getting ready to provide all the amenities there that our discriminating passengers will expect.
SAUDIA CARGO EFFICIENCY TAKES FLIGHT
Inside Saudia Cargo’s Pioneering Approach to Air Freight Logistics.
Industry Aviation Magazine hears more from Mr. Teddy Zebitz, CEO.
1.Please can you give me a brief of where you started and how you got to where you are today?
• Throughout my journey, I have had the privilege of working in various key markets, including Europe, Asia, and the Middle East, and in countries such as Denmark, Germany, Sweden, the UK, PRC, Thailand, and the Kingdom of Saudi Arabia; with a career spanning over 30 years in global airlines, and Logistics industry.
• Previously, I had the honor of being a member of the Danish Transport
Ministry’s Think Tank on Transportation and serving as an external lecturer and member of the Advisory Board of The Copenhagen Business School (CBS).
• Currently, I serve as the Chief Executive Officer of Saudia Cargo, a position I was honored to be appointed to in 2021. Prior to my role as CEO, I had the opportunity to contribute as the Chief Cargo Officer for 4 years at the company. Additionally, I have the privilege of being the Chairperson of the SkyTeam Cargo Executive Board, where I was re-elected for a second term in 2022.
• I am dedicated to driving innovation, excellence, and growth in Saudia Cargo. With my experience and commitment to delivering results, I am excited about the future and the opportunities that lie ahead for Saudia Cargo and the industry and Saudi Arabia.
2. Please give me an overview of Saudia Cargo, when did it all begin.
• Saudia Cargo is a leading national cargo carrier with its hub in the Kingdom of Saudi Arabia. Uniquely positioned leveraging the country’s strategic location, connecting the East and the West, it’s an efficient air bridge between continents. For more than seven decades, Saudia Cargo has been one of the world’s most dynamic cargo carriers, time-tested, innovative, and agile.
• Saudia Airline purchased its first Bristol aircraft in 1949 to transport Cargo. Saudi Cargo has its own fleet of modern long-haul freighters apart from access to the belly capacity of SAUDIA, which flies to more than 125 destinations worldwide.
• As a part of the Saudia Group, Saudia Cargo operates as an asset-light combination carrier, leveraging the assets and services of our sister companies while being an integral revenue driver for the Group.
• We are proud to have received numerous accolades in recent years, which exemplify our commitment to excellence and our continuous focus on our employees.
• Saudia Cargo remains a reliable business and humanitarian partner. A member of SkyTeam Cargo, the largest alliance of cargo carriers with a network that expands to over 800 destinations globally. Ensuring the uninterrupted flow of goods utilizing state-of-the-art facilities which facilitate the transport of all types of cargo, from high-value shipments, e-commerce, pharmaceuticals and highly sensitive vaccines, dangerous goods, and perishables.
• Over the past 8 years, our experienced Board and Management Team have worked tirelessly to improve our route network, modernizing our Fleet, enhancing our product and solution offerings to serve dynamic customer needs. Through these efforts, we have become a top-quality, reliable air cargo carrier with market-leading on-time performance (OTP) above 90%.
3. COVID-19 had a significant impact on the aviation sector, what strategies did you implement to make sure you saw it through?
Sector Context:
• Air cargo operators have performed well during the COVID-19 pandemic compared to other parts of the aviation industry.
• The growth of e-commerce is increasing the demand for air cargo capacity, which is likely to have a long-term impact on the air cargo industry. According to IBM, the pandemic has hastened the global transition to e-commerce by as many as five years.
• Airline companies that can adapt their business models and take advantage of this growing sector of the market are likely to benefit from increased demand for air freight services. As such, we have been heavily focused on the growth of e-commerce as well as essential for business and consumer Air Cargo products such as pharma and perishables.
• Digitalization is transforming the air freight industry, with companies using technologies such as blockchain and artificial intelligence (AI) to improve supply chain visibility and efficiency.
Our strategies:
• To ensure our resilience and success, we implemented various strategies. Firstly, we demonstrated agility and adaptability to meet the everchanging needs of our customers during times of uncertainty. We also made the decision to use passenger aircraft as freighters to limit disruptions in receiving shipments. Despite shifts in the global supply chain landscape, we remained committed to delivering value and forged strong partnerships with our customers.
This approach enabled us to navigate through change and uncertainty successfully. • We also focused on digitalization and committed to providing innovative solutions that enhance our operations and ultimately benefit our customers. That’s why we are proud to announce the successful implementation of our digital platform, which has revolutionized the way we monitor cargo on-time performance. With this dashboard, we can now visualize and aggregate data from various sources in real-time, allowing us to gain valuable insights into historical trends and actionable data. We can measure the performance of import and export shipments, as well OTP for our freighters, and identify both controllable and noncontrollable delays.
• We are also working closely with supply chain stakeholders and its booking platform partners, WebCargo by Freightos and Cargospot by CHAMP, to promote a paperless transformation. We achieved 90% e-AWBs, as part of our digitalization and sustainability transformation.
• In the past year Saudia Cargo made key partnerships with Revenue Technology Services (RTS) and the Cargo One platform. These collaborations have provided crucial business insights, optimized cargo capacities, and offered real-time dynamic pricing to customers, enhancing the overall experience and efficiency of cargo operations now and in the future.
• Amid the pandemic, we played a crucial role in delivering vaccines and vital goods globally. The growing demand for air cargo services, particularly in e-commerce, propelled our partnerships with giants like Cianiao the logistics arm of Alibaba, we achieved remarkable growth in e-commerce, witnessing a
30% increase in 2021 and remained consistent throughout 2021 to 2022. The partnership includes operating numerous weekly flights from Hong Kong to Riyadh and to Liege.
4. Where is the company now in terms of performance?
• Growth in world merchandise exports is expected to slow marginally this year, to 2.2% this year, from 2.3% in 2022. This indicates that the air cargo industry may continue to be challenged by soft demand in 2023.
• Our growth remains with penetrate our existing markets like China, our courier and e-commerce business. We continue to expand our international air freight network and ease our business processes and access new suppliers, and actively pursue opportunities in new markets.
• Being part of the Sky Team Cargo alliance, the biggest Cargo alliance globally bringing together 11 members representing 20% of global air cargo shipments and extensive worldwide network hence: access to more than 800+ destinations globally. This enables members of this alliance to capitalize on interline agreements which further expand the reach of cargo, efficiently and within the highest standards across the globe and within 24 hours.
5. What work did you do around the company’s operations, enhancing experience, security and working with your stakeholders to ensure you could deliver a seamless experience for your customers?
• It is crucial to continue to innovate and evolve to meet the changing needs of our customers. We focus our customer’s needs through continuous communication, listening, and addressing their requirements. The changes in the market expect us to focus more on understanding the behaviour of our customers, and we need to adapt accordingly.
• We believe that the digitalization of our operations is a success story in the making, and we are excited to continue leveraging this innovative technology to develop our business and provide distinguished service to our customers.
• At Saudia Cargo, we provide our customers with uninterrupted service, guided by our core values, mission, and vision. As a leading global air cargo carrier, we strive to deliver customized solutions tailored to the unique needs of our clients. Among these are specialized services that support E-commerce businesses, state-of-the-art temperature-controlled facilities for the transportation of pharmaceuticals and perishables such as fresh flowers, as well as advanced capabilities in shipping hazardous/dangerous cargoes.
6. We talk a lot about the customers experience but how do you ensure a good experience for your employees?
• The objective is to create an environment where people leadership thriving and see themselves as part of this family. It is also very rewarding to empower employees and make them understand how relevant they are and how they can make a difference on a grand scale and understanding that we are so much more than a cargo business or moving boxes. Saudia Cargo is relentlessly working towards our clear purpose with the grand ambition of helping societies, businesses, and passions.
• Our company culture takes an employee-first approach and prioritizing our employees and their personal well-being and professional growth is extremely vital to us. Our teams across every aspect of our operations work very hard to make sure our customers receive the very best experience with us. That’s why we are dedicated to making our employees feel valued by creating a prosperous environment for them by investing in training and mentoring programs that support their development. We are proud to say that these efforts resulted in Saudia Cargo being awarded the ‘Best Places to Work’ certification in 2022.
7. Staff roles are very important to every company, what role does training and recruitment play at the airport?
• The foundation of an asset-light company is undoubtedly in its people. To ensure we recruit and retain the best talent we are continuously investing in our people as part of our ongoing transformation.
• Over the years, we have trained a very young workforce with good understanding of the industry. We are constantly investing in training, hiring directly from universities, and have also implemented different training programs to grow people skills.
8. To ensure quality of the highest standards what measures have been taken?
• Our pursuit of excellence extends to pursing the quality of the highest standards. We are actively working towards attaining certification in ISO 22301 Business Continuity Management System, ISO 31000 Enterprise Risk Management, and ISO 37301:2021 Compliance Management Systems.
• These certifications and the pursual of the CEIV from IATA, which is under progress, validate our dedication to maintaining the highest standards of operational resilience, risk management, compliance, and unwavering dedication to exceeding industry standards and benchmarks.
9. How do you better the environment? Do you have strategies in place to reduce your carbon footprint?
• In terms of sustainability, Saudia Cargo is fully aligned with the goal set by the International Air Transport Association (IATA) to achieve net zero emissions by 2050. We actively implement sustainable practices across all aspects of our operations, in line with the objectives of the Saudi Green Initiative—a crucial component of Saudi Vision 2030.
• As part of our sustainability journey, we collaborate closely with customers and partners to develop innovative solutions aligned with our objectives. By pooling our expertise and resources, we address complex challenges and achieve sustainability goals more effectively. We also actively participate in industry organizations like SkyTeam Cargo and IATA to drive sustainability initiatives.
• In terms of asset utilization, Saudia Cargo has reached an all-time high and is approaching the top 10 in the world for block-hour utilization of freighters. We prioritize education and better planning to limit carbon emissions, reducing fuel intake through initiatives like weight limitations on aircraft. By successfully reducing the volume of trucking, we have improved efficiency and profitability while decreasing CO2 emissions.
• We invest in technology and digitization to optimize fuel consumption and CO2 emissions. Our fleet incorporates reduced-weight unit load devices (ULDs) to minimize fuel burn, and we are transitioning from conventional vehicles to electric trucks to reduce trucking emissions.
We aim to reduce fuel consumption by over 20% by 2027 compared to current levels. This reduction will contribute significantly to minimizing our environmental impact.
• In the next three years, we plan with our partners to run our trucks in Europe on sustainable fuels, further decreasing our carbon footprint. We also prioritize lightweight containers to minimize unnecessary weight and fuel consumption.
• While we are confident that the air cargo industry will reach its zeroemission targets by 2050, we firmly believe in acting now rather than waiting for that timeline.
10. Supply chain is very important to any successful business, what relationship do you have with your suppliers and other stakeholders? How is this maintained?
• Supply chain diversification is becoming increasingly popular as companies seek to reduce costs, mitigate risks, and simplify supply chain management. This is leading to an increase in regional air cargo traffic. The future of air freight looks promising, with a surge in demand for air freight raising aviation’s outlook. However, there are also short-term hurdles that need to be overcome.
• Air transport is vital for the modern economy. It provides the city-pair connections that serve as virtual bridges supporting the flows of goods and people between markets. As the only rapid global transportation network, air transport facilitates links between businesses, governments, and people enabling world trade, investment, tourism, and travel, among other key economic activities. Increased connectivity drives improved economic outcomes for countries and communities.
• The COVID-19 pandemic has highlighted the importance of supply chain diversification, with companies seeking to reduce costs, mitigate risks, and simplify supply chain management. This has led to an increase in regional air cargo traffic.
• Saudi Cargo will stimulate and grow import and re-export in Saudi Arabia, nonetheless, aims to utilize the country’s future hub system which will offer stronger transit with higher demand and cross-trade opportunities. Recently Saudi Arabia opened a “Free Zone” at Riyadh Airport as custom –bonded area. This free zone will make it easier to re-export cargo to neighbouring countries. In addition, Sea-to-Air corridors are expected
to grow and increase direct import volumes. All this will help serve air fright strategic transit destinations, and east-west connectivity.
We at Saudia Cargo together with our partners are consistently working on supporting infrastructure development in the Kingdom through our hubs at existing local airports and newly developed airports like the Red Sea Airport, cargo facilities, expanding our offering in new markets to increase our reach, frequency, and capacity, forging new strategic partnerships that support this endeavour, and ensuring that our services meet the highest standards of speed and reliability.
Excelling in stakeholder collaboration is a cornerstone of being an asset light cargo operator and puts Saudia Cargo in a strong position to push a sustainable agenda as well. Our stakeholders consist of multiple entities from our customers to partners, regulators, and government bodies. Engaging with stakeholders is fundamental to the success of the industry and we actively seek out dynamic means of collaboration.
Establishing strong relationships with government entities, regulators, and partners is key to helping us collectively contribute towards effectively growing the sector as well as knowledge sharing and finding solutions to issues faced by the industry. Additionally, our values and objectives strongly align with the vision of the Kingdom of Saudia Arabia particularly that of Vision 2030 and the Saudi Green initiative.
We have a customer-first approach and ensure that we listen to the needs and demands of our customers to tailor our services accordingly to go beyond their expectations.
11. What about safety, how important is this to Saudi Cargo and how is it managed?
Aviation is a sensitive and complex business where safety is the utmost priority for Saudi Cargo because there are lives involved in every operation. It’s managed by developing, implementing, and maintaining a comprehensive Safety Management System.
Complying with national and international regulations such as Civil Aviation and IATA (International Air Transport Association) is crucial.
We monitor all work-related activities to ensure the well-being of our employees and to bring quality services to our customers.
In addition, we adopt and continually Promote Awareness which fosters safe practices and manages safety challenges.
Moreover, we continue to encourage effective Safety Reporting Culture and regular communications throughout the organization.
12. How competitive is the marketplace currently and how challenging is it to maintain market position?
The marketplace is highly competitive and maintaining market position requires strategic decision-making and adaptability. Saudia Cargo focuses on a growth journey that prioritizes addressing customer needs and profitability while meeting the Kingdom’s aviation goals.
By strategically increasing fleet capacity, Saudia Cargo aims to maintain or slightly increase market share while improving our margins.
The company is uniquely positioned to target strategic routes, rapidly developing markets, customer trends like e-commerce, and high-yield products such as pharmaceuticals. By supporting the growth of the Kingdom of Saudi Arabia as the national carrier, Saudia Cargo aims to capture additional import market share and increase transit flows.
13. What does the future hold for Saudi Cargo?
• Situated in the heart of the world, we promise an unprecedented agility, keeping the needs of our customers at the heart of our service and solutions. Our vision is to be a global air cargo carrier recognized for delivering customized solutions for a life uninterrupted.
• We will continue to increase capacity by adding access to additional belly and new freighters as we strive to meet the demand for line haul air cargo services to the Kingdom and beyond, for this and other regions. This provides us with a tremendous opportunity to serve our customers to new destinations, and I have no doubt that with our hard work and dedication, we will continue to lead the way in the air cargo industry.
• We are also signing with the largest e-comm players and the terminal expansion in parallel will also support to broaden Saudia Cargo’s reach. Finally, we are also focused on building a strong and resilient digital infrastructure with technology at heart.
• China is a priority for Saudia Cargo, already one of top Saudi Arabia´s key trading partners, and there are a lot of prospects on both sides to explore further partnership opportunities. Saudia Cargo is wellpositioned to support this growth and offers seamless and efficient cargo connections between China and the Middle East, Africa, Europe, and America.
• Moving forward, we remain dedicated to empowering our people, collaborating with customers and partners, and providing innovative solutions. As we continue to serve communities globally, we take pride in our rapid growth as a major international liner and our contribution to Saudi Arabia’s mission of becoming a vital global logistics hub. We look forward to seizing further opportunities, delivering on our promises with efficiency, diligence, and speed.
