Saudia Cargo signs Madinah airport logistics deal with Tibah, targets preferential freight rates
The partnership will also support the development of innovative solutions for the logistics and air cargo sector in Madinah.
SAUDI ARABIA – Saudia Cargo has signed a Memorandum of Understanding with Tibah Airports Operation Company to strengthen air cargo operations at Madinah airport.
The agreement was signed during the 20th Steering Committee Meeting for the Activation of the National Aviation Sector Strategy.
The collaboration aims to combine Saudia Cargo’s international logistics expertise with the airport’s strategic location to enhance supply chain efficiency and support the continued growth of the aviation sector.
Scope of Cooperation
As part of the partnership, both organizations will work closely on logistics initiatives in coordination with government and regulatory authorities. The agreement also includes plans to hold workshops and consultation sessions focused on improving operational processes and identifying new opportunities within the logistics industry.
Additionally, both parties will facilitate the exchange of expertise, resources, and operational knowledge to further strengthen logistics activities and expand opportunities in the Madinah region.
A key focus of the cooperation will be improving operational performance and customer experience through specialized training programs, knowledge-sharing initiatives, and regular strategic meetings. The partnership will also support the development of innovative solutions for the logistics and air cargo sector in Madinah.
Preferential Freight Rates and Incentives
Under the agreement, Saudia Cargo will introduce preferential freight rates to encourage cargo and export activities from Madinah, while Tibah Airports Operation Company will provide incentive programs aimed at supporting Saudia Cargo’s operations at the airport.
For fresh produce exporters in the Madinah region, preferential rates reduce logistics costs for perishable shipments, making regional horticulture products more competitive in international markets.
Industry Perspective
The partnership represents a strategic step toward enhancing cargo movement, increasing service competitiveness, and reinforcing Madinah’s position as a major aviation and logistics hub, in line with Saudi Arabia’s economic diversification and global connectivity goals.
For logistics investors, the collaboration demonstrates how airport operators and cargo carriers can align incentives to drive export volume growth.
As Madinah airport expands its logistics footprint, shippers gain an alternative gateway to the region, complementing Jeddah’s existing cargo capacity.
The focus on innovative freight solutions and regulatory coordination supports Saudi Arabia’s broader ambition to become a global logistics hub under the National Aviation Sector Strategy.
For food traders, this means more routing options, competitive rates, and improved service levels for perishable goods moving through the Kingdom.
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