DSV, 1064 - NEOM and DSV establish USD 10 billion logistics joint venture
October 24 2023 - 12:59AM
DSV, 1064 - NEOM and DSV establish USD 10 billion logistics joint
venture
Company Announcement No.
1064
- Multi-billion dollar leading logistics joint venture to provide
a full suite of ground, sea and air logistics services.
- The partnership will focus on the logistics services need for
NEOM, with unprecedented demand growing the joint venture and
adding value to the local economy through services and jobs.
- The joint venture will drive innovation leveraging existing
R&D efforts and further push commercialisation of new solutions
and technologies.
NEOM and DSV announce a USD 10 billion exclusive logistics joint
venture to support the development of the ambitious projects taking
shape in NEOM, Saudi Arabia. The partnership will focus on
providing logistics services for NEOM in the coming years.
Under the agreement, the joint venture will provide end-to-end
supply chain management, development and investments in transport
and logistics assets and infrastructure as well as transport and
delivery of goods and materials within NEOM.
NEOM will hold 51% of the joint venture with DSV holding the
remaining 49%.
NEOM envisions unparalleled demand for construction logistics
through to 31 December 2031, with sustained growth in
non-construction logistics thereafter. In addition to its impact on
the logistics landscape, the venture is expected to boost the Saudi
economy, through infrastructure development and creating more than
20,000 job opportunities.
Nadhmi Al-Nasr, CEO of NEOM: “The projected demand in both
construction and non-construction logistics will make NEOM one of
the largest customers in the world, and this partnership allows
NEOM to create value from its demand. Working alongside one of the
world’s leading logistics companies, the joint venture with DSV
will build on expertise and know-how to drive innovation and
sustainability throughout the logistics value chain. The economic
benefit to this partnership will not only provide tens of thousands
of jobs, but it will also enable growth to capture local and
regional market share. It’s a living example of Saudi Vision 2030
in action, fostering job creation and building a future-leaning
economy.”
Jens Bjørn Andersen, Group CEO, DSV: “NEOM is one of the largest
and most complex projects in the world. It provides a unique
opportunity for DSV to support a development that is at the
forefront of innovation, technology and digital transformation. DSV
already has a strong presence in Saudi Arabia, and this is a
significant growth opportunity for us in the region and we look
forward to working with NEOM Company and bringing our logistics
capabilities to the table.”
NEOM and DSV are committed to driving innovation and will
allocate a portion of the JV’s revenues to foster the development
of ground-breaking technologies and commercialise new sustainable
next-generation logistics solutions. The vision extends further by
establishing a dedicated innovation centre at NEOM’s clean and
advanced manufacturing hub, Oxagon.
The new joint venture is a significant milestone demonstrating
NEOM's commitment to revolutionising Saudi Arabia's logistics
sector and paves the way for pioneering sustainable logistics
solutions, marking a new chapter in its journey towards realising
Vision 2030.
Completion of the partnership is awaiting customary regulatory
approvals, which are expected to be obtained in the second quarter
of 2024.
Financial impact for DSVThe business plan for
the joint venture is expected to require a USD 10 billion gross
investment. In accordance with the business plan, the total
shareholder funding commitment up and until 31 December 2031 is USD
5 billion. NEOM and DSV commits to provide funding to realise the
business plan pro rata to their respective shareholdings.
It is expected that the return on invested capital be in line
with DSV’s existing target.
It is not expected that the joint venture will have any material
financial impact on DSV for the financial year 2023.
ContactsInvestor Relations: Flemming Ole
Nielsen, tel. +45 43 20 33 92, flemming.o.nielsen@dsv.comMedia:
Christian Krogslund, tel. +45 43 20 41 28,
christian.krogslund@dsv.com
Yours sincerely,DSV A/S
About NEOM NEOM is an accelerator of human
progress and a vision of what a New Future might look like. It is a
region in northwest Saudi Arabia on the Red Sea being built from
the ground up as a living laboratory – a place where
entrepreneurship will chart the course for this New Future. It will
be a destination and a home for people who dream big and want to be
part of building a new model for exceptional livability, creating
thriving businesses and reinventing environmental conservation.
NEOM will include hyperconnected, cognitive cities, ports and
enterprise zones, research centres, sports and entertainment venues
and tourist destinations. As a hub for innovation, entrepreneurs,
business leaders and companies will come to research, incubate and
commercialise new technologies and enterprises in ground-breaking
ways. Residents of NEOM will embody an international ethos and
embrace a culture of exploration, risk-taking and diversity. For
further information, email media@neom.com or visit www.neom.com and
www.neom.com/en-us/newsroom.
About DSV – Global Transport and LogisticsAt
DSV, we keep supply chains flowing in a world of change. We provide
and manage supply chain solutions for thousands of companies every
day – from the small family-run business to the large global
corporation. Our reach is global, yet our presence is local and
close to our customers. More than 75,000 employees in over 80
countries work passionately to deliver great customer experiences
and high-quality services. We aspire to lead the way towards a more
sustainable future for our industry and are committed to trading on
nature’s terms.
DSV is a dynamic organisation that fosters inclusivity and
diversity. We conduct our business with integrity, respecting
different cultures and the dignity and rights of individuals. For
further information, visit www.dsv.com.
- 1064 - Announcement (24.10.2023) - NEOM and DSV establish USD
10 billion logistics joint venture
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