New shipping service to boost trade between Saudi Arabia and India

JEDDAH: A new shipping route connecting Jeddah to India’s major commercial hubs has been launched by a subsidiary of Saudi Arabia’s Public Investment Fund.  

Folk Maritime Services Co., which specializes in regular liner and feeder services, will connect Jeddah Islamic Port on the Red Sea with the Asian country’s maritime hubs of Mundra and Nhava Sheva.

Starting in September, this ten-day service, operated by two ships, will enhance trade links by facilitating the movement of goods and products, including petrochemical materials, between the Kingdom and India, according to the Saudi Press Agency.

As the country advances its National Strategy for Transport and Logistics Services, seeking to establish itself as a leading global logistics hub in line with Vision 2030, Folk Maritime’s initiative represents a significant step toward achieving these goals.

Saudi Arabia ranks as India’s fourth-biggest trading partner, while the Asian country is the Kingdom’s second-largest.

The Arab state is also a key pillar for India’s energy security and an important economic collaborator for investments and technology transfer.

Data from the General Authority for Statistics reveals that exports to India from Saudi Arabia in 2023 totaled SR113.35 billion ($30.20 billion), while imports from India were SR43.57 billion.

The Kingdom was the third-largest crude exporter to India, supplying 39.5 million tons, or 16.7 percent of the country’s total oil imports.

A report from GASTAT released in July underlined that Saudi Arabia’s shipments to India were worth SR8.03 billion in May, with non-oil exports valued at SR2.23 billion, led by chemical and allied products at SR1.27 billion.

Folk Maritime has signed a vessel exchange agreement with Asyad Line, Oman’s leading container service connecting the Arabian Peninsula with the Indian subcontinent. This agreement will deploy two container ships on the new route.

Poul Hestbaek, CEO of Folk Maritime, highlighted that this new service will bolster trade between Saudi Arabia and India. He added that it will also improve regional connectivity by offering diverse services in both regular liner and feeder vessel sectors.

This initiative aligns with Saudi Vision 2030, which aims to establish the Kingdom as a global logistics hub by enhancing maritime connectivity and fostering growth in the shipping industry.

Earlier this month, Folk Maritime announced the acquisition of its first owned vessel, the M/V Folk Jeddah. Built in 2023 at China’s Yangfan Shipyard, this modern maritime vessel will soon commence operations at Jeddah Islamic Port. The company stated that the addition of this Saudi-flagged container ship represents a significant enhancement of the Kingdom’s maritime capabilities.

Folk Maritime plans to leverage Saudi Arabia’s strategic geographic location—situated at the crossroads of global maritime trade—to access international markets and boost benefits for the regional shipping sector. With an eye on expanding its service network, the maritime operator aims to enhance reliability and resilience in the global supply chain, ensuring a consistent flow of international trade.