PIF explores merging logistics assets into single entity

Saudi Arabia’s Public Investment Fund (PIF), which controls more than $1 trillion in assets, is considering merging its ports, rail and shipping assets into a single entity to overcome supply chain issues caused by the Iran war, according to reports.

Discussions have been held on a possible asset merger to create a logistics giant which would drive investments in the sector, Bloomberg reported, citing unidentified sources.

The talks began before the regional conflict started on February 28, but gained pace after the Strait of Hormuz remained effectively closed.

The sovereign wealth fund may include global investors in the business through an initial public offering, the report said.

PIF controls or holds stakes in Saudi-listed National Shipping Company of Saudi Arabia (Bahri), Saudi Global Ports and Saudi Arabia Railways.

Earlier this month PIF raised $7 billion through a dollar-denominated benchmark bond to maintain development spending during the Iran war.

Further reading:

• PIF sets new five-year strategy to drive returns
• Gulf entities resume debt issuance with $10 billion sale
• Saudi PIF raises record $7bn in debt

Despite the ongoing conflict, the fund intends to continue investing to pursue Vision 2030’s goals.

Last month it announced a new strategy with a larger focus on private sector involvement and increasing returns on investments.

The plan outlines six sectors on which the fund will focus investments: tourism; urban development; advanced manufacturing; industrials and logistics; clean energy, water and renewables infrastructure; and Neom.