PIF-owned Folk Maritime focused on driving regional trade, says CEO
With Vision 2030 driving infrastructure growth, Saudi Arabia is poised to become a global logistics hub, and Folk Maritime will play a pivotal role in this transformation, says Poul Hestbaek
29 January, 2025
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Launched in 2024 as a subsidiary of the Public Investment Fund (PIF), Folk Maritime is positioning itself as a pivotal force in enhancing the kingdom’s logistics infrastructure.
Through its innovative feeder and regional liner services, the company is helping solidify Saudi Arabia’s ambition to become a global logistics hub while promoting economic diversification and trade connectivity.
Here, CEO Poul Hestbaek outlines the company’s vision to accelerate regional trade and contribute to Saudi Arabia’s Vision 2030.
Folk Maritime was launched in 2024 with a mission to catalyse regional trade. What inspired its establishment, and how does the company contribute to Saudi Arabia’s vision of becoming a global logistics hub?
Folk Maritime was founded to meet the growing need for efficient, scalable maritime connectivity in the region. Saudi Arabia’s strategic position, coupled with Vision 2030’s focus on economic diversification, made this the ideal time to build a company that directly contributes to the kingdom’s ambition of becoming a global logistics hub.
Through our feeder and regional liner services, we help enhance Saudi Arabia’s logistics infrastructure, supporting the kingdom’s goals of diversifying its economy and promoting trade.
The company offers both feeder services and regional liner services. How do these services complement each other in supporting the region’s logistics ecosystem and enhancing trade connectivity?
Folk Maritime’s feeder services connect smaller Saudi ports to global hubs, ensuring critical cargo flow even in remote areas. This vital ‘last-sea-mile’ service ensures seamless integration of Saudi ports into the global supply chain, contributing to supply chain resilience.
Additionally, our regional liner services, such as the India Gulf and North Red Sea services, directly link Saudi ports to neighbouring regions, facilitating the movement of key goods like petrochemicals and consumer products.
By expanding these services, we help secure the kingdom’s supply chain, better ensuring the continued flow of cargo during crises, such as pandemics or geopolitical instability, leading to enhanced trade connectivity and regional economic growth.
With Folk Maritime’s focus on innovation, how are you leveraging cutting-edge technologies like AI, blockchain, and IoT to improve operational efficiency and customer experience?
We use IoT-enabled smart containers to track cargo in real-time, enhancing transparency and minimising delays. We intend to use AI to optimise route planning, predictive analytics, and reduce paperwork, ensuring more efficient and reliable service.
These technologies allow us to stay ahead in the competitive shipping industry, offering improved operational efficiency and a better customer experience.
Folk Maritime operates key regional services such as the India Gulf Service and North Red Sea Service. Can you discuss how these routes are reshaping trade and logistics in the Middle East and the Indian Subcontinent?
The India Red Sea Service connects key ports in India to Saudi Arabia’s Red Sea ports, enhancing trade in petrochemicals and consumer goods. It supports the trend of “friend-sourcing”, where countries trade with geographically closer, trusted partners.
Similarly, the North Red Sea Service links Saudi ports to neighbouring countries, strengthening regional logistics and reinforcing Saudi Arabia’s position as a global logistics hub. These services expand trade and improve regional connectivity.
As the first independent feeder services operator in Saudi Arabia, how do you ensure the reliability and efficiency of these services in connecting smaller Saudi ports to larger international hubs?
We ensure reliability through modern vessels like Folk Jeddah and real-time cargo tracking. These technologies minimise delays and enhance efficiency.
Our flexible, scalable feeder network ensures that even smaller Saudi ports remain integral to global trade, strengthening the kingdom’s logistics network.
Sustainability is a central part of Folk Maritime’s operations. How is the company aligning with Saudi Arabia’s Net Zero 2060 strategy, and what steps are being taken to reduce its environmental impact?
Folk Maritime supports Saudi Arabia’s Net Zero 2060 strategy by integrating sustainable practices, such as smart containers made with recyclable materials.
Our M/V Folk Jeddah meets energy-efficient standards, reducing fuel consumption and emissions. We also explore alternative fuels and optimise route planning to reduce our environmental footprint, helping the kingdom meet its sustainability goals.
How does Folk Maritime prioritise compliance with IMO regulations, maritime decarbonisation, and the adoption of alternative fuels to ensure sustainable shipping practices?
Folk Maritime complies with IMO regulations and prioritises decarbonisation by adopting energy-efficient technologies.
We optimise routes to reduce fuel consumption and minimise emissions. By setting high sustainability standards, we comply with regulations and drive innovation, ensuring our fleet operates efficiently and sustainably.
Folk Maritime is committed to the Saudi Arabia Local Content Partnerships Initiative. How does your company contribute to the kingdom’s economic goals through local content, and how are you supporting the development of a skilled, national workforce?
As a Public Investment Fund (PIF) company, Folk Maritime contributes to the local economy by sourcing materials locally and operating Saudi-flagged vessels.
We also support workforce development by offering training programmes in maritime logistics, ensuring the growth of Saudi talent and preparing the next generation for leadership roles in the maritime industry.
What challenges do you face in the rapidly evolving logistics and maritime industry, and how are you addressing these challenges?
A key challenge is balancing rapid growth with operational efficiency while adapting to shifting global trade dynamics. The logistics industry is sensitive to geopolitical shifts and changing regulations.
To address these, we are expanding into new markets like India and enhancing regional connectivity. Our objective is to stay agile and have the operational flexibility to quickly react to changing trade pattern and cargo flows.
What are the next steps for Folk Maritime as it expands its services and strengthens its position in the regional and global shipping market? How do you see the future of Saudi Arabia’s logistics industry evolving over the next five to 10 years?
Folk Maritime is focused on achieving a 15-20 per cent market share in the four-million TEU* regional market by 2030. We aim to expand our fleet, with plans to acquire four-five ships in the next 18 months, increasing our fleet ownership to 60-65 per cent, alongside vessel partnerships.
Our strategic goal is to position Folk Maritime as a leading regional liner service provider, strengthening our feeder services to smaller ports while maintaining flexibility to meet evolving market demands.
With Vision 2030 driving infrastructure growth, Saudi Arabia is poised to become a global logistics hub, and Folk Maritime will play a pivotal role in this transformation.
* Twenty-foot equivalent unit: a measure of volume in units of twenty-foot long containers
