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Saudi Arabian logistics sector to see stable growth

RIYADH, January 10, 2017

Sustained industrial and retail expansion, along with infrastructural development is likely to drive Saudi Arabia’s logistics sector, according to Ken Research, a leading market research and data analytics company.

The report, titled “Saudi Arabia Logistics & Warehousing Market Outlook to 2020 - Expanding Industrial and Retail Activities Supported by Infrastructure Spending to Support Growth”, provides a comprehensive analysis of logistics and warehousing industry in Saudi Arabia.

The report focuses on Saudi Arabia logistics and warehousing segments. The report covers market size in terms of revenues and segmentation of overall logistics and warehousing industry on the basis of service mix, by geography and by industries.

It also includes freight forwarding market size, warehousing market size, cold chain market size, 3PL market size and express logistics market.

The report also covers value chain analysis for logistics and warehousing market, comparative analysis of Saudi Arabia logistics market with GCC and global logistics market.

It also includes potential and future outlook and projection of the Saudi Arabia logistics and warehousing market, freight forwarding market, cold chain market, warehousing market, 3PL market and express logistics market.

The report provides trends and developments, major issues and challenges, competitive landscape, competitive benchmarking of major players and comprehensive profile of leading and emerging players operating in the market.

Geographical location of the kingdom has been very favourable towards its logistics industry. Being situated at the crossroads of Asia-Europe and Asia-Africa, it has been one of the promising factors behind such positive growth of Saudi Arabia logistics market.

The government has plans to expand Jeddah and Dammam airport so that their capacity will increase. This will lead to rise in the logistics and warehousing market of the country, as more number of cargo units can be transported through these ports.

The government has announced plans to invest $30 billion in upgrading facilities to enable the kingdom’s ports to compete on the global stage. Furthermore, the expansion in the railways and airline networks in the country will allow more number of cargos to be transported from one place to another.

Rising retail and FMCG industry of the country will accelerate the demand for warehouses storage and transportation and logistics facility. Most of the FMCG and retail industry of the country requires warehousing and cold storage to accommodate all the products safely. Additionally, Booming E-commerce industry will also trigger the demand for logistics and warehouse storage in the country.

Freight forwarding services will increase at a compound annual growth rate (CAGR) of 6.4 per cent during 2016 to 2020.This incline in share of the freight forwarding market will be on account of several expansion projects such as expanding capacity of Jeddah and Dammam port, upcoming industrial cities in the country which will surge the demand for freight forwarding services in the country.

Major players in the kingdom such as Aramex, DHL and others have plans to expand in the coming years to maintain their stronghold in the market, said the report.

“Expanding industrial activities in the country has triggered the demand for logistics and warehousing services. The dominating companies in the industry should focus on expanding the distribution network to cater the untapped pin codes in the country,” said a research analyst with Ken Research.

“The companies should also upgrade its technology to modern digital technology which will increase the cargo handling capacity of warehouses. The companies should also focus on offering multiple value added services to the customers, as value added services is an important parameter for the clients to choose their logistics partners in the kingdom,” the analyst concluded. – TradeArabia News Service




Tags: Saudi Arabia | | logistics | growth |

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