Saudi Arabia Dry Logistics Market is Driven by Introduction and Adoption of Newer Technologies that will have Strong Influence on Delivery and Service Offerings in the Industry: Ken Research
The report also covers cost component model for trucking industry in the Kingdom of Saudi Arabia, Warehousing investment and operation model; and container yard models in Dammam and Riyadh regions. The report concludes with future market projections on the basis of overall logistics and dry logistics revenue, by service mix and analyst recommendations highlighting the major opportunities and cautions.
Gurugram, India, Sept. 17, 2021 (GLOBE NEWSWIRE) -- Saudi Arabia News
Key Findings
During Covid pandemic, cargo was backlogged at KSA’s major container ports; travel restrictions led to a shortage of truck drivers to pick up containers and ocean carriers canceled sailings.
Saudi customs authority has restricted freight forwarders to only 2 brokers from each company at all ports of entry, which is causing delays in freight clearances.
Strong demand is anticipated for full fledged integrated distribution centers including logistics facilities, dry storage; cold storage and supporting retail facilities.
Technological advancements would ensure improved supply chain transparency, enhance supply chain security and lead to improved cost efficiency within logistics framework in Saudi Arabia. Rise of automation and VASs to give a competitive edge is changing the way warehouses operate. In addition, warehousing companies are seeking business support, such as IT solutions and financing from both government as well as non-government sources.
Development of Logistics Infrastructure: Government of KSA is taking initiatives for development of economic zones and logistics centers to accommodate the increasing demand of freight forwarding owning to economic diversification & Vision 2030. KSA government aims to aggressively drive and position 50 islands and 100 miles of Red Sea as a global tourist destination. Expansion of Red Sea corridor in Jeddah, the minerals hub in Yanbu, King Abdullah port and NEOM project are also expected to drive the freight forwarding industry. Saudi Arabian government is investing to improve its port infrastructure that envisages using innovative technological solutions to also automate processes & activities. With the new plans of improvement, the rail network is expected to have connectivity with ports, major transport hubs, warehouses, freight terminals, and distribution centres, which will decrease the transportation time from coast to coast (which currently takes about 10 days, and is expected to decrease to 10-15 hours by rail).
KSA Government opened the retail and wholesale sectors to 100% foreign ownership and has launched a large privatization programme. Competition will intensify due to entrance of global players due to flexible rules and regulations thus, leading to surge in M&A’s and further intensifying the competition in the freight forwarding market. The government is also developing Free Zones near KSA airports which are aimed to attract foreign businesses by relaxed licenses & taxation policies, thus increasing more foreign investments in the country.
Increasing adaptation of E-Commerce as a result of restrictions posed by the COVID-19 pandemic will bring change in terms of consumer buying behaviour. Big retailers for instance, Carrefour and Abu Dawood reported surge in online sales of up to 200-300% in 2020 and further expect an escalating growth trajectory in the long-term.
The report titled “Saudi Arabia Dry Logistics and Warehousing Market Outlook to 2025 – Warehousing Automation and Investment within Transport Infrastructure to Drive Market Revenue)” by Ken Research suggested that the dry logistics market is further expected to grow in the near future as companies are willing to expand in terms of fleet size and warehousing space; potential regional opportunities; shifting to asset light model for warehousing / storage availability. The government can establish a logistics manpower framework, establish a skills council for logistics; pricing at sea ports to attract FDI, revise regulations around customs licensing, promoting bonded logistics & strengthen-ing trade relations with other countries. The market is expected to register a positive six year CAGR of 1.3% in terms of revenue during the forecast period 2019-2025F.
Key Segments Covered in KSA Dry Logistics Market:-
Service Mix
Freight Forwarding
Warehousing
Value Added Services
Regions
Jeddah
Riyadh
Dammam
Rabigh
Others (Al- Khobar, Medina, Tabuk and several other cities)
KSA Dry Freight Forwarding Market
Mode of Freight
Road Freight
Air Freight
Sea Freight
Rail Freight
International and Domestic Freight
Road Freight
Air Freight
Sea Freight
International and Domestic Companies
Flow Corridors (International Freight)
Asian Countries
European Countries
Middle East
NAFTA (North American Free Trade Agreement)
Other Regions (Africa and South America)
KSA Dry Warehousing Market
Business Model
Industrial / Retail
Container Freight / Inland Container Depots
End Users
Construction Material / Industrial
Consumer Retail
Food and Beverage
Healthcare
Automotive
Others (Agriculture, Chemicals and Rest)
Entities
Real Estate Companies
Captive Companies
Logistics Companies
Cities
Jeddah
Riyadh
Dammam
Others (Al-Khobar, Medina, Tabuk and other cities)
KSA Customs Clearance Market
Overall Value Added Services
Customs Clearance Revenue by Sea
Customs Clearance Revenue by Air
Transhipment Cargo Volume
Discharged Transhipment Containers
Loaded Transhipment Containers
Key Target Audience:-
International Domestic Freight Forwarders
Warehousing Companies
Logistics Companies
Logistics Consultants
Customer Clearance and Container Yards
Integrated Logistic Companies
Time Period Captured in the Report:-
Historical Period: 2014-2019
Forecast Period: 2019–2025
Companies Covered:-
Karsf
LSC
JAS
Arabco
Mubarrad
Bahri
Defaf logistics
Wolf Logistics
Namma Cargo
Almajdieou
Al Ayed
Agility logistics
Four winds logistics
Globus Logistics
Space logistics
Atlas world
Uniworld Freight Services
Hellman
BAFCO International Logistics and Shipping Co.
Hala Supply Chain
RAZ
Gulf system
Platinum shipping and logistics
MSC
OCSCL (Oriental Commercial & Shipping)
NTF Group
Abdui Global
Al rashed
GAC
Kanoo terminal Services
Online Retail Companies Covered:-
Carrefour
Panda Retailing
Abdullah Othaim Market
Danube
Tamimi Market
Lulu Hypermarkets
Key Topics Covered in the Report:-
Saudi Arabia Overview and Major Economic Zones
Saudi Arabia Dry Logistics and Warehousing Market
Trade Scenario
Saudi Arabia Dry Freight Forwarding Market
Saudi Arabia Dry Warehousing Market
Snapshot on Saudi Arabia Customs Clearance and Transhipment Market
Industry Analysis (Decision Making Process, SWOT Analysis, VAT Impact and Law of Public Transport on Roads of KSA)
Cost of Setting up a Logistics Business in Saudi Arabia
Comparative Landscape – KSA Dry Logistics Market
Comparative Landscape in Saudi Arabia Online Retail Market
Recommendations / Success Factors
Research Methodology
Appendix
Warehousing Automation in Saudi Arabia
Transport Infrastructure Saudi Arabia
Seaport Operations Saudi Arabia
Jubail Port Saudi Arabia
Jeddah Islamic Port Saudi Arabia
King Abdul Aziz Port Saudi Arabia
Maritime Network Saudi Arabia
Yanbu Commercial Port Saudi Arabia
King Fahad Industrial Port Yanbu Saudi Arabia
Jubail Commercial Port Saudi Arabia
Ras Al-Khair Port Saudi Arabia
Dhiba Port Saudi Arabia
Jizan Port Saudi Arabia
Major Trade Routes Saudi Arabia
Port Handling Capacity Saudi Arabia
Saudi Arabia Port Berths
Saudi Arabia Port Terminal Operators
Saudi Arabia Cargo Logistics
Saudi Arabia Warehousing Operations
Trucks on Road Saudi Arabia
King Abdullah Economic City KSA
Dry Logistics Revenue Saudi Arabia
Value Added Services Saudi Arabia
Saudi Arabia Online Freight Platforms
Saudi Arabia Bonded Warehouses & Zones
Saudi Arabia Customs Clearance Procedures
Saudi Arabia Overall Logistics Revenue
Leading Export Categories Saudi Arabia
Leading Import Categories Saudi Arabia
Saudi Arabia Dry Freight Forwarding Market
International Freight Saudi Arabia
Dry Freight Saudi Arabia
Road Freight Saudi Arabia
Sea Freight Saudi Arabia
Air Freight Saudi Arabia
Rail Freight Saudi Arabia
Competition in Saudi Arabia Freight Forwarding
Saudi Arabia Trucking Industry
Autonomous Vehicles in Saudi Arabia
COVID Impact KSA Dry Freight Forwarding Market
Dry Warehousing Revenue Saudi Arabia
Industrial Warehousing Saudi Arabia
Retail Warehousing Saudi Arabia
Container Freight Saudi Arabia
Inland Container Depots Saudi Arabia
Real Estate Companies in KSA Warehousing
Logistics Companies in KSA Warehousing
Jeddah Warehousing Space
Riyadh Warehousing Space
Dammam Warehousing Space
Total Warehousing Space Saudi Arabia
Warehousing Price Saudi Arabia
Logistics and Distribution Centers Saudi Arabia
Warehousing Cost Component Model Saudi Arabia
Major Players Operating in KSA Warehousing Market
Warehousing Management System Saudi Arabia
Robotic Automation KSA Warehousing
Big Data Analytics KSA Warehousing
Drone Technology KSA Warehousing
COVID Impact on Saudi Warehousing Market
Supply Chain Interruptions Saudi Arabia
Supply Chain Disruptions Saudi Arabia
Number of Containers Imported in Saudi Arabia
Air Shipments Saudi Arabia
Container Yard Model in Dammam
Container Yard Model in Riyadh
Transhipment Cargo Volume Saudi Arabia
Loaded Transhipment Containers Saudi Arabia
Saudi Arabia Transhipment Hub
Saudi Arabia Port Terminal Charges
Transhipment Restrictions in Saudi Arabia
VAT Impact on KSA Logistics & Transportation
Cost of Setting up a Logistics Business in Saudi Arabia
Logistics Business Registration Saudi Arabia
Construction Cost for Warehouses Units Saudi Arabia
Logistics Companies in Saudi Arabia
Logistics Companies Fleet Size Saudi Arabia
Logistics Companies Fleet Type Saudi Arabia
Logistics Companies Average Occupancy Saudi Arabia
For More Information on the research report, refer to below link:-
Saudi Arabia Dry Logistics and Warehousing Market
Related Reports:-
The Saudi Arabia logistics and warehousing market was witnessed to remain buoyant over the past five years despite the temporary stagnation of the economy and decrease in oil prices owing to the global oil price shock. The market increased at a positive CAGR during the period 2012 to 2018. The improving road infrastructure, rise in government support in the form of incentives and subsidies, improving corporate working environment due to large availability of expatriate workforce and rise in the industrial activities are expected to support the growth of the market in future. Freight forwarding segment has dominated the logistics and warehousing industry in Saudi Arabia over the past few years.
The industry is dominated by Sea and land freight Movements considering the strong position in Oil Exports and import Dependency for all the Essential Products too. The country has strong trade relations with Asian countries, European countries, and the US. Land freight is usually common with UAE, Bahrain, Jordan, and Egypt. Air freight is quite expensive than any other Mode and is usually used for Express Shipments. The KSA also has a strong warehousing market segment where the real estate players are leasing out their space to logistics companies and Captive players for longer durations. Warehouses are concentrated in areas of Riyadh, Jeddah, Dammam, Al Khobar due to the high population and presence of Seaports. The Courier, Express, and Parcel market is driven by growth in Last-Mile deliveries and the E-Commerce segment in the country.
UAE logistics and warehousing market is on strong and sustainable growth trajectory. The economy has faced volatility in 2013-2019 owning to increasing foreign direct investments, increase investments in infrastructures, negative repercussions of global economic slowdown, 100% ownership in certain sectors and fall in oil prices. Foreign Direct investments in 2016-2018 is estimated to be USD 139 Billion leading to total foreign direct investments of USD 139 Billion in UAE. Government of UAE has consistently taken initiatives to reduce dependence on oil exports due to falling prices. Various government initiatives such as EXPO 2020, Dubai Vision 2020 , Abu Dhabi Vision 2030 and flexible rules and regulations have been taken up to promote economic diversification of the economy.
The industry is home to an extremely strong Freight Forwarding segment, driven by the UAE’s position as a key facilitator for global re-exports. Moreover, given its high dependence on Imports for Consumer Products and Technology, the UAE has strong trade relations with far-Eastern countries, European countries and the US. Given its oil-producing capabilities, the country relies heavily on Sea Freight as a mode of cargo transport, with the service being almost a common feature amongst freight forwarding companies in the country. The UAE also has a strong warehousing market segment, driven by players that lease warehousing space for long durations of time. Warehousing operations near to the Jebel Ali Port and Dubai Airport are considered most favourable to reduce the transportation cost from port to mother-hub. The Courier, Express and Parcel market is driven by growth in Last-Mile deliveries and the E-Commerce segment in the country.
Philippines Logistics Market has witnessed an average CAGR during 2014-19 due to favorable laws from CTAP, Investments in Bridges to promote Inter-island transportation through RORO, and development of ports both by the government and with Public-Private Partnerships. The Current logistics cost comprise 27.16 % of sales in the Philippines which is very high in comparison to other SEA countries. The influx of foreign players, increasing consolidation, Green freight policies by the Government, and investing in innovative technologies has stimulated the growth in the market.
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Ken Research
Ankur Gupta, Head Marketing & Communications
Support@kenresearch.com
+91-9015378249
CONTACT: Contact Us:- Ken Research Ankur Gupta, Head Marketing & Communications Support@kenresearch.com +91-9015378249