The
report titled “Saudi Arabia DryLogistics and Warehousing Market Outlook to 2025 – Warehousing Automation andInvestment within Transport Infrastructure to Drive Market Revenue)” provides
a comprehensive analysis of the dry logistics industry of Saudi Arabia. The
report also covers an overview of transportation infrastructure, major economic
/ industrial zones, International benchmarking basis Logistics Performance
Index, overall logistics and warehousing market size and dry logistics market
size and market segmentation by service mix (freight forwarding, warehousing
and value added services including customs clearance) and by regions / cities
(Jeddah, Riyadh, Dammam and Others); dry freight forwarding market segmentation
by freight mode (road, sea, air and rail); by inter-national and domestic freight (road
freight, sea freight and air freight); by flow corridors (Asian Countries,
European Countries, Middle East, NAFTA and Others); and by international and
domestic companies; dry warehousing market segmentation by business model
(industrial / retail warehouses and container freight / inland container
depots), by end users (construction material / industrial, consumer retail,
food & beverage, healthcare, automotive and others), by entities (real
estate companies, captive companies and logistics companies) and by regions /
cities (Jeddah, Riyadh, Dammam and Others); Customs clearance procedures
followed at sea ports and airports, customs clearance revenue by sea and air
out of Value Added Services; Trade scenario, trends and developments, issues
and challenges, SWOT analysis, regulatory landscape, Descision making process,
VAT impact on the logistics and transportation industry and law of public
transport on roads of the KSA; Cost of setting up a logistics business in Saudi
Arabia, Comparative landscape including cross comparison of major players operating
in KSA dry logistics market and cross comparison of major players operating in
KSA online retail market. 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.
Saudi Arabia Dry Logistics and Warehousing Market
The market
showcased a volatile growth trajectory. Dry logistics revenue declined at a
CAGR of single digit CAGR during 2015-2019 due to oil price shock further
leading to an economic slowdown during 2016-2017 period. Saudi Arabia is
located at the crossroads of significant international trade route that
connects Asia, Europe and Africa. This strategic location provides the Kingdom
with a unique advantage over other nations thus, enabling it to become a
leading regional logistics hub. In April of 2016, Saudi Arabia announced its
Vision 2030 which includes transforming the Kingdom into a preferred logistics
hub. It is making continuous efforts to make imports and exports processes more
streamlined. Additionally, government is restructuring the regulations and
structures logistics sector government and opening the way for market
liberalization and private sector participation. Expansion of industrial cities
continues to offer opportunities for foreign investors towards developing the
non-oil manufacturing base, warehousing & logistics segments. For instance,
Pfizer opened a manufacturing facility in the King Abdullah Economic City in the
year 2017. Non-oil manufacturing growth is facilitated by launch of National
Industrial Development and Logistics Program (NIDLP) in Jan 2019 by KSA
government. Various companies are investing in Special bulk trucks and heavy
lift movements to diversify their Revenue streams and Operations. For instance,
Bahri launched new dry-bulk carrier ‘Sara’ & increased their total fleet of
dry-bulk carriers to 6 ships in KSA.
Saudi Arabia Dry Logistics Market Segmentation
By Service Mix (Dry Freight Forwarding, Dy Warehousing and
Value Added Services): The industry is highly
fragmented with few players offering complete end-to-end logistics solutions.
The inability of domestic and international providers to offer nationwide
end-to-end logistics is due to the lack of a capable and willing workforce, as
well as issues around asset ownership, IT requirements, structural and
legislative trade restrictions. The freight-forwarding segment of the logistics
market is the biggest contributor to growth in this sector.
By Regions (Jeddah, Riyadh, Dammam and Others): Jeddah has been dominated in terms of dry logistics revenue
during 2019. The cities of Jeddah & Riyadh have been the most populous
cities in the kingdom. These cities also account for most of the industrial
areas and indicate a high demand for built-to-suit and automated warehouses
therefore, driving revenue from dry goods storage. Lastly, value added services
segment include packaging, labelling, inventory management, cross docking, and
door-to-door delivery.
Saudi Arabia Dry Freight Forwarding Market:
Freight forwarders
offer all a limited range of services depending on their size, number of
personnel, and number of branches. Major Flow corridors include the Asian
region and European countries in terms of freight revenue during 2019. Saudi
Arabia launched new logistics zone in 2019 which is open to private investors
in the Red Sea port city of Jeddah therefore, diversifying the economy away
from oil and creating more jobs for local Saudis. Road was observed as the most
prominent freight mode in Saudi Arabia for dry logistics, followed by air, sea
and rail in the year 2019. International freight had dominant share largely due
to higher exports of F&B, white goods, textile, furniture & machinery,
engineering products, industrial products and others. Asian Countries were
observed to lead in terms of International Freight Movement. Major export
destinations include China, Singapore, India, Malaysia, and Japan. Growth is
expected to be majorly contributed by economic and industrial activities
associated with logistics services such as transportation of goods &
warehousing. The country is concentrating in expanding & developing its
logistics infrastructure such as intermodal connectivity, logistics parks, and
ports, which are expected to create more business opportunities in Saudi
Arabia. KSA government aims to aggressively drive and position 50 islands and
100 miles of Red Sea as a global tourist destination. The 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. 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. All passenger flights remain suspended,
causing capacity constraints. However, commercial aircraft are operating to
carry freight and freighter schedules have been ramped up. Saudi customs
authority has restricted freight forwarders to only two brokers from each company
at all ports of entry, which is causing delays in freight clearances. Free time
has been extended in all air and seaports to 10 days from freight arrival.
Warehousing
industry ecosystem is dominated by domestic companies in terms of warehousing
space, followed by international companies. Ecosystem has underscored asset
monetization deal with Real Estate developers purchasing the warehousing assets
to generate current income under operating lease model to warehousing
operators. Most of the warehouses are concentrated in Jeddah, Riyadh and Dammam
in Saudi Arabia. The major Companies include LSC logistics, Almadjioue
Logistics, Mosanda Logistics, Tamer, Agility, GAC, GSL and others. Construction
Materials / Industrial end user dominated in terms of warehousing revenue
followed by retail, healthcare, F&B, automotive and others in 2019. Industrial
warehouses dominated in terms of dry warehousing revenue and have a regional
concentration in Riyadh, Jeddah, Dammam and Al-Khobar. With increasing
construction of warehousing hubs, the warehousing sector has presented real
estate companies (especially office & retail) with multiple opportunities
owing to their high need for high-quality & automated facilities to carry a
smooth supply chain process. Real estate companies were observed to dominated
in terms of overall warehousing space during 2019 followed by captive companies
and logistics companies. Warehousing within Jeddah region has been undergoing a
major redevelopment, driven by government’s objective to increase industrial
contribution towards GDP. Jeddah region dominated in terms of overall
warehousing space in 2019 followed by Riyadh, Dammam, Al-Khobar and others. Strong
demand is anticipated for full-fledged integrated centers that include
new-generation logistics facilities (built-to-suit automation model) along with
the emergence of 3PL companies that handle stock distribution for companies
with large and sophisticated supply chains. Various reforms introduced by the KSA
government under the Kingdom’s Vision 2030 and increased participation of the
private sector are expected to increase trade therefore, contributing towards
warehousing requirements in future. During COVID-19 pandemic, large areas of
warehousing lands are occupied by an aging supply of conventional warehouses.
KSA market rents dropped by 10-15%, with an average lease rates for
conventional warehouse dropping in 2020. Future supply is expected to be
limited as developers delay development of new projects until market conditions
progress.
Saudi Arabia Customs Clearance Market
Introduction
to concept of E-filing of documents has significantly reduced the average time
for customs clearance even before the docking of the vessel. Majority of Saudi
Customs declarations are now cleared within 24 hours. Increased participation
from local Saudi operators as they enjoy complete / full revenue sharing i.e.
no regulatory constraints for domestic players and they can perform customs
clearance operations on their own. Customs clearance revenue via air mode took
a fall due to limited air freight movement leading to decline in shipments via
air. It is further expected to go down in the near future as air freight mode
is quite expensive compared to sea. Jeddah Islamic Port captures majority of
total transshipment containers (discharged and loaded) in 2019 therefore,
making it the transshipment hub of the Kingdom. With Red Sea on one side &
the Gulf on the other side of KSA, both Jeddah Islamic Port and King Abdul Aziz
Port are placed at strategic locations. Transhipment cargo volumes are driven
by overseas ports in GCC region including UAE and Bahrain. Majority of
containerized transshipment cargo was done via Jeddah Islamic port in 2019 and
the remaining via King Abdulaziz Port in Dammam during the year 2019. Dammam
Port has heavy port congession when compared other commercial sea ports in KSA
owing to its large area.
Comparative Landscape in Saudi Arabia
Dry Logistics and Warehousing Market
Competition was again observed to be highly fragmented
in both freight forwarding and warehousing segment along with the presence of
both international and domestic players. Nevertheless, the local / domestic
players have a larger presence in the market and were observed to compete on the
basis of key clientele, revenue matrix, logistics networking, average pricing,
technological advancement and value added services.
Saudi Arabia Dry Logistics and Warehousing Market Future
Outlook and Projections
Continued
progress towards economic diversification should continue to reduce the
economy’s reliance on hydrocarbons. The government also plans to pump
investment into economic cities and other industrial projects to boost
logistics and transportation centers. The KSA government is highly promoting
the integration of multi-modal hubs across the country. FDI within the logistics
infrastructure development, constructing regional & international logistics
service centres and improving the efficiency of trade routes can collectively
help the country in becoming a hub over long term. The KSA government’s
preference towards domestic and foreign based contracting firms has promoted
competition in the logistics segment. In order to attract new investments, the
government is willing to open its project and tender market to qualified
regional and international firms. Development of New Economic Zones / Cities
such as KAEC to attract foreign investments by providing special incentives is
another program by KSA government. The economic cities are planned to be
located near to sea ports and major consumption bases, which is expected to
bring manufacturing closer to these bases.
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
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
For
More Information on the research report, refer to below link:-
Saudi
Arabia Dry Logistics and Warehousing Market
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