Non-oil manufacturing growth is facilitated by launch of National Industrial Development and Logistics Program (NIDLP) in Jan 2019 by KSA government who is willing to spent SAR 100 Billion during 2019-2020 period.
Surge
in manufacturing / industrial activities, burgeoning international trade,
rising domestic consumption and ease in government regulations have collectively
influence the warehousing demand in Saudi Arabia. GDP contribution of manufacturing
sector in KSA was evaluated at SAR 376 Billion in 2018. High food import
volumes and an arid climate make it essential for the Kingdom to have robust
transportation & warehousing system.
Vendors
in KSA market provide multiple value-added services to customers, including
packaging and kitting, inventory management and others which is difficult to
maintain during in-house warehouse operations thereby, accelerating the demand
for warehousing on lease and rent on 3PL basis.
Majority
of international players seeking industrial premises in KSA require warehousing
space. However, the country lacks in terms of good quality warehousing
facilities which diverts their preference towards leasing land & construction
facilities instead.
Several
foreign players such as Agility KSA is investing in logistics infrastructure to
offer local & global merchants a one-stop-shop access and link Saudi
infrastructure to Agility’s regional warehousing & transportation network
to facilitate trade throughout the region. It is emerging as a
trans-shipment hub and customers are demanding modern warehouse solutions at
cheaper costs. The Saudi Ports Authority also signed a long term MoU with SISCO
to expand the Red Sea Gateway Terminal at Jeddah Islamic Port.
Major
cities such as Riyadh, Jeddah, Dammam and Mecca are the most populous cities in
the country and are emerging as a hot bed for warehousing
since most of the industrial regions are also located nearby. With the
emergence of Saudi Vision 2030, the country is anticipated to become the
manufacturing hub by encouraging companies to contribute towards the 4th
Industrial Revolution which will augment the demand for industrial warehousing
in the region.
Expansion
of industrial city continues to offer opportunities for foreign investors towards
developing non-oil manufacturing base, warehousing & logistics segments. For
instance, Pfizer opened a SAR 188 Million manufacturing facility in the King
Abdullah Economic City (KAEC) during the year 2017.
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
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
For
More Information on the research report, refer to below link:-
Saudi
Arabia Dry Logistics and Warehousing Market
Related Reports:-
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