Monday, September 21, 2020

Saudi Arabia Dry Logistics & Warehousing Market is driven by Increase in demand for Bulk Transportation from the automotive, construction, aerospace and defense, cement, and power generation Segment: Ken Research

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:-

Philippines Logistics Market Outlook to 2024 (Sixth Edition)– By Sea, Land, and Air Freight Forwarding; By Warehousing (Industrial/ Retail, ICD/CFS, Cold Storage, Agriculture), By End Users; By Cold chain market (Cold transportation and Cold storages)

India Road Freight Market Outlook to 2024 – Driven by BS VI Norms, revision in Existing Axle Norms by the Government and Technological Advancements

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249

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