How Much is the Current Penetration of Dry Logistics Market in Overall Logistics Market?
Saudi
Arabia dry logistics and warehousing market showcased
a volatile growth trajectory. Dry logistics revenue stood at SAR ~ Billion in 2019
and further declined at a CAGR of ~% 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 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, the government is restructuring the regulations and
structures logistics sector government and opening the way for market
liberalization and private sector participation.
Import and Export value of dry based
products were observed to grow from SAR ~ Billion in 2017 to SAR ~ Billion in
2019 and SAR ~ Billion in 2017 to SAR ~ Billion in the year 2019 respectively.
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 SAR ~ million manufacturing facility in the King Abdullah
Economic City in 2017. 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 ~ billion during 2019-2020 period.
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 and Warehousing Market Segmentation
By Service Mix (Freight Forwarding,
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 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.
The market size increased from SAR ~ billion in 2015 to SAR ~ billion in 2019. The
cities of Jeddah and 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 include packaging,
labelling, inventory management, cross docking, and door-to-door delivery.
Petroleum
products represent a large majority of exports (over ~% in 2018), followed by
petrochemical products, polymers, fertilizers and others. On the other hand,
automobile and auto components account for leading share of imports, followed
by telecommunication devices, vessels, automatic data processing machines,
electrical apparatus, F&B and others.
The
country's trade balance highly fluctuates depending on the oil price and
economy. Main partner countries include China, UAE, Singapore, India and
Belgium in terms of Export Volume whereas on the other hand, China, US, UAE,
Germany and India were observed to be the leading partner countries in terms of
import volume.
How Dry Freight Forwarding Market Is
Positioned In Saudi Arabia?
Freight
forwarders offer all or 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. Development in
infrastructure facilities coupled with government initiatives has collectively
improved the capacity of the ports during 2016-2018. Also, the 10th Development
Plan for the review period 2015-2019 observed an investment of SAR ~ Bn in
economic projects.
KSA Dry Freight Forwarding Market
Segmentation
By Type of Freight: 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. Whereas for liquid / oil based
freight, sea was the most prominent mode followed road, rail and air during
2019.
By International and Domestic Freight:
International
freight had dominant share largely due to higher exports of F&B, white
goods, textile, furniture & machinery, engineering products, industrial
products and others.
By Major Flow Corridors: Asian
Countries were observed to lead in terms of International Freight Movement.
Major export destinations include China, Singapore, India, Malaysia, and Japan.
By International and Domestic Companies:
International
players dominated majorly due to high investments and international freight
movements of goods & services. They carry higher trustworthiness &
credibility.
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:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
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