Thursday, 8 August 2019

Uganda Freight Forwarding Market Outlook to 2023


The report titled Uganda Freight Forwarding Market Outlook to 2023 – By Road, Rail and Air Freight; International and Domestic Freight, Integrated and Contract Freight and By End Users (Food and Beverages and Consumer Retail, Automotive, Healthcare and others)provides a comprehensive analysis of the freight forwarding market in Uganda. It covers the overall size and the future outlook of freight forwarding in Uganda in terms of value, segmentation based on mode of freight, type of freight, end users and service mix. The report also covers the competitive landscape and company profiles of major Freight Forwarding companies. The report concludes with market projections for future and analyst recommendations highlighting the major opportunities for the market.
Uganda Logistics Market Overview and Size
Uganda Logistics Market has not seen a steady growth over the past few years, mainly due to the lack of infrastructural developments. The market is highly concentrated with international players. Uganda was ranked at 66th position in the LPI index of World Bank in 2010. In the year 2016, its rank improved to 58th however by 2018, the country’s LPI rank fell to 102. Between the years 2013-14 and 2017-18, the market has not performed well resulting in a negative single digit CAGR. The major end user of the logistics market in the country includes the food and beverages and the consumer retail industry.
Market Segmentation
By Road, Rail, Air and Sea Freight
Being a landlocked country, the sea freight comes to Kenya or Tanzania and then is transported to Uganda by road. Road fright has the maximum revenue percentage share in freight forwarding however it has experienced a negative CAGR. Road freight is majorly used for international services as the cargo needs to be brought into the land locked country. Railways despite being the cheapest mode of transportation, costing half of road transportation, aren’t widely used due to its poor connectivity.
By Domestic and International Freight
International Freight holds a higher percentage revenue share than domestic freight. The country has a number of FTAs allowing it to grow with international trade. Majority of the cargo which is brought into the country comes into the capital Kampala and then the cargo gets distributed to various cities within the county.
The Mombasa-Kampala highway is used the most for transportation. In the year 2017-18, it accounted for majority share of the revenue in the Uganda freight forwarding market. The major modes of transport that is used for domestic
By Flow Corridors
The Asian region consisting of China, India, Japan, Indonesia and other countries has the maximum revenue share in 2017/18.  The other flow corridors include Common Market for Eastern and Southern Africa region, Middle East, North America, European regions and others.  Coffee is exported the most accounting for 22% of the total value exporter in 2017. Other products include mineral ores, plastics, pharmaceutical products and vegetable oils. Uganda is a part of the East African Community enabling them to have trade with the rest of the world.
By End Users
The main end users for the freight forwarding market include Food, Beverage and Consumer Retail, Automotive Industry, Healthcare and others. Its major demand comes from products such as Coffee, Spices, Tea, Sugar, and Fish among others. Healthcare Logistics is still a growing industry and companies are increasing their distribution points all across Africa in order to promote this further. The government had contributed only 30% of the total expenditure in 2016 towards the healthcare sector. It has plans to increase investment in the healthcare sector in the future.
By Contract Logistics and Integrated Logistics
The logistics market of Uganda is concentrated among few international major players. Despite their operating size and reach, they often outsource certain orders to fulfill the demand. The smaller companies do not have the capacity to fulfill their orders and indulge in third party logistics. Strong relationship between shippers and 3PL providers, and the significance of emerging technologies, including block chain and automation have allowed the third party logistics market to flourish in the country.
Competitive Landscape
The competition within the Freight Forwarding Market of Uganda is highly concentrated amongst international players. The domestic players have a relatively lesser share in the overall market. Some of the major players include Bollore Transport and Logistics Uganda, Spedag Interfreight Uganda and Kenfreight Uganda Limited.
Future Outlook and Projections
The overall freight forwarding market is expected to see a positive single digit CAGR between 2018-19 and 2022-23.  The railways are anticipated to be used more as its connectivity will improve. The new airport at Hoima will help improve the status of air freight and will also bring down the freight cost. New technologies such as Asycuda World, GPD tracking have been adopted which keep a track of the cargo transported thereby preventing the loss and allowing timely delivery of all the cargo.
Key Segments Covered:-
Freight Forwarding Market By
Freight Revenue by Mode
-Road Freight (Revenue, Cost, Major Developments, Road Categories, Major Products transported, Major Companies
-Rail Freight (Revenue, Volume, Railway Network, Major Product’s transported, major companies)
-Air Freight (Revenue, Cargo Traffic, Cost, Import and Export of Mails, Commercial-Non commercial movements, Major products transported, Major Companies)
Revenue by Freight
-Domestic Freight (Revenue, Road Freight, Air Freight, Rail Freight)
-International Freight (Revenue, Road Freight, Air Freight, Rail Freight)
Freight Revenue by Flow Corridors
-Asian Region
Common Market for Eastern and Southern Africa (COMESA) Region
-European Union
-North America
-Others (includes South/Central America, other African regions)
Freight Revenue by Contract Logistics and Integrated Logistics
Freight Revenue by End Users
-Food, Beverages and Consumer Retail                            
-Automotive
-Health Care

-Others (includes construction, chemicals and others)
Key Target Audience
Trucking Companies
Express Logistic Companies
E-commerce Logistics Companies
Airlines
Shipping Companies
Contact Logistics Companies
Mail/ Courier/ Postal Companies
Time Period Captured in the Report:-
Historical Period: 2013-14 to 2017-18
Forecast Period: 2018-19 to 2022-23
Companies Covered:-
Bollore Transport and Logistics Uganda
Spedag Interfreight Uganda Ltd
Maersk Uganda Ltd
Kenfreight Uganda Ltd
CMA CGM Uganda Ltd
Union Logistics Uganda Ltd
Key Topics Covered in the Report:-
Uganda Logistics Industry
Uganda Freight Forwarding Market
Uganda Freight Forwarding Market by Mode of Freight
Uganda Freight Forwarding Market by Type of Freight
Uganda Multimodal Transportation
Uganda Freight Forwarding Flow Corridors
Uganda Freight Forwarding End Users
Uganda Freight Forwarding Market 3PL and Integrated Logistics
Uganda Freight Forwarding Competitive Scenario
Uganda Freight Forwarding Company Profiles
Freight Forwarding Market Trends Uganda
Freight Forwarding Market Growth Drivers Uganda
Freight Forwarding Developments Uganda
Uganda Freight Forwarding Market Future Outlook
Uganda Freight Forwarding Future Outlook
Uganda Freight Forwarding by Mode of Service Future Outlook
Uganda Freight Forwarding by Mode of Freight Future Outlook
Uganda Freight Forwarding End Users Future Outlook
Uganda Freight Forwarding 3PL and Integrated Logistics Future Outlook
Regulatory Environment
Trends and Developments
Issues and Challenges
Analyst Recommendation
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