The report titled “Saudi
Arabia Dry Logistics and Warehousing Market Outlook to 2025 – Warehousing
Automation and Investment 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.
Saudi Arabia Dry Warehousing
Market:
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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