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.
Trade Scenario within Saudi Arabia Logistics and Warehousing Market
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:-
Value Added Services
Others (Al- Khobar, Medina, Tabuk and several other cities)
KSA Dry Freight Forwarding Market:-
Mode of Freight
International and Domestic Freight
International and Domestic Companies
Flow Corridors (International Freight)
NAFTA (North American Free Trade Agreement)
Other Regions (Africa and South America)
KSA Dry Warehousing Market:-
Industrial / Retail
Container Freight / Inland Container Depots
Construction Material / Industrial
Food and Beverage
Others (Agriculture, Chemicals and Rest)
Real Estate Companies
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
Time Period Captured in the Report:-
Historical Period: 2014-2019
Forecast Period: 2019–2025
Four winds logistics
Uniworld Freight Services
BAFCO International Logistics and Shipping Co.
Hala Supply Chain
Platinum shipping and logistics
OCSCL (Oriental Commercial & Shipping)
Kanoo terminal Services
Online Retail Companies Covered:-
Abdullah Othaim Market
For More Information on the research report, refer to below link:-
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)
Ankur Gupta, Head Marketing & Communications