1. Market Research
  2. > Transportation
  3. > Logistics and Freight Market Trends
Saudi Freight and Logistics Market - Growth, Trends, and Forecast (2019 - 2024)

Saudi Freight and Logistics Market - Growth, Trends, and Forecast (2019 - 2024)

  • August 2019
  • 349 pages
  • ID: 5815016
  • Format: PDF
  • By Mordor Intelligence LLP

Summary

Table of Contents

Search Inside

Market Overview
The Saudi Arabia freight and logistics market is estimated to be valued at USD 22.95 billion and is estimated to grow at a CAGR of 7.35% during the forecast period.

- The Saudi Arabian freight and logistics industry is a large and dynamic industry, strongly supported by state-led investments in rail, maritime, road, logistics, and airport infrastructures. Economic growth, population maturation, and rapid urbanization are the factors driving the Saudi Arabian government to invest in the massive expansion of the country’s transportation networks.
- In January 2019, the Saudi Arabian energy minister Khalid al-Falih announced that the country is raising USD 427 billion in private sector investments, which may include roughly USD 36 billion for logistics infrastructure. The investment may be used to develop Saudi Arabia into a gateway for the trade supply chains of Africa, Asia, and Europe.
- Saudi Arabia is determined to broaden the role of the private sector, as it pushes to diversify its economy. Private entities are being encouraged to collaborate with the government, as they develop the country’s transport infrastructure. Partnership is being sought for the operation of seaports, airports, and their related supply chains. Public-private partnerships (PPP) are being pursued to fund several key schemes, while a number of the country’s publicly operated transportation facilities are being prepared for full privatization.
- Technology is improving the security, transparency, and control over the import-export process in the country. Currently, importers track the status and progress of their shipments in real time. Customs brokers receive automated notifications on their mobiles about the status of their shipments and are prompted to create their declarations as soon as the shipping manifest is available online, prior to ship arrival.

Scope of the Report
A complete background analysis of the Saudi Arabia freight and logistics market, which includes an assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and logistics spending by the end-user industries are covered in the report.

Key Market Trends
King Abdullah Port is Witnessing Huge Growth in Maritime Throughput

Saudi Arabia has the largest seaport network in the Middle East, with nine major ports and around 200 piers that handle more than 90% of the country’s trade. Out of the nine major ports in the country, six are commercial and the three are industrial ports. The seaports in the country have gradually developed over the years. The number of berths for vessels increased from 33 in 1976 to 224 in 2017. The Saudi Arabian ports have an overall cargo handling capacity of around 600 million metric ton.

Under the national development strategy, Vision 2030, one of the main objectives of Saudi Arabia is to replace the exports of oil and related products with the exports of other products. This objective requires a substantial increase in the seaport and logistical infrastructures for containerized exports. Additionally, the government is boosting the upgrading of ports to better handle the increasing number of ultra-large container vessels (ULCVs) that are traveling across the global shipping lanes.

In addition to the existing nine ports in the country, the King Abdullah Port (KAP) opened in 2014, and it significantly expanded the country’s container-handling capabilities. Additionally, it is one of the largest private infrastructure investments in Saudi Arabia. The KAP makes the country a linking point for the three continents, namely, Asia, Europe, and Africa. All the countries in the region are planning to become logistic hubs for transshipments into Africa.

The King Abdullah Port was ranked the second-fastest growing port in the world in 2018, according to Alphaliner, the global leader in analyzing maritime transport data, port capabilities, and the future of vessels and shipping route development. The port was ranked eighth in 2017. Out of the 100 largest container ports in the world, the port was ranked 83rd in 2018 and was ranked 87th in 2017.

In 2018, the annual throughput of the King Abdullah Port increased to 2,301,595 TEUs, which represented an increase of more than 36%, as compared to that in 2017. Thus, the KAP maintaining its position as the second-largest port in the country, in terms of container handling. The annual increase in throughput in 2018 was primarily achieved in conjunction with an 8% increase in imports and exports, as compared to those in 2017.

Use of Logistics in the Distributive Trade Sector is anticipated to witness Highest Growth

The Saudi retail sector supplies a population that is expected to reach around 35 million by 2021. With recent economic reforms, the sector has been affected mainly by subsidy cuts that have increased utility costs, and by the new Saudization law that has increased labor costs by 15%. Furthermore, seeing stagnation in their real disposable incomes, consumers are increasingly cutting back on spending and looking for ways to save money.

With these reforms and changes, there are retail trends that will influence the industry’s future growth, including offering more budget goods, e-commerce, implementing omni-channel strategies, and artificial intelligence (AI) among others.

The government aims to increase the contribution of e-commerce to 80% of the retail sector by 2020. The success and anticipated pace of growth of the Saudi e-commerce market can be attributed to the fact that 70.49% of the population used the internet in 2017, and this figure is projected to grow to 73.45% in 2022. According to the Saudi Communications and Information Technology Commission (CITC), by 2020, the e-commerce market in the Kingdom is expected to grow to USD 8.35 billion.

Wholesale and retail sector (16% of non-oil GDP) recorded growth of 0.8% in 2018, slightly better than the 0.6% registered in 2017. The improved level of growth in 2018 was achieved despite the introduction of VAT and rising costs related to expat levies.

Competitive Landscape
Shipping and logistics activity relies heavily on road transport services. The market is heavily fragmented and in Saudi Arabia only a handful of large trucking companies providing services, such as Crescent Transportation, Almajdouie Transport, and Saudi Land Transport Company, which compete head-to-head with leading regional and global logistics providers in the Middle East. The warehousing and distribution segment of the transportation and logistics sector is growing rapidly. Several international logistics companies, such as Agility, have been able to penetrate the growing market and win government contracts. Still, there remains significant and increasing demand for experienced providers of logistics, in support of both the transportation side of the sector and the distribution of retail products, throughout the country. It is observed significant number of international players are present in the market. International companies are partnering with local players to form joint ventures. This provides an opportunity for local players to exploit the global network of international companies.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client’s requirements
- 3 months of analyst support

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.
Veronica helps you find the right report:
Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

FAQ
  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers
Vietnam Freight and Logistics Market - Growth, Trends and Forecasts (2019 - 2024)

Vietnam Freight and Logistics Market - Growth, Trends and Forecasts (2019 - 2024)

  • $ 3250
  • August 2019

Market OverviewVietnam is at an inflection point, with a rapidly increasing GDP, young population, and the willingness to adopt new technologies. The logistics market in the country is in its transition ...

Indonesia Freight and Logistics Market - Growth, Trends, and Forecast (2019 - 2024)

Indonesia Freight and Logistics Market - Growth, Trends, and Forecast (2019 - 2024)

  • $ 3250
  • September 2019

Market OverviewThe Indonesian freight and logistics market is currently trading at an inflection point. Being the world’s fourth-largest populated country with an excellent potential for growth, Indonesia ...

Global Cargo Shipping Industry

Global Cargo Shipping Industry

  • $ 5450
  • October 2019

Cargo Shipping market worldwide is projected to grow by 2.9 Billion Metric Tons, driven by a compounded growth of 3.4%. General Cargo, one of the segments analyzed and sized in this study, displays the ...

Global Air Cargo Industry $ 5450 October 2019


ref:plp2019

Reportlinker.com © Copyright 2019. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on