Maritime Saudi Arabia 2010
Agility Logistics
KSA MARKET OVERVIEW
KSA Market Overview
Geographic location between East and West and continued
expansion and maintenance of logistics infrastructure has
given KSA a leading role in regional trade
KSA has the region’s most extensive road network in the
Middle East
Total freight tonnage volume across the main modes of
transport to increase by an annual average of 3% between
2010 and 2014
KSA Market Overview
Road Transport Growth
•
Warehousing Growth
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• GCC road freight market is estimated at
$3.5 bn
•
Annual growth rate of demand is
expected to be 7% CAGR
• KSA represents 45% and is projected to
reach USD 2.1bn by 2011
•
Major growth areas are Jeddah, Riyadh
and Dammam
Source: booze&co. 2009 report
KSA Market Overview
Factors that will contribute to the success of the Saudi Landbridge
KSA: domestic advantages
–
Riyadh is the large and fast-growing city
– Consignees prefer clearance at final destination
– Bonded container transport allowed only by rail
– 25 year proven dry port operation
–
Dammam key oil & gas and commercial centre
–
Jubail & Yanbu strategic industrial locations
KSA: regional advantages
–
Largest economy in the region
–
Unique location between two international waterways
–
Jeddah Port is strategicly located
The Saudi Landbridge
CONNECTING THE RED SEA
TO THE GULF
Current scenario
Connecting the Red Sea to the Gulf
•
The Saudi Landbridge (SLB) will be the
first rail link between the Red Sea in the
west and the Gulf in the east.
•
The SLB will provide a world-class
freight rail link across the country,
connecting all major cities and ports
•
Will offer significant time savings
compared to shipping by sea around the
Arabian peninsula (5/6 days)
•
Reduce reliance on the road network
and lower the carbon footprint of the
supply chain
Connecting the Red Sea to the Gulf
Creating a hub
•
In the Gulf region, Jebel Ali has emerged as a regional distribution center. Currently
shipping lines divert from main haul to call at Jebel Ali to deliver the region's containers
•
Because of its hub status, the UAE has benefited twice over from regional growth
•
The introduction of the SLB will develop the required infrastructure to position Saudi as
a viable alternative to other hubs in the region
Resulting in:
•
Avoiding the need to go to other hubs
•
Shorter transit times
•
Quicker route to Riyadh
•
Reduced congestion at other ports
•
Ability for companies to service the largest consumer market in the GCC more
effectively
New scenario
Summary of key benefits to the logistics industry
•
The Saudi Landbridge will be an important step in developing the wider logistics
infrastructure of KSA by servicing all major locations
•
Develop Jeddah as a regional hub
•
Assist KSA ports in their growth by linking Red Sea and Arabian Gulf
•
Help support further investment in logistics, manufacturing and other industries
Achieving this is conditional to:
•
Enhancing the regulatory framework
•
Automating customs systems to facilitate transit formalities
•
Developing major boarder transit points
•
Wider industry investment
Thank you