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Maritime Saudi Arabia 2010 Agility Logistics
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KSA Market Overview
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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
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KSA Market Overview Djjdjkbd
GCC road freight market is estimated at $3.5 bn KSA represents 45% and is projected to reach USD 2.1bn by 2011 Source: booze&co report Road Transport Growth Annual growth rate of demand is expected to be 7% CAGR Major growth areas are Jeddah, Riyadh and Dammam Warehousing Growth
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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
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Connecting the Red Sea to the gulf
The Saudi Landbridge Connecting the Red Sea to the gulf
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Current scenario
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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
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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
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New scenario
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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
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