Freight transport sector upbeat in Saudi Arabia
The outlook for the freight transport sector in Saudi Arabian is upbeat according to a recent report published by Business Monitor International (BMI).
The government stimulus package continues to make itself felt through increased consumer confidence, which is driving up container volumes at ports, though BMI notes that this slowed in the first four months of 2013. This will in turn boost road haulage volumes.
Total tonnage volumes at Saudi Arabian ports are also seeing strong growth, and will be supported over the medium term by the massive house-building programme that is getting underway.
The country is well supported by a growing fleet of dry and liquid bulk tankers, which continues to expand through company mergers and vessel acquisitions, and the national air carrier, Saudia, has been generating strong revenue and volume growth.
Specific investments in expanding maritime facilities, and in projects such as the Saudi Landbridge and the north-south railway, coupled with strong economic growth on the back of large oil receipts, will further boost freight volumes.
The Saudi Arabia Freight Transport Report Q3 2013 report found:
- Total Saudi Arabian trade set to increase 1.5% in 2013 in real terms, with imports growing 5.0% and exports contracting by 2.0% as oil production decreases. Real trade growth will average 1.7% to 2017.
- Air freight volumes set to grow 8.5% in 2013, to reach 716,710 tonnes. Growth to 2017 to average 8.5% a year.
- 2013 Jeddah Islamic Port total tonnage throughput growth forecast 0.5%, and to average 5.6% a year to 2017.
- 2013 rail freight volumes forecast to grow by 8.8% in 2013 and to average 8.4% over our forecast period.
For more information about the BMI report click here.