The key catalyst of the logistics and warehousing market growth in the long run is the development of infrastructure and construction sector owing to the FIFA cup that is to be held in Qatar in 2022. This has caused a spree of development in the country which has increased the trade and warehousing activity in the country. In order to handle large volumes of cargo, the available areas in the ports have been converted to additional container storage areas. Such infrastructural developments at the ports are expected to enhance the customer transactions and also will speed up the process of distribution.
Additionally, the ports authority is investing heavily in the development of ports and other logistics areas. Ministry of Economy and Commerce’s Technical Committee announced the completion of preparing the lands allocated for the logistics areas project in the southern regions ahead of schedule, in preparation to be delivered to investors in collaboration with the Special Economic Zones Company. The logistics areas project (with an investment of USD 8.24 billion) is one of Qatari government’s largest projects and includes 1,583 pieces of land (on an area of 6,330,907 sqm). The project will have a positive impact on the market and on the prices of logistics and warehousing in the near future. The project also adds a strategic dimension as it is located close to Hamad Port, Mesaieed Industrial Port and the Orbital Highway, which will serve the specific investments in this project.
The logistics companies are expected to invest on advanced technology solutions such as autonomous logistics, real-time tracking, automation and robotics in order to provide an improved customer service. The growing international trade, incorporation of advanced technology based solutions will help in an efficient delivery of products by the logistics providers. New technology services such as real time tracking provide complete information about the shipment by offering real time data to the customers. Such advanced technologies also allow inventory management and in determining the amount of products available in a particular site to meet the customer needs. The application of autonomous logistics in warehousing is likely to eliminate human error and will enhance operational productivity. The growing e-commerce industry in the country is likely to create a demand of advanced technology services for efficient supply of products to the end customers.
It has been observed that several major companies have been leading towards warehousing and promoting the segment with higher focus as compared to freight forwarding. The freight forwarding segment provides a lower margins as compared to other segments owing to high competition with large number of firms operating in the segment. Moreover, companies would be looking forward to gain from deficient warehousing facilities by expanding in the segment.
According to Research Analyst, Ken Research, the companies should expand their resources by increasing their fleet and warehousing capacity. Moreover, the companies should focus on regularly updating their warehouse with modern technologies to provide better services to the clients. This has been observed that even though the warehousing facilities are cropping up, there is still a lack of proper facilities. The companies should expand their fleet size by introducing different types of vehicles such as trailers, tractors, bulkers and others for different specifications in their resources, especially for the smaller companies, the lack of trailers hurt their capacity to handle larger contracts.
The report titled “Qatar Logistics and Warehousing Market Outlook to 2021 – Expanding Trade Volume Supported by Infrastructure Spending to Support Growth” provides detailed overview on the Logistics & Warehousing market. This report helps reader to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report is useful for freight forwarding companies, warehousing companies, 3PL companies and express logistics companies and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.
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Saudi Arabia Logistics & Warehousing Market Outlook to 2020 – Expanding Industrial and Retail Activities Supported by Infrastructure Spending to Support Growth
Ankur Gupta, Head Marketing & Communications