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Maritime Saudi Arabia 2010. Agility Logistics. KSA Market Overview. KSA Market Overview. 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. 2009 report.
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Maritime Saudi Arabia 2010 Agility Logistics
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. 2009 report • Annual growth rate of demand is expected to be 7% CAGR • Major growth areas are Jeddah, Riyadh and Dammam Road Transport Growth Warehousing Growth
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
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
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