Competition Benchmarking of Top Logistics Players in KSA

Industry Overview

logistics industry in KSA is one of the major logistics markets in the world after UAE and is expected to be the next transshipment hub for Asian, African, and European countries, given the favorable location of KSA. Growth in the industry has been stimulated due to the high ease of doing business and ranked 89^th position in the World.

The industry is dominated by Sea and land freight Movements considering the strong position in Oil Exports and import Dependency for all the Essential Products too. The country has strong trade relations with Asian countries, European countries, and the US. Land freight is usually common with UAE, Bahrain, Jordan, and Egypt. Air freight is quite expensive than any other Mode and is usually used for Express Shipments. The KSA also has a strong warehousing market segment where the real estate players are leasing out their space to logistics companies and Captive players for longer durations. Warehouses are concentrated in areas of Riyadh, Jeddah, Dammam, Al Khobar due to the high population and presence of Seaports. The Courier, Express, and Parcel market is driven by growth in Last-Mile deliveries and the E-Commerce segment in the country.
 

Challenges for Logistics Market in KSA

Over-dependence on Imports and Oil Export Earnings: Levels of domestic manufacturing in the country have remained very low since 2009. Hence, the country is largely dependent upon Imports for essential commodities, food products, Automotives and more. The country is largely dependent upon Oil Export earnings and is providing 100% FDI in retail, Industrial segments to promote Non-Oil Sectors under Vision 2030

Dependence on Expats for Labor: The Lack of Skilled local Labor in Saudi Arabia elevated the dependency on Expats. Due to the more Expat population and lesser minimum wage set by the Labor Ministry laws of Saudi Arabia, the companies prefer to work with Expats at lesser salaries in Saudi Arabia logistics Market.

Limited Progress in E-Payment Gateways: The sophistication level in the country’s e-payment gateways has been well below as compared to more developed international retail markets over the period. Cash on delivery has been the most preferred mode of payment for online shipments in KSA over the past few years.

Congestion at Ports: Uncertainties within the maritime transport industry regarding safety, security, and cyber-security incidents is still a hindrance. Although the Government is trying to automate the Process by Introducing Export, Import Platforms which has reduced a lot of waiting time, congestion, and Long procedures regarding custom clearance on the Ports.

Competition Overview

The competition in the Logistics space in KSA can be divided on the basis of different service segments including Freight Forwarding, Contract Logistics (Warehousing), and Express Delivery.

Domestic and International players such as Bahri Logistics, Kanoo Terminal, Kuehne + Nagel, DB Schenker, DHL, Agility were identified to be dominant when it comes to Air Freight and Sea Freight, as they are associated with some big Groups/Conglomerates or have a strong brand name in the Global Market for their quality services.  Local Domestic Transporters dominate the Road freight Market on the basis of the type of fleets, number of trucks, Prices, delivery periods, and more

While the International Express market in KSA is concentrated among major global players such as DHL, FedEx, and more, the Domestic Express market is more fragmented but is strongly dominated by NAQEL express, SMSA Express, Saudi Post, ESNAD express, and more in Saudi Arabia logistics Market.

Future Growth

The logistics sector in KSA is expected to grow in the future with a dip in 2020 due to lockdown for few days that disrupted the Imports and Export Movements by all Modes which is expected to revie back in 2021. Logistics Companies are growing and updating new technologies such as RFID tags, WMS, Fleet Management Softwares, Blockchain, and ASRS at nominal prices to win their clients by providing quality services and improving customer experience and enhance service quality. The pharma logistics segment and the e-commerce logistics segment are expected to drive growth in the future, given the expected increase in medical products requirements post COVID-19 and the growing penetration of e-commerce in the country.

Key Target Audience:

• 3PL Logistics Companies
• Integrated Logistics Companies
• E-Commerce Companies
• Oil & Gas Companies
• Retail Companies
• Pharmaceutical Companies
• Logistics/Supply Chain Industry Associations

Time Period Captured in the Report:

• Historical: 2015 to 2019
• Future: 2019 to 2025

Companies Mentioned:

• Bahri logistics
• Saudi Post
• NAQEL Express
• Kuehne Nagel
• Almajdouie logistics
• DHL Express
• Fedex Express
• Al Ayed Transport
• SMSA Express
• Tamer logistics
• BAFCO shipping and Logistics
• DB Schenker
• Agility
• JAS Worldwide
• Kanoo Terminal Services
• LSC warehousing and logistics
• Hala Supply Chain
• Namma Cargo
• Wared logistics
• Al Rashed transport
• UPS
• Kerry logistics
• Mubarrad transport
• Hellman logistics
• OCSCL Shipping and Logistics
• Al karsf
• SMT logistics
• Saudi Lana logistics
• Fourwinds logistics
• Takhzeen
• NTF cargo
• Alpha Cargo
• GAC
• Platinum Shipping and Logistics

Key Topics Covered in the Report

• Saudi Arabia Logistics Market Size by Revenues
• Saudi Arabia Logistics Market Segmentation By Type of Service (Freight Forwarding, warehousing, Courier, Express and Parcel Market and Value added services) By Revenues
• Market Segmentation by Modes of Freight (Including Domestic and International Cargo traveled for each Mode of freight, FTK traveled, Price per ton per kilometer)
• The market size of Warehousing (Revenue, Total warehousing Space Average Occupancy, Revenues, Average Price per sqm per month)
• Warehousing Space by Type of Entity (Real estate companies, Logistics Companies, Captive Companies)
• Warehousing Space by Type of Warehouses ( Industrial/ Retail, Agricultural, Cold Storages, ICD/CFS)
• Courier, Express and Parcel Market ( Domestic/ International Revenues, Average Price per Domestic and International Shipments, Total Domestic/ International Shipments)
• E-commerce logistics Market size in Saudi Arabia
• Top Companies dealing in each Service and Sub Service (Land freight, Sea freight, Airfreight By Volume, warehousing companies by warehousing Space, Express companies by International/ Domestic Revenues)
• Top Companies by revenues dealing in each Vertical ( E-commerce, Retail, Oil, and Gas and Pharma logistics)
• Market Share of Logistics Companies in KSA By Service Mix and By Each Industry Verticals
• Competition Analysis of Major Logistics Players in KSA by Revenues
• Competition Analysis of Major Logistics Players in KSA ( including Volume, Average warehousing Space, Fleets, Average Occupancy rate,  Network, Client Retention, Industries catered, Services offered, Technology, Certifications, Strength)