MENA To Develop Into Worldwide Logistics Centre

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The MENA region is all set to develop into worldwide logistics centre in the next few years.

MENA To Develop Into Worldwide Logistics Centre

MENA To Develop Into Worldwide Logistics Centre

Information has divulged that the transformation will be urged by the materialization of the Mena-Asia deal corridor, that will redefine international supply chains. Remarkably in 2013, India and China placed as leading commodities export and import destinations for Mena markets. Additionally, the Mena region is advantageously situated between the West and the East, serving as an ideal transshipment centre for worldwide business and trade.

The transportation and logistics sector in Mena produced around $66 billion in profits in 2013 of which the GCC accounted for $40 billion .

Infrastructure spending in the region is anticipated to obtain $4.3 trillion by 2020, with an determined and impressive GCC rail network worth $128 billion, numerous light-rail projects worth $76 billion across the region’s metros, and port expansion projects across different markets including the $750 million second terminal at Dammam’s King Abdulaziz Port in Saudi Arabia, Khalifa Port in Abu Dhabi, and Sohar Port and Free Zone in Oman.

One of the findings in the report revealed that Mena corporations are progressively more seeking contract logistics services to concentrate on primary activities and simultaneously carry out logistics activities with better expertise and at a lower cost. The report has also divulged that regardless of strong development potentials, Mena’s transportation and logistics industry encounters numerous challenges. At this time the transportation and logistics sector is extremely divided, which heads to changeable market rules, poor service quality, and inexpert manpower, along with many others concerns.

In the report, the industry has been classified into four divisions with transportation being the most significant division, accounting for 40-60% of the total logistics rate, followed by warehousing 15-20%, freight forwarding (10 per cent) and value-added logistics services 5%. Supporting the results of the report, transportation as well as road transport, sea and air freight, warehousing and freight forwarding in the Mena region tallied for 52%, 27% and 21% of the total cost correspondingly.

Mohamed Dekkak

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