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Planned Development across Qatar Moves its Transportation and Logistics Market into a Higher Gear Finds Frost & Sullivan - Freight forwarding emerges as the most significant logistics cost component - Transportation.Frost.com
Planned Development across Qatar Moves its Transportation and Logistics Market into a Higher Gear Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Dubai, UAE, United Arab Emirates, 2013/12/16 - Freight forwarding emerges as the most significant logistics cost component - Transportation.Frost.com.

   
 
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Concerted national and industrial development across Qatar, in line with the Qatar National Vision 2030, has brightened prospects of the country's logistics and transportation market. Even though the market is still nascent, there are strong opportunities for integrated logistics service providers that can offer global-quality end-to-end logistics solutions.

New analysis from Frost & Sullivan (transportation.frost.com), Strategic Analysis of Qatar's Transportation and Logistics Market, finds that the market earned revenues of $7.54 billion in 2012, and is expected to grow to $11.93 billion by 2016. The study covers the segments of transportation, warehousing freight forwarding, and value-added logistics services (VALS).

In preparation for the FIFA World Cup 2022, Qatar has expedited the execution of its national and infrastructure development plans. These development initiatives will require efficient movement of raw material and manpower, creating the need for innovative and reliable logistics services, both on a domestic and global scale.

"Being a largely import-dependent economy, the most important logistics service and therefore, the biggest logistics cost component will be international freight forwarding," said Frost & Sullivan Automotive & Transportation Program Manager Srinath Manda. "The oil and gas sector contributed to 40.6 per cent of the freight forwarding segment, followed by the retail trade and hospitality, and construction service sectors."

While domestic transportation and warehousing services are also vital to all industries, the small size of the nation limits domestic distribution costs. Moreover, the low domestic manufacturing activity for many industries constricts the opportunities for domestic logistics services. This situation is expected to change in due course, as the Government's economic expansion initiatives and manufacturing clusters will reduce the country's dependence on the oil and gas industry.

Meanwhile, third party logistics providers looking to harness the growing potential of the market will do well to acknowledge the hurdles posed by the inefficiency of the logistics infrastructure in the country, as it will have a bearing on their cost and time efficiency.

These challenges will also be resolved in the immediate future, as some of the goals set out in the Qatar National Vision 2030 include the construction of a new airport and sea port, improvement of road infrastructure, and a flagship Doha Rail project for people and freight movement. Furthermore, the country is addressing the lack of skilled logistics specialists by hiring expat personnel at all levels.

"In an effort to diversify Qatar's economy, the Government is exploring ways to make optimal use of its existing resources and manufacturing capabilities," noted Manda. "Initiatives such as the Qatar Automotive Gateway, and the certification of Qatalum for automotive-grade aluminum point toward Qatar's ambitions to become a key automotive manufacturing cluster, which translates to significant opportunities for the logistics market."

If you are interested in more information on this analysis, please send an email to Tanu Chopra / Paroma Bhattacharya, Corporate Communications, at tanu.chopra[.]frost.com / paromab[.]frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Strategic Analysis of Qatar's Transportation and Logistics Market is part of the Transportation & Logistics Growth Partnership Service program. Frost & Sullivan's related research services include: Logistics Market and Contract Logistics in Saudi Arabia and Egypt, and Logistics Market in the UAE and India. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
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Strategic Analysis of Qatar's Transportation and Logistics Market / P62E-13

Contact:
Nimisha Iyer - Corporate Communications Middle East, North Africa and South Asia
P: +91.22.6607 2007 / F: +91.22.2832 4713 - E: niyer[.]frost.com.

 
 
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Planned Development across Qatar Moves its Transportation and Logistics Market into a Higher Gear Finds Frost & Sullivan

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