Saudi Arabia is heading for good domestic freight growth for the next decade thanks toinvestment in economic development, according to TNT’s business in the country.
Saudi Arabia’s domestic cargo demand is expected to grow by a compound annual rate of 4-5% up to2020, while international flows are expected to grow by 5% for air cargo and by 7-8% for sea cargo,TNT SAB Express stated.
Figures from the Saudi Arabian General Investment Authority show that the country’s rapiddomestic development led by planned economic cities indicates strong demand for domestic cargoservices. The cities alone could contribute an additional 86 to 129 million tons per annum orapproximately 30% of the expected growth in cargo flow throughout the kingdom.
Express services companies have been contributing directly and indirectly to this growththroughout the scores of transactions they have completed over the past 12 months. One of the mostactive companies involved in the express services sector is expected to gain more than 30% marketshare in affirmation of the solid growth of the cargo industry in the country.
“The cargo transactions that are playing major roles in economic growth are being carried out bykey market players within various industries such as construction, automotive, oil and gas and eveneducation,” explained Nael Attiyat, Sales and Marketing Director, TNT SAB Express Saudi Arabia. “Inaddition, factors such as the availability of low-cost fuel, a main element in developing theKingdom’s express service industry, are accelerating growth.”
