Transport and Logistics

Navigating Success in Transport and Logistics

Transport & Logistics Consulting

At IBIACO, we work closely with transport and logistics firms across the country, providing pragmatic and actionable advice in areas such as growth strategies, concession bids, and network submissions. Our expert analysis and commercial insight enable our clients to derive greater value from their operations while addressing challenges like regulatory and competitive pressures, funding constraints, and new revenue opportunities.

The GCC's logistics sector, estimated at around USD 35 billion, is primarily driven by Saudi Arabia, UAE, and Oman, which together account for about 85% of the market share. Key contributors to this sector include the oil & gas, infrastructure, and trading industries. In the GCC, the domestic services segment (inland transportation and warehousing) is dominated by local players, while the international service segment (freight forwarding and international transportation by air/ocean) is led by multinational companies such as DHL, TNT, and Agility.

The industry is poised for significant growth due to government investments in infrastructure development, particularly the rail transport network, which will initially serve public transportation needs and later expand to cargo transportation. This is expected to become the preferred mode of transport for commodities like chemicals and petrochemicals. The development of Free Trade Zones (FTZs) by GCC nations has been a major driver of non-oil economic growth, significantly impacting the logistics sector. This has led to an increase in multinational organizations establishing continent-level distribution centers in the GCC, positively influencing the logistics services market. The further development of domestic manufacturing industries, spearheaded by Saudi Arabia, and the creation of cargo-specific seaports, led by the UAE and Jebel Ali Port, are solidifying the GCC's position as a logistics hub for Europe-Asia trade activities.

The logistics sector in the GCC is on a growth trajectory, experiencing mega trends that are enhancing the region's prominence as a logistics hub. The development of exclusive cargo ports and FTZs is boosting the region's potential for international trade logistics. The advancement of rail transport for cargo and the promotion of domestic manufacturing activities are expected to drive the growth of integrated supply chain services.

At IBIACO, we offer comprehensive consulting services to navigate this dynamic sector, ensuring our clients can capitalize on these trends and achieve sustainable growth.