Logistics Industry Update Q4 2015
Serving as the backbone to many of the GCC governments plans to make its infrastructure more robust, the logistics sector is set to see unprecedented growth in the coming years.
Among the many trends currently happening across the logistics landscape, interestingly, one of them is the falling logistics costs that would provide an increase investment and greater potential for growth across many of the countries in the Gulf region and key logistics hubs around the world.
This is anticipated to cause the global shipping volumes to soar in the coming months and years, with capacity is expected to struggle to keep up, particularly on the roads.
This is one of the large reasons why you have seen such a heavy infrastructure investment from many governments as they look to keep up with the demands.
Current plans in place include a massive regional railway to connect the main 6 Arab GCC member states that is planned to be operational by 2017. This is expected to boost trade within the region, creating thousands of jobs once completed.
Major infrastructure development to public transport systems such at the Doha Metro, Expressway and light railway in Qatar, the Riyadh Metro which has begun construction just over a year ago as well as extension to the King Abdulaziz International Airport in Jeddah in Saudi Arabia are just some of the major projects being built that promises to bring more logistics jobs to the region.
For a full list of the logistic projects that are anticipated to create the most amount of jobs in the future, please see below:
A couple of key factors underpin KSA’s performance in the coming months according to a report by BMI.
The report indicates positive growth thanks to a large export numbers from oil. Despite the fall in oil prices, trade is expected to remain strong thanks to a strong demand for containerised goods through its container ports.
Road freight is expected to see solid growth over the medium term however is expected to slow in 2016.
Where Saudi Arabia will see a real growth is the rail sector, outperforming forecasts and be the basis of many new jobs.
Lets take a look at some of the projects that will be bringing jobs to the logistics industry:
King Abdulaziz International Airport , Jeddah
This in the main airport hub for the west of the Kingdom, near Jeddah. The three-stage development began in 2006 with the aim of catering for 30m Muslim pilgrims bound for the Holy Cities. The $1.5 billion Phase 1 in the 400,000 sq m terminal complex, control tower, access roads and utilities. Phase 2 and 3 will take the airport through to 2035 when it will cater for 85m people annually
The $7bn Red Sea to the Gulf rail line is an integral part of the GCC’s connected rail network. Italferr has been awarded a $37m contract by the Saudi Railways Company (SAR) to design the Landbridge – a 950km line between Riyadh and Jeddah, and a second 115km line between Dammam and Jubail. Transit times for freight between Jeddah and Dammam will be reduced to 18 hours, compared with the current sea voyage of 5-7 days, with capacity for 8m tonnes of freight a year.
Saudi Arabia’s sprawling and congested capital is in a race against time to complete its SR85 billion ($22.5 billion) metro system within four years. Construction began a year ago taking over the city’s business core, to the frustration of drivers facing detours and lane-closures. With 176km of line and 80 stations this is the biggest project of its type in the world guaranteeing a surplus of jobs once completed.
With the Qatar 2030 vision become a very real reality and now less than 15 years away, plans are beginning to fall in place and Qatar is expected to reach its logistical pinnacle.
With the country’s new port slated to open next year, Qatar’s logistics sector is expected to receive a major boost as it sees a massive maritime boost and ability to increase trading significantly more than previously possible.
Let’s take a look at some of the major projects currently being built that will likely bring jobs to the logistics industry.
Hamad international Airport
The Hamad International Airport, has seen the first of two upgrades completed with the second phase of completion expected to be finished in 2018. Once concluded, it is anticipated to be double it’s current capacity and handle up to 50 million passengers per year.
Doha Subway & Rail System
50% of the tunnelling has said to be completed on the new Doha Subway system according to Qatar Rail’s managing director, Abdulla Abdulaziz Al Subaie.
Construction is anticipated to last right through to 2019 where they hope to have the entire system open to the public, including four lines and a total of 37 stations. Expect logistics jobs to be posted some time around then.
Other transport projects, the Lusail Light Rail Transit Network and other long distance rail networks are in the pipeline, but are uncertain as to the start and completion date. This will remain uncertain until a higher concentration of residents and workers move in according to Doha news.
As well as public transport system, an upgrade to Qatar’s transport links by road is currently underway, with a huge national freeway linking key cities and towns expected to be completed by 2016. A higher demand for drivers is expected as new and cheaper logistics routes are explored.
As part of Qatar’s 2030 vision is the establishment of the new Doha Port, expected to cover an area of around 26km2 and go through a series of completion phases, it is expected to be fully completed in the years following the FIFA World Cup. As mentioned earlier, the first phase is expected to open next year and will see numerous of jobs advertised in the coming months.
Although exact figures are not yet confirmed, “The project will leave behind significant legacy benefits and create long-term employment opportunities in the maritime sector.” According to Tim Verdon, programme director, AECOM.
Major projects under construction include the Batinah Expressway and a dual carriageway from Bidbid to Sur. Another 25 road projects are currently being tendered, including roads to connect the Batinah Expressway with the Sultan Qaboos Highway, and the 65 km long Diba-Lima-Khasab coastal road through the challenging mountain terrain of Musandam
A national rail project is also expected to get underway shortly that is likely to bring thousands of jobs to the logistics industry.
The muscat airport upgrade is complete.
In recent tough times, the UAE has truly outperformed its neighbours in setting the precedent for logistics opportunities.
One of the most efficient logistics corridor in the world, they have major logistics hubs such as the Jebel Ali port and free zone with Al Maktoum International Airport, the Dubai World Central logistics hub and the Khalifa Industrial Zone Abu Dhabi (Kizad) that all provide a foundation for strong trade not only in the oil sector but many other sectors as well.
They are now truly putting themselves on the world map in terms of global logistical hubs and as this continues to increase, so too does the number of job opportunities.
There are certainly positions available in the coming term it is a matter of getting your CV in the right place.
If you would like assistance in finding such positions, then upload your CV below and be appointed your very own personal job hunt manager who will help ensure your CV gets under the nose of the right recruiters and headhunters who have vacancies they need to fill!