In its 1st edition, Qatar Transport & Logistics is the country’s only freight transport, logistics and supply chain management event, making it a highly-valuable industry trade fair. Shippers and cargo owners will attend to improve their businesses by finding ways of moving their products more efficiently and by meeting new suppliers.
Qatar Transport & Logistics tackles logistics and supplies for the industries that need it the most: manufacturing, retail, agribusiness, chemical, automotive, electronics, FMCG, food & drink, fashion, pharmaceuticals, construction, aerospace, energy, real estate, recycling, etc.
Throughout 2015-2016 the warehousing segment has been on the rise with improved warehousing solutions provided by major players such as Bu Sulba Warehousing Park and LVQ, according to the research analyst firm Ken Research.
With Qatar being the largest supplier of Natural Gas since past 3 years, the country’s Oil & gas sector has been the largest contributor in the overall logistic & warehousing industry in terms of revenues during 2016.
The key catalyst of the logistics and warehousing market growth in the long run is the development of infrastructure and construction sector owing to the FIFA cup that is to be held in Qatar in 2022. This has caused a spree of development in the country which has increased the trade and warehousing activity. In order to handle large volumes of cargo, the available areas in the ports have been converted to additional container storage areas. Such infrastructural developments at the ports are expected to enhance the customer transactions and also will speed up the process of distribution.
The study also noted that during 2014-2016, the E-commerce market has grown at a tremendous pace in the country with highest per capita spend by an internet user. This has resulted in the increase in the demand of express logistics in the country. The rising number of E-commerce companies has positively impacted the growth of the express logistics services. In fact, the Express delivery market is expected to grow at a CAGR of over 20% from 2016-2021.
According to the report titled “Qatar Logistics and Warehousing Market outlook to 2021” Qatar’s ports authority is investing heavily in the development of ports and other logistics areas. The Ministry of Economy and Commerce’s Technical Committee announced the completion of preparing the lands allocated for the logistics areas project in the southern regions ahead of schedule, in preparation to be delivered to investors in collaboration with the Special Economic Zones Company.
The logistics areas project (with an investment of USD 8.24 billion) is one of Qatari government’s largest projects and includes 1,583 pieces of land (on an area of 6,330,907 sqm). The project will have a positive impact on the market and on the prices of logistics and warehousing in the near future. The project also adds a strategic dimension as it is located close to Hamad Port, Mesaieed Industrial Port and the Orbital Highway, which will serve the specific investments in this project.
A study released by the Ministry of Economy and Commerce has revealed remarkably strong growth in the logistic sector's contribution to Qatar's development. The study showed an increase in transport services and auxiliary transport activities, which account for the bulk of logistics services offered during the early years of this decade.
According to the study, the transport sector and auxiliary transport activities generated 46.5 billion riyals in revenues in 2015, compared to 25.6 billion riyals in 2010, an annual increase rate of 13%.
The study showed that the air transport sector, which represents the backbone of the tourism industry and supports a wide range of productive and service activities through shipping services, has largely contributed to an 80% growth in the total revenues of the transport sector and auxiliary transport activities. The revenues of the air transport sector currently account for nearly three-quarters of the revenues generated by the transport sector and auxiliary transports activities.
The study also revealed that the maritime transport sector, which provides services through three facilities, has also expanded its services. Total revenues grew from 3.7 billion riyals in 2010 to 6.1 billion riyals in 2015, accounting for 12% of the transport sector revenues.
The land transport sector has also expanded, with total revenues of 3.3 billion riyals, a 75% increase in revenues compared to 2010.
The study said Qatar's ranking on the World Bank's biennial Logistics Performance Index is the testament to the state's successful efforts in this regard. Qatar ranked in 30th place globally and second in the Arab world on the Logistics Performance Index 2016 in terms of the competence and quality of logistics services, ahead of 130 countries worldwide—including developed economies.