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Saudi Arabia Freight Transport Report Q3 2010
Market |
Logistics |
Report Type |
Market Research |
Country |
Saudi Arabia |
Published |
15 July 2010 |
Number of Pages |
26 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
Saudi Arabia's rail freight transport network is set for a boost by the end of 2010 with the launch of the north-south railway, which will cater for the freight needs of exporting mineral's from the Kingdom's northern mineral belt via a 1,486km railway line to the country's industrial sectors of Riyadh and Jubail. The amount of freight to be transported on this new route has yet to be announced and so we have held of adjusting our forecasts, but note that the launch of the railway will see upside potential to our current estimates, which predict rail freight in Saudi Arabia to carry 3.456mn tonnes in 2010.
We assert that rail freight's prominence in the Saudi Arabian freight sector is set to expand further in the mid term with another major rail freight project, the Saudi Landbridge due for completion in 2014. The Landbridge will offer freight opportunities for the transport of containers between the country's main container ports, Jeddah and Dammam, passing though the Kingdom's capital of Riyadh.
Unlike in some countries, where the expansion of rail freight sectors is being used to transfer freight from road to rail, we believe that the use of road and rail freight will develop in tandem in Saudi Arabia, where road haulage benefits from cheap pump prices. A plan to construct a motorway from the Saudi border with the UAE to Abu Dhabi, further illustrates how road linkages will still form a vital part of Saudi Arabia's freight make up.
The Kingdom's trade recovery will have an impact on the freight transport sector. We forecast that Saudi Arabia's total trade will grow by 0.71%, after total trade fell by an estimated 9.26% in 2009. This forecast has a knock on effect on our freight transport forecasts, with our tonnage throughput projections at one of the nation's main ports, Jeddah Islamic Port (JIP) set to grow by just 0.79% year on year (y-o-y), after volumes through the port fell by 10.47% in 2009.
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