Date: 19th July 2006
New report says Middle East express/logistics growth at risk if conflict spreads
According to Middle East Logistics 2006, the latest report published today by Transport Intelligence, the region presently offers logistics and express companies some of the best opportunities in the world. However if the present conflict in Lebanon spreads further throughout the region there would be serious implications for the industry.
The Middle East represents some of the best opportunities for express and logistics companies anywhere in the world, according to the latest report by industry leading market research company Transport Intelligence. However the report, Middle East Logistics 2006, also strikes the note of caution that stellar growth could be compromised by the latest conflict in the region.
According to John Manners-Bell, Chief Executive of Transport Intelligence, although there is no immediate region-wide threat to the prospects for the express and logistics sectors due to the size and socio-economic diversity of the geography, this could change if neighbouring countries are drawn in. The main economic powerhouses are located in the Gulf far to the south of the present conflict. There, the logistics industry is being driven by the buoyant oil sector, rising consumer spend and the construction boom.
The Gulf States also have incredibly ambitious infrastructure investment plans which, if successful, will see the region become a global hub for air and sea cargo. The vast amounts of money being spent on construction, and the rising standards of living will fuel growth of the logistics market for years to come. To meet increasingly sophisticated demand-side needs, the express industry is enhancing the quality and range of its products whilst logistics companies are providing ever-more value adding services. This has led to growth rates ranging from 11% for contract logistics to 25% for express services.
However this could all be risked if the present problems escalate. For instance, the vulnerability of the Straits of Hormuz, the main channel through which crude oil is moved to the West, presents significant supply chain risks. The disruption of the supply of oil to the West, whatever the reason, would represent a major set back to the Gulf�s investment plans. It would also inevitably result in foreign investors, be they banks or logistics companies, becoming less willing to commit resources to the region and logistics growth would be severely compromised.
For more information, on Transport Intelligence�s latest report, Middle East Logistics 2006, go to www.transportintelligence.com.
Ends
Middle East Logistics 2006 contains profiles of all the major markets, logistics and express operators, market sizing and forecasts as well as trade and economic data. It provides essential market intelligence for any company either already present or thinking about entering the region. Price �695/�1015/$1320.
For more information, reports and insight into the global express and logistics markets, or to subscribe to Transport Intelligence�s free daily Logistics Briefing service, go to www.transportintelligence.com.
Mike Nordmann
+44(0)1666 511880
mnordmann@transportintelligence.com
www.transportintelligence.com
About Transport Intelligence
Based in the UK, Transport Intelligence specialises in research and expert analysis dedicated to the global express and logistics industry. Offering a comprehensive portfolio of reports, online portals, company profiles and daily briefings, Transport Intelligence provides strategic analysis to a range of blue chip logistics companies, manufacturers, consultancies and investment banks