New Report Says Middle East Express/Logistics Growth at Risk If Conflict Spreads

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 a 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.