Gurugram, India, Aug. 16, 2023 (GLOBE NEWSWIRE) -- The warehousing market in Saudi Arabia displays a notable fragmentation, characterized by the presence of numerous organized and unorganized small-scale participants primarily clustered in key urban centers such as Riyadh, Jeddah, and Dammam. Among the prominent contenders within this landscape are esteemed entities like LSC Logistics, Agility Logistics, and Almajdouie Logistics.
Ecosystem of Saudi Arabia Warehousing Market
- Mubarrad
- UPS
- FedEx
- Hala Supply Chain
- LSC
- Agility
- DB Schenker
- BAFCO
- Naqel express
- Saudi Post
- Almajdouie
- Bahri Logistics
- Kuehne Nagel
1. Increasing Cold Chain Capacity in KSA
The expansion of cold storage facilities and cold storage logistics in Saudi Arabia has been significantly driven by various contributing factors. Among these factors, the adoption of advanced technologies such as automation and warehouse management systems (WMS) has played a pivotal role in enhancing the overall functionality and efficiency of these facilities. By integrating automation and WMS into the cold storage operations, the industry has been able to streamline processes, reduce human errors, and optimize resource utilization, thereby supporting the growth and effectiveness of the cold storage sector in Saudi Arabia.
Furthermore, recent developments in the cold chain sector highlight important acquisitions and partnerships that are shaping the landscape. An illustrative example is Saudia Cargo's strategic move to include Tower Cold Chain in its approved selection of temperature-controlled containers designated for transporting pharmaceutical, biotech, and life science products. This integration comes through a newly established global rental agreement, signaling Saudia Cargo's dedication to providing a comprehensive range of cold chain products that cater to diverse cargo sizes and temperature prerequisites. The motive behind this expansion is to effectively meet the evolving demands of pharmaceutical clients across the globe.
One noteworthy advantage of Tower Cold Chain's technology is its exceptional reliability in upholding the integrity of transported products, even in the face of extreme heat conditions. A unique attribute of this technology is its capacity to maintain product integrity without relying on electricity. This capability becomes particularly valuable in regions characterized by high temperatures. Consequently, this development underscores the necessity for a robust and reliable solution that ensures temperature stability and prevents deviations in temperature-sensitive shipments, contributing to the overall success and efficiency of the cold chain sector.
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2. Saudi Arabia warehousing market is moving towards real estate Investments with logistic companies promoting partnerships
Amid the landscape of Saudi Arabia's logistics industry, a notable facet emerges in the form of systematically organized warehousing facilities. This burgeoning trend highlights the presence of expansive warehousing infrastructure, with Riyadh standing as a testament to this with a sprawling expanse of 15.4 million square meters dedicated to warehousing operations. Not to be overshadowed, Jeddah boasts an additional 12.3 million square meters, collectively painting a vivid picture of structured warehousing capacity across key cities in the nation.
In parallel, a discernible shift is observable in the manner by which warehouse spaces are managed. The traditionally unorganized sector is grappling to maintain a competitive edge, confronting the substantial influx of investments and monumental leaps in technological advancements that have been witnessed within the warehousing landscape. As these organized and tech-driven warehousing spaces continue to flourish, the unorganized segment faces a challenging endeavor to sustain its market presence and relevance, leading to a discernible erosion of its market share.
A transformative force within this dynamic narrative is the entry of Multinational Corporations (MNCs) into the Saudi Arabian warehousing sector. These MNCs, guided by their unwavering commitment to adhere to and uphold stringent global standards of service quality, have not only stirred the waters but have fundamentally shifted the contours of competition within the sector. Their very presence and standards-driven approach have compelled indigenous companies in Saudi Arabia to realign their practices and operations to mirror these high benchmarks, resulting in the cultivation of an increasingly competitive environment.
In summation, the interplay of structured warehousing capacities, the evolving dynamics of space management, and the influential role of MNCs in elevating service standards collectively underscore the ongoing metamorphosis of Saudi Arabia's warehousing sector. This intricate tapestry weaves together the growth of organized warehousing, the challenges faced by the unorganized sector, and the transformative push brought forth by MNCs, thereby shaping a trajectory that holds significant implications for the future course of the industry.
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Market Taxonomy
KSA Warehousing Market Segmentation
By Ownership
- Owned
- 3PL
By City
- Riyadh
- Jeddah
- Others including Damam and more
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By End-Users
- Consumer Retail
- Food and Beverages
- Healthcare
- Automotive
- Others
By Business Model
- Industrial/Retail Warehouses
- CFS/ICD Warehouses
- Cold Storage
- Agriculture and Other Warehouses
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Saudi Arabia Warehousing Market
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