Recent Study: Saudi Arabia Freight Transport Report Q4 2013

The outlook for the Saudi Arabian freight transport sector is upbeat. Although some ports will see a contraction in either gross tonnage or container handling, or both, in 2013, this will be slight, and follows extraordinary growth in 2012 as the government stimulus package made itself felt. We believe that growth at Saudi Arabian ports will remain strong over the medium term, and the construction of new facilities will serve to strengthen the sector further.

The other freight modes are also set for strong growth, with air freight performing well with the help of national carrier Saudia, and the country's rail freight sector expanding at an impressive rate. Specific investments in expanding maritime facilities, and in projects such as the Saudi Landbridge and the north-south railway, coupled with strong economic growth on the back of large oil receipts, will continue to boost freight volumes over the medium and long term.

Full Report Details at
- http://www.fastmr.com/prod/712823_saudi_arabia_freight_transport_report_q4_2013.aspx?afid=303

Headline Industry Data

* Total Saudi Arabian trade set to contract by 0.1% in 2013 in real terms, with imports growing 5.0% and exports contracting by 5.0% as oil production decreases. Real trade growth will average 1.7% to 2017.
* Air freight volumes set to grow 7.8% in 2013, to reach 712,680 tonnes. Growth to 2017 to average 6.8% a year.
* 2013 Jeddah Islamic Port total tonnage throughput forecast to shrink by 2.5%. Growth will return in 2014, and will average 0.8% from 2013 to 2017.
* 2013 rail freight volumes forecast to grow by 8.8% in 2013 and to average 8.4% over our forecast period.

Key Industry Trends

Saudi Cargo Sees Growth In H113: Saudia's business has seen a growth of 6% in H113 compared to the same period in 2012. The company moved about 270,000 tonnes in the six-month period ended June 2013, breaking a record figure of 250,000 in H112. In H113, cargo moved on bellies rose by 29% year-on-year (yo- y) with primary contributions from the US of over 50% and the UK of over 40%, while cargo moved by the freighter network grew by 3% y-o-y.

Jeddah Handles 30.6mn Tonnes Of Cargo In H113: Jeddah Islamic Port handled a total of 30.6mn tonnes of cargo in H113. This represented a slight decline from the previous year when the facility handled a total of 30.9mn tonnes. The total accounts for 33.6% of all cargo handled by Saudi Arabian ports in H113.

Saudi, Singaporean Companies Form Shipyard MoU: Bahri has entered into a memorandum of understanding (MoU) with the Singaporean shipbuilding services provider Sembcorp Marine and Saudi Arabian oil company Saudi Aramco. The MoU sees the three companies commit to the preparation of a feasibility assessment for the construction of a new maritime yard in Saudi Arabia.

Key Risks To Outlook

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