ME logistics market to hit $27bn by 2012

The transport and logistics market in the Middle East has witnessed double digit growth in recent years, and is forecast to hit $27 billion by 2012, according to a new report by Booz&Company, a global management consulting firm.

Ground transport, air and sea freight will likely grow at approximately 7 per cent compound annual growth rate (CAGR), said the report. Logistics services which comprise warehousing, contract logistics, and freight forwarding, will have a substantially higher annual growth rate of more than 10 per cent.

The report says that the current economic crisis is expected to have a moderate impact on profit margins across most segments but the long term profitability outlook remains positive. The question facing the logistics sector therefore is how to master the challenges ahead and benefit from the long term growth prospects.

Riding the wave of such potential growth, TransOman, the inaugural event for the transport, shipping and logistics sector, organised by Oman International Trade and Exhibitions (OITE) under the auspices of the Ministry of Transport and Communications, is set to boost the country’s logistics element, from October 13 to 15, at the Oman International Exhibition Centre, said an organiser.

A conference on transportation, innovation and challenges will be held from October 14 and 15 alongside the exhibition at the Golden Tulip Hotel in Seeb, Muscat.

“Over the years, Oman’s logistics is witnessing various activities as a logistics hub. With TransOman, we wish to highlight such growth and hope that we will be able to lift the logistics discipline in Oman and maximise on its growth potential in the upcoming years,” said Warith Al Kharusi, head of the TransOman Advisory Committee.