Market Prospects

The land transportation and logistics industry is a fast growing component of the vibrant Saudi economy. Saudi Arabia relies almost entirely on land transportation for the distribution of all goods and commodities that are produced locally or imported. It has no inland waterways and the current railway network covers only a small part of the country.

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Market Prospects

The land transportation and logistics industry is a fast growing component of the vibrant Saudi economy. Saudi Arabia relies almost entirely on land transportation for the distribution of all goods and commodities that are produced locally or imported. It has no inland waterways and the current railway network covers only a small part of the country.

Tonnage carried by land transport companies has grown at an annual average rate of around 7 percent over the past decade, spurred by rapid development of the Kingdom’s non-oil economy. At present the industry is dominated by the movement of mining and quarrying products and petroleum for domestic consumption. Transport of manufactured products and imports have grown at the fastest rate, reflecting the building up of local manufacturing capacity and the import dependence of much of the economy.

Breakdown by market segments, excluding quarries and mining, 2010
Source: Ministry of Planning, Central Department of Statistics, Jadwa

Prospects for the industry are good. Very high levels of government spending over the next few years, primarily on construction projects, will require huge volumes of raw materials to be transported around the Kingdom. Products of the growing local manufacturing industry will need distribution and higher consumer spending will draw in more imports at the same time as an increasing road network enables better penetration of the local market. The Kingdom also offers access to fast-growing regional markets and the dominance of its transport companies should grow as border formalities are reduced in line with regional trade commitments.

Tough competition will keep prices down and give an advantage to those companies that improve the quality of their service. Harnessing advances in technology will allow increasingly efficient fleet management and, where combined with warehousing and associated services, will lead to the provision of sophisticated supply chain management. While the development of the rail network and regulatory changes may complicate the outlook for some companies in the sector, the future appears bright for Mubarrad, which has the skill and agility to response to these challenges and seize the opportunities the Kingdom presents.

Cutting-edge Technology Application

Mubarrad has always been at the heart of transport logistics innovation and pioneer in implementing the Saudi Reefer transport sector. To remain at the cutting-edge of Fleet Management Systems, recently the Company is implementing a sophisticated Enterprise Resource Planning (ERP) system which is seamlessly integrated with the Fleet Management System having a state-of-the-art facility to track any of our vehicle using GPS / GPRS technology.

This proven ERP solution will provide excellent client support through the latest Customer Relationship Management (CRM) systems and ensure customer satisfaction.

In addition, the secured central database of the company will be connected to an advanced Biometric Access Control system which ensures the maximum utilization of our human resources and offers class-leading client services.

Uninterrupted communication between the various departments of the company has been ensured through a sophisticated integrated IT system, which is also connecting our branches with the head office for real-time information exchange.

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