ABU DHABI: The UAE logistics sector is expected to grow by 4 per cent in 2016, with a compound annual growth rate (CAGR) of 5.7 per cent between 2015 and 2020, a new report has unveiled.
According to a recent report by Frost & Sullivan, the key drivers of the industry are EXPO 2020, national logistics development plans, and trade with Asia and Sub-Saharan African countries. In addition, the emphasis on domestic output has created scope for substantial cargo volume growth to and from the UAE, leading to improved connectivity and network. The UAE’s logistics industry will be supported by ongoing economic diversification, growing domestic demand, development of multimodal transportation, and implementation of new technologies.
In addition, its geographical location gives the trade access to a population base of more than 2 billion people in the region which is predicted to be one of the busiest trade lands globally by 2030. This growth will spur expansion of the logistics service providers (LSP), strengthening their competitiveness and transformational growth through capacity expansion and enhancement in infrastructure investment and technology solutions.
Committed to remain a key driver in the UAE’s burgeoning logistics sector, Globe Express Services has plans for expansion both regionally and globally. The company’s senior executive reviewed strategies and blueprints to unlock the workforce potential during a meeting recently in Dubai. The company recently opened new offices one each in Houston and New Delhi in 2015 and Mersin, Turkey in 2016 in line with its growth plans.
Mustapha Kawam, president and CEO, Globe Express Services, said: “It is a dynamic time for the UAE’s logistics sector – macro economy, new business models, and technology. The sector has played a vital role in the country’s sustained economic growth by contributing for nearly 14 per cent or around $29.8 billion of the UAE’s GDP in 2015. Over the next decade, the logistics industry will enter a new era. Disruptive forces, including technology and operational constraints, fundamentally change the rules of the game.”
Kawam also added that according to a report issued recently by the Council of Supply Chain Management Professionals, “shippers are turning more to third-party logistics providers and their business is growing faster than the GDP, which is a good sign for us.”
Globe Express Services is a full-service, global logistics services provider. Out-of-gauge services are a core offering of the company’s Project Logistics and Management portfolio. Through its Logistics and Compliance Consulting division, GES offers expertise in creative warehouse design, distribution, supply chain execution and material handling solutions for leading retail, wholesale, and consumer product manufacturing companies. The company’s consultancy service also covers selection and implementation of supply chain execution software, including comprehensive systems for warehouse, asset, transportation, yard and labour management.
