Qatar Warehousing and Logistics Industry Market Analysis – Ken Research

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Qatar Warehousing and Logistics Industry Market
Analysis Ken Research
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How Logistics Warehousing Market Is Positioned
in Qatar? The resurgence of the global economy
from the meltdown in 2009 continued to emerge
through 2011 and 2012, albeit at a sluggish pace.
Logistics providers with strong infrastructure,
efficient organization and processes benefited
from the improving business climate and were
resilient in challenging times. It was observed
that the opportunities were arising in different
regions and products owing to the improvements in
the business climates there was still a large
pressure on the profit margins of even the
largest players in the market. This was due to
the fierce competition with large number of
players trying to advantage from the growing
opportunities.
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• The growth in contract and express logistics lead
  the industry during 2015-2016. The market for
  logistics and warehousing increased to USD
  billion by 2016. The period 2015-2016 has been
  the period of adjustments with fluctuating oil
  prices and reduced investments. Even though,
  there has been a fall in oil and gas projects for
  the logistics providers, the warehousing segment
  has been on rise with improved warehousing
  solutions provided by major players such as Bu
  Sulba Warehousing Park and LVQ. It has also been
  observed that there has been a concentration in
  the competitive structure of the market with
  increase in strategic partnerships such as the
  one between GWC and UPS in 2015.
• How Freight forwarding Market of Qatar is
  Performing?
• Freight Forwarding has been the leading segment
  of the overall logistics and warehousing market
  over the past few years. During the period
  2011-2013, the freight forwarding segment has
  increased due to the expanding oil and gas
  projects along with burgeoning infrastructural
  developments in the country leading to further
  development in the market.

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• Retail and FMCG industry in the country has also
  played an important role in the growth of
  logistics market in Qatar. These industries
  demand freight forwarding services for
  transporting the goods from manufacturing point
  to the selling point. The years 2015 and 2016
  showcased low growth pace as compared to other
  years due to a fall in oil and gas projects even
  when the country remained the largest supplier of
  natural gas. Major projects were signed with
  major players such as GWC and GAC as long term
  contracts, especially in the oil and gas segment
  of the industry.
• Sea freight movement has majorly dominated the
  market for Logistics in Qatar. High amount of
  imports and exports in the country has attributed
  to the increase in the percentage share of sea
  freight. The rising import and export value from
  other countries has triggered the demand of sea
  freight in Qatar.
• In terms of domestic and international freight
  forwarding segmentation, international freight
  forwarding has largely contributed in the
  revenues of the industry.

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What is the Role of Warehousing Market in Qatar
Logistics Warehousing Market? The warehousing
in Qatar has been an important revenue source
apart from the freight forwarding segment. The
country has witnessed the prices rise of around
in warehousing rental annually. The
warehousing industry in the country has hence
observed a growth in terms of revenues as well as
the volume handled by the warehouses in past few
years. Major players in the country have been
observed to increase their warehousing
capabilities such as GWC has recently completed
their fifth phase of expansion of LVQ. The
expansion of manufacturing and industrial
activities in the country has also aided the
market growth during the recent period. The
improvement in infrastructure and expansion of
construction sector has also increased the
requirement of warehousing facilities in the
country.
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What is the Role of Express Delivery market in
Qatar logistics warehousing industry? Due to
the high cost of express delivery as compared to
the normal delivery, the share of express
delivery remained low in early stages during
2011-2013. Moreover, the initial express delivery
started using the road transport which faced
major challenges owing to the border issues. The
express industry market has evolved from the
delivery of documents and parcels to specialist
items such as high-tech products, semiconductors,
fabrics and garments as well. The services
provided by the companies such as guaranteed
delivery services, door to door delivery, order
tracking and others have strengthened the growth
of the express logistics market in the country
During 2014-2016, the E-commerce market has grown
at a tremendous pace in the country and Qatar
been the highest e commerce spending country in
per capita terms. This has resulted in the
increase in the demand of express logistics in
the country. The rising number of E-commerce
companies has positively impacted the growth of
the express logistics services.
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• How is the Third party Logistics Market Evolving
  in Qatar?
• Contract logistics in the country has been
  growing at a tremendous rate in Qatar with
  contracts being awarded out for freight
  forwarding and warehousing. During the period
  from 2011-2013, many major players entered into
  the space while major growth was brought in by
  the leading established logistics player which
  expanded their shares in the market. For an
  instance during 2011, GWC added a new facility
  named 33k into contract warehousing which has
  been the largest third party warehousing facility
  in Qatar with a square metres.
• The third party logistics in the country has
  grown from a of the market in 2011 to around
  of the logistics market on the basis of
  revenues in 2016. The growth has been due to
  rapidly growing e commerce industry in the
  country. The ecommerce companies generally prefer
  to partner with a logistics provider and focus
  more on their functional area of expertise.

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Moreover the growth in the third party logistics
has also spurred due to the increasing number of
contracts offered since more and more
corporations have not been able to manage their
complex supply chains and hence outsource the
contracts to their logistics partners. Key
Factors Considered in the Report Comprehensive
analysis of Qatar Logistics Warehousing Market
and its segments Value chain analysis of Qatar
Logistics Warehousing Market Listed major
players and their positioning in the
market Identified major industry developments in
last few years and assessed the future growth of
the industry
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