“Logistics to Regain Steam Riding on Strong Demand”
In the January 2, 2010 issue of Zawya (UAE), Booz & Company Partners Fadi Majdalani and Ulrich Koegler (Middle East) and Simon Kuge (Europe) predicted a bright future for the logistics sectors of nations of the Middle East North Africa (MENA) region, provided governments continue to make substantial investments in the local production base. “As there are only a few sustainable transport and logistics niche markets, only dominant strategic plays will provide an attractive future for transportation and logistics providers in the region,” the Booz & Company authors write in their report, “Not Too Late: Finding Opportunity in Middle East Logistics.” Though the current economic crisis should have a moderate impact on profit margins across most segments there are several reasons why long-term profitability outlook remains positive, they added: The region has low logistics outsourcing levels when compared to global benchmarks; as well as significantly improved accessibility by road, sea, and air; strong and efficiently managed free zones and good access to markets in the Caucasian and Central African countries. Also, the evolution of global logistics hubs in key locations, such as Dubai, along the Europe-Asia trade route, is showing above-average growth rates, the Booz & Company report said.