"Saudi Arabia Shipping Report Q3 2010" is now available at Fast Market Research

July 11, 2010 - PRLog -- Q110 results for the Saudi port sector indicate that BMI's predictions of a beginning of a recovery in the sector were correct. Using the country's two bellwether ports as examples, we note that a recovery in throughput volumes is afoot. Total cargo volumes at the Jeddah Islamic Port (JIP) were up 16.68% yearon- year (y-o-y) in Q110, while cargo volumes at the King Abdulaziz Port, Dammam (port of Dammam), grew by 23.14%. A similar recovery can be seen in the ports' container volumes in Q110, with boxes handled at JIP and the port of Dammam up 14.59% and 9.08% y-o-y respectively.

BMI forecasts that growth will return to both ports in 2010. We forecast that tonnage volumes at JIP will increase y-o-y by 0.79%, with box volumes projected to grow by 0.80%. Cargo throughput at Dammam is forecast to increase by 1.32% in 2010, with container levels through the port estimated to grow by 1.42%. It should be noted that our full-year forecasts, when compared with the spectacular growth seen in Q110, are bearish. Although we are encouraged by positive trade volumes in the first quarter of 2010, we are forecasting total trade growth of just 0.71% for the full year. If our predictions for trade growth are correct, y-o-y increases in throughput at the nation's ports will level out in the months ahead. We also note that it is unwise to judge a 12-month period based on just three months, and this is particularly the case for the shipping sector, which weathered its worst downturn on record in 2009 and could see further volatility over the coming months.

This continued volatility has led some in the Saudi Arabian shipping sector to explore ways of diversifying away from the container sector. To date, the most novel approach has been that taken by Hmood Al Ali Khalaf Trading and Transportation, which in May 2010 placed a US$60mn order at the UAE's Drydock to convert a container vessel into a livestock carrier. We note that this diversification into such a niche market will greatly help the shipping line, as Saudi Arabia's livestock demand, centred on demand for poultry, is an area where consumption outstrips supply, with Saudi Arabia's net trade imbalance for poultry standing at 515,000 tonnes.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/71708_saudi_arabia_shipping_re...

Report Table of Contents:

Executive Summary
SWOT Analysis
- Saudi Arabia Shipping SWOT
Global Overview
- Container Shipping Overview
- Dry Bulk Overview
- Liquid Bulk Sector Overview
Industry Trends And Developments
Market Overview
- Jeddah Islamic Port
- Overview
- Terminals, Storage And Equipment
- Expansions And Developments
- King Abdul Aziz Port in Dammam
- Overview
- Terminals
- Expansions And Development
- Multi-Modal
Industry Forecast
- Table: Major Port Data
- Table: Trade Overview
- Table: Key Trade Indicators
- Table: Main Import Partners
- Table: Main Export Partners
Company Profiles
- A.P. MOLLER-MAERSK
- Mediterranean Shipping Company
- CMA CGM
- Evergreen Line
- China Ocean Shipping (Group) Company (COSCO)
- Hapag-Lloyd
- Neptune Orient Lines (& APL)
- China Shipping (CSCL)
- Nippon Yusen Kabushiki Kaisha (NYK)
- Hanjin Shipping
- Mitsui OSK Lines (MOL)

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