"United Arab Emirates Freight Transport Report Q3 2011" now available at Fast Market Research

New Transportation market report from Business Monitor International: "United Arab Emirates Freight Transport Report Q3 2011"
 
June 8, 2011 - PRLog -- It is BMI's view that the UAE will continue to make concerted efforts to place itself at the centre of the global forwarding network. The air and especially maritime sectors will see healthy growth over the mid term. After an estimated return to growth for the UAE's primary ports in 2010, we forecast this growth to continue over the medium term, albeit at a slower rate than before the global economic slowdown in 2009. The air and logistics sectors in the UAE continues to grow at pace, with more logistics companies relocating their hubs to the country, and national air carriers continuing to expand and post improved results. The country does not yet have a rail freight sector, but the UAE's inaugural state of the art rail network is now under way. Total trade in real terms will also enjoy healthy growth over our forecast period.

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Full Report Details at
- http://www.fastmr.com/prod/169398_united_arab_emirates_freight_transport_report_q3_2011.aspx
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Headline Industry Data

* 2011 Jebel Ali and Port Rashid total tonnage throughput forecast to be 150.18mn tonnes, following an estimated 140.62mn tonnes in 2010.
 *  2011 airfreight tonnes through Dubai airport forecast to reach 2.18mn tonnes and to grow to 2.81mn tonnes by 2015.
 *  UAE total trade real growth in 2011 forecast to be 8.55%.


Key Industry Trends

Rail Development Continues Apace

Etihad Rail's state of the art network is to be focused primarily on freight rather than being utilised as dedicated passenger link between Abu Dhabi and Dubai. There has been a slight deviation from 2010's plan and the AED40bn (US$10.9bn) network will be shorter in length - 1,200km - as opposed to the original 1,500km. The project is to be built in three phases across all seven emirates and will begin in 2012, with the completion date due for 2019. We believe that railway development will not only benefit the states internally, but once they are connected will also help enhance trade between the members of the Gulf Cooperation Council (GCC).

Air Sector Still Flying High

The Abu Dhabi Airports Company (ADAC) is weighing up the possibility of establishing new cargo facilities at the international airport. BMI notes that the growth in throughput at the Abu Dhabi International Airport has been exceptional in recent years.

Fujairah Goes With The Grain

Fujairah, one of the 'northern five' Arab Emirates, has launched a grain-storage programme in a bid to improve food security. BMI notes that the project ties in with the effort being made by the UAE's central government to invest in the poorer, smaller emirates, while at the same time lessening the reliance on shipping goods through the congested, and strategically vulnerable, Straits of Hormuz.

Key Risks To Outlook

On the downside, if oil prices fell significantly, given Dubai's debt burden and the overall fiscal spending bill, the UAE could find itself in real trouble quite quickly, though with oil prices currently high that should not be a problem in the short term. The UAE has hundreds of billions of dollars in sovereign wealth assets but not all of these are liquid, as shown by the dramatic halving of central bank foreign exchange reserves in the midst of the economic slowdown and real estate decline in 2009. If the government had to start raising income tax, then it would risk political instability and taking away the single greatest incentive it has to offer expatriates.

Additionally, as much as 80% of the population of the UAE is foreign and despite the government's best efforts, private sector firms consistently find non-Emiratis cheaper and more qualified to meet their needs. By law, firms have to employ a certain percentage of locals, however, the system is flawed. BMI's contacts in the Gulf in general say that these policies force them to pay more for less qualified personnel and it seems that locals are not happy either: 60% of UAE nationals working in the private sector have resigned from corporate positions due to 'a lack of career progression and the absence of a mentoring culture among others', according to a study conducted last year by government-sponsored Emirates National Development Programme (ENDP). To redress these imbalances, the quality of education in the UAE will have to improve, and government salaries may also have to fall, in order to reduce its relative appeal compared with the private sector and increase the competitiveness of the local labour market.About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
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