JEDDAH: Saudi Arabia's rapid domestic development led by planned economic cities indicates strong demand for domestic cargo services, an industry official said, citing figures from the Saudi Arabian General Investment Authority. The cities alone could contribute an additional 86 to 129 million tons per annum or approximately 30 percent of the expected growth in cargo flow throughout the Kingdom, said Nael Attiyat, Sales and Marketing Director, TNT SAB Express Saudi Arabia. Saudi Arabia's domestic cargo demand is expected to grow by a compound annual rate of between 4 and 5 percent, while international flows are expected to grow by 5 percent and between 7 and 8 percent for air and sea cargo, respectively. Express services companies have been contributing directly and indirectly to this growth throughout the scores of transactions they have completed over the past 12 months. One of the most active companies involved in the express services sector is expected to gain more than 30 percent market share in affirmation of the solid growth of the cargo industry in the Kingdom. "The cargo transactions that are playing major roles in economic growth are being carried out by key market players within various industries such as construction, automotive, oil and gas and even education," Attiyat said. "In addition, factors such as the availability of low-cost fuel, a main element in developing the Kingdom's express service industry, are accelerating growth."
