Growth Prospects for Dubai Logistics #OFWTraveller

Growth Prospects for Dubai Logistics #OFWTraveller

When it comes to logistics and supply chain management services, very few places are able to live up to the performance that has become synonymous with Dubai. The city has emerged as the most preferred region for international trading and transport logistics.

The development that is evident across various sectors is aligned with the details mentioned in the Dubai Strategic Plan (DSP) 2015.While a good portion of this achievement is due to the strategic location and technological expertise of Dubai, there are other factors that play an important role in providing a major advantage to this logistic hub.

Growth of Dubai

One thing that logistics companies in Dubai can vouch for is the cost effectiveness of the efficient multi-modal transport system in the region which not only helps to save valuable time, but also freight costs. This benefit is in addition to the fact that the technical designs of the transportation systems helps to ensure the safety of the cargo by providing special environment in the storage containers.

The true potential of Dubai's logistics services was evident during the global recession where the government was able to pull through the storm due to the contributions of the logistics sector. During this turbulent scenario, other economies were doing their best to survive while Dubai managed to attract global investors and leveraged its logistics potential.

The government also plays an important role to make the logistics services of Dubai super-efficient. It provides support to the business operating in the region and also undertakes efficient customs facilitation. This has collectively helped to develop the capabilities of Dubai as a prime transit and re-export hub.

This is evident in the fact that Dubai has been known for handling approximately 70% of air cargo in the entire Middle East in 2013. The International Air Transport Association (IATA) has forecasted that Dubai would be amongst the largest international freight handlers with an estimated freight load of 3 million tonnes being handled by 2015.

The logistics sector would witness even more development and large scale expansion owing to the Expo 2020 which would take place after 5 years. This may seem to be a long time, but when it comes to creating scalable processes, 5 years may actually turn out to be less. Dubai not only needs to prepare for the increased population numbers during the Expo, but the management of freight and passengers also needs to be done without causing a lot of hassles.

The continued involvement of the government in the logistics sector, the increased participation of global investors and the increasing number of opportunities for Dubai have certainly paved the path for a bright and lucrative future for the region's growth.

Source: Anissa Lee @GoArticles