Saudi Arabia's port infrastructure market has shown promising growth in historical years until 2019 and is expected to continue its growth over the next five years, mainly due to the rapidly increasing demands from the energy sector, said a report.
The kingdom's port infrastructure market owes its growth to the factors like rapidly increasing demands for the better and efficient port infrastructure to maintain the shipment commercial, industrial or recreational, according to TechSci Research.
The market is expected to register an esteemed growth on the account of expanding business through sea shipment and sales.
The kingdom is one of the largest exporters of oil and petroleum and the expanding oil and petroleum industry is one of the major factors supporting the growth of the Saudi Arabia port infrastructure market in the next five years of forecast until 2026 it stated.
According to industry experts, seaport is anticipated to hold the largest revenue shares of the market and assert its dominance over the market segments on the account of rapidly increasing demand for the seaports for the commercial and industrial supply chains.
The country owes its economic growth to the seaports that are actively involved with the exports of oil and petroleum through the sea routes to other countries. Also, container terminals are expected to register significant growth in the upcoming five years on the account of growing demand for the port infrastructure management.
Moreover, rapidly increasing demand from the energy sector is further substantiating the growth of the Saudi Arabia port infrastructure market in the next five years, it stated.
Port terminals are anticipated to generate the maximum revenue shares of the market and dominate the segment on the account of regular shipments that dock.
Moreover, the supply of oil and petroleum to the global countries is also carried out through these terminals, that are actively driving the growth of the Saudi Arabia port infrastructure market in the upcoming five years.
Additionally, Saudi Arabia has ten major ports for the industrial and commercial utilization, namely, Jeddah Islamic Port, King Abdulaziz Port Dammam, King Fahad Industrial Port Yanbu, King Fahad Industrial Port Jubail, Jubail Commercial Port, Yanbu Commercial Port, Jizan Port, Ras al Khair Port, Ras Tanurah Saudi Aramco Port, and Dhiba Port.
The transportation from these ports solely accounts for the 70% of the country’s economy, stated the report from TechSci Research.
The major players in the Saudi port infrastructure market include Zamil Operations and Maintenance Company, Gulf Stevedoring and Contracting, Arab Agricultural Services Company, Red Sea Marine Services Company, National Port Services, Gulf Construction Company for Cargo and Offloading Ltd., Global Marine Services Company, National Port Services Company, Saudi Maintenance Organization and National Ports Services Company (NPS).
These market players hold larger shares of the market than the new market players. With the evolving technology, it is appropriate to say that the effective research and development of the technologically advanced instruments and methods to satisfy consumer demands would support the market growth and benefit the market players as well as the consumers.
New market players may focus on the research and development to provide such products and services that satisfies the consumer demand as well as benefits the market players in building their brand value. Other competitive strategies include mergers & acquisitions and new product developments.
"Saudi Arabia benefits largely from the sea trades and major consumer goods and retails are often supplied through the seaports. Infrastructure evolution is one of the major reasons that port infrastructure market in the country is growing," said Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
"To further aid the well-organized trade activities, the consistent development is required. New market players may research and work on the advanced technology for the efficient working and effective monitoring of the ports in the country," stated Chechi.