Barloworld Logistics is setting its sights on the Middle East for future growth of its contract logistics services, noting the region is expected to achieve a sustained 6.9 percent compound annual growth rate (CAGR) from 2011 to 2015, according to Transport Intelligence.
Barloworld said it will focus its attention on Qatar, Saudi Arabia, and also the United Arab Emirates as they are projecting a $700 million market growth over the next three years.
It will provide integrated and smart supply chain services to the region with the goal of helping customers align supply chain operations with business strategies. Barloworld said outsourced logistics services can provide the region with strong value savings around operational efficiency, overhead costs, and customer relationships. It already has a presence in the Middle East at the Jebel Ali Free Zone port in Dubai and multiple offices in the UAE.
One of the largest focuses in the region for Barloworld and many others will be Qatar. The country’s contract logistics market rose 23.1 percent by the end of 2011, reaching $118 million.
Barloworld, which is one of southern Africa’s top logistics companies, said the move is part of a larger growth strategy that also includes its recent acquisition of Ecosse Tankers that expanded its operations in the chemical, fuels and hazardous goods sectors.