Kuwait warehousing market is expected to register positive CAGR of around 10.1 per cent from 2017-2022, with growth in imports of dairy products, food items, fruits and vegetables and planned capital expenditure in warehousing space expansion, said Ken Research, a global market research firm
Ken Research’s latest publication titled “Kuwait Warehousing Market Outlook to 2022 – by Business Model (Industrial Freight/ Retail, Container Freight, Cold Storage, Agricultural Warehousing) by End Users (Food and Beverages, Chemicals, Electronics, Pharmaceuticals, E-Commerce, Consumer Durables and Others).”
As private sector logistics services providers manage a significant part of the supply of inland warehousing space in Kuwait, providing connectivity between the ports and these warehouses can help address the demand to an extent, said Ken Research.
Kuwait’s upcoming Mubarak Al Kabir Port Phase II is expected to provide impetus to additional port warehousing capacity. Warehousing space is also expected to be increased through projects such as the planned Cargo City which will cater to air cargo.
Sulabiya, Shuwaikh and Mina Abdullah are the regions which have the maximum concentration of warehouses in Kuwait due to easy connectivity with the seaports. Shuwaikh port is the cluster of industrial and retail freight. The logistics companies specialised in this segment include Agility and DHL, APL Logistics, Dolphin, KGL Logistics and many others.
The warehousing market has inclined over the years with an increase in demand for fresh fruits and vegetables and frozen food. The surge in FMCG sector has also impacted the market in a positive manner. The companies owning warehouses have also attributed to the industry such as DHL with one warehouse, Dolphin with two warehouses and UAGSCO with four warehouses.
Demand for closed warehouses has also increased significantly in Kuwait due to the climate temperature that prevails on an average 36.7-degree Celsius.
In addition, with Kuwait import-export business stabilising recently, it has enabled the industry to handle more cargo shipments. This is expected to drive the requirement for import-based warehousing. The sector is also set for capacity expansion, tie-ups with e-commerce players and mainstream application of innovative technologies in the industry.