GCC 2006 express market set to rise 15 per cent, says TNT Gulf Chief

According to Mark Pell, Saudi Arabia's imminent entry into the WTO and the progressive unification of the GCC, will contribute to growth. However, he warns that initiatives will only pay real dividends if commitment is at all levels of government, especially customs.

"The ambiguity, understanding and application of customs legislation varies from country to country and officials around the region need to consult the industry more regularly to ensure any new implementations can be practically achieved by us and ultimately encourage legitimate trade growth," he said.

"Failure to recognise and deal with these issues in a coherent and timely way will result in businesses creating alternatives and circumventing the system. When this happens, it's generally the freight industry that has to pick up the pieces."

Nevertheless Pell says there is reason for optimism.

"Dubai's relentless quest to register as a truly global city and the significant investment this requires has done wonders for the industry, "explained Pell.

"TNT is not unique in posting 30-40% regional growth in revenues and it's a fact that new players are entering the industry with monotonous regularity, all wanting a piece of the action. Other cities and countries are quickly trying to replicate what Dubai has achieved further spurring regional business."

He adds that in the next few years, some obvious changes are on the horizon.

"As more multinational companies populate Dubai's growing business environment, the bar will be raised, the expectations will be higher and costs will be driven down. We need to ensure staffs are well trained, remunerated and motivated to deliver on these expectations."

"The integrators will all have global networks and infrastructure that's capable of carrying much heavier weights per shipment than they do today. As such, they can and likely will start eating into the conventional freight forwarder's market. Moreover, they all have comprehensive global customer service and I.T resources at their disposal. This, combined with vast ground networks provides competitive advantage for customers. Freight forwarders on the other hand will not easily be able to break into express markets."

Pell adds that efficient borders and gateways will be key to land transportation requirements and vital to supporting economic growth and the provision of services.

"The development of Dubai Logistics City will naturally keep the emirate ahead of the rest of the region. At the same time, proposed links between Abu Dhabi and Qatar, along with a causeway between Qatar and Bahrain will potentially ease congestion at other important gateways.

"The Saudi land bridge could ease congestion at Dammam port if it works effectively in practice. The express industry will be looking to capitalise on these new options."