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Transportation and Storage An Agency of the Department of Economic Development – Government of Dubai A SMALL AND MEDIUM ENTERPRISES DEVELOPMENT PERSPECTIVE OF THE TRANSPORTATION AND STORAGE INDUSTRY IN DUBAI The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be violation of applicable law. Dubai SME encourages the dissemination of its work and will grant permission to reproduce portions of the work promptly. All queries should be addressed to Dubai SME at [email protected] (P.O. Box 66166, Tel:+971 4361 3000, www.sme.ae) CONTENTS 1. EXECUTIVE SUMMARY..................................................................................................................................... 4 2. GLOBAL TRANSPORTATION AND STORAGE INDUSTRY - OVERVIEW ................................................................... 17 MARKET SEGMENTS FOR TRANSPORTATION & STORAGE INDUSTRY ............................................. 17 KEY ACTIVITIES AND PLAYERS IN THE TRANSPORTATION & STORAGE INDUSTRY ....................................................................... 19 KEY GLOBAL TRENDS IN THE TRANSPORTATION AND STORAGE INDUSTRY ............................................................................... 22 3. GCC TRANSPORTATION & STORAGE INDUSTRY - OVERVIEW ......................................................... 29 KEY TRENDS IN THE TRANSPORTATION & STORAGE INDUSTRY IN GCC ................................................................................... 29 4. TRANSPORTATION & STORAGE INDUSTRY IN DUBAI - OVERVIEW ............................................... 34 KEY CHARACTERISTICS OF THE TRANSPORTATION & STORAGE INDUSTRY IN DUBAI ................................................................... 35 EVOLUTION OF THE TRANSPORTATION AND STORAGE INDUSTRY IN DUBAI .............................................................................. 37 5. COMPETITIVENESS OF T&S INDUSTRY IN UAE BASED ON PUBLISHED INDICES ....................... 39 GLOBAL COMPETITIVENESS INDEX (GCI) – RANKINGS FOR INFRASTRUCTURE .......................................................................... 41 TRADING ACROSS BORDERS – PART OF DOING BUSINESS REPORT 2010 ............................................................................... 42 LOGISTICS PERFORMANCE INDEX (LPI), 2010 .................................................................................................................. 49 ENABLING TRADE INDEX, 2010 ..................................................................................................................................... 51 6. INDUSTRY SEGMENTATION .......................................................................................................................... 55 7. MARINE / WATER TRANSPORT INDUSTRY .............................................................................................. 57 KEY TRENDS IN GLOBAL MARINE TRANSPORT INDUSTRY ..................................................................................................... 57 KEY TRENDS IN THE MARINE TRANSPORTATION INDUSTRY IN GCC ....................................................................................... 60 MARINE TRANSPORTATION INDUSTRY IN DUBAI ................................................................................................................ 64 KEY TRENDS IN THE MARINE TRANSPORTATION INDUSTRY IN DUBAI ..................................................................................... 71 KEY ISSUES IMPACTING COMPETITIVENESS OF SMES IN DUBAI ............................................................................................ 72 OPPORTUNITY ASSESSMENT .......................................................................................................................................... 79 8. LAND TRANSPORT INDUSTRY ...................................................................................................................... 81 KEY TRENDS IN THE GLOBAL LAND TRANSPORTATION INDUSTRY ........................................................................................... 82 KEY TRENDS IN THE LAND TRANSPORTATION INDUSTRY IN GCC ........................................................................................... 83 LAND TRANSPORTATION INDUSTRY IN DUBAI .................................................................................................................... 86 KEY ISSUES IMPACTING COMPETITIVENESS OF SMES IN DUBAI ............................................................................................ 94 OPPORTUNITY ASSESSMENT ........................................................................................................................................ 101 9. AIR TRANSPORT INDUSTRY ........................................................................................................................ 103 KEY TRENDS IN GLOBAL AIR TRANSPORTATION INDUSTRY ................................................................................................. 103 KEY TRENDS IN THE AIR TRANSPORTATION INDUSTRY IN GCC ............................................................................................ 105 AIR TRANSPORTATION INDUSTRY IN DUBAI .................................................................................................................... 107 10. WAREHOUSING, FREIGHT FORWARDING & RELATED ACTIVITIES ........................................... 111 KEY TRENDS IN THE GLOBAL LOGISTICS INDUSTRY ............................................................................................................ 112 KEY TRENDS IN LOGISTICS INDUSTRY IN GCC .................................................................................................................. 115 LOGISTICS INDUSTRY IN DUBAI ..................................................................................................................................... 119 KEY TRENDS IN THE REGIONAL LOGISTICS INDUSTRY ......................................................................................................... 123 DUBAI SME – Transportation & Storage Page 2 of 204 KEY ISSUES IMPACTING COMPETITIVENESS OF SMES IN DUBAI .......................................................................................... 125 OPPORTUNITY ASSESSMENT ........................................................................................................................................ 132 11. POSTAL AND COURIER SERVICES INDUSTRY..................................................................................... 135 KEY TRENDS IN THE GLOBAL POSTAL AND COURIER INDUSTRY ............................................................................................ 135 KEY TRENDS IN THE POSTAL AND COURIER INDUSTRY IN GCC ............................................................................................ 138 POSTAL AND COURIER INDUSTRY IN DUBAI ..................................................................................................................... 140 KEY ISSUES IMPACTING COMPETITIVENESS OF SMES IN DUBAI .......................................................................................... 142 12. COMPETITIVENESS OF T&S INDUSTRY ................................................................................................ 146 14. GLOBAL BENCHMARKING ........................................................................................................................ 177 15. POSSIBLE SOLUTIONS TO ENHANCE COMPETITIVENESS .............................................................. 188 INDUSTRY-WIDE ISSUES (BRIEF DESCRIPTION AND POSSIBLE SOLUTIONS) ............................................................................. 190 EXTERNAL ISSUES (BRIEF DESCRIPTION AND POSSIBLE SOLUTIONS) ..................................................................................... 190 ISSUES IMPACTING COMPETITIVENESS OF SUB-SECTORS WITH A HIGH SME PRESENCE (BRIEF DESCRIPTION AND POSSIBLE SOLUTIONS) 191 ISSUES 195 CURRENT INITIATIVES ................................................................................................................................................. 195 POTENTIAL IMPACT OF CURRENT INITIATIVES .................................................................................................................. 195 A. LOW ATTRACTIVENESS OF REGISTERING SHIPS IN DUBAI ................................................................................................ 195 EFFORTS ARE BEING MADE AT DUBAI AS WELL AS FEDERAL LEVEL TO ENHANCE THE BUSINESS ENVIRONMENT FOR THE MARITIME INDUSTRY, WHICH IN TURN WILL LEAD TO INCREASING DUBAI'S ATTRACTIVENESS FOR REGISTERING, OWNING AND FINANCING SHIPS AND THUS A HIGHER DEMAND FOR SUPPORT SERVICES FOR SHIPS. .............................................................................................. 195 REGULATORY ENVIRONMENT: DMCA IS WORKING ON CUSTOMIZING AND PREPARING REGULATIONS THAT ARE AS PER DUBAI’S REQUIREMENTS. ........................................................................................................................................................ 195 DEVELOPING SKILLS: EMIRATES INTERNATIONAL MARINE ACADEMY WAS ESTABLISHED 2 YEARS BACK TO OFFER COURSES FOR THE MARITIME INDUSTRY. ................................................................................................................................................. 195 CHANGES TO THE SHIP REGISTRY: THE NATIONAL TRANSPORT AUTHORITY IS PREPARING A DRAFT TO REFORM THE RULES RELATED TO THE SHIPPING REGISTRY. THE CURRENT RULES ARE
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