Jordan Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The ambitious economic reforms adopted by Jordan during the last two decades and several structural adjustment programs have resulted in almost double the average Gross Domestic Product (GDP) during the 2010-2018 period and registered a 1.9% growth during 2018. The transport sector which is one of the key components of the infrastructure has a significant impact on the economic development of the country and accounted for around 8.4% of Jordan’s GDP in 2017. The proposed plans to develop a 1,000 km railway network in Jordon which will bring railway connections with Asia and Europe, Turkey, and GCC is anticipated to expand the market trajectory wider. The Ministry of Transport is aiming at exploring Jordan’s strategic position to unveil the country’s potential to be a major trade and transport hub. This includes the standard gauge network for freight traffic that will allow the operation of 1,500-meter trains with a 30 tonnes axle load upon completion. The challenges such as less efficient and effective clearance procedures that are followed by customs and border control agencies, the decline in ease and affordability of arranging significantly priced shipments, less competence among the local logistics players, and the delayed timeliness of shipments in reaching destination have significantly affected Jordan’s Logistics Performance Index (LPI) rankings given by World Bank in 2018. The index ranked Jordan at 81st position for the year 2018 which has significantly dropped when compared with 2014’s 68th rank.

Key Market Trends

The Growing Domestic Market is Anticipated to Help the Market to Expand

The regional instability, which is surrounding it currently is anticipated to drive the market growth. The conflict in neighboring Syria that happened during the study period has made Jordan home to around 630,000 officially registered Syrian refugees which may even more than a million according to the statics. This resulted in an increased domestic consumption that led to a growth rate in local cargoes. This led to a transportation improvement program framed by the Ministry of Transport (MoT). The MoT extended support to the Trade and Transport Facilitation program, which helps to bring private and public stakeholders of the transportation sector together to overcome hurdles faced by them.

Strong Road Freight Transport Segment is Driving the Market

The trucking fleet has been the backbone of the road freight segment of the logistics market in Jordan. More than 55% of Jordon’s trucking fleet is owned by individuals in addition to that, a high percentage of the total number of the fleet has been in service for over the past 15 years. Even though the high travel times to haul containers from the port of Aqaba to Amman are restricting the rapid growth of the road transport segment, the fleet size has been increasing and is registering year on year growth rates in the country.

Competitive Landscape

The report covers major international players operating in the Jordan freight and logistics market. In terms of market share, few of the major players currently dominate the market. The freight and logistics market in Jordan holds great scope for domestic and international companies to expand their business in the country. The key players can expand their market shares by addressing the significant challenges of the Jordan freight and logistics market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support