The modest trade recovery in Saudi Arabia will have an impact on the freight transport sector, Business Monitor International said in its "Saudi Arabia Freight Transport Report". BMI forecast that Saudi Arabia's total real trade will grow by just 0.36 percent, after contracting by an estimated – 9.26 percent in 2009. The economy is largely based on oil and demand is still subdued. The report said the Jeddah Islamic Port (JIP) is set to grow by just 0.1 percent in throughput year on year (y-o-y), after volumes through the port fell by -10.47 percent in 2009. Air freight which grew 6 percent in 2009 will only grow 2.4 percent in 2010. Rail freight tons which were up 9.5 percent in tons year-on year are expected to grow only 3.7 percent in 2010. Under the Kingdom's Ninth Five-Year Development Plan approved by the Council of Ministers in early August, SR1.44 trillion ($35 billion) were allocated for various infrastructure and welfare projects. The amount is 67 percent more than the previous plan. Transportation and telecommunications will receive 7.7 percent of this amount and economic resource development 15.7 percent. Economy and Planning Minister Khaled Al-Gosaibi said the five-year plan was prepared in line with a long-term strategic vision aimed at achieving sustained development. The private sector is expected to grow by 6.6 percent annually while non-oil sectors by 6.3 percent and investment 10.4 percent. Air freight infrastructure will be boosted by the plan approved in July to expand King Abdulaziz International Airport in Jeddah that will allow three million tons of cargo to be handled each year. Saudi Arabia's rail freight transport network would expand further with the launch of the North-South Railway, which will ferry minerals from the planned phosphate and bauxite mining projects along its 2,400-km route. The Saudi Landbridge is due for completion in 2014. This will offer freight opportunities for the transport of containers between the country's main container ports, Jeddah and Dammam, passing through Riyadh. The new rail lines not only link Gulf Cooperation Council (GCC) countries with the Kingdom, but it can also connect Saudi Arabia with Europe via Jordan, Syria and Turkey. Estimates of how much freight will actually travel on these routes in 2010 and over the forecast period could change. Road haulage will also benefit from a proposed motorway from the Saudi border with the UAE to Abu Dhabi and will link with the new railways, the report added.
