Logistics Industry: A growing market
Interview with the CEO of Posta Plus
Express shipping and Logistics Industries are amongst the most rising ones both in the GCC region and in the world. GCC region’s logistics market has proven a fundamental pillar of regional economies and is set to grow at a rate of 7.3 percent CAGR to a value of $66.3bn by 2020. In 2015, logistics accounted for 13 percent of Saudi Arabia’s GDP, and 10 percent of the UAE’s – figures that will have undoubtedly risen in the interim thanks to both countries’ ambitious diversification and development plans. The region’s growing capabilities have given it international recognition. According to the World Bank’s latest Logistics Performance Index, the UAE ranked 13th out of 160 countries, outdoing the likes of Canada, France, Finland, Denmark, and Australia. Against its emerging market peers, the UAE ranks first. Similarly, a report by Kuwaiti logistics firm Agility placed the UAE as the third-best logistics center among 50 emerging markets, behind China and India. Bahrain was ranked fifth, with Oman in sixth and Saudi Arabia in the seventh position.
To know more about this growing market, Middle East Business has interviews Mr Hisham Al Bahar, CEO of Posta Plus.
Q1: Posta Plus is becoming one of the leading Shipping and Logistics Companies in the region and the world; what are the main factors behind this success?
The shipping and logistics scene is rapidly changing; it is witnessing new updates and developments on a daily basis. Therefore; being able to read the forecasts and cope with them is the main strategy that Posta Plus adopted since the very beginning. Our goal was not only establishing a successful company that has presence in the region and the world but to contribute to the whole industry providing creative and state-of-the-art concepts that make the customers’ experience convenient in every sense. Because in such complex and huge industry; it is very important for the customers to feel convenient not only satisfied. The concept that we try to establish that we are the customers’ partners not only service providers and once this concept is established the industry will witness important changes and developments.
Q2: Recently you started your operations in KSA; what are your expectations from the Saudi market?
Saudi Market is one of the most vital and important markets in the region; and we expect a lot from this growing market thanks to the openness and new opportunities that are taking place. Our presence in the KSA market is a huge milestone that we were able to take this year thanks to the efforts of the team. By taking this step we will be able to provide the KSA customers with innovative shipping solutions that are aligned with their needs especially that the e-commerce industry is growing notably there and it has a great future and it would be a great opportunity for us to offer services for such an important type of customers. Posta Plus looks always to empower youth to achieve their goals and we believe that the future of the region depends on the empowered and talented youth who is able to express and achieve and these opportunities for these new industries that mainly attract youth will be a great opportunity for the countries to have an established futures.
Q3: You mentioned the E-commerce industry; to what extent you believe that this new industry will be an important partner for the shipping companies?
As mentioned E-commerce industry is growing rapidly worldwide and in the GCC in particular; this growth offered new job opportunities, enabled good use of new technological trends, and empowered a big number of young males and females to start their own businesses. In order for these E-commerce businesses to grow they need partners and experts in the field of shipping and logistics which form the main pillar of their success. Therefore; we as shipping companies could not only offer our services to these businesses but also help them grow and achieve more through providing them with the services in a professional way through a holistic, innovative, and collaborative approach.
Q4: You expanded your operations in USA how you would compete in such a huge market?
Exactly; the USA market is not only huge but it is also full of opportunities as well as expertise that could be very beneficial for us to grow and contribute to the industry. By entering the USA market we will be able to provide our customers inside and outside USA with a fun and convenient shopping and shipping experience. Online shopping through its tools; the e-commerce websites made the shopping more fun and most importantly more convenient. Therefore; being part of where the industry is being shaped would be an opportunity for our employees to learn and get new expertise and skills which will make them as individuals and us as company more competitive and up to date.
Q5: What are the main concepts that Posta Plus offers?
We offer our customers whether they were individuals (B to C) or businesses (B to B) with a comprehensive set of services that cater to their needs. From shipping an item that was ordered online and deliver it to the customers, to ship, warehouse, get customs clearance, and offer e-fulfillment services; our approach is holistic and comprehensive and it is designed to help customers regardless their needs enjoy a convenient and professional experience that help satisfy their needs or grow their business.
Q6: What are your future plans?
We will continue our expansion plans by entering the Omani market very soon; 2019 was a very successful and exciting year as we achieved more than important milestone and we look for more in 2020 as we consider it a promising year. In 2019 we entered the USA and KSA markets and we expanded our operations in USA and we changed our business name and branding in UAE to become Pplus which is aligned with our main branding and image.