Boston, MA -- (SBWIRE) -- 06/16/2014 -- The UAE is expected to continue to see strong growth in 2014, across all of its freight modes. The country is rapidly developing one of the world's top logistics markets through investments in ports, airports, rail and free trade zones. These are utilised by the country's air freight and logistics companies, which are becoming a familiar presence throughout the world, serving the globe from their UAE hubs.

Headline Industry Data

- 2014 air freight tonnes through Dubai International Airport forecast to grow by 5.5% and to average 5.0% to 2018.
- The Khalifa Port is forecast to enjoy growth of 14.5% in 2014, following an estimated expansion of 21.8% in 2013. Growth over the medium term will average 9.9%.
- The UAE's total trade real growth in 2013 forecast to be 7.2% and to average 5.3% over the medium term to 2017.

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Key Industry Trends

Al Maktoum To Get Back On Growth Course In 2014: Al Maktoum International Airport at Dubai World Central (DWC) looks set for a stronger freight year in 2014, with the airport due to welcome the cargo operations of Cathay Pacific and Emirates. The airport suffered its first cargo throughput contraction in 2013, but the inclusion of two of the world's largest airlines are likely to boost freight volumes and get DWC back on its growth track.

Etihad Rail Collaborates With ADPC For Rail Terminal Facility: UAE port operator Abu Dhabi Ports Company (ADPC) has entered into an initial agreement with Etihad Rail to establish a terminal facility at Khalifa Port for bulk containers. In order to provide logistics companies alternative means of transportation, ADPC plans to connect its facilities such as Khalifa Industrial Zone in Abu Dhabi with the neighbouring Khalifa Port.

T3 To Be Largest Semi-Automated Facility, Says DP World: DP World is hoping for its Jebel Ali Container Terminal 3 (T3) to be the world's largest semi-automated facility, according to the company's press release. The T3 is equipped with 19 automated quay cranes, 50 automated rail mounted gantry yard cranes and is 30% more carbon efficient as compared with the conventional terminal operation. It has a container capacity of 4mn TEUs which will take the total capacity of the port to 19mn TEUs.

Key Risks To Outlook

Should tensions between Israel and Iran escalate to any significant degree in 2014, thereby leading to a conflict in the Gulf, then our forecasts for UAE would be seriously jeopardised. On the flipside, growing rapprochement between Iran and the rest of the world could lead to a loosening of current sanctions. As the UAE has traditionally had massive re-export trade with Iran, this could boost volumes at Emirati ports and airports.

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