Congestion to increase 8% - report

Tailbacks may get worse before they get better, according to a new report.
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Transportation companies in the Middle East will benefit from 8% growth in road freight volumes a year, though it will come at the expense of congestion as the road networks fill beyond capacity according to research from Booz and Company

The research firm has published its latest report – MENA Road Freight Challenges – which forecasts a continued period of growth for the sector. However, to capitalise on the situation, local governments will need to overcome a limited amount of trade regulations in countries throughout the region.

“The strength of this sector is critical to the economic development of the Middle East,” commented Ahmed El Wetidi, senior associate of Booz
and Company.

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“It’s the connective tissue in the overall transport network that is being created with government investment in projects such as Dubai Logistics City and Bahrain Logistics Zone.”

Although a growing amount of cargo is being transported by road in the Middle East, a lack of regulations has been blamed for increased traffic congestion and decreased safety levels, in addition to infrastructure damage from overweight trucks.

The report has therefore recommended a comprehensive system of oversight to ensure the region has suitable infrastructure in place without compromising on safety or efficiency.

“The impact of the industry’s growth is evident to even the casual observer. There are significantly more trucks on the road throughout the region, as truck operators have been quick to identify profitable opportunities. In fact, the number of licensed trucks has almost doubled between 2001 and 2007, going from 1.3 million to 2.5 million,” continued El Wetidi.

“With more trucks on the road, the Middle East is facing new challenges. First, because regional governments do not rigorously enforce weight regulations, operators overload their trucks, causing structural damage to the roads. Second, traffic is becoming a major issue and commuting time is much higher than Europe and North America.

Finally, expanding trucking operations have led to deterioration in road safety. Overtired drivers, overloaded vehicles and roads that are unsuited to the volume of trucks are causing more accidents in Middle Eastern countries than in Europe,” he added.

To address these issues, Booz and Company has outlined the need for a comprehensive strategy that addresses four critical areas –inefficient governance structures, poor regulations, inadequate infrastructure and limited use
of technology.

“These four issues cannot be addressed in isolation,” stated Alessandro Borgogna, one of the report’s authors.

“Only a comprehensive strategy that addresses them in tandem can improve the operational efficiency of the Middle East road freight sector without jeopardising safety and infrastructure.”

Many reports have highlighted the need for a better road system.