Kuwait Logistics: Increased Competition for Shrinking Market

What is the outlook for the logistics sector in Kuwait?

The western defense contractors have decreased. But on the other hand, there has been a substantial increase in international construction companies. MNC are coming to Kuwait for the Mega projects and the logistics for such companies has been a challenge for the local companies.

We have been successfully able to turn around our business model to cater for such companies. Right now, we have two or three major international contractors on our major customer’s list. We provide logistics support and logistics operations for their operations in Kuwait. There is a shift in the market, but still the logistics’ market is increasing due to the fact that the construction sector is booming with the government projects and international contractors are actually requiring that service more.

In the same time, is it more challenging?

It is the case because the market got shrunk and there are less and less opportunities are less and less. There is a fierce fight and a rising competition. But one thing with logistics is that it is based on quality and only few players can provide quality and international contractors are international organizations do concentrate on the quality. Though it might look that there is a high competition but when it comes to quality, there is only few.

We are successful and we offer the best quality. You have to look if the contracts are renewed or not. One will only know the providers once you only try them. So all these certificates imply testimonies and do come to the real challenges and trials.

I think you have to look if you get a renewable contract that’s when you are doing the best and good on the market, but when your clients are walking away or you are facing law suits or you are banned by some agencies, I think you cannot say that you are the best.

What is the proof that the quality is there?

Yes, I don’t think we have clients that walked away from us since we have signed. Unless there is a force major and the project has been cancelled, but luckily we have been always with the same customers.

We are just increasing our base, but we have never lost clients. As well as for the real estate, we are the best when you look at you tenant list. As Action Real Estate, we have never had a tenant that ever walked away from our projects, because we do provide services. Service is what everybody is looking for right now.

Is it the price that makes the clients converts to?

Price has a major share of the equation but there is services, maintenance, transparency, speed, professionalism. All of these are actually part of the equation.

Just like when you check in a hotel; you can find some hotels that are pricier than the others, but you will not happy with the services. That’s the equation adopted by everyone. It is a mixture between price and service.

What is your vision for Kuwait Dynamics?

As far Kuwait Dynamics, our ambition is to continue developing our logistics department, and we are building up a joint venture with international companies for construction as well. Since we are classified as a grade A contractor in Kuwait, we are beefing up about the construction division to activate it and be a major player within the construction market with the support of international companies that we are in discussion and building up relations with.

Does construction mean warehousing?

It is civil and infrastructure construction which are mainly bridges, roads and certain buildings.