Istanbul, Turkey — The GCC Freight and Logistics market size is valued at US$76 billion in 2024 and is projected to reach US$110 billion by 2030, according to an estimate by Mordor Intelligence, a market intelligence and advisory firm.
Amid this booming industry, the UAE-based Trukkin has emerged as a tech-driven UAE logistics leader, shipping over two million tons of goods through a network of 15,000+ drivers and 650+ transporters, covering land, air, and sea.
In an exclusive interview with TRENDS, Janardan Dalmia, Founder and CEO at Trukkin, shares his insights on navigating today’s logistics sector and empowering it with AI.
The freight and logistics market in the GCC is estimated at US$76 billion. What makes it so?
The GCC is becoming a significant player in the global freight and logistics industry. The region leverages a strategic major hub, advanced infrastructure, and economic diversification to fuel logistics demand. Road transport dominates, accounting for 19 percent of the market, supported by extensive networks and a growing fleet of trucks. A combination of road, air, ocean, warehousing, and rail contribute to its growing market size.
What is Trukkin’ outlook for the future of logistics?
The rapid rate of growth of technology today has never been witnessed before, thanks in part to AI, electric vehicles (EVs), and autonomous technologies. What we thought would take 10 or 20 years to accomplish has now accelerated, transforming the pace at which services are offered and delivered.
How are logistics companies and governments in the GCC looking at reducing the rising costs associated with transport/supply chains?
Fragmented economies, diminishing margins, and increasing competitive intensity are behind the many reasons why more focus is put on costs across all industries and business functions. For logistics companies, this requires a thorough understanding of what today’s customers want. Governments in the GCC are also reducing bureaucracy, and spending money on improving the infrastructure – upgrading the roads and the ports, constructing rail systems, and setting up focused logistic areas. All tasks are directed towards cost reduction and enhancing speed and efficiency.
What are the latest trends in transport and supply chain technologies?
The rise of e-commerce and fast commerce has raised standards, making real-time tracking notifications, or quicker delivery a new norm. IoT is a breakthrough technology that aids companies in tracking their products in transit. It also improves fleet management, enhances warehouse operations, and streamlines supply chain channels. AI is also improving customer satisfaction and enabling smarter deliveries, while also boosting operational process efficiency through predictive analytics. These inventions help meet increasing volume expectations for supply chain operations.
What are the investment needs and opportunities where you operate?
Investment opportunities in the logistics sector span a broad spectrum, from human capital development to building and upgrading infrastructure, adopting advanced technology, and ensuring scalability. Modern storage facilities, specialized supply chains, and cutting-edge technologies are pivotal to meeting the dynamic demands of the market. Infrastructure development, including ports, shipping, and passenger and cargo systems, plays a critical role in seamless operations. Additionally, depending on the business model, investments may focus on investing in technology or acquiring trucks, containers, and essential equipment, building warehousing along with implementing structured plans for regular maintenance, refurbishment, and expansion to ensure sustained growth and operational efficiency.
What strategies are you putting in place to deal with trade and supply chain disruptions?
Even during the pandemic when passenger travel went to zero, commercial activities still had to be undertaken to keep economies afloat. One of the biggest lessons from the last few years has been that it’s necessary to globalize and internationalize your business across geographies as well as across products. Our philosophy is that of resilience and adaptability. The way to survive through volatile business cycles or unpredictable global landscapes is to remain lean and agile.
What opportunities is AI bringing to your sector?
The techniques used in logistics management are enhanced with the use of AI technology. For example, in the area of route planning, delivery paths are automatically adjusted to optimize both time and fuel for a given cost. To ensure the smooth amount of goods flow, Artificial Intelligence makes predictions regarding demand for a particular product at any point in time to avoid over or understocking. The analysis also includes current trends and creates useful suggestions that contribute to an increase in the accuracy of complete and timely orders. Concerning strategic asset allocation, AI automates the deployment of assets such as trucks and warehouses so that the resources are most efficiently distributed.
