23 May 2018

Brunei freight and logistics market was worth US$157.25 million in 2017

The Brunei Freight & Logistics Market Study - Market Trends, Analysis & Forecasts to 2023 report by Mordor Intelligence has been added to ResearchAndMarkets.com's offering.

The Brunei freight and logistics market was worth US$157.25 million in 2017 with its biggest opportunity in the multi-trillion dollar halal industry. Mordor Intelligence says that the country maintains a pristine image and is looked upon by the Islamic world as a centre of Islamic culture.

The strategic location of Brunei for China and its synergies with the Belt and Road project, open up immense opportunities for the halal certification industry in Brunei. The connections of China with Middle Eastern and Central Asian countries which are being established through the Belt and Road initiative, open up immense opportunities for Brunei. Coupled with oil and gas reserves, Chinese government see a lot of opportunities in Brunei and has been ramping up investments in the country. The Guangxi-Brunei Economic Corridor was set up to tap the halal trade in 2014. A bio-innovation zone is being developed and augmented post this partnership.

The Brunei Halal brand was a first-mover concept, the consultancy added. Kerry Logistics and the government of Brunei partnered to build Brunei Halal internationally, and provide a range of products and services under the brand umbrella. 

According to Mordor, investments in land transport infrastructure and services remain crucial for Brunei’s future economic and social development. At the same time, the country faces various  challenges, such as congestion, journey time delay, and pollution. Additionally, concerns over road safety are increasing.

The market could receive a boost from infrastructure expansion. Two sites, in Kampong Long Mayan and Kampong Binturan have been identified as possibilities for a second international airport. Muara Port plans to extend the container wharf to serve as a second container berth to a total quay length of 400 m.

Customs tax reduction for several items will also impact the industry. The machinery and industrial equipment that utilise electricity will see reduction from 20% to 5% and heavy vehicles will see a reduction from 20% to 5%.

Companies mentioned in the report include:

DB Schenker
Kerry Logistics
Yusen Logistics