Dubai: Logistics company Aramex said yesterday it had begun operating its express land freight terminal at Al Aweer in Dubai, which will act as a regional hub connecting the Middle East and Arabian Gulf.

Aramex's land freight terminal was built to accommodate the growth of business in the region, which, according to Safwan Tannir, Aramex senior vice president of cargo, is expected to grow by 30 per cent during this year.

Tannir attributed this growth to several factors, namely, the hike in oil prices, which places land freight as the less costly option when compared to air freight, and the region's geography and its advanced road network.

"Land freight is the future of shipping in the Gulf, especially once the transitional period of the GCC Customs Union agreement is completed in 2007. Aramex has been diligent in building a solid land freight network and infrastructure to be able to cater to the growing demand," he said.