Crude Awakening
By admin • Jul 6th, 2008The pivotal Umm Qasr is set for privatization, which will further drive trade growth. The deadline for requests was June 15 and a consultant will be appointed this summer to seek contractors and operators to build a container terminal, and take up a 25-year concession to manage the port.
The ripples of Iraq’s emerging status are being felt across the Gulf. The reconstruction of Iraq has provided Kuwait with substantial business opportunities for supply, storage and as a logistics centre, and Kuwait’s services sector – particularly financial services, retail and logistics – is growing at 8 percent a year. Kuwait is even building a new port to take advantage of all the trade. Meanwhile, to the west, Jordan is looking to establish a joint free-trade zone at the Karama border crossing to ease the expected flow of goods between the Iraq and the Hashemite kingdom, with tax exemptions and a fast regulatory process.
And Iran is also getting on the action. The value of exports to Iraq is now worth around $1.8 billion annually for Tehran, with the increase in trade attributed to “cultural and religious commonalities.” Iran hopes a 10-year plan will ramp up bilateral trade to around $10 billion a year.
Bahrain is specifically targeting Iraq and the re-export business with its new 475,000-square-meter Bahrain Logistics Zone. And Iraq is among Dubai’s top three re-export partners for spare parts and car accessories. It is clearly on the city’s radar, evidenced by the “Investing in Iraq’s Industry” summit held in April, although interestingly other emirates are now muscling in on Iraqi opportunities.
The MV Sima Tina berthed at KGL Ports International Container Terminal at Ras Al Khaimah in March, marking the first direct container service between the northern UAE port and Umm Qasr.
Operated by feeder operator Simatech Shipping, a total of 134 twenty-foot-equivalent-units export cargoes were loaded on the 20,578-ton vessel on the first service.
Osama Hussain, KGL Ports International’s deputy managing director at Mina Saqr Container Terminal, said the service complements existing Gulf services directly linking Ras Al Khaimah with Bandar Abbas, Karachi, Mundra and Mumbai and gives the northern Emirates’ exporters a stronger foothold in Iraq. However, he anticipates a 60-40 split in favor of transshipment over local business. Cargoes on the route include foodstuffs, medical supplies and pharmaceutical products.
“There is a promising demand for Iraq business, especially for export products and building materials,” he said. “Having a direct service to Umm Qasr will no doubt attract main line operators from the Far East with transshipment to call at our container terminal.”
