Bahrain Logistics credentials showcased in Germany

DELEGATION ATTENDS EUROPEAN SUPPLY CHAIN & LOGISTICS SUMMIT -
- KINGDOM THE LOGISTICS HUB OF THE NORTH ARABIAN GULF -

08 June 2009: A delegation from Bahrain is in Dusseldorf, Germany this week to promote the Kingdom’s logistics credentials at the 11th Annual European Supply Chain & Logistics Summit. The visit comes as a significant investment in Bahrain’s logistics infrastructure, including the new US$500m Khalifa bin Salman Port (KBSP) and US$280m Bahrain Logistics Zone (BLZ), offers enhanced opportunities for bilateral ties between the two nations.

The delegation includes senior figures from the Bahrain Economic Development Board (EDB), KBSP, BLZ and the Bahrain Airport Company (BAC).

With the opening of the KBSP in April and work progressing fast on BLZ, Bahrain is emerging as the ideal and most cost-effective transhipment hub to more efficiently serve the large and rapidly developing northern Gulf markets of Saudi Arabia, Qatar, Kuwait, northern Iran and Iraq. The Kingdom’s unique location at the heart of the Gulf also makes it a thriving platform for companies wishing to engage in multi-modal logistics through sea, air and land movements.

Shaikh Mohammed bin Essa Al Khalifa, Chief Executive of the Bahrain EDB, said: “The countries of the Gulf Cooperation Council (GCC) alone represent a market of around one trillion US dollars and with a rapidly expanding, young population this is set to grow further. The Khalifa bin Salman Port and Bahrain Logistics Zone now represent a world class logistics hub right at the heart of the Gulf. This further consolidates Bahrain’s position as an ideal location from which German and international businesses can access these markets.”

KBSP – also known as the Bahrain Gateway – offers the region increased capacity and modern facilities to meet the rising demand for cargo transport, conservatively estimated to be growing at around 10 per cent per annum. KBSP has a throughput capacity of up to 1.1 million TEUs (twenty foot equivalent units) with room to expand and features 1.8km of quay wall, an alongside water depth of 15m at all berths and container cranes capable of an 18 stack outreach. The port is managed by APM Terminals, one of the world’s leading providers of container port operations.

The company’s Chief Commercial Officer, Iain Rawlinson will be speaking at the event in Germany. He said: “APM Terminals is pleased to be part of the Annual European Supply Chain and Logistics event this year. 2009 is an important year for APM Terminals Bahrain, as it marks the opening of the Bahrain Gateway at Khalifa bin Salman Port. Situated in Bahrain, the gateway to the upper Gulf, the facility is geared for the future growth of this exciting region. We look forward to the opportunity to share our thoughts about the region and the potential for growth which it offers to companies looking for new, dynamic markets in today's difficult economy.”

The state of the art BLZ is adjacent to KBSP; both are fully integrated to allow for the efficient movement of goods. Scheduled to open in mid-2011, BLZ is the region’s first boutique value-added logistics area focusing on re-export and value-added activities. It has been designed to capitalise on Bahrain’s close proximity to Saudi Arabia and at just 13km from Bahrain International Airport, also claims the shortest logistics transfer time to and from sea/air in the Gulf. BLZ already boasts international tenants including Ceva Logistics – the world’s fourth largest third party logistics company, Danzas AEI Intercontinental, the Bahrain operating arm of DHL Global Forwarding, Landmark and Marina Trading. Five times oversubscribed, it has selected tenants against stringent criteria including the likely creation of skilled jobs for Bahrainis.

Bahrain is also upgrading the cargo area at Bahrain International Airport. It will soon be home to Cargo Oasis, an expanded handling facility that will treble Bahrain’s international air cargo to a capacity of one million tonnes per annum, a level comparable with London’s Heathrow Airport.

Sh. Duaij bin Mohammed Al Khalifa, Head of Commercial Contracts at the BAC, added: “As part of the overall expansions project, Bahrain Airport Company has initiated the development of a state of the art cargo village with a drive to position Bahrain International Airport as a base for global logistics suppliers and freight forwarders."

The Bahrain delegation hopes to build on the close commercial and economic relations between Bahrain and Germany, which have ties dating back to the 18th Century. The two countries share a number of agreements including a Memorandum of Understanding (MoU) on trade and industrial cooperation signed in April 2006 and an agreement to encourage and protect bilateral investments signed in February 2007. Last month, a German business delegation led by the Deputy Mayor of Nuremberg and Councillor for Economic Affairs, Dr. Ronald Fleck, visited Bahrain and noted the tremendous scope provided by the BLZ and KBSP for boosting bilateral cooperation between the two nations.

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