GCC ports to address challenge facing $7.3 billion logistics sector
The 7th international Seatrade Middle East Maritime exhibition & conference, the region's premier event for the maritime industry, will be held on October 28-30th 2014 in Dubai, UAE, at Dubai International Convention and Exhibition Centre, Shamal Marketing Communications reports.
The thee-day conference and exhibition will be attended by more than 7,000 participants from 67 countries.
“Booming GCC logistics sector continues to pile pressure on region’s ports as trade demand outpaces infrastructure development; multi-billion dollar port expansion programmes and new GCC rail network to transform maritime landscape but current bottlenecks to be addressed at the SMEM conference,” the press release said.
The tightrope between booming trade demand and current overall port capacity in the region, as witnessed by growth of 15.4% since 2013, will headline a panel discussion at the Seatrade Middle East Maritime conference, held under the patronage of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, UAE.
Multi-billion dollar investment into the region’s ports and plans for GCC-wide multimodal transportation systems are well underway, however the immediate challenge of logistics management is occupying the minds of port owners and operators across the Middle East as trade demand outpaces physical expansion.
According to the Agility Logistics Emerging Markets Index 2014, the Gulf countries, along with Jordan, are riding high in the table of international locations offering favourable conditions for business and trade. In this year’s index, Saudi Arabia climbed one place to third spot, with the UAE at number six followed by Qatar, Oman, Kuwait and Bahrain at 12, 13, 18 and 22 respectively.
This has been achieved as a result of ongoing committed infrastructure spend, with the index also noting that Qatar and Oman, joined by Chile, make up an ‘elite’ group as small economies that are outperforming both their peers and larger emerging economies based on the strength of their accessibility, vibrant service sectors and world-class transportation infrastructure.
“The GCC has at least 35 major ports and is pursuing an ambitious expansion strategy as the logistics sector, and burgeoning non-oil trade, continue their growth trajectory to further position the region, and its key ports, as a global hub for trade between Europe, Africa and Asia,” said Chris Hayman, Chairman of Seatrade, organiser of Seatrade Middle East Maritime, which is participating in the Dubai Maritime Week, hosted by Dubai Maritime City Authority (DMCA) which takes place in Dubai from 28-30 October 2014.
In 2013, the UAE’s non-oil trade grew by 5% to $435 billion with the Federal Customs Authority (FCA) reporting total trade exports registering around $50 billion in 2013 with re-exports growing by 11% to touch $121 billion.
In addition to approximately US$36 billion-worth of sector investment, regional economies are set to benefit from the proposed GCC rail network, which will connect key locations from Saudi Arabia to Oman.
Industry estimates suggest that with port expansion programmes reportedly set to increase regional capacity to more than 65 million TEU by 2016, new industrials zones such as the US$7.2 billion phased Khalifa Industrial Zone Abu Dhabi (KIZAD) and Jebel Ali’s recently debuted Terminal 3, with its connectivity to the Dubai World Central super-hub, already providing welcome relief and much-needed facilities.
The expansion tally includes Abu Dhabi’s Khalifa Port, with its US$5 million terminal scheduled to open in 2015; Oman’s US$4 billion Sohar Industrial Zone which will be linked to the GCC rail network, and the US$143 million sea-air hub expansion at Salalah.
Saudi Arabia is active with a series of ongoing projects including the US$750 million second terminal at Dammam’s King Abdulaziz Port; two further terminals totaling US$40 million for King Fahd Industrial Port in Al Jubail; and the soon-to-be-unveiled Portside Logistics Facility at Jubail Commercia Port.
In Qatar, the new US$7 billion mega-port located close to Mesaieed Industrial Zone will be up-and-running in 2016 while Kuwait’s contentious US$1.2 billion, 60-berth Mubarak Al-Kabir seaport (Boubyan) is reportedly set to be privatised according to a Kuwait Financial Center (Markaz) report.
The Port Investment & Logistics session is scheduled to take place on 29 October 2014 from 0930-1100hrs with a distinguished panel of speakers including Joost Achterkamp, Managing Director, Solid Port Solutions; Michel Deleuran, Executive Vice President, Maritime, Milaha; Dimitris Kostianis, Transport Strategy Advisor, Saudi Ports Authority; Alan Murphy, COO & Partner, SeaIntel Maritime Analysis, Denmark; Dirk Van Den Bosch, Chief Commercial Officer, DP World UAE Region.
Held every two years, Seatrade Middle East Maritime focuses on what is important to the maritime industry – from commercial marine to offshore, ports, piracy and energy services. With a wide audience spanning across the whole of the Middle East, the show attracts the region's largest number of key industry players, as well as strong international representation.
Seatrade Maritime Awards Middle East, Indian Subcontinent and Africa take place on the evening of Monday 27th October and Seatrade Middle East Maritime runs from 28-30th October 2014. Both events are part of Dubai Maritime Week which is hosted by Dubai Maritime City Authority (DMCA).