Bahrain zone – Making of a world logistics hub

“We can’t clearly compare Bahrain zone to the other zones because each zone has its advantages,” answers Bader Al Saad , Park Chief Director of Bahrain International Investment Park (BIIP).

One advantage is that the Bahrain zone is located most centraly in the Gulf. Bahrain is exactly “in the middle” – another reason why the King’s marketing strategists chose the new slogan “The centre in the Gulf, not the centre of attention.”

Hassan Al Majed who is Director General of the General Organization of Sea Ports Authority explains the historic background: “Bahrain has always been a centre of trade in this region and to us a centre of shipment to the rest of the northern Gulf.”

Bahrain has the first modern port (Mina Salman) which began in 1961 and since then Bahrain has had an important role in trade for this region.

The geographical aspect, however, is only one aspect of a number of preferences logistic firms are taking into account.

Other aspects are the degree of freedom allowed; the country’s political stability; the capacities in relation to the handling of cargo; and last but not least the accessibility for ships is important.

That said, security in the surrounding waters is a top priority, especially after piracy made the Horn of Africa a dangerous place for cargo vessels. Bahrain is once again playing the regulatory card in relation to business friendliness.

Bader Al Saad : “It’s a good location because in this country, you will not only find support from the financial sector, but also from the public sector, which will assist you and try to solve all the difficulties of a foreign direct investor coming to the country.”

Security is also guaranteed. Hold-ups by pirates or rebels are almost non-existent in the Persian Gulf.

Two thirds of the known global oil reserves are located here, with the result that the superpowers are permanently keeping an eye on it. But what about the financial crisis, how did it affect Bahrain’s shipping industry?

“Bahrain has not seen much of a difference; we actually have slightly higher numbers in 2009 compared to the first quarter of 2008. The growth we have is 2 to 3% more”, says Steen Davidsen , Managing Director at APM Terminals, which runs the Bahrain Port and the Khalifa bin Salman Port.

Mr. Davidsen declares that “APM Terminals wants to help Bahrain in its import and export endeavors, and be the leading player in its development.

”While the environment is safe, and the Bahrain Port is easily accessible, the question of commerce remains: Why would anybody set up his or her business in Bahrain?

Of course not just for 1.2 million consumers who live in Bahrain, but certainly as a zone to the whole Arab Peninsula and to Iran.

This means that the zone is  consumer base of more than 110 million people, as Hassan Al Majed outlines this key aspect:

“The new port Khalifa bin Salman can handle 1.2 Million TUs. This port will not only serve the local market of Bahrain but we are also targeting a certain market in the northern Gulf, because Bahrain enjoys a strategic location in the Gulf by being situated in the middle and being near huge markets like Saudi Arabia, Kuwait, Iraq, and Iran.”

This is another reason why the GCC and the Islamic Republic of Iran are seeking normal ties, despite political differences. As H. H. Prime Minister Shaikh Khalifa bin Salman Al Khalifa states:

“The global economy is based on partnership, cooperation, and large economic entities. We, in the GCC countries have great prospects for cooperation in many areas, which will benefit all.”

tags: zone, Bahrain zone, Bahrain logistics hub