GCC ports to address challenge facing $7.3 billion logistics sector

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.