Sharjah soaring

Rashid Al Leem is a busy man. As director general of seaports, customs authority and the Hamriyah free zone it's hard to imagine Sharjah's maritime sector not grinding to a halt in his absence. Despite the workload, juggling three departments is something he clearly excels at. Sharjah's shipping industry has quietly been going from strength to strength. Without fuss or fanfare, Dubai's next door neighbour has successfully been growing its portfolio of global shipping lines, trading partners and it's hub status. March saw the inaugural call of the Rio Grande, a 1700 TEU vessel, part of a newly launched service linking Sharjah directly with Brazil, and in January, Khorfakkan Container Terminal posted a very healthy 10% increase in traded volumes on the same month in 2006.

The bringing together of the three key elements of free zone, customs and ports may appear a mammoth undertaking, but Al Leem is certain it was the right course of action. "All three departments have come under the auspices of my office because we felt what was missing before was adequate coordination and integration of the key services we provide," he explains. "When we spoke with our customers we found that what was really missing was a common process for the end users, so we examined how we could streamline the processes involved between these operations."

Prior to the changes, the feedback Al Leem and his team received revealed that there was too much bureaucracy involved. Having completed all of the necessary work with one department, then having to begin from scratch with another was far from ideal and not conducive to business. "Our response was to try and achieve a full solution, a one-stop shop that was customer focussed," he explains.

So far, he says, the response has been overwhelmingly positive. "Following this integration, the feedback has been great, everybody we speak to who works with the departments are delighted with the streamlining measures."

The task he has been charged with is to grow the industrial environment and make Sharjah a location of choice for potential, and existing investors. The remit is wide but he is confident that the facts speak for themselves.

"Generally speaking, as a businessman, the bottom line makes the most significant difference, and we offer exceptional value for money. Also we benefit from a unique location because we have borders with all six other Emirates. Sharjah sits right in the centre and we are the only Emirate to boast ports on both coasts."

Geography aside, the customer service element is an asset he feels makes a major difference to potential clients. His team of staff at the free zone speak twelve languages between them, ensuring fluent business communication with customers and investors. "One of the reasons Hamriyah has been so successful is that the whole concept is geared to being a hassle free environment for the customer."

In spite of the time constraints running three administrative offices must place on his schedule, one of the ways he ensures he is in touch with the Hamriyah clients needs is to hold a monthly meeting called ‘lets get together.'

"It's a very casual and informal meeting which gives us an opportunity to stay in touch with the investors, find out what challenges they are facing, and discuss any ideas they have. This really makes a big difference in decision making. In fact, the feedback from them was a driving force in pushing forward our expansion plans," he reveals.

Achieving the economic and industrial goals the Emirate has set for itself would be a significant challenge at any time. With huge developments taking place simultaneously, each with a similar vision, in Sohar, Qatar, Saudi Arabia and, of course, the other Emirates, the task of developing the most attractive environment for industry seems daunting to say the least.

When I put this proposition to him, Al Leem is unfazed. "I think this is a very difficult question to deal with in a single statement, rather I think it's fair to say that it's not just the UAE experiencing a boom at the moment. In almost any sector, finance, logistics, industry there is a boom going on and it's almost Middle East wide. I think there is enough business around to support the developments we are making."

The sheer number of international businesses that have located regional or even global operations in recent years are testament to his theory. "For the logistics business the UAE has very quickly become one of the global hotpots, it's climbing the ranks fast and looks set to become a Singapore or Hong Kong," he enthuses.

Capitalising on the recent maritime boom in the Gulf is something that dominates his vision of how Sharjah will flourish in the face of stiff competition. The three primary ports have benefited from huge investment in recent years. "What we are focussing most strongly on is the maritime sector. If you read the statistics then it is plain to see that the UAE has become a major global shipping hub," says Al Leem.

The recent high oil prices have reinvigorated the offshore Middle Eastern oil and gas markets. Dry docks in and around the region have been inundated with requests for FPSO (Floating Production, Storage and Offloading vessels) conversions, and the support industries that this sector will rely on should, he says, be right here. "The maintenance for vessels and jack-up rigs will generate a need for facilities and internationally renowned yards to carry out this work, and Hamriyah is in an ideal location to capitalise on this."

Hamriyah port is part of the free zone, and benefits from a natural deep-water draught, and is already proving attractive to industry. The port is furnished with dedicated berths for liquefied petroleum gas (LPG), a refinery for petrochemical goods, and a diesel berth, as well as boasting its own bunkering facilities. "Having these specialised berths at Hamriyah is a value added service for our customers, because there is very little transportation required to their on-site facilities and the complementary nature is an element we're keen to market."

Whilst his enthusiasm for all things free zone is undeniable, he concedes his priority right now is ensuring the ports remain technologically and commercially at the top of their game. "Our goal is to grow and expand the capabilities of the port infrastructure, and right now the focus is on Khorfakkan."

The current development project at Khorfakkan is into its third year and the total budget is in excess of US$36 million. The yard itself has been expanded, the gantry cranes upgraded, and the already deep-water draught has been further dredged to accommodate the modern generation of 9000 TEU vessels. "Ultimately we're investing so that the port is well equipped to deal with not just projected increases in traffic, but also able to accommodate larger ships for years to come."

Between the three main seaports, namely Port Khalid, Khorfakkan, and Hamriyah, his vision is to provide dedicated and specialised facilities to handle every kind of cargo, and boost Sharjah's hub status. "Currently we are marketing to every sector available to us, container, bulk commodities and the petrochemical sectors," he says.

The sea freight industry is clearly integral to the vision Al Leem has for a successful Sharjah, and for customers using the ports, customs and freezones his simplified processes make a real difference. Far too often do complaints of bureaucracy scar what are otherwise overwhelmingly positive reactions to commerce in the Middle East.

By integrating key offices into one centralised unit he has attempted to do away with the red tape that plagues the international investor. The success of the free zone speaks volumes for his methods, and with bold investment strategies already underway, Sharjah looks set to continue soaring.

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