Bahrain logistics review

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Industry heavyweights such as Danzas and CEVA have expressed their interest in Bahrain Logistics Zone.

Profiles of the Kingdom’s development projects for warehousing and transportation.

Bahrain Logistics Zone

The management team at Bahrain Logistics Zone has adopted a full throttle approach for their marketing campaign in 2009, visiting all corners of the world to promote their “boutique” logistics zone in Khalifa Bin Salman Port. Its little surprise, therefore, that a number of industry heavyweights have already expressed their interest in the US$280 million project, with Danzas and CEVA amongst the first 20 companies to start the construction of their warehouse facilities at the site.

“The unprecedented demand from local and international companies has strongly indicated that Bahrain Logistics Zone is heading in the right direction,” states Hamad Fakhro, assistant director general of General Organisation of Seaports (GOP), which is overlooking the project. “In fact, only a few months after we started the process for tenancy applications, we found ourselves five times oversubscribed. As a result, we have decided to increase the zone by 150%, which should help to bridge the gap between demand and supply for warehouse facilities.”

Despite the expansion, Fakhro and his team have implemented a stringent application process to ensure Bahrain Logistics Zone hosts a diverse community of tenants. “We are dedicated to ensuring our tenants are the right fit for us,” he explains. “The right kinds of tenants are those who will bring the most value to Bahrain. This means on one level the creation of jobs and increase in foreign direct investment, and also their ability to transfer knowledge to the local market and their involvement in activities which will help to further Bahrain’s economic and cultural goals.”

With this in mind, it seems clear that Bahrain Logistics Zone will bring massive benefits to the Kingdom’s economy. Aside from the US$600 million that will be generated from foreign direct investment, the project is also expected to generate 2400 medium to high-wage jobs. Moreover, it is believed that many other companies will be drawn to the Kingdom as a result of the improved logistics infrastructure and attractive business prospects for the future.

“The Arabian Gulf’s economy is undoubtedly growing at a significant rate. Businesses are expanding and so are their needs for logistics and freight forwarding activities. Thus, local organisations operating in the logistics sector are facing a significant demand for warehousing needs,” concludes Fakhro. “Bahrain is no exception to this accelerated growth. With the support of its forward-thinking government and the private sector, we are ready to face future challenges.”

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