SMALL PORTS
With an ever-increasing number of imported goods, Kuwait's ports are currently expanding, becoming more integrated and less congested.
As an import-dependent economy, Kuwait's ports remain the country's most pivotal nodes to sustain high trade figures in light of stagnating oil prices. Despite a significant decrease in overall trade volumes in 2016, data from the Central Statistical Bureau's Annual Bulletin of Transport shed light on the sheer magnitude of goods that annually traverse Kuwait's major ports at Shuwaikh and Shuaiba. While the ports' export volumes fluctuated in the range of 4-5 million tons for the past 10 years, import volumes at the ports increased from 24.6 million tons in 2006 to 36.8 million in 2015. In light of an accounted 1Q2016 drop in the balance of trade by 76.2% compared to Q12015, the 2016 trade volumes at Kuwait's ports are likely to see a recess as well.
However, the Kuwait Ports Authority (KPA)—an independent agency established to oversee operations of the country's ports—does not see a reason for concern. In an interview with TBY, the KPA's Director General Sheikh Yousef Abdullah Al-Sabah highlighted: “We are working hand in hand with customs to expand the size of the plots because of the increase in incoming goods. The incoming goods increase YoY based on the natural increase of Kuwait's population. At the same time, however, it is also increasing because the current infrastructure projects require vast imports of different types of material, pipes, generators, and others for the different ministries and for the oil and gas sector." For this, the KPA laid out a comprehensive strategy to transform Kuwait's ports into regional trade hubs by rapidly improving the efficiency of operations. Especially the introduction of a smart port system is key to this endeavor, as the ports' operations are set to be managed through a single online platform. Among other aspects, exporters and importers can not only track their goods, but also get their goods passed through customs much quicker.
As a matter of prudence to the vast number of large-scale infrastructure projects, the KPA is looking to increase the storage space of its ports by more than 3 million sqm. Particularly Shuaiba port will be subject to expansion, as it not only serves as a main point of entry for industrial and infrastructure supplies, but also as a main port of petroleum export. With Shuwaikh port increasingly experiencing congestion, however, Ossama Nazir, the General Manager of Maersk Line Kuwait, told TBY: “From what I have seen from working in multiple countries, customers end up following the tradition to just work with one port like the Shuwaikh port in Kuwait. Over time, the port can become congested. Customers put pressure on the service provider, and it is very difficult for them to upgrade the port and infrastructure because everyone wants to be there. KPA is now trying to move some port storage into Shuaiba to encourage customers to have more cargo going there. Not to offset the congestion per se, but to remove some of the pressure. KPA's campaign to push more cargo into Shuaiba will present better services and better services for us."
In addition to this, Shuwaikh port is home to Kuwait's first-ever free trade zone (KFTZ), which, despite its vast potential for international investors, has posed a burden to the KPA. Similar to various warehousing companies having breached their tenancy agreements at the ports, the free trade zone's former private operator violated various laws, which eventually led the Public Authority for Industry to take over operations. With an underdeveloped infrastructure and storage facilities of up to 1.5 million sqm, the KFTZ's current profitability remains questionable, which finally led the KPA to call for a reintegration of the free trade zone into the port.
SMALL PORTS
TABLE OF CONTENTS
Guest Speaker
Dato’ Sri Haji Mohammad Najib bin Tun Haji Abdul Razak, Prime Minister , Malaysia
TBY talks to Dato' Sri Haji Mohammad Najib bin Tun Haji Abdul Razak, Prime Minister of Malaysia, on the growing contribution that Islamic countries are making to the global economy and how Islamic financing can offer new opportunities to industry and academia.
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HE Khaled Nasser Abdullah Al-Roudan, Minister, Commerce and Industry (MoCI)
TBY talks to HE Khaled Nasser Abdullah Al-Roudan, Minister of Commerce and Industry (MoCI), on tools and strategies for diversifying the economy, the role of international players in supporting a wider range of sectors, and the rapidly developing food industry.
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HE Yousef Al-Ebraheem, Advisor , Al-Diwan Al-Amiri
TBY talks to HE Yousef Al-Ebraheem, Economic Advisor to the Al-Diwan Al-Amiri, on the need for a rejuvenation of Kuwait's infrastructure to support an economy that has come a long way and the role education will play in delivering the expertise required by the society.
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Dr. Khaled A. Mahdi, Secretary-General , Supreme Council for Planning & Development (GSSCPD)
TBY talks to Dr. Khaled A. Mahdi, Secretary General of the Supreme Council for Planning & Development (GSSCPD), on the breakdown of Kuwait's long-term economic plan, the KPIs that will benchmark its success, and what Vision 2035 means for the nature of the economy.
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Sheikh Dr. Meshaal Jaber Al Ahmed Al Sabah, Director General, Kuwait Direct Investment Promotion Authority (KDIPA)
TBY talks to Sheikh Dr. Meshaal Jaber Al Ahmed Al Sabah, Director General of the Kuwait Direct Investment Promotion Authority (KDIPA), on launching an investment promotion conference, attracting the right partners for PPP, and expectations for the year ahead.
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HE Dr. Mohammad M. Al-Zuhair, Executive Chairman, Kuwait National Fund for Small and Medium Enterprise Development
TBY talks to HE Dr. Mohammad M. Al-Zuhair, Executive Chairman of the Kuwait National Fund for Small and Medium Enterprise Development, on empowering young Kuwaitis, IT and entrepreneurialism, and the growth of fintech.
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Merchant families in Kuwait
Family-owned businesses play a major role in the Kuwaiti economy. However, with many approaching the third generation of management, they are starting to come across unique problems that may pose issues for the greater economy.
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HE Sheikh Abdullah Ahmad Al-Humoud Al-Sabah, Director, Environmental Public Authority (EPA)
TBY talks to HE Sheikh Abdullah Ahmad Al-Humoud Al-Sabah, Director of Environmental Public Authority (EPA), on how oil companies can contribute to Kuwait's vision on sustainability and the various projects that are coming to fruition.
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Dr. Samira S. Omar Asem, Director General, Kuwait Institute for Scientific Research (KISR)
TBY talks to Dr. Samira S. Omar Asem, Director General of the Kuwait Institute for Scientific Research (KISR), on commercializing the green innovations coming from R&D initiatives, the role of collaboration across multiple sectors, and projects that we should expect to see more of in the future.
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Khaled Abdulrazzaq Al Khaled, Vice-Chairman and CEO, Boursa Kuwait Company
TBY talks to Khaled Abdulrazzaq Al Khaled, Vice-Chairman and CEO of Boursa Kuwait Company, on the takeover of the Kuwait Stock Exchange and the role the bourse plays in both the privatization of government entities and as a source of capital for family businesses.
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HE Essam Abdul Mohsen Al-Marzouq, Minister, Oil & Minister of Electricity and Water
TBY talks to HE Essam Abdul Mohsen Al-Marzouq, Minister of Oil & Minister of Electricity and Water, on cooperation with other ministries, the private sector's role in energy, and upcoming regulations.
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Ghalib Shlash Safouq, Assistant Undersecretary for the Construction Projects Sector, Ministry of Public Works
TBY talks to Ghalib Shlash Safouq, Assistant Undersecretary for the Construction Projects Sector at the Ministry of Public Works, on Kuwaiti companies, the country's healthcare facilities, and the role of international companies.
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Khaled K. Al Mashaan, Vice-Chairman & CEO, ALARGAN International Real Estate Company
TBY talks to Khaled K. Al Mashaan, Vice-Chairman & CEO of ALARGAN International Real Estate Company, on drivers of growth, operating throughout the region, and real estate prices in Kuwait.
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Tawfiq Ahmed Bin Sultan, Chairman, Middle East Telecommunications Company (METCO)
TBY talks to Tawfiq Ahmed Bin Sultan, Chairman of the Middle East Telecommunications Company (METCO), on e-government potential, the future of the economy, and the state of technology uptake in Kuwait.
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Sheikh Yousef Abdullah Sabah Al-Nasser Al-Sabah, Director General, Kuwait Ports Authority (KPA)
TBY talks to Sheikh Yousef Abdullah Sabah Al-Nasser Al-Sabah, Director General of Kuwait Ports Authority (KPA), on his operational plans for the near future and turning Kuwait into a regional logistics hub.
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HE Khaled Nasser Abdullah Al-Roudan, Acting Minister, State for Youth Affairs
TBY talks to HE Khaled Nasser Abdullah Al-Roudan, Acting Minister of State for Youth Affairs, on e-platforms and blended learning programs, developing ICT skills, and preparing young people for tomorrow.
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Eng. Ali Hussein Al Youha, Secretary-General, National Council for Culture, Arts and Letters
TBY talks to Eng. Ali Hussein Al Youha, Secretary-General of the National Council for Culture, Arts and Letters, on the activities of the Council and works to preserve and enhance Kuwait's cultural heritage.
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