Bahrain Logistic Zone to be pivotal Middle East hub

Further plans to increase the size of the site by 150% could attract up to $600m in direct investment.

The BLZ is the Middle East's first boutique multimodal logistics hub focussing on re-export and value-adding logistics activities. With zero tax, goods can be imported and re-exported without incurring customs duties and 100% foreign ownership is permitted. Located adjacent to the new state-of-the-art Khalifa bin Salman Port in Northern Bahrain which will be operated by APM Terminals and will have a capacity of 2.5 million TEUs, the BLZ will play an integral part in supporting the key initiative to drive Bahrain as a transhipment hub for the region.

Bahrain is currently ranked 2nd in the Middle East in the World Bank's Logistics Performance Index and it is expected that the BLZ will become the focal point for international, regional and local businesses wishing to expand and trade more efficiently within the region.

"Bahrain now has the best logistics facilities in the Middle East. The BLZ capitalises on our proximity and connections to the growing Middle East economies of Saudi Arabia, Qatar and the UAE, and our access to the Northern Gulf. The Zone is connected to major land, sea, and air routes to these regions and markets,"

said Shaikh Mohammed bin Essa Mohammed Al Khalifa, Chief Executive of the Economic Development Board of Bahrain (EDB), the body responsible for overseeing the economic development strategy of Bahrain.

He added, "Barriers that prevent foreign investors from accessing Middle Eastern markets will be eased and transit time for cargo delivered to the northern Gulf locations of KSA, Kuwait, Iran and Iraq will also be significantly reduced."

The first phase of Bahrain Logistics Zone is expected to attract over 50 local, regional and international tenants creating over 2,400 logistics related jobs while generating investments exceeding $280m.

The logistics sector is a key contributor to the Bahraini economy, which grew by 6.3% in 2007. According to Transport Intelligence (Ti), a United Kingdom-based analyst, the worldwide contract logistics industry grew by 9 percent last year to $220bn in 2007 according to figures released on 1 July 2008. Companies already utilising the country's logistics capabilities include developer ProLogis and investment group Arcapita. Danzas part of DHL group and CEVA Logistics, one of the world's leading logistics companies have already signed and announced major undertaking to site facilities at the BLZ.

"The BLZ has enormous economic growth potential for Bahrain. More than 2,400 medium to high wage logistics related jobs will be created, this is testament to the government's commitment to increasing employment and investing in an educated and skilled national workforce," continued Shaikh Mohammed bin Essa Mohammed Al Khalifa.

Bahrain already has a thriving transport infrastructure with road, air and sea links connecting the Kingdom to every surrounding region and to major international destinations totalling over $400bn in imports. Bahrain's airport has links to principal global finance and business centre and Bahrain's Gulf Air has the biggest network in the Middle East connecting to over 40 destinations. Once complete, the BLZ will offer tenants leasable warehouse, retail and office space totaling 475,000m2. The customs free logistics area is regulated and operated by the General Organisation of Sea Ports in Bahrain.