RIRP supports the establishment of a Private Free Zone in Khor Al-Zubair, south of Iraq

Due to the political and economical developments of the recent years the Iraqi ports in the south of the country are not able to handle the present and the future seaborne imports and exports. Properly functioning overseas ports are however an important requisite for the reconstruction and the economically sustainable development of Iraq. Presently most of the imported goods are imported via the ports of Aqaba in Jordan, Beirut in Lebanon and Kuwait.
As a result of this, Iraq looses more than half a million US$ every single day.

On 26th of September 2005 the "Rebuild Iraq Recruitment Program" (RIRP) and "German Industry and Commerce" (GIC) signed a cooperation agreement with the objective to support the establishment and the positioning of the German industry in the Iraqi market.

Within this cooperation, business meetings were held between RIRP/GIC, Iraqi Ministries and the General Commission of the Free Zones in Iraq which were also accompanied by the German Embassy in Baghdad. These meetings revealed the need of a large private Free Zone with access to the sea in Khor Al-Zubair.

The main focus of this project will be the improvement and enlargement of the cargo handling in the south of Iraq together with the establishment of production and storage facilities in a safe environment.

In addition to this, the RIRP is setting up a Port training project which is supported by the German Government. The success of the Free Zone project depends on the professionalism of the port working force. Trainings and qualifications for executives and specialists in the fields of port logistic, storage logistic, administration, management, port security and engineering are about to be designed and developed.

Within the discussion about these intentions the Iraqi Government confirmed their desire for a German partner who manages and organises these important projects as well as their appreciation towards the participation of German companies within the Free Zone.

RIRP and GIC developed a concrete concept for the development of a Free Zone of 5 Mio. square meters. After the concept was positively approved by the Iraqi Ministry of Finance and the General Commission of the Free Zones, the allocation of the required land and a corresponding license agreement were agreed to.

The designated area in Khor Al-Zubair adjoins directly to the port of Khor Al-Zubair and on an already existing smaller Free Zone of around 1 Mio. square meters which, in terms of management of logistics, shall be integrated into the new Private Free Zone. Existing loading and storage facilities within the port/Free Zone are in good conditions, the handling of goods is in progress.

With the progression of the project, the Khor Al-Zubair Private Free Zone Development Company was established by a German consortium which will realise the project under German authority.

"Economic development and free visible trade is the basis for the political and economic rebuilding of Iraq. The Khor Al-Zubair Private Free Zone will help to establish transparent business relations between International Investors and Iraq. Creating a reasonable Win Win Situation for both sides has top priority",

says Mr. Arndt Fritsche, Head of Mission of the RIRP program.

Apart from the support of Iraqi industry and institutions, the Free Zone Project offers the International Industry the chance to establish their Iraq business in a relatively safe environment to take place in the economic recovery of Iraq.