Complex Made Simple

Connecting logistics facilities enhances Gulf competitiveness

The Gulf's total exports of petrochemicals and chemicals exceeded 65 million tonnes during 2014

Officials and experts from the GCC countries agreed on the importance of continuing to work to strengthen supply chains and adopt strategies to improve transport links to and from the GCC.

This will lead to achieving the desired development goals and strengthen the competitiveness of Gulf producers, reports UAE-based Al Bayan.

The Gulf Petrochemicals & Chemicals Association (GPCA) encouraged the Gulf states to take serious steps towards the implementation of the drafted federal law to regulate the railway sector.

The draft law will set forth regulations and principles that will govern the federal railway transport across GCC states. The project is expected to boost goods movement between members of the six-nation grouping and achieve a quantum leap in terms of trade volume. The ambitious project is also hoped to create a regional transport network that can compete globally.

Mohammad Husain, Chairman of the GPCA’s Supply Chain Committee, says that the supply chain is the backbone of the production and that strengthening and developing it will be reflected directly on the production process within the GCC region.

He points out that among the challenges facing the supply chain’s sector are port congestions, inadequate infrastructure and the instability of market conditions.

He stresses the importance of the adoption of a railway project that connects the Gulf states and links production locations which contribute to the diversity of transportation sources.

The Gulf’s total exports of petrochemicals and chemicals exceeded 65 million tonnes during 2014, in comparison with less than 36 million tonnes in 2006. The Gulf exports 80 per cent of its petrochemical and chemical production, says Husain.

“During 2013, the biggest export destination of the Gulf’s petrochemicals and chemicals was Asia with nearly 60 per cent, followed by Europe with almost 13 per cent,” he adds.