On his recent visit to India, Ahmed Sultan, Executive Director, Business Development for Manufacturing, Transport and Logistics and International Offices, Bahrain Economic Development Board (EDB) elaborated about plans to expand trade in India and attract investments to Bahrain.
CT Bureau
How are business operations (transportation and logistics) shaping up now in the new normal?
The ongoing pandemic was an eye opener for everybody in the supply chain business. There was no lockdown in Bahrain, even for a single day. We continued with the rollout of pharma, PPE, medical equipment, perishables, COVID vaccines, and other essentials worldwide. But the country followed several measures to ensure safety. Bahrain had support from the government and private sectors. With the launch of the Economic Recovery Plan, digitalisation has become the core of all our businesses.
Artificial Intelligence and Internet of Things are being used across multiple sectors. For us, manufacturing and logistics are two important sectors. When it comes to manufacturing, it is contributing over 14 per cent to our GDP, growing by 5.3 per cent in first quarter of 2022. For logistics, currently, it is 4.7 per cent and the target is to achieve 10 per cent. To achieve that emphasis has been laid on improving infrastructure across multiple sectors.
What did you learn from the pandemic? What are the efficient growth strategies adopted to move forward?
LSPs can take advantage of Bahrain’s strategic location, we are at the centre of east and west. Connectivity forms the heart of all our business activities, especially when it comes to supply. The Port of Bahrain is working to improve connectivity. The port currently handles close to 400,000 containers per year, way less than its actual capacity. The target is to increase it to a million containers per year. Similarly, air cargo handling has a target of going beyond a million tons per year, it is far less at present. To achieve the desired goals, we will have to make sure we have the right pacts with the right partners. Enough land space is available in Bahrain to handle additional cargo load. We have got Metro project coming up in 2027. We have a billions-dollar projects for King Hamad Causeway, which will connect Bahrain with Saudi Arabia and other GCC countries. We are planning to complete this project, which will augment road and rail connectivity by 2028.
How is infrastructure in Bahrain for transportation and logistics activities? Does it support the airlines plans to move cargo or is there scope for improvement?
We have world-class infrastructure available, but there is a need for more. Gulf Air currently covers as many as 60 destinations worldwide, and we have got 27 international airlines operating in Bahrain. The target is to increase both.
With our new Bahrain International Airport, we are aiming for more international freighters and cargo handling. We have ‘Express Cargo Village,’ facility located north of the airport’s runway. This is in line with the Kingdom’s strategy for the logistics industry as laid out in its Economic Recovery Plan. Express Cargo Village will promote the growth of logistics industry, enhance regional competitiveness and ability to attract investment.
It started with FedEx as the main anchor tenant. It is a 25,000 square metre facility and should be completed by 2023. It will focus fully on e-commerce. Logistics is one of the high-priority sectors outlined in Bahrain’s Economic Vision 2030. Additionally, APM Terminals Bahrain manages Khalifa bin Salman sea port is one of the most efficient ports in the GCC. We are moving towards a paperless environment when it comes to Customs clearance. We are also working on upskilling our workforce through Bahrain’s labour fund “Tamkeen” and Bahrain Polyethnic programmes and initiatives.
How crucial is the technology in logistics? Can you tell us about the advanced technologies deployed by Bahrain in this segment?
Bahrain has invested whopping amounts in technology, currently, on the King Fahad Causeway connecting to Saudi Arabia Artificial Intelligence (AI) and Internet of Things (IoT)-enabled state of the art scanners that have a capacity to scan 120 trucks per hour are implement. We have digitally transformed Customs clearance processes. E-commerce has become a game changer in Bahrain. We are also investing in Blockchain to trace and track shipments.
Tell us about Bahrain’s e-commerce trade?
E-commerce trade has grown exponentially. FedEx, with full focus on e-commerce has become the main tenant in the Cargo Express Village. Bahrain is aware of the importance of e-commerce, and we are exploring the right partners to come to the country and be ready for the next phase.
What is the purpose of your visit to India?
Bahrain and India share cordial relations. We are here as we have plans to further enhance economic and investment ties with India. After Delhi, we will be meeting officials in Mumbai and Hyderabad. There is over a billion-dollar worth trade taking place between Bahrain and India. The plan is to take the same (partnership) to new heights. We would like to have more countries coming to Bahrain and bringing along them their own ecosystem. All said and done, we want to see more investment coming from India to Bahrain. The relationship with India has always been special. We feel at home here.
Can you elaborate more on cargo being transported to and from India?
Currently, we import cargo from India, whether it is agriculture, chemicals, or petrochemicals products. If we talk about exports, aluminium is one of the precious metals that we have. The metal goes into almost every industry that we could think of worldwide. As far as our role as the EDB is concerned it mainly focusses on increasing investments into Bahrain. Under our economic recovery plan, we are focusing on oil and gas, tourism, financial services, manufacturing, and logistics among others.
How much emphasis has been laid on sustainability?
Our electricity, water authorities and Supreme Council of Environment are working hand in hand to make sure that sustainability becomes a core part of all our operations. The Bahrain government and leadership are committed for reducing carbon emissions up to 30 per cent by 2035 and to reach Net Zero by 2060. Recently the country launched a 72 MW solar plant tender as part of the Kingdom’s wider vision to adopt a circular carbon economy in line with its national commitments to protect the environment and combat climate change.
