Dammam is well-situated to take on a hub role in the Arabian GulfTHE ONCE quiet eastern Saudi Arabian container terminal at Dammam is enjoying a renaissance that could see it transformed from a purely local operation into a genuine mini-hub for the northern Arabian Gulf region.
Jan Mors, chief executive officer and general manager at the King Abdul Aziz Port, said throughput was up nine per cent last year, to 425,000 TEUs - a figure that could leap even higher in 2000.
"We grew by 14 per cent in the first two months of this year and we expect to handle at least 475,000 TEUs for the full year," he said.
Dammam was one of the first ports to be privatised by the Saudi Seaports Authority, following the signing of a 10-year lease with International Ports Services Co Ltd (IPSCL) some three years ago.
The leaseholder, a joint venture between ICTSI International Holdings Corp and a Saudi company, has been packing the terminal with equipment since taking control.
The hardware includes 15 new straddle cranes and 20 three-tonne forklift trucks. An order has been placed for two empty container handlers, while one seven-tonne ro-ro forklift is due for delivery in June.
IPSCL is currently installing a $1.5 million computerised planning and control system. The second phase of the renovation project, scheduled for completion in June, will include radio data terminals provided by Teklogics.
To date, King Abdul Aziz Port has operated purely as an import-export terminal for Saudi Arabia's Eastern Province, home to much of the country's enormous petrochemicals industry. Not being involved in the trans-shipment business, it has been spared the negative effects of the carrier consolidation process.
"The only noticeable effect has been the arrival of larger vessels. The size of our typical shipments has increased. Obviously, we would rather receive a 700-TEU vessel than a 500-TEU one," Mors said.
Similarly, the emergence of new regional container terminals at Salalah and Aden has had a minimal effect on Dammam's workings.
"Maersk SeaLand used to serve us direct from the US west coast. With the opening of Salalah, they are using big feeders instead," Mors explained.
Political developments in the Middle East could change all that. IPSCL is aware that the lifting of UN sanctions against Iraq could signal a bonanza for what is the only sizeable container terminal in the northern Gulf.
"(The reopening of) Iraq will trigger Dammam's development as a trans-shipment hub for the northern Gulf - it would open up Dammam as a mini-hub for Bahrain, Kuwait and Iran's Bandar Khomeini," Mors predicted, adding that "it could mean that cargo for the northern Gulf could bypass Dubai."
His words echoed those of Dubai Ports Authority managing director, Sultan bin Sulayem, who said Dammam would become a trans-shipment hub in the event of Iraq's return to the global trading community.
Preparations seem to be under way for just that event. Mors said that IPSCL is currently looking at the possible doubling of Dammam's existing capacity of 600,000 TEUs per year.
King Abdul Aziz Port is currently serviced by eight gantries, including six of panamax size, and two smaller cranes.
"We expect a need for post-panamax capacity - in fact, there is already a need for it," Mors said. "But we are still in the process of analysing the overall capacity. It could rise to 1.2 million TEUs."