Tag Archive | "Al Faw Grand Port"

Iraq to Tender $1.3bn Fao Port


By John Lee.

Iraq is preparing to tender the $1.3bn contract to deliver the marine works component of the first phase of the new Grand Fao [Faw] Port.

Project director Asaad Rashid told MEED’s Arabian World Construction Summit (AWCS):

We are evaluating prequalification documents from about 18 consortiums … We shall issue the shortlist for the project by the end of May or early June. We shall sign the contract by the end of this year.

The first phase, which is due to be completed in 2018, calls for a port with capacity to handle 2 million 20-foot equivalent-unit (TEUs) containers plus general cargo; the port’s ultimate capacity is 20 million TEUs.

According to the report from MEED, two construction contracts have been placed for:

  • the 8km eastern breakwater, which is being built in a $280m design and build contract by Greece’s Archirodon. The 18-month contract is due to be completed this summer;
  • the 16km western breakwater, for which South Korea’s Daewoo Engineering & Construction was awarded the $700m design and build contract at the end of 2013.

The final two elements of the port’s first phase are:

  • land-side facilities, including the railway line, roads, utilities and other units. Companies interested in bidding for this contract are being prequalified;
  • The concession to operate the port.

(Source: MEED)

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Faw Port Companies Exempted from Taxes


By Omar al-Shaher for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Iraq has decided to exempt foreign companies involved in the Faw Port project from customs duties and taxes. This decision was an attempt to accelerate the completion of the stalled project, through which Iraq has sought to confront Kuwait’s maritime expansion by building a similar port nearby.

A government statement issued on Aug. 27 said, “In accordance with the laws in force, foreign companies shall be exempt from taxes and duties for the purpose of executing the Faw Port project, given that it is a developmental project.”

In April 2012, Iraq laid the foundation stone for the Faw Port project in the al-Faw peninsula in southern Basra. The project has an estimated cost of 4.6 billion euros ($6.1 billion), and the port’s annual handling capacity is predicted to be around 99 million tons. This would make it one of the largest ports in the Arabian Gulf region. Yet construction on the project has stalled and little progress has been made.

The Greek construction company Archirodon was awarded the contract to build the port’s eastern breakwater. Yet the companies that will win contracts to construct the port’s main structure and western breakwater have yet to be revealed. There have been reports that four companies submitted distinguished proposals last month, and one of them will be selected within days.

Speaking to Al-Monitor, Ihsan al-Awadi, a member of the parliamentary Service Committee, said, “The completion of the Faw Port has been stalled due to political conflicts and security conditions.” He explained, “Lately, work on the project has changed.”

Awadi said, “The required designs were completed by companies contracted by Iraq in 2009 to build the port, and they were handed over to the Iraqi administration. Construction on the initial parts of the project, which consist of the eastern breakwater, has started.” He added, “A canal must be built in the sea with a width of 12-13 meters and a depth of 200 meters,” noting that “As soon as the drilling rigs … arrive, work will immediately start in order to build the canal.”

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Iraq Shortlists 2 to Build Breakwater


By John Lee.

Iraq has announced a shortlist of two companies to build a breakwater for the $6 billion first phase of its Grand Fao port development.

The director general of the State Company for Iraqi Ports, Omran Radhi (pictured), told Bloomberg that the Archirodon Construction Company submitted the lowest bid of 204 billion dinars ($175 million) and had the highest technical evaluation among 16 initial bidders.

Jeongshin Engineering & Construction Company offered 206 billion dinars.

The winner will be selected within two weeks.

Among the 16 companies bidding for the contract were Hyundai, Daewoo, Dredging International, China Communications Construction and Al Habtoor Leighton Group.

(Source: Bloomberg)

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Basra Forms Group to Invest in Faw Port


Basra Provincial Council announced on Tuesday the formation of a group that includes 100 local businesses to invest in Faw Port “to preserve the sovereignty of Iraq”.

Council member Walid Qitan said: “The efforts of businessmen in the province resulted in the cooperation of major public companies to invest in Faw Port in order to preserve the sovereignty of Iraq on this strategic link that will connect the Middle East and Europe in the future.”

According to AKnews, a public company was established under the name of Basra National Group, which includes 100 businesses and is supported by Basra council to invest in the port with 51 percent of shares. Foreign companies wishing to invest in the port take 49 percent of shares.

Qitan added: “This project is the first of its kind to keep the Iraqi sovereignty and it will be followed in other Iraqi provinces.”

Member of the founding committee of the company Ghazi Abbass Assad said: “The company includes businessmen and owners of capital in the province and its priorities will be working on the investment of Faw Port, as well as the implementation of the railway project that connects Basra to Turkey.

“The businessmen seek through this project to make Basra one of the best economic cities in the Middle East.”

Assad added that five percent of the company’s profits will be used to support the poor and needy in the province.

The Faw project will cost about $6.1 billion (7 trillion IQD) at an estimated capacity of 99m tonnes per year and will be one of the largest ports on the Gulf.

Faw is expected to include two berths for containers at a length of 39,000m and 2,000m. The port will also include a containers yard at a size of one million square meters as well as another multi-purpose yard covering an area of 600,000 square meters.

Iraq announced plans to build Faw in 2005 and the foundation stone was put in place in April 2010. This was a year before Kuwait announced plans to build its Mubarak Port on Bubyan island.

(Source: AKnews)

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Iraq Invites Bids for First Phase of Mega-Port


Iraq has issued a tender for the building of a breakwater to the south of Basra on the Persian Gulf, the first stage of construction of the giant $6 billion Grand Faw port scheme.

The closing date for the tender is 15th July, and offers will be opened on 16th July, while interested companies are invited to attend a meeting on 28th May to discuss tender details.

According to Reuters, the breakwater is expected to cost around 400 billion dinars ($340 million). When completed, Grand Faw will include 7,000 metres (23,000 feet) of dock to receive container ships. The dock for general cargo will be 3,500 metres.

Please click here to download tender details.

(Sources: General Company for Ports, Reuters)

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Iraq to Invite Bidders for First Phase of $6bn Mega Port


Iraq is preparing to invite bids for the building of a breakwater in the Gulf, which according to Reuters will be the first stage of construction in the giant $6 billion Grand Faw [Fao] port project.

Omran Rahdi Thani, general manager of the General Company for Iraqi Ports, told the news agency that the breakwater is expected to cost around 400 billion Iraqi dinars ($340 million).

A modern port is part of a long-term goal to turn Iraq into a transportation corridor between the Middle East and Europe, bypassing the Suez Canal, by rebuilding a colonial-era railway linking the Gulf to Turkey.

“If Grand Faw port is completed it would be a major event for world transportation. We will shorten the time to reach Europe from 20 days to three or four,” Thani said.

Preliminary plans for Grand Faw include a 7,000 meter quay for containerized trade, and a 3,500 meter dock for general cargo.

(Sources: Reuters, Port Technology)

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Foreign Minister Zebari Denies Kuwaiti Bribes


Iraqi Foreign Minister Hoshyar Zebari denied allegations that he or his ministry had been bribed by Kuwait in order to settle the dispute over Kuwait’s new Mubarak Port, according to a report from AKnews.

Although Zebari stated that these allegations would not deserve a response, he labeled the allegations as “fabricated” and “defamatory”.

“The Ministry of Foreign Affairs is not engaged in bribery,” he said. “And we began proceedings today to prosecute every person who says that.”

Zebari added that the Mubarak Port was not discussed when an Iraqi delegation recently visited Kuwait. Allegedly, the talks had just been over “other outstanding issues with Kuwait,” said Zebari.

The parliamentary Integrity Committee had revealed on Sunday that it had information that the technical delegation from the Ministries of Transport and Foreign Affairs that visited Kuwait to examine the construction of Mubarak Port received gifts from Kuwait.

In early September, the Minister was quoted as saying that the dispute with Kuwait was resolved.

(Sources: AKnews, Al Sumaria News)

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Dr Ali al-Dabbagh Speaks with Iraq Business News


Minister Ali al-Dabbagh, Iraqi Government Spokesman, was interviewed by Padraig O’Hannelly for Iraq Business News at last week’s Iraq Mining 2011 conference in London. In this first part of the interview, Dr al-Dabbagh discusses the controversial Mubarak port:

Iraq Business News: Firstly, Dr Ali al-Dabbagh, thank you for agreeing to speak to us. I’d like to start with a question regarding the Mubarak al-Kabir [Kabeer] port project in Kuwait: There have been some reports in recent days that that whole issue has been resolved, that it’s not going to affect shipping into Iraq and so on. Can you confirm Iraq’s position on the project?

Dr Ali al-Dabbagh: The Government of Iraq has not yet given its final opinion about the Mubarak port. We do feel that there is a negative affect on our navigation lines, and the issue briefly is that the strait, which is 8km wide, is split in half – half to Kuwait and half to Iraq – as per Resolution 833 of the United Nations. The Iraqi side is very shallow, and not suitable for shipping; the Kuwaiti side has a [section] which is suitable for navigation, and it is only used by Iraqi vessels crossing to Umm Qasr. Kuwaitis never use this side.

The [UN] resolution gives the right to Iraq to navigate through the Kuwaiti water without paying any fees and without raising any Kuwait flags, so we have the right to use that passage, and any construction in that part we feel is going to obstruct our navigation. And because Iraq has very limited access to the Gulf we feel that is going to create a very high negative affect on our future lines for navigation, so we have asked the Kuwaitis to wait until we get the full information that this is not going to affect us.

Kuwait say they are making the construction on ‘zero low tide’, which means there is no projection of the construction in the water. We want to be sure that there is no … negative influence, neither environmentally, commercially, nor on navigation or trading. This port is being built to serve Iraq, because the other side of Boubiyan Island is not facing to Kuwait, it is facing to the Faw Peninsula, and in order for this port to work you need to maintain a good relation with the people who benefit out of this, which means Iraqis in this case. Without having a proper arrangement with Iraq I think we can’t accept this construction unless we are sure that this is not going to harm us. We have the full right to be worried about this issue, and we don’t want to create any problems to Kuwait, but we maintain the full right to protect our interests, and the interests of the Iraqi people.

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