By John Lee.

Volvo Trucks has inaugurated joint service centres in the Iraq cities of Baghdad and Basra, reports Construction Week Online.

The service centres, built in collaboration with local country distributor ZamZam Spring, will service trucks made by Volvo and Mack, part of the Volvo group.

Stefan Soenchen, Iraq country manager of Volvo Trucks, told PMV Middle East that the Baghdad centre is the second-largest Volvo Trucks workshop in the Middle East.

“What I am most proud of is that they have been specified to operate to European standards. All equipment is from Europe. But now comes the big task of building the platform to be able to deliver to what it is equipped to do.“

Building up the centres’ systems will take several months, including recruitment and training, with up to 50 people to be employed across the two sites. The service centre in Basra covers an area of 9,000m², and the ground had to be raised by two metres.

Waiel Kair, managing director of ZamZam Spring, said:

“Delivering a service centre to a European standard is a significant achievement. This puts us two to three years ahead of the competition here. That is how much time competitors would need to catch up to the service capacity we can now offer around Baghdad and Basra.“

Soenchen said that the construction was aided with the import of material from the UAE and elsewhere, and the approvals process was far quicker than if it had been carried out in Europe.

“This could not have been done faster anywhere else. This will set a new standard for the industry on what is possible and what can be expected. This is both from our customers’ point of view, as well as raising the bar for competing truck manufacturers.“

(Source: Construction Week Online)

By Waheed Ghanim.

This article was originally published by Niqash. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Basra’s Miracle Flower Show: Growing Petunias without Water

In temperatures of over 50 degrees C, in a place where there is either no water or it’s salty, putting on a flower show is something of a challenge. Basra’s gardeners tell how they did it.

Despite the sunshine and the proximity to water, the locals in Basra don’t find it all that easy to grow decorative flowers. During the summer temperatures go as high as 50 degrees Celsius and the Shatt al-Arab waterway is very salty; here the fresh water of the Tigris and Euphrates rivers mixes with the Persian Gulf’s salty water. Desertification, resulting from the successive wars and urbanization, is another major problem as are polluted city waterways.

“In the past we’ve grown petunias that are very beautiful and have lovely colours,” Saad Nidal Assad, who heads the agricultural unit in the Qibla area of Basra, reports. “We then plant them in public parks but they die in two weeks because of the heat.”

This meant growing and keeping the flowers for Basra’s recent Flower Show was even more of a challenge. “We spent huge amounts of money to bring fresh water for the flowers,” says Amar Abdul Salam, director of the Agriculture Department in Basra. “One tank of water costs about US$40 and we need at least two tanks a day because of the heat.”

But the results are worth it, Salam believes. The flowers are on display for 45 days and have attracted crowds of locals to what was once former Iraqi leader Saddam Hussein’s palace in Basra, next to the water.

Hundreds of plants are on display in the palace grounds, as are a variety of animals, including ostriches and pigeons.

BIOGH has announced that the Masterplan for the Basra International Oil and Gas Free Zone has been formally approved by the Consulting Bureau of the College of Engineering at the University of Basra, and by the Iraq General Commission for Free Zones.

This planning approvals milestone represents an ongoing successful collaboration, notably with the efforts of Dr. Sabah Al-Qaisi, Director General of the Iraq General Commission of Free Zones, and his dedicated teams in Basra and Baghdad, the team at Basra University, and the BIOGH management team.

Together, this Public Private Partnership has taken a proactive, creative, and diligent path in creating, building and nurturing a new model for positive change and growth for the future of Iraq.

The creation of the BIOGH Oil and Gas Free Zone is one of the most significant investment contracts entered into by the Iraqi Free Zones Commission, strategically placed in Southern Iraq. BIOGH will be the largest oil and gas free zone in Iraq, and it will greatly increase the Free Zone’s contribution to the economy of Iraq by attracting significant foreign direct investment, technology transfer, educational opportunities, careers training and job creation over 50 years.

The training of Iraqi nationals and provision of sustainable jobs has been a driving point for BIOGH / FZ partnership as key to a successful and sustainable future for Iraq. The partnership will employ a projected 10,000 Iraqi nationals over an initial period of 12 years and this number is projected to grow as BIOGH expands. The BIOGH Free Zone will also offer training and education in core disciplines that support the growth of industry in the region.

BIOGH has made significant progress in recent months with major pre-construction, topographical, geotechnical, and UXO surveys already implemented. Pricing for the first phase of work has been finalized by the BIOGH Project Management Team.

BIOGH’s development managers EPGI are working closely with tenants on the temporary utilities and camp resources. Temporary utilities for near term delivery requirements will be used until the permanent on-site utilities are completed, in line with the Masterplan and tailored to tenants’ specific requirements.

BIOGH’s Customs and Immigration clearance facilities and fast-track approvals under agreement will be released alongside each phase as it is delivered for tenant take-up. Other permanent facilities which are in the planning and implementation phases include the infrastructure and logistics to support the transfer of goods in and out of the BIOGH Free Zone, state-of-the-art IT and security, emergency fire and medical services, banking services, hotels, business centre, mixed use commercial components, and education and training centre. There will also be a range of residential accommodations, including multi-family, serviced apartments, health and fitness centre, food service, and sports facilities.

(Source: BIOGH)

By John Lee.

Qatar Airways has launched flights to Basra, its fourth destination in Iraq. The new services, operating four-times-a-week non-stop from the airline’s Doha hub, takes the carrier’s global network to 128 destinations worldwide.

The launch also marks the rapid expansion by Qatar Airways in Iraq since the middle of 2012 when it began flights to Erbil, followed by the capital Baghdad and, earlier this year, Najaf.

With today’s route launch, Qatar Airways’ frequency across Iraq rises from 12 to 16 flights each week – representing a more than 25% increase in services.

The arrival of Qatar Airways’ flight QR448 was welcomed at Basra International Airport with a reception presided by local officials. Fathi Al Shehab, Qatar Airways Senior Vice President GCC, Levant, Iran and Indian Subcontinent led an official delegation on the flight from Doha.

Qatar Airways Chief Executive Officer Akbar Al Baker said he was delighted to see additional flights open up another entry point to Iraq:

“The Republic of Iraq has been on our list of expansion priorities for some time and the last 12 months have seen us move forward very quickly opening up four new gateways in Iraq with a fifth Sulaymaniyah starting in August.

“Qatar Airways’ commitment is strong as we continue to build on our already strong relationship between the State of Qatar and the Republic of Iraq. Opening up Iraq to the world with more travel options and flexibility has always been part of our general strategy to enter underserved markets and give the travelling public to and from such places the ability to travel with greater choice, bringing the world closer to them.“

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With proven reserves of around 143 billion barrels, Iraq has the third largest reserves in the world situated across 79 oil and gas fields. Of these fields only 23 are currently producing, and it has only been in recent years that Iraq has administered bids from international and national oil and gas companies to develop these further.

The 3rd edition of Basra Oil & Gas International Conference and Exhibition was held in December 2012. With record number of exhibitors and visitors the event earned its place as the largest and most impressive one in Iraq oil & gas sector in the third year. With an exhibition and parallel conference programme, the event, officially supported by the Ministry of Oil, was host to some of the leading companies in the industry, including: Bertling, Cameron, China Petroleum Technology, CNPC, Emerson Process Management, FMC Techonologies, Honeywell, Mitsubishi, Mott Mc Donald, Rumalia, Samsung, Scania, Shell, Siemens, Tenaris and Volvo .

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Expected to attract more than 18,000 visitors, the four-day conference and exhibition will create a platform from government institutions, national oil and gas companies, private sector, and industry professionals that is essential for potential solutions for the fourth consecutive year. The 4th Basra International Oil & Gas will not only highlight through the deals and contracts concluded on site by key buyers and decision makers of Iraq’s oil & gas industry, but it will also by its significance to manufacturers who showcase their latest products, confirm the event’s position as a key promotional tool in the industry diary. Since 2012, being an UFI approved event underlines the event’s international standards and showcases its high quality.

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By John Lee.

Pakistan’s Attock Cement Pakistan Limited (ACPL) intends to invest around $25 million in a new cement grinding unit in Basra.

Summit Capital analyst Muhammad Sarfaraz Abbasi commented:

“Since Iraq is an economy which is coming out of war with a huge potential for reconstruction activities, we expect the project will pay ACPL back well in the coming years …

“However, since the project’s plan is at an initial stage, we are waiting for further details from the company to evaluate the impact of the project on its earnings going forward.”

The producer of the well-known Falcon brand of cements posted revenue growth of just 9 percent in the last quarter.

(Sources: Express Tribune, Pakistan Stock Exchange)

The Bilateral US-Arab Chamber of Commerce announced that it hosted a business-to-business networking luncheon this week for visiting private sector executives from Basrah, Iraq, who are seeking to establish US partnerships, identify suppliers, and strengthen trade relationships to help with Iraq’s rebuilding efforts.

The event is part of the Chamber’s CEO Insight Series, held in cooperation with the U.S. Consulate in Basrah, the U.S. Department of State, and the U.S Department of Commerce.

“There’s a big role to be played by small and medium-sized enterprises in Iraq in terms of supporting Iraq’s economy, forging international business partnerships, and pushing for more reforms,” said Mr. Naufel Al Hassan (pictured), Commercial Counselor for Iraq, who served as keynote speaker for the event. “Small and medium-sized enterprises are the key to sustaining Iraq’s economic growth, and Iraq needs committed partners who share in the vision for our future, and who recognize the country’s potential.”

According to Hassan, in 2012, trade in goods (not counting services or certain private-sector activities) between the U. S. and Iraq reached $21.3 billion. In the first quarter of 2013, trade volume between the U.S. and Iraq increased more than 23% compared to the first quarter of 2012.

(Source: Bilateral US-Arab Chamber of Commerce)

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

The results of the Iraqi provincial elections held April 20 initiated a new political balance between the main Shiite powers in Iraq’s south, particularly in Basra. These powers are the State of Law coalition led by Prime Minister Nouri al-Maliki, the Citizen’s Coalition led by cleric Ammar al-Hakim and the movement of religious figure Muqtada al-Sadr.

Maliki’s coalition won pluralities in seven of the 12 provinces where elections were held; no elections were held in Anbar, Ninevah and Kirkuk, as well as in the three Kurdish provinces of Erbil, Sulaimaniyah and Dohuk.

Yet Maliki’s victory left a bitter taste for the following three main reasons:

Maliki entered the elections with the intent of winning in all Shiite cities and of forming provincial governments by having political majorities. While he wants to apply this majority principle in the upcoming 2014 parliamentary elections, he failed to obtain it in his coalition’s attempt to form provincial governments. This forced him to resort once again to complicated arrangements with opponents lying in wait, and with scattered small forces.

The number of seats obtained by Maliki’s coalition nationwide indicates that it lost at least 38 seats compared with the number of seats it obtained in 2009.

Maliki formed alliances with major political blocs such as the National Reform Trend led by Ibrahim al-Jaafari, the Badr Organization led by Hady al-Amiri, the Islamic Virtue Party and independent parties, while Sadr and Hakim made no alliances.