Ports Expansion Key to Qatar $100 Billion Economic Investment

Multi-billion dollar investment in port operations across the Middle East is again surging forward in the post-recessionary environment, including Qatar where its maritime ports are undergoing significant expansion. National project spending in the Gulf state is expected to top $100bn across infrastructure, real estate and other energy and non-energy sectors over the next decade, according to research from the Investment Bank of Qatar.
Driven largely by rising energy prices, the Qatar's economic growth is partly due to Liquefied Natural Gas (LNG), with as much as one-third of global reserves lying within Qatar's sovereign territory.
"Qatar's expansion of its ports, particularly in Doha and Ras Laffan, is pushing ahead at a rapid rate, keeping pace with its overall programme of economic expansion," Capt. Feisal Saad, Manager of Ras Laffan Port, said in a press release.
Qatar also lays claim to the world's largest LNG exporting facility, Ras Laffan Port, which will be exhibiting at the event. Having undergone significant expansion since it was first developed 15 years ago, the Port continues to grow in line with regional and global demand for LNG. According to the Qatar Chamber of Commerce and Industry, by the end of 2011, the facility will export 77 million tonnes of gas annually, more than four times the capacity of its nearest competing port, in Bintulu, Malaysia.
Continuing to develop the port to meet demand for the next 20 years and beyond, the Ras Laffan Masterplan has committed at least $1.8 billion to two major projects within the next two years. One of these, which was completed at the end of 2010, is a world-class dry dock and ship repair yard for LNG and other types of vessels. A ship building facility was also completed at the same time. By 2012, the overall port facility will have a capacity to handle 5,000 ships a year.
Another of Qatar's major new port projects is the $4.5 billion Phase 1 of the New Doha Port, south of Al Wakra township. Comprising of general cargo terminals, container terminals and roll-on/roll-off berths along with an administration and customs complex, the port will cover an area of more than 20 square kilometres. With construction due to begin within the first half of 2011, the first phase of the project is expected to be completed by 2014.
Capt. Saad added that the steady post-recession revival of regional and international trade between the East and West is resulting in increasing volumes of cargo routed in and out of the region. With Qatar winning the honour of hosting the FIFA World Cup in 2022, a number of mega projects will be launched in the next decade that will require further investments in ports infrastructure of the country. This can only be good news for the trade and logistics companies in the region.
"Having remained strong throughout the global economic downturn, countries up and down the Gulf have continued to expand their port operations over the last two years, with growth continuing into 2011 and beyond," he said.
He will be speaking at the World Ports & Trade Summit in Abu Dhabi on 28-30 March for the World Ports and Trade Summit 2011.
In association with Abu Dhabi Terminals, Arab Sea Ports Federation and joint event organisers Turret Media and Seatrade, the inaugural summit this year will become an annual event. Internationally recognised economists, ports authorities, terminal operators, shipping companies, global cargo owners and investors will be brought together to present some of the most ambitious projects ever attempted.
The World Ports and Trade Summit is split into six different sessions covering topics including the world economy, trade and ports, future challenges and opportunities for the Middle East and leading drivers of freight markets.