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LONG DRAWN-OUT BATTLE With an office in Iraq, Kuwaitbased Sham Logistics Services is acutely aware of the difficulties of operating in Iraq. Capt. Shadi Salama, managing director and partner of the company, described the uphill battle Sham faced in moving project cargo to Iraq between 1990 and 2003 when the Kuwait-Iraq borders were closed. All shipments were moved via Kuwaiti ports and then re-exported to Iraq on a transit basis. However, the challenges did not lessen once the borders were reopened in 2004. Sham then faced technical problems with height restrictions of five meters on roads and bridges in Kuwait, forcing Sham to flesh out alternate plans for every shipment to avoid obstructions until it reached the Kuwait-Iraq border. After crossing the border, further challenges included getting clearances from Iraqi Customs officials and moving the cargo on to project sites on poor road conditions that were hampered by a lack of security, Salama said. Even after Umm Qasr port restarted operations, there was no relief for project cargo companies as they faced continued problems in getting clearances from Customs, and had to wait long periods before they were able to deliver cargoes to project sites across the country. Despite the challenges, movements of over-dimensional cargo to Iraq have been very strong since 2004 in tandem with growth in the world economy as the country sought to rebuild. “But the global economic slowdown, coupled with the unstable political situation around the same time, had its effect on the ongoing projects in Iraq and reduced government expenditure has reduced the import of oversized cargo,” Salama said. 20 BREAKBULK MAGAZINE www.breakbulk.com
revision in oil prices for resuming the halted oil-related projects. It is reported that the government has identified funding agencies for these projects and this is good news for all stakeholders, especially project cargo forwarders,” he said. However, moving project cargo within Iraq has its own set of challenges. Getting duty exemption and customs clearance are just two of them. Since the process involves multiple government departments, obtaining the required permissions on time can be difficult, yet it is important to avoid unnecessary storage charges. A lack of suitable and ready equipment could also be a stumbling block. “When it comes to heavy-lift, careful planning is required to mobilize heavylift equipment and make it available for handling materials such as cranes and modules. But there are not many of them easily available,” Mathew said. Additionally, Umm Qasr is the gateway port for receiving project and heavy-lift cargoes, yet it is hampered by
shallow draft and inadequate shore equipment. Also, breakbulk cargo has to be discharged on direct Credit: Fleetline delivery basis and Shipping Services if permissions are not in place, it has to be moved to a temporary storage area resulting in double handling. “Further, most of the projects sites are located in remote areas and the freight has to travel through mud roads and uneven surfaces. Good local knowledge on many aspects is essential to overcome civil unrest and challenges as well,” Mathew added. BB A pressure vessel weighing 110 tons is transported from India to a site at West Qurna at Iraq.
V L Srinivasan is a senior journalist based in Hyderabad, India, covering finance, infrastructure, energy, shipping, transportation, IT, environment and political and regional developments in India and the Gulf Cooperation Council region.
“Good local knowledge on many aspects is essential to overcome civil unrest.” – Peter Mathew ISSUE 5 / 2016