SECTOROVERVIEW 2.7: StorageandLogisticsservices regulations. center withexcellentmultimodallogisticinfrastructure supportedbyfavorabletrade ’s Third KuwaitMasterPlanseekstodevelopasaregional transport annually at Imports constituteakeycomponentofKuwait’seconomyandareexpectedtoincrease for the foreign tradeandKuwait’scentrallocationintheGulfmakelogisticsastrategicpriority City andotherprojects. warehousing facilitiesthroughdevelopmentoftheCargo The Governmentisseekingtoaddressthedemandfornew facilities. goods, requiringthedevelopmentofadditionalwarehousing are expectedtoacceleratedemandforvariouskindsof Kuwait’s increasingpopulationandconsumerspending increased demandforlogistics. to serveinternationalairfreight,areexpectedsupportthe Projects suchastheproposedCargoCity,whichisintended the GCCrailroadnetwork. and anewnationalrailroadnetworklinkingthecountryto port attheBubiyanIsland,upgradeofairportinfrastructure projects aretheinitiativestoupgradeexistingports,anew as partoftheKuwaitDevelopmentPlan.Keyamongthese several transportationinfrastructureprojectsbeinginitiated Logistics servicesinKuwaitareexpectedtobenefitfrom Source: BusinessMonitor International WAREHOUSING LOGISTICS Kuwait’s import and exports, 20 Kuwait’s importand logistical and warehousing hubintheregion. developments havethepotentialtopromote itasakey the GCCisrelatively small,theproposed infrastructure Though Kuwait’s current share of thelogisticssectorin NOMINALIMPORTS,US$B NOMINALEXPORTS,US$B country. 4.3 % during2014-201 n n 14 -201 9 toreachUSD 9 infrastructure Investment plan for road USD Estimated project value Mubarak Al Kabir Port in Bubiyan Island USD Project value 62 2 -Keysectorsfor opportunities Bnin201 4 7.5 Bn 9 . Theimportanceof Bn

Investing in Kuwait: A guide for Investment Opportunities in Kuwait 36 37 Investing in Kuwait: A guide for Investment Opportunities in Kuwait OPPORTUNITYOVERVIEW Source: BusinessMonitor International 2.7.1: Logistics of SaudiArabiaandIraq these ports. Kuwait’s tradeactivitieswith 40 Mntonnesoffreightin201 two keycommercialportsof Shuaiba andShuwaikhhandledacombinedthroughputof Maritime transportis the primarymodeofcommercialfreightmovementinKuwait. The transport. north ofKuwaitwhichwillenhance overlandfreight new andexistingroad planned overthe an averagerateof Imports inKuwaitareprojectedtoincreaseannuallyat Bn by201 regional markets.Investment of capacity ofadditional2.5Mn TEUs andfacilitateaccessto (Mn tonnes) Maritime freight 2019f 2018 f 2017 f 2016 f 2015 f 2014 e 2013 PORT OFSHUWAIKH THROUGHPUT PORT OFSHUAIBATHROUGHPUT 35 29 25 37 4 32 10 1 4 11 11 1 1 1 3 2 2 3 1 4 9.

The plannedMubarakAlKabirPortwilladda next fiveyearsinthedevelopment of 4.3 % during2013-201 throughput, 2013-201 throughput, infrastructure, particularlyinthe over ,

generate considerablevolumesofroadfreight USD 9 4 toreachUSD6 . Plansareunderwaytoexpandthecapacitiesofboth 7.5 Bnis 9 , 2 regional countries, particularly

• • • (‘000 tonnes) Air freight Arabia andIraqinacosttime-efficientmanner. ports andtransportingoverlandtotheKingdomofSaudi opening upopportunitiesforbringinggoodstoKuwait’s key industrialareasandwiththeGCCrailroadnetwork, The nationalrailroadnetworkseekstoconnectportswith and giverisetore-exportopportunities. Kuwait’s strategiclocationwithintheArabianPeninsula port infrastructureupgradesareexpectedtoleverage The upcomingMubarakAlKabirportandotherplanned renewed focusonindustrialdevelopment. manufactured goods,oresandmetalsaswella be drivenbythegrowthintradeofagriculturalmaterials, The domesticdemandforfreightlogisticsisexpectedto 2019f 2018 f 2017 f 2016 f 2015 f2014 e 2013 210 189 176 199 19 182 204 4 throughput, 2013-201 . the Kingdom 9 , OPPORTUNITYOVERVIEW planned CargoCitywhichwillcatertoaircargo. Warehousing capacityisalsoexpectedtobeaddedthrough projects suchasthe needed additionalportwarehousing capacity. upcoming MubarakAlKabirPortattheBubiyanIslandisexpectedtoprovide much ports haveremained staticresulting insignificantun-met/pentupdemand.The While freight throughput hasincreased steadily, warehousing capacitiesatKuwait’s 2.7.2: Warehousing Source: InchcapeShipping Services,DeskResearch warehousing relatedvalue-addedservices. presenting sizeableopportunitiesforwarehousingand for localandinternationalinvestorsisexpectedtoremain, Kuwait’s warehousingcapacity,considerablemarketspace While Governmentinitiativesareexpectedtoexpand Airport Kuwait International port Current stockofWarehousing in Kuwaitatseaportsand airport hab otWrhue: 14,500 sq. m Warehouses: port Shuaiba port Export warehouse: warehouse: Import Warehouses: Open storage area: Covered sheds: Warehouses: Outside the portarea Open storage area: Covered sheds: Warehouses: Within the port 100,000 sq. m 500,000 sq. m 15,000 sq. m 70,000 sq. m 78,000 sq. m 40,000 sq. m 2,300 sq. m 5,600 sq. m 8,110 sq. m

• • • the demandtoanextent. and thesewarehousescanbeexpectedtohelpaddress space inKuwait.Providingconnectivitybetweentheports considerable partofthesupplyinlandwarehousing Private sectorlogisticsservicesproviderscontrola further strainonthelimitedwarehousingfacilities. The ongoingandplannedinfrastructureprojectsareplacing imports furtherdrivesthedemandforstoragefacilities. need forwarehousingservices.Thecountry’srelianceon Kuwait’s increasingimportandexportvolumesindicatethe 2 -Keysectorsfor opportunities

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