Jordanian port to approach Iraqi businesses over potential trade links

The Port of Aqaba has potential to be a shipping hub for trade in and out of Iraq; the port’s representatives have claimed this week.

A delegation from the Aqaba Container Terminal (ACT) in conjunction with the Aqaba Development Corporation (ADC) is actively seeking to build ties with the Iraqi business community in order to promote Aqaba as the preferred gateway for goods on their way to Jordan’s eastern neighbor.

“Our port facility in Aqaba is the smartest, safest way to get goods in and out of Iraq” said ACT’s Vice President of Operations, Amin Kawar.

The International Monetary Fund (IMF) has forecast a 4.2 percent economic growth rate for the Middle East and North Africa in 2012 overall. However, the Iraqi economy has been projected to expand by 11.1 percent this year and by 13.5 percent in 2013; increasing the need for access to cargo transportation services and infrastructure.

At a Mideast trade conference, ACT’s Chief Executive Officer Soren Hansen emphasized the advantages provided to shippers by Aqaba, describing Jordan’s only port as “an efficient, cost-effective option for businesses moving cargo throughout the Levant”.

“Our growth at ACT is heavily driven by the trade to and from neighboring counties, including Iraq” said Hansen.

The Kingdom of Jordan is bordered by Israel, Syria, Iraq and Saudi Arabia.

In 2011, transit cargo handled at ACT increased by 63 percent to over 100,000 TEUs as the terminal’s US$235 million expansion nears completion.

The expansion will increase annual container throughout capacity to a projected 2 million TEU.

“We are seeing more and more businesses in Iraq and Saudi Arabia now viewing Aqaba as a long-term, sustainable element in their supply chain,” added Hansen.

ACT is a joint venture between the Aqaba Development Corporation (ADC) and APM Terminals, operating under a 25-year build-operate-transfer agreement signed in 2006.