Manama, October 7 (BNA) Steel Company, the iron and steel producer in the global markets, announced the successful opening of the new Wharf port.
The new private port facility, located in Salman Industrial City in Hidd, is set to significantly enhance the company’s supply chain and deliver strong environmental and economic benefits to Bahrain and its customers.
VIPs, Salib’s Board of Directors, management, customers, partners and the media attended to celebrate the historic opening where Salb was awarded the Port/Private Quay Operator License issued by the Ministry of Transport, Communications, Maritime Affairs and Ports.
Developed at a cost of approximately $20 million, the facility is 230 meters long and can accommodate vessels up to 180 meters LOA and 40,000 DWT.
Now in operation, it will allow for a significant reduction in Soleb’s use and dependence on Bahrain’s public road and port network. When shipped directly by sea to customers, approximately one million tons of steel products will be removed from Bahrain’s roads each year. This is equivalent to 40,000 trailers per year, which will not only significantly reduce the Kingdom’s traffic and road wear, but is also expected to lead to a significant reduction in post-production greenhouse gas emissions by nearly 18,000 tons per year.
The enhanced efficiency and range of economic benefits resulting from the company’s streamlined delivery capabilities will also be realized. With its own freight facility, Steel has now effectively secured its supply chain to enhance business continuity for the company and its global customers. The savings and securing its strong foreign exchange market contributions to Bahrain’s economy will also be supported by the new facilities through reductions in the company’s cost of export and an increase in the return on dollars earned. The new facility will help Steel save approximately 30% on annual FOB (Freight on Board) charges while also helping customers reduce purchase fees by up to 20% as a result of Steel’s on-site loading and forwarding capabilities.
Soleb currently exports 99% of its products annually to customers in more than 25 countries in the Middle East, North Africa, Southeast Asia, the Americas and Europe. Today, nearly 50% of all structural steel sections used in infrastructure development for the Gulf Cooperation Council countries are manufactured by the company in Bahrain.
“We are pleased to see private sector initiatives and investments that support greater efficiency, Bahrain’s position as a leading regional exporter and that contribute to the Kingdom’s plans and policies to see the economy operate in a more sustainable and environmentally friendly manner,” Ports Affairs Bader Hood Al Mahmoud said.
“We congratulate Saleb, its board of directors, shareholders and employees on this important achievement, which not only advances the company’s goals, but also supports the main goals of the Kingdom’s Vision 2030.”
“We are pleased to celebrate this important event with the presence of our partners, and we are very grateful for the exemplary support provided by Ports and Bahrain Affairs in the development and construction of the steel berth,” said Ravi Singh, CEO of Steel.
“This is a win-win proposition for the Kingdom, our company, our customers and our community. The new facility will help us operate more efficiently. It greatly enhances our export supply chain for the benefit of our customers, the Kingdom’s economy and our position as one of Bahrain’s largest exporters and net income earners for Forex. Most importantly, it allows us to also by taking positive steps in our sustainability mission. With our on-site shipping facilities, we will help decongest Bahrain’s roads and significantly reduce carbon emissions to support cleaner air and meet the government’s air quality targets.”
The opening of the facility was followed by a water salute carried out by steel team members, and two ships are expected to arrive at the facility within the first month of its operation. The first will arrive for the export of approximately 13,000 tons of “Made in Bahrain” steel beams, and the second ship will be loaded with a tonnage of 32,000 tons by the end of the month.
Steel produces 1.7 million tons per annum of DRI from iron ore pellets manufactured by its sister company Bahrain Steel, 1.2 million tons per annum of steel and delivers nearly 800,000 tons of prefabricated beams, angles and channels along with its sister company in Jubail, Kingdom Saudi Arabia. Steel girders are required for the construction of infrastructure related to heavy industries such as refineries, steel plants and petrochemicals as well as in high-rise buildings, bridges, airports, convention centers and other long-term architecture.
The company is 51% owned by Foulat Holdings, a Bahrain-based investment vehicle for the metals industry in the Middle East region. Foulath was established by the six countries of the Gulf Cooperation Council through the Gulf Investment Holding Company (GIC). It is 49% owned by Yamato Kogyo, the major Japanese global structural steel company.
FKN