Former Gulf trade hub wants role back

Kuwait has approved a multi-billion-dollar plan to develop its Boubyan island into a commercial seaport to try to position the Gulf Arab state as a main gateway for Iraq's rebuilding.

Trade and Industry Minister Abdullah al-Tawil said the port would be built at the entrance to the northern Gulf. "We will see the first four berths in Boubyan port in 2008, God willing."

Kuwait, an Opec nation that controls nearly a 10th of global oil reserves, was the region's premier trade hub in the 1970s, but now faces competition from more established centres such as Dubai and Bahrain after investors were scared away by the 1980-88 Iraq-Iran war, then by Iraq's 1990 invasion of Kuwait.

But with increased domestic security after the fall of former occupier Saddam Hussein last year Kuwait wants to lure billions of dollars in foreign direct investment and regain its role as a trade hub.

Tawil said the plan called for setting up a special company to oversee the project, which could cost as much as US$3.5 billion ($4.9 billion) over a possible 30-year lifespan to finish various stages.

The Government would spend about US$1 billion initially on building infrastructure, including berths.

But the private sector would build the quays and piers, and be responsible for container docks and transport systems such as a rail road, bridges and highways, if needed.

 

- REUTERS