An $18 million investment has expanded Danish transport and logistics company DSV’s Bahrain capacity in response to rising demand from the fast moving consumer goods industry.
Resulting in a new 14,000sqm logistics facility in the Bahrain Logistics Zone (BLZ) in Hidd, the investment adds 24,000 pallet positions to the company’s temperature-controlled warehouse capacity in the kingdom, raising it to a total of 65,000 pallet positions spread over 75,000sqm.
Supporting contract logistics with ambient, chilled and frozen storage, as well as solutions for high-value cargo, the new warehouse will offer secure records management services, and storage/turnkey logistics for local manufacturers in the fast moving consumer goods industry, the company said.
The new facility is the world’s third-largest freight forwarder’s second expansion in Bahrain in just three years, following the 2019 opening of a 28,000sqm warehouse, also in Hidd.
Inaugurating the facility yesterday, Transportation and Telecommunications Minister Mohamed Al Kaabi noted that as a constantly growing economy, the kingdom continues to attract international investments further strengthening its position as a leading maritime and logistics hub.
“Bahrain’s favourable geographic location, attractive liberal business environment and economic potential makes it an obvious investment opportunity for global companies such as DSV,” he added.
Also present during the opening ceremony were Industry and Commerce Minister Zayed Alzayani as well as senior government officials and representatives from the Economic Development Board (EDB), Bahrain’s national investment promotion agency.
Since 1997, DSV has operated and grown its business in the kingdom, and with the 2021 acquisition of Agility GIL, the company further strengthened its operations in the region.
Elias Monem, Mena region executive vice-president for solutions and road at DSV, said: “Bahrain’s advanced infrastructure and favourable geographical placement are central factors in choosing to extend our business in the country. The new facility in Bahrain Logistics Zone will allow us to respond to the high demand and better serve customers in the region.”
Recording its strongest growth in at least a decade, Bahrain’s GDP grew by 6.95 per cent in Q2 of 2022, due mainly to an expansion in the non-oil sector, a recent report by the Information and eGovernment Authority said.
According to EDB chief executive Khalid Humaidan, the logistics sector is a priority sector under the kingdom’s extensive Economic Recovery Plan, which aims to position Bahrain as one of the top 20 global destinations for logistic services, and increase the logistics services sector’s GDP contribution to 10pc.
Mr Humaidan added that DSV’s investment in Bahrain was a testament to the business confidence that the kingdom provides.
“Bahrain offers the best-value operating costs for a logistics business, with strong connectivity by air, land and sea. This has encouraged several companies to utilise our strategic location and free trade agreements in order to set up businesses and access the GCC and wider Mena region,” he added.
avinash@gdnmedia.bh
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