Special Report: Construction - Marine projects drive market

According to Gulf projects tracker MEED Projects, $44.8bn worth of port construction projects are planned or under way in the GCC, Iraq and Iran. Egypt, Libya, Morocco and Tunisia are also spending heavily on major port expansions.

The change in approach is because the region’s governments now recognise the competitive advantage of having good transport infrastructure.

By 2011, world container volumes are due to reach 150 million 20-foot equivalent units (TEUs) a year, a 42 per cent rise in five years. From the Tang-Med project north of Tangiers to Umm Qasr in Iraq, port authorities are competing to attract the largest tonnage.

This requires deep harbours, high-speed handling equipment and efficient management to ensure that shipping companies are confident that using the region’s ports will not disrupt carriers’ global schedules.

Across the region, governments are recognising that delays have become a problem in their ports and are investing heavily. Riyadh, for example, has pledged $50m to upgrade its Red Sea ports to meet its target of handling 12 million TEUs a year of regional trans-shipment.

Index of stories:

• Oversupply hits materials producers in the region

• Changing the shape of the Gulf

• Easing the capacity crunch at Gulf ports

• Giant waterway scheme begins

• Regional offshore opportunities increase

• Slowdown halts soaring pay in GCC

• Dredgers struggle with falling activity in Gulf