Denmark's Maerskhas pulled out of the operation and management of Khor al-Zubair port. No official reason has been given, although conflicting reports have raised various issues, ranging from rioting and non-payment to staff safety.

Maersk had been operating the port on behalf of the Iraqi Ports Authority (IPA) in an unofficial capacity since its contract to provide management services expired last summer. Its abrupt departure from Khor al-Zubair has thrown doubt over the bidding process for the build-operate-transfer (BOT) concessions to rehabilitate, upgrade, operate and manage Umm Qasr and Khor al-Zubair ports. Maersk was frontrunner for the Khor al-Zubair concession after it was ranked first following the evaluation of bids late last year. The other bidders are Dubai Ports International(DPI)and Kuwait & Gulf Link Transport Company(KGL).

The same three firms submitted bids late last year for the Umm Qasr concession. KGL is ranked first followed by DPI. The port, the country's largest and a lifeline for the relief effort, has been operated by IPA since the original one-year contract held by Stevedoring Services of America (SSA) expired last year (MEED 25:6:04).

The concessions call for estimated investment of more than $250 million. Under the terms of the agreements, the concessionaire will be responsible for increasing the port's capacity by upgrading the superstructure, container terminal and associated equipment. Returns on investment will be recouped through profit sharing and revenue collection agreements (MEED 24:12:04).