FedEx Express, a subsidiary of FedEx Corp – a leading express transportation company, has signed a Letter of Intent to take warehouse space at Bahrain International Airport’s (BIA) new Cargo Area on the northern runway, said a report.
The agreement was signed by Minister of Transportation and Telecommunications and Bahrain Airport Company (BAC) chairman Engineer Kamal bin Ahmed Mohammed; BAC chief executive officer Mohamed Yousif Al Binfalah; and president of the FedEx Express Middle East, Indian Subcontinent and Africa (MEISA) region James R Muhs, reported Bahrain News Agency (BNA).
The expansion of BIA’s cargo facilities is in line with the objectives of the Higher Coordinating Committee, chaired by HRH the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister Prince Salman bin Hamad Al Khalifa, to further develop the kingdom’s logistics field, it added.
The signing ceremony was attended by a number of other senior officials from Customs from the Ministry of Interior, BAC, EDB and FedEx Express.
Also in attendance were FedEx Express vice president of Middle East and Northern Africa Ground Operations, Taarek Hinedi, and Managing Director for Middle East Operations, Saleh Mansour.
The minister said that BAC has a comprehensive plan to attract prominent cargo companies to the kingdom, which will strengthen Bahrain's strategic position as a leading provider of efficient logistics services in the region.
He added that BAC are currently negotiating with two other companies wishing to operate warehouses at the new Cargo Area, which further demonstrates the kingdom’s strong reputation as a regional hub for logistical services in the GCC and wider Middle East.
He continued: “The new Air Cargo Area that BAC is constructing north of the runway is an important part of the overall growth strategy adopted by the Ministry of Transportation and Telecommunications, and a key component in the Airport Modernisation Programme (AMP), which is due to be completed by Q3 2019. It also reflects the important steps that the company is taking to enhance the airport’s infrastructure and increase its ability to accommodate rising local and regional demand. The new Cargo Area will create more job opportunities and enable the airport to handle larger volumes. This is in line with government-led initiatives aimed at expanding the kingdom’s logistics sector, which began in 2015 via the Bahrain Logistics Board chaired by His Royal Highness the Crown Prince, Deputy Supreme Commander, and First Deputy Prime Minister, Prince Salman bin Hamad Al Khalifa.”
The minister also noted that the continuous cooperation and coordination between BAC, Customs, and the EDB played a major role in the fruition of this agreement.
Muhs said: “The GCC is an important region for FedEx Express, where enhanced collaboration between public and private sectors is fuelling growth across industries. The logistics market forms a fundamental part of the GCC economy, and we remain committed to serving our customers across Bahrain, and connecting them with people and possibilities around the world.”
Al Rumaihi said: “This Letter of Intent further highlights the strength of Bahrain’s transport and logistics sector and supports our strategic focus on e-commerce and regional distribution. There are a number of opportunities for companies like FedEx Express in the GCC’s $1.5 trillion market, and Bahrain is an ideal location from which to access those markets due to our fast and direct transport links, some of the regions lowest operating costs, and a highly skilled, bilingual workforce.”
BAC signed an agreement in November with French engineering firm, Egis, for design and supervision for the new 25,000-sq-m Cargo Area, which comprises warehouses, aircraft parking, and associated infrastructure aimed at handling air cargo traffic and e-commerce.
The Cargo Area is also equipped with the latest technologies, making it one of the most attractive locations for investment in the Middle East, added the report.
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