Kuwait aims to position itself as a centre for re-export, shipping and warehousing by creating a series of “logistic cities”
Kuwait Ports Authority (KPA) said the cities would diversify the country’s sources of income, goods and merchandise, and support local trade while also attracting global investment.
These business hubs would boost the economy and also create job opportunities in artificial intelligence and logistical warehouses, according to director general Sheikh Yousef Al-Abdullah.
The KPA project includes establishing new cities on 2m square metres of land recently recovered by court rulings.
Each city will have specific competencies which are yet to be determined and will provide logistical services for small, medium and large companies.
They will also be designed to support e-commerce, which has become the primary medium for buying and selling products and commodities in the country.
Sheikh Yousef Al-Abdullah said the cities would provide competitive prices for all foreign companies wishing to place goods in Kuwait.
He added that plans include developing connections between Kuwait’s three main ports as well as a new “smart port”, which would use a single communication system for all customs and port activities.
Further, the authority intends to establish Kuwait’s first land port, near Shuaiba port, to serve the passage of goods and merchandise that pass through the country’s land borders, reducing traffic on the borders.
KPA profits have increased by around 400% over the past six years, reaching KD56m dinars (£134m) according to the director general. He added the impact of the Covid-19 pandemic had increased pressure on shipping routes, but the “abnormal increase” in the cost of transportation was temporary.