Bahrain-based steel producer SULB has built a new private port facility to enhance its supply chain and cut procurement costs for customers.
SULB said the $20m facility at Salman Industrial City in Hidd is 230m long and can accommodate ships of up to 180m to help it to reach international markets more easily.
The company said the wharf will allow it to save approximately 30% on its annual freight-on-board charges and help customers reduce their procurement fees by up to 20% due to onsite loading and shipping capabilities.
The port will offer economic and environmental benefits by reducing dependence on Bahrain’s public roads and port network.
SULB said by shipping directly by sea to customers, nearly 1m tons of its products will be taken off Bahrain’s roads each year – equivalent to 40,000 trailers annually.
This would not only significantly reduce traffic in the country and wear and tear on roads, but would cut greenhouse gas emissions by around 18,000 tons per year.
“With its own shipping facility, SULB has now effectively secured its supply chain bolstering business continuity for the company and its global customers,” said SULB.
“Savings and the securing of its strong forex contributions to Bahrain’s economy will also be supported by the new facility through reductions in the company’s cost of exporting and a greater return of earned dollars.”
SULB currently exports 99% of its products annually to customers in more than 25 countries worldwide.
It also provides nearly 50% of all structural steel sections used in GCC infrastructure development.
Ravi Singh, CEO of SULB, said: “This is a win-win proposition for the kingdom, our company, our customers and our community.
“The new facility will help us operate more efficiently. It significantly strengthens our export supply chain for the benefit of our customers, the kingdom’s economy and our position as one of Bahrain’s largest exporters and net forex earners.”
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