Bahrain’s freight transport industrys

Bahrain’s freight transport industrys

Bahrain’s freight transport industry has emerged as a pivotal component of the nation’s economic diversification strategy, positioning the kingdom as a central logistics hub within the Gulf Cooperation Council (GCC) region. Leveraging its strategic location, advanced infrastructure, and business-friendly environment, Bahrain is enhancing its role in regional and global supply chains.

Strategic Location and Connectivity

Situated at the heart of the Arabian Gulf, Bahrain offers unparalleled access to major markets. The King Fahd Causeway connects Bahrain directly to Saudi Arabia, facilitating efficient overland freight movement. Plans for the King Hamad Causeway, a new rail and road link, aim to further bolster connectivity with the GCC railway network, enhancing multimodal transport options .

Port Infrastructure

Bahrain’s maritime capabilities are anchored by the Khalifa Bin Salman Port (KBSP), a state-of-the-art facility managed by APM Terminals. Located in the Hidd Industrial Area, KBSP handles container operations, general cargo, and roll-on/roll-off services, with direct overland links to Saudi Arabia . Additionally, Mina Salman Port, situated in Manama, serves as a key customs point and supports the kingdom’s maritime trade .

Air Freight and Airport Modernization

The Bahrain International Airport (BIA) has undergone a significant transformation through a US$1.1 billion modernization program. The new terminal increases the airport’s capacity to 14 million passengers and 130,000 air traffic movements annually. The development includes a new cargo area designed to handle larger volumes efficiently, attracting major logistics companies like DHL and FedEx Express .

Logistics Zones and Industrial Parks

The Bahrain Logistics Zone (BLZ), adjacent to KBSP, offers a customs-free environment with 24/7 services, temperature-controlled warehouses, and facilities for value-added logistics activities. This zone provides companies with the shortest transit times in the region and seamless access to surrounding markets, including Saudi Arabia . Furthermore, the Bahrain International Investment Park (BIIP) near KBSP caters to manufacturing and industrial services, attracting numerous international businesses .

Digitalization and Efficiency

Bahrain is investing in digital infrastructure to streamline logistics operations. The OFOQ single customs window, established in 2011, is being upgraded to OFOQ 2, incorporating blockchain technology to accelerate port procedures. These enhancements aim to reduce truck turnaround times and improve overall efficiency in freight handling .

Government Initiatives and Vision 2030

Under its Vision 2030 economic plan, Bahrain is committed to diversifying its economy and enhancing the logistics sector. The Logistics Services Sector Strategy 2022-26 targets increasing the logistics sector’s contribution to GDP to 10% by 2030. Investments focus on expanding airfreight capacity, shipping capabilities, and broadening aviation networks .

Conclusion

Bahrain’s freight transport industry is undergoing a transformative phase, driven by strategic investments, infrastructural enhancements, and a commitment to digitalization. These developments position Bahrain as a competitive logistics hub in the GCC, offering efficient, multimodal transport solutions and fostering economic growth beyond its traditional oil-based economy.