Kuwait is to build a port for containers at a cost of $ 1.2 billion

Kuwait said on Saturday it will build a sea port to receive containers by the beginning of next year at a cost of $ 1.2 billion.

The Kuwaiti minister of public works Bader al-Humeidi said that work in establishing the port which will be held in Bobian islands situated between Iran, Iraq and Kuwait will start by the beginning of 2005.

The project which will serve the three countries is considered part of the government to service Bobian, which is the largest ninth island in Kuwait, to be a free zone for poling commodities and oil as well as a tourist site.

The port will be operational by the beginning of 2008 and will be of a productive capacity of 1.3 million containers in the first phase before its completion in 2016.

In the same context Mashari al-Humeidi, the director general of the Kuwait fund for Arab economic development, the side which financed the project's feasibility study said that the government will spend 305 million dinars ( USD 1.035) to establish the infrastructure while one private company which will be in charge of running the post will invest a sum of 40 million dinars for the equipment.

One foreign establishment will own 30% of the Kuwaiti company while Kuwaiti investors will own a similar share and the remaining share of 40% will be set for stakeholders.

David Ben one of the experts of Brewery For Sea Navy, which is an investment company, said he expects request for containers trade in Kuwait and Iraq to reach three million containers in 2025.

He added that while this activity does not exist in Iraq at the meantime, its volume in Kuwait is almost half a million containers.

The Kuwaiti trade activity has increased following the US invasion of Iraq as the Kuwaiti local companies sought to ensure necessary needs for Iraq.