We have a positive outlook for Bahrain's shipping sector. The country's main maritime facility, the Khalifa bin Salman port, is poised to continue on its upward growth trend, posting solid growth, especially in terms of container throughput over 2014. Volumes at the facility are rising as a result of the massive hike in demand at Saudi Arabian ports. Meanwhile, Bahrain's domestic consumer demand outlook also bodes well for its ports sector over the medium term. The port of Mina Salman should see tonnage volumes rise as well, on the back of demand from an extensive housebuilding programme under way in Bahrain.
Headline Industry Data
Growth in KBSP total tonnage throughput forecast at 6.0% in 2014, with average annual growth of 5.5% between 2014 and 2018.
Growth in KBSP container throughput forecast at 7.6% in 2014, with average annual growth of 7.0% over our forecast period.
Real growth in total trade forecast at 4.3% in 2014 and to average 3.9% over the medium term.
Key Industry Trends
IPO Planned For Khalifa Bin Salman Port Operator: In May 2014, Bahrain's Ministry Of Transportation revealed plans to launch an initial public offering (IPO) of shares in the company that operates the Khalifa bin Salman port. The listing would fulfil a contractual agreement made when the port began operations in 2009 and is also expected to aid the recent recovery of the Bahrain stock market, in which the main index had fallen 17% between 2008 and 2012. The facility, with an annual capacity of 1mn twenty foot-equivalent units (TEUs), is operated by APM Terminals Bahrain under a 25-year concession. The company is 80%-owned by Netherlands-based APM Terminals, while the remaining 20% is controlled by Bahraini business group YBA Kanoo Holdings.
KBSP Goes Deeper, But Will New Clients Come?: We believe the deepening of the channel at the Bahrain port of Khalifa bin Salman (KBSP) is a positive move by the operators APM Terminals (APMT), providing an added inducement for...