Gulf investors are studying the possibility of establishing a logistics services company that would help streamline the flow of goods across the borders of the six-nation Gulf Cooperation Council (GCC).
A feasibility study is currently under way, Ali Abdul Latif Al-Misnad, a board member of the Qatar Chamber of Commerce and Industry, told local media. He said investments in the services sector ranges between $50 billion and $100 billion. The proposed company would regulate the activities of companies and institutions involved in the GCC transport sector and determine how to remove obstacles facing investors, Al-Misnad said.
The study emerged from an initial agreement by GCC investors to establish a private services company with branches in all six countries. The GCC land transportation committee would have further discussions on the matter next month in Riyadh, he said. Al-Misnad said the company would help create investment opportunities in the Gulf transport sector and boost the gross domestic product of each participating country. He said the proposed company would facilitate the movement of goods across borders and promote products in the GCC markets.
Abdul Rahim Hassan Nagi, secretary-general of the GCC's federation of chambers, said the proposed company would not compete with services companies operating in the GCC region. "Investors in the transport sector need to address obstacles such as slow customs procedures, delays of trucks at border crossings and lack of standardized sampling and inspection arrangements. There is also inadequate technology in loading and unloading operations, poor infrastructure, high transport costs and the absence of services staff on a 24-hour basis at border points," he said.