GWC to launch 2nd phase of Logistics Village in March
The second phase of Logistics Village, which will bring in additional 60,650sq m of warehouse and 50,00sq m of container yard, is expected to be commissioned next month, according to its developer Gulf Warehousing Company. Indications are that the total cost of the project is estimated to be around QR200mn for which the financial closure has already been completed.
The company, which is aiming to double its seas and airfreight businesses by 2013, has also embarked on the expansion of its open yard in Ras Laffan for storing hazardous materials to be completed by the end of this year. The company had last year acquired 10,300sq m of open yard for the future storage of hazardous materials. From the very instance of breaking the ground for Phase II, the company started to receive several confirmed reservations and it expects the occupancy level to surpass 70% on its completion in Q1, 2012, GWC said in its annual report. “We look towards the added capacity and competitive edge that the Phase II of the logistics village will bring to the table,” GWC chairman Mohamad Ismail al-Emadi told shareholders yesterday at the annual general assembly. The meeting approved the net profit of QRR61.73mn and 15% cash dividend. It also retained the same board members for 2012. The first phase of Logistics Village, built at a cost of QR500mn, was launched in the second quarter of 2011; bringing in 82,200sq m of warehouse; 100,00sq m of container yard; 100,000sq m of truck maintenance and 23,000sq m of accommodation. “With the first phase of logistics village fully operational and with our GCC (Gulf Cooperation Council) presence expanding, the future looks bright,” he said.
The third phase of logistics village is expected to add 105,000sq m of warehouse; 100,000sq m of container yard; 4,600sq m ofadministrative block and 16,400sq m of accommodation.
Going forward, GWC expects growth momentum in the freight forwarding segment as several planned infrastructure projects will take off over the next decade. At present, it operates a global network of freight forwarding in a total of 125 countries. “As we get closer to the build up of the FIFA World Cup, we expect to play a big part in serving the logistical needs of this milestone event. In the freight forwarding and logistics segment, we expect to see strong rates of growth in the ocean, air and road freight areas, especially for our business activities in the GCC region,” the company spokesman said. Asserting that future looks bright, GWC said the logistics sector would get a booster dose due to the mammoth infrastructure spending outlined by the government. He expected about 5% of the total spending to be channelised into the logistics and warehousing sector.
On international moving and relocation of households, the company said it aimed at growing this business segment further through reciprocal strategic global alliances with large network of agents.