Bahrain-Saudi causeway truck crisis ‘deepening’
Manama, June 30, 2013
The lingering trucks crisis on King Fahad Causeway may push major foreign companies to move to neighbouring countries, Bahrain Chamber of Commerce and Industry (BCCI) said.
Leading Bahraini companies and factories have also reduced their production due to massive stocks of unsold goods as a result of the crisis, the BCCI statement added, according to a report in the Gulf Daily News, our sister publication.
"Some companies have incurred losses averaging 80 per cent," it said in a statement.
Exporters are also complaining of skyrocketing costs of transport, which have trebled because of the persistent problem.
The chamber urged Bahraini and Saudi authorities to step in and ease the crisis, which has repercussions on economic activities in both countries. "Bahrain can't withstand further trade and economic losses as it is still trying to recover from the 2011 unrest," it said.
The crisis has left its toll on the industrial sector, particularly export-oriented firms.
Balexco chief executive Jassim Siadi stressed the detrimental impact of the crisis on national companies, warning against repercussions on trade.
Local transport and shipping companies have reportedly lost 80 per cent of their customers due to the crisis. Some companies have resorted to air cargo in a bid to honour their deals and get rid of stocks.
"More than 500 trucks report to the causeway daily but only 100 are processed through," Alwardi Transport Company general manager Farhat Al Wardi said, cautioning that the ordeal may get worse during Ramadan.
Al Kubaisi Group director-general Abdulla Al Kubaisi stressed the need to streamline measures, pointing out that local firms are resorting to sea transport to avoid the causeway ordeal.
Al Halwachi Food Company general manager Mohammed Al Halwachi said he was forced to shut down his firm for 20 days last May due to the crisis.
"Our exports have dropped from 70 trucks every month to 20 now," he said, representing a 70 per cent drop in production.
He said his company has lost several contracts and reconsidered expansion schemes and plans to purchase new equipment.
Bahussein Middle East Fibre Glass Company also reported losses exceeding BD150,000 ($391,000) due to the crisis. – TradeArabia News Service
More Government & Laws Stories
- GCC airlines defend female cabin crew policies
- Saudi names Brotherhood as terrorist group
- Qatar outraged over terror claims
- Bahrain PM condemns exploitation of children
- Qatar will not alter foreign policy: source
- Bahrain accuses Iran of fomenting trouble
- 'Put security before rights' in Bahrain: publisher
- 'Hizbollah trained Daih blast suspect'
- Key terror blast suspects named in Bahrain
- $2.6m Royal Fund for martyrs set up
- Bahrain to draw up new anti-terror laws
- GCC ROW: Qatar voices surprise over envoys pull out
- GCC tobacco tax rise ‘will fuel illicit trade’
- Saudi, UAE, Bahrain withdraw envoys from Qatar
- Bahrain explosion draws global condemnation
- GDN photographer hurt in blast is discharged
- Iran playing increasing role in Bahrain unrest
- Bahrain launches 6-point plan to fight terror
- Sisi gives sign he will run for president
- New Saudi clamp on energy drinks
- Health insurance must for Saudi visa
- Qatari doctor gets 7 years jail in UAE
- Family violence law articles approved in Bahrain
- Credit card thief jailed in Bahrain
- GDN photographer hurt in Bahrain explosion
- Bahrain King orders crackdown on terrorists
- Bahrain's 4-year development plan on track
- Bahrain authorities warn of rogue labour camps
- Experts draw 'startling comparisons' in explosives
- Bahrain reforms 'far exceed recommendations'