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Cement crisis hits Bahrain construction industry

Manama, June 10, 2008

Bahrain's construction industry plunged back into crisis as cement supplies from Saudi Arabia were halted. All of the big ready-mix concrete plants were shut down for the second time in a week.

Supplies re-started last Saturday after being suspended for three days, under new export rules imposed by Saudi Arabia.

Construction industry sources said they were stunned, after being assured the supply problems had been solved.

'We are not aware of what is going on or why the supplies have stopped. We were elated when they resumed and thought the problems were over,' they said.

The Gulf Daily News, our sister publication, had reported on Sunday that around 50 trucks of cement had been allowed into Bahrain, after authorities in Saudi Arabia intervened.

More than 3,000 tonnes of cement had also arrived into the country by sea last Friday.

New Saudi rules had effectively halted exports to Bahrain, as importers could not complete the paperwork done in time.

The rules required them to obtain complicated approvals from Riyadh before their cement trucks were allowed to return to Manama.

They were originally due to be enforced from June 16, but were allegedly suddenly brought forward.

Officials at the Industry and Commerce Ministry and Bahrain Chamber of Commerce and Industry (BCCI) were not available for comment yesterday.

But general managers of some ready-mix companies said the situation was desperate.

'This is critical. We have had clients virtually camping on our doorsteps and we are unable to do anything,' said Delmon Precast general manager Jon Mottram.

'Our plant has been shut down and I see very little happening in the next few days.'

He said that even if supplies were to resume immediately, it would take a few days to get work back on track.

'The new procedures, we are told, are so complicated that supplies can never resume as they were earlier,' said Mottram.

Some of the biggest developments in the country have been brought to a standstill, along with smaller projects.

Haji Hassan Readymix general manager Jorgen Skaarup said they resumed work for a day after supplies came in, but they were forced to shut again.

'We have no work and it is tough handling angry customers,' he said yesterday. 'We are told no-one knows when supplies will resume.

'If it continues any longer, several massive construction projects will halt work completely.'

Among those most affected by the crisis is the United Cement Company, which imports 60 to 70 per cent of Bahrain's total needs.

Manager L R Eriksen said yesterday his officials were trying their best to get through the complicated paperwork in line with the new regulations.

'This disruption is extremely worrying because it is going to delay some major projects.'

He said his company alone had lost around 5,000 tonnes of cement a day.

'There are thousands of people now with nothing to do as there is a lot of construction work that is going on in the island.'

Eastern Asphalt general manager John Grey echoed their sentiments, saying the entire construction industry had been virtually brought to its knees.

'We cannot work without cement. Our workers are sitting idle. There has to be a solution and it has to be soon,' he said.

A top official at one of Bahrain's leading contracting companies, speaking on condition of anonymity, said his company had lost tens of thousands of dinars.

'And the situation is getting worse. We are virtually at a dead end. Only work not related to concrete, ready-mix and cement is going on,' he said.

Several construction workers at a work site in Seef, close to the Bahrain City Centre development, were seen sitting idle yesterday.

'We have been told to wait. There is no work,' said one, did not wish to be named.

Another contractor,<




Tags: Saudi | Crisis | halt | Bahrain construction | cement supply |

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