Schmidt Middle East Logistics, a wholly-owned company by Schmidt Heilbronn, has selected Bahrain as its base for logistics operations in the Gulf region.

Schmidt Middle East Logistics will lease about 400,000 sq ft of prime land at the Bahrain Logistics Zone (BLZ) in order to setup an economical and efficient solution to store, handle and distribute different bulk materials like polyethylene, polypropylene, catalysts and additives for the chemical and petrochemical industry, reported the Gulf Daily News, our sister publication.

A lease agreement was signed by Transportation Minister and Economic Development Board (EDB) acting chief executive Kamal Ahmed and Schmidt Middle East Logistics chief executive Dr Wolfgang Hoppmann.

The layout, concept, and feasibility study has been prepared by Schmidt and as per the agreement, the construction will take about a year with operation expected to commence by second half of 2014.

Schmidt received assistance from the EDB to complete the company's registration and licensing in the kingdom.

The Transportation Ministry, as the kingdom's maritime industry regulator, will continue to work with Schmidt to assist the company fully to establish their operations.

"This strategic partnership allows Schmidt and the BLZ to open the gates for highly specialised logistics in this region, with Bahrain playing an important role as a distribution hub for the GCC.

"Ultimately, this will lead to a drastic increase in the number of companies with specialised expertise and operational skills, especially in the bulk market, setting up shop in Bahrain, which will help support Bahrain's economy in the future," said Dr Hoppmann.

"Schmidt's decision to set up its regional logistics operation in Bahrain represents a key milestone for the BLZ and demonstrates Bahrain's attractiveness as a hub from which international businesses can access the Gulf's $1.5 trillion market," said Ahmed.

"The BLZ has a truly unique offering that includes competitive rates, world-class services for import/export and re-export activities, efficient turnaround times and close proximity to the state-of-the-art Khalifa Bin Salman Port, all of which help make it an ideal destination for companies looking to establish a strong foothold in the GCC.

"From Bahrain Schmidt will be able to meet growing demand from both local and international businesses for specialised logistics in the Gulf," he added.-TradeArabia News Service