“Bahrain’s strategic position in the Gulf, with proximity to the region’s largest market, Saudi Arabia, was a critical determining factor in our original decision to locate here,” says Dave Spargo, regional director, DHL,Middle East, Bahrain.

DHL operates a hub in Bahrain, which it expanded significantly in 2005. Aramex, GAC Express and TNT also have logistics operations there.

While cargo tonnage was off significantly in 2009, for the first four months of 2010 figures indicate tonnage down only one per cent at 111,925 tonnes compared to 112,527 tonnes for the same period in 2009. For 2009, BIA’s total tonnage was 164,366 tonnes.

Gulf Air, Emirates, Qatar Air, Air France, Etihad Airways, DHL, British Airways, and Lufthansa are BIA’s major cargo carriers. Last year their throughput amounted to 64,279; 12,715; 7,149; 4,903; 5,112; 4,701; 4,583; and 2,759 tonnes, respectively.

In addition, the US Navy, which has a major naval base in the Kingdom, turned over 3,709 tonnes of air freight, largely imports in 2009. Abdul Rauf, manager business development, Bahrain International Airport Cargo Services, says approximately 80 per cent of the throughput is imports.

“Bahrain has increased its oil and gas activities, and US company, Tatweer Petroleum, is importing quite alot,” he says. In addition, Kraft Foods USA with its Tang juice and cheese spreads is a volume importer-exporter for BIA. Textiles are also big, both inbound and outbound. According to Jean-Claude Raynaud, AFKL Cargo spokesman, traffic from Inditex- Zara of Spain is significant into BIA.

“BIA offers a very reliable and fast truck network to destinations of the subregion such as Kuwait, Dubai, Oman, Abu Dhabi and beyond,” he says.

Each week Air France Cargo flies a B777-F freighter to BIA from Charles DeGaulle Airport (CDG) that continues on to Asia. “In addition, KLM operates 5/7 or 7/7 passenger service to Bahrain using A330-200 aircraft to and from Amsterdam Schiphol (AMS),” reports Raynaud. Lufthansa flies daily from Frankfurt (FRA) to BIA using B737-800 aircraft. Three of the seven return flightsare via Damman, Saudi Arabia. Prior to

August 2009, the airline flew A340 aircraft four time s weekly, which offered more capacity. “We do , however, ope rate one freighter per week from Frankfurt to Bahrain, which then continues to Mumbai and Hong Kong,” reports Michael Goentgens, Lufthansa Cargo spokesman.

Emirates flies A330-200 aircraft three times daily to BIA as well as B747-400F freighters to BIA on demand and on an ad hoc basis.

“Our customers have the opportunity to feed through Dubai (DXB), and subsequently into our expansive network,” says Ram Menen, Emirates divisional senior vice president of cargo.

Emirates hauls perishables and other general cargoes to BIA from all over its network. “We carry a lot of mail, especiallyfrom the United States,” Menen adds.

Geographic advantage
BIA particularly profits from its close proximity to Damman, Saudi Arabia. “And Damman benefits from Bahrain’s easy Customs procedures to clear cargo,” Rauf adds.

The airport claims to provide the best regional air connections in the Middle East. That, combined with the King Fahd Causeway that links Bahrain to Saudi Arabia, gives it efficient access to key markets across the Middle East and beyond.

Bahrain has also developed significantly as an air cargo logistical base. “The airport can potentially handle 20 freighters at the same time,” says Raynaud.

Like Dubai, Bahrain’s aim is to become a key logistical platform with a strong Middle East, Arabic Peninsula role. Emirates, for example, has an extensive trucking link run in conjunction with third party service providers linking its Saudi export business through the BIA gateway. Although there’s no shortage of air cargo options in the Middle East, Bahrain International Airport (BIA) could be the next cargo oasis. Karen E. Thuermer explains why.

“Some 65 per cent of exports from Bahrain originate in the Saudi Kingdom,” says Menen.

One of its main characteristics is its flexibility and ability to clear commodities through Customs in three hours.

“This explains why it is also an excellent additional entry gateway for the Saudi Arabian market,” Raynaud says. “Bahrain is ahead of many of its neighbors in terms of logistics, and offers an advantage due to its proximity to Saudi Arabia.”

Going forward, this Arabian Gulf airport is positioning itself to capture additional opportunities. Plans call for a major US$350 million expansion to Bahrain International Airport over the next 30 years, an effort that is expected to triple its passenger capacity to 27 million a year and increase cargo handling space from the present 350,000 cubic meters to 1.5 million cubic meters. According to a Bahrain economic development website, this will triple Bahrain’s international air cargo capacity to one million tons per annum, on par with London’s Heathrow Airport.

Two new passenger terminals are slated to be opened in the next four years as part of the expansion. Terminal Two will be commissioned by 2012 and Terminal 1A will become operational a year later. Terminal Two will provide 110 aircraft stands.

Add to the mix the Mina Salman Port and the new Khalifa Bin Salman Port, the King Fahd Causeway, the Bahrain Logistics Zone, a new bridge to Qatar and it’s easy to understand how Bahrain’slogistics position is set to flourish.