Kuwait and Iraq are racing to complete unfinished megaports that are located just 10 kilometres apart and are worth an estimated combined total of $13bn.Iraq’s Grand Faw Port project is estimated to be worth $8bn. Phase one of the project is expected to be brought online before the end of next year, according to Iraqi Prime Minister Mohammed Shia Al-Sudani.Port operations are anticipated to start when phase one of the project is complete.There are increasing concerns among Kuwaiti stakeholders that progress on the Iraqi project will mean that it is brought online first and it will establish Iraq as a dominant shipping hub in the Arabian Gulf – leading to Kuwait missing out on commercial opportunities.Kuwait’s Mubarak Al-Kabeer port project, which is located around 10km south of Iraq’s Grand Faw Port, is estimated to be worth a total of $5bn and has stalled for years after significant investment during its first phase.Phase one of the project cost $1.2bn and was completed in 2014.The first phase of the project included site levelling and the development of a marina, quay walls, berths, a navigational terminal and port buildings.The port is not operational because the phase one works did not include vital equipment such as cranes.Phase two of the project will include installing equipment that will allow the port to start operations.The full scope for phase two of the project is expected to include:Construction of loading and unloading facilitiesConstruction of quay walls and reclamationConstruction of container yard and back of the portInfrastructure worksConstruction of buildingsConstruction of container terminalConstruction of associated facilitiesInstallation of safety and security systemsKuwait ramped up its efforts to push ahead with the project after meetings between Kuwaiti and Chinese officials in May.The meetings were held in Kuwait and were attended by Kuwait's Minister of Foreign Affairs Abdullah Al-Yahya, the ambassador of China to Kuwait, Zhang Jianwei, and several other officials from the two sides.During one of the meetings, it was announced that Kuwait signed an agreement with China to manage the Mubarak Al-Kabeer Port.In June, Kuwaiti officials were planning to approve the budget for phase two of the Mubarak Al-Kabeer port project before the end of this year.However, some stakeholders fear that, even if approvals are fast-tracked, the Kuwaiti port will only become operational long after Iraq’s Grand Faw Port starts operating.One source said: “Too much ground has been lost after 10 years of delays. This could have been a good opportunity for Kuwait, but now it looks like Iraq is going to benefit far more as they have made far more progress with their rival port project.”However, Kuwait is widely seen as a more stable country to do business in and has a better security environment. This could help its port to compete over the long term.In the short term, Kuwait’s latest push to bring its port online as quickly as possible is likely to become a significant opportunity for contractors as well as equipment suppliers.Billions of dollars in contracts could potentially be tendered over the coming years as Kuwait seeks to offer more attractive port facilities than the rival Grand Faw Port in Iraq. (ICE KUWAIT)

Fonte notizia: Meed