Bahrain - DSV, the world’s third-largest freight forwarder and leading global logistics provider, today (November 15) opened a 14,000 sq m logistics facility in Bahrain Logistics Zone in Hidd to expand its warehousing capabilities in the area.
The new facility supports contract logistics with ambient, chilled and frozen storage, as well as solutions for high-value cargo. It will offer secure records management services, and storage/turnkey logistics for Bahrain-based manufacturers in the fast-moving consumer goods industry, DSV said in a statement.
With a storage capacity of 24,000 pallet positions, the new facility increases DSV’s controlled-temperature warehouse capacity in the Kingdom of Bahrain to a total of 65,000 pallet positions and 75,000 sq m. The increase in capacity enables the company to continue to support its customers in a market of increasing interest and demand.
Since 1997, DSV has operated and grown its business in Bahrain, and with the 2021 acquisition of Agility GIL, the company further strengthened its operations in the region. The new facility in Bahrain represents an $18 million investment by DSV, and is the company’s second expansion in the country in just three years. It follows the 2019 opening of a 28,000 sq m warehouse, also in Hidd. DSV’s further expansion in Bahrain is a testament to the company’s commitment to the promising market.
Elias Monem Executive, Vice President for Solutions & Road, DSV – MENA region, said: “Bahrain is an important and growing operational market to DSV in the Middle East. Its advanced infrastructure and favourable geographical placement are central factors in choosing to extend our business in the country. The new facility in Bahrain Logistics Zone will allow us to respond to the high demand and better serve customers in the region.”
The facility was inaugurated on November 15 in a ceremony hosted by DSV and HE Mohamed bin Thamer Al-Kaabi, Bahraini Minister of Transportation & Telecommunication.
“As a country undergoing constant economic growth, we have a strategic objective to strengthen Bahrain’s position as a leading maritime and logistics hub. Continuing to attract international investments such as this one from DSV is crucial in realising this goal. Bahrain’s favourable geographic location, attractive liberal business environment and economic potential makes it an obvious investment opportunity for global companies such as DSV,” Al -Kaabi said.
As a booming economy, Bahrain represents an interesting market for DSV. According to a report issued by the Information & eGovernment Authority, in Q2 of 2022, Bahrain’s GDP grew by 6.95 per cent in real prices and 22.87 per cent at nominal prices. The growth is mainly attributed to higher growth in the non-oil sector.
Khalid Humaidan, Chief Executive at the Bahrain Economic Development Board (EDB), said: “Bahrain offers the best-value operating costs for a logistics business, with strong connectivity by air, land and sea. This has encouraged several companies to utilise our strategic location and free trade agreements in order to set up businesses and access the GCC and wider MENA region. DSV’s investment in Bahrain’s logistics industry is testament to the business confidence that the Kingdom provides.”
The logistics sector is a priority sector under the Kingdom’s extensive Economic Recovery Plan, which aims to position Bahrain as one of the top 20 global destinations for logistic services, and increase the logistics services sector’s GDP contribution to 10 per cent.
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