Transport

Jet makers bolstered by orders in Mideast

Bolstered by an inflow of petrodollars, airlines based in the Middle East announced a flurry of orders for new aircraft, with Etihad Airways, Saudi Arabian Airways and a new low-cost carrier, FlyDubai, committing to spend more than US$25 billion among them.

Bucking a trend that has pushed two dozen airlines, squeezed by high oil prices and falling demand, into bankruptcy this year, the carriers announced the purchase of 158 jets on the first day of the Farnborough air show outside London.

Work starts on US$3bn causeway

Preliminary work on the ambitious $3 billion Bahrain-Qatar causeway has begun with the start of survey work in four locations within Qatar's territorial waters. The survey covering the marine, geological, mining and exploration and soil studies will continue till next February.

The construction of the ‘Friendship Bridge’, which aims to boost trade between both countries, is being jointly supervised by the Qatar-Bahrain Causeway Foundation.

Qatar: Hot air

The Gulf state has been one of the big buyers at this year's Farnborough International Air Show, signing multi-million dollar contracts to strengthen its national flag carrier and to put it in a position to compete against the growing number of budget airlines springing up across the region.

At a time when record high fuel prices are prompting other international airlines to look at cutting routes, Qatar Airways has splashed out on a series of new orders, signalling its intention to expand the airline.

Saudi Arabian Airlines signs Airbus deal

Saudi Arabian Airlines signed a contract with Airbus for eight of the European plane maker's A330-300 wide body aircraft.

The carrier, Saudi Arabia's national airline, said the deal is part of its fleet modernisation program. There was no immediate price given on the contract. Saudi Arabian Airlines director general Khalid al Molhem said the deal would enable the carrier to meet "rising passenger demand and expectations."

Dubai: Spreading its wings

Dubai has sought to strengthen its position as the Gulf's aviation hub, with companies from the emirate signing multi-billion dollar deals at the recently concluded Farnborough Air Show, though the spending spree could ramp up the competition with its neighbours also seeking dominance of the region's skies.

One of the biggest spenders at Farnborough was Dubai Aerospace Enterprise Capital, the leasing and financing arm of state-owned Dubai Aerospace Enterprise (DAE), which placed an order for 100 Airbus aircraft in a deal worth US$13 billion. DAE Capital's new orders, combined with those already on the books, will take its fleet to more than 250. This includes 18 Boeing cargo carrying planes it bought from Emirates Airlines, which will be leased back to their former owner.

DP World, Yemen Gulf of Aden Port Corp finalise JV

Global marine terminal operator DP World and the Yemen Gulf of Aden Port Corporation have finalised a joint venture that will see DP World operating and developing the container handling facilities in the port of Aden.

The agreement includes the lease of both Aden Container Terminal and of nearby Ma'alla Container Terminal, and a commitment by the joint venture to invest around US$220 million in further developing the port, including building a new 400 metre berth extension to Aden Container Terminal within five years from handover, which is expected by the end of this year.

Bahrain: Back to Baghdad

Bahrain is on the verge of re-establishing transport links with Iraq, a move seen as vital to strengthening trade ties, as well as bringing Baghdad back into the political fold of the Gulf.

On July 13th, Ghassan Hussain, Iraq's ambassador to Manama, revealed that direct flights between the two countries could resume within a month, pending the approval of a proposal from Bahrain. "We are looking forward to signing an air transport agreement proposed by Bahrain, the draft of which is in the hands of the Iraqi authorities," Hussain said in an interview. "We are waiting for our new minister of transport to be appointed and to follow up the matter."

US$33bn Middle East seaport expansion underway

Massive economic growth is driving major seaport expansion in the Middle East worth in excess of US$33 billion to handle record volumes of containers and bulk cargoes, say leading maritime industry observers.

"The emergence of strong and diversified maritime companies and operators is making the Middle East, and the Arabian Gulf in particular, one of the most dynamic and vibrant international maritime centres in the world," said Christopher Hayman, Managing Director of Seatrade, organisers of Seatrade Middle East Maritime 2008.

Gulf shipper in US$1.5bn deal with Samsung

The United Arab Shipping Company said it had ordered nine container ships costing over US$1.5 billion from the South Korean yard of Samsung Heavy Industries.

It said in a statement that the agreement was "the biggest order for container ships ever made by a Gulf company." The first of the new ships should be delivered in October 2010 with the others before the end of 2011, the statement said.