Stormy waters
The story behind the threats and strained relations that continue to cast a shadow over the development of Kuwait’s Mubarak Al-Kabeer mega port
On August 19 it was reported that 150 Iraqis had gathered at the country’s border with Kuwait to protest further construction of the Mubarak Al-Kabeer Port on Bubiyan Island. Security forces from both countries intervened to prevent violence, but extra security remains around the port as threats to attack the site and the companies working on it continue.
Kuwait’s plan is to construct a four-phase “multi-billion dollar mega-port” by 2016; the problem is that the port will reportedly block Iraq’s access to the Gulf and “hamper plans to extend Iraq’s own port facilities”, according to sources. The situation is hauntingly similar to the issues that sparked the 1990 Gulf War.
The project began in 2003 when the Kuwaiti government released plans to develop an environmentally driven master plan for the island.
The country’s Institute of Scientific Research (KISR) concluded in a study of local eco-systems that the island has “a unique significance for terrestrial and marine biodiversity.”
Master planner and design consultancy HOK conducted a sustainable development plan for the island which advised the creation of a nature reserve on the northern half of the island with other development limited to small clusters across the rest of the island – including a new container port and free trade zone – to minimise environmental impact.
In 2007 a US $400m contract was awarded to China Harbour Engineering Co. and two Kuwaiti firms: Heavy Engineering Industries and Shipbuilding Company and Shaheen Al Ghanim Roads and Bridges Construction Company.
The contract included construction of a 34km bridge linking the Bubiyan Island to the mainland and funds have also been allocated to build a railway linking the port to Kuwait city at a later date.
In January 2010, Hyundai Engineering and Construction won the US$1.14bn contract in partnership with Kuwait’s Kharafi Group, to develop the port; then reported as a “gateway” to both Kuwait and Iraq.
Upon completion, the Mubarak Al-Kabeer Port will enhance the capacity already provided by Kuwait’s two existing dry cargo ports, Shuwaikh and Shuaiba, and three oil terminals Mina Al Ahmadi, Mina Al Shuaiba and Mina Al Abdullah.
In spite of the strained relations since and continued threats from Iraqi militants, official tender documents state that “it is understood” construction is “ongoing smoothly and as planned”.
Specific works according to the documents nclude dredging of 40km long, 260 metre wide approach channel; construction of hotels, chalets, recreational facilities and a causeway to the mainland; and construction of a container terminal, four berths and a 1300 metre quay wall in addition to port buildings and utilities, digging, soil improvement works and site levelling.
Invitations to tender for phase three are expected to be issued next month, with completion still on track for the final deadline.
Mixed messages
While the project is still officially active, media reports over recent months have painted an alarming picture about the security of the development and the firms working on it.
Not only does Iraq have concerns over the impact of Mubarak Al-Kabeer Port on its own mega port project in Umm Qasr, the country also contests Kuwait’s ownership of Bubiyan Island, another element of conflict during the Gulf War.
The site today, while work is ongoing, is a restricted area.
In July, the Kuwaiti embassy in Iraq was attacked by rockets, shattering the windows and prompting staff to be moved to Kuwait, at least until the end of Ramadan.
A technical commission established by the Iraqi government was deployed to Kuwait on August 14. Apparently a-political, it is said to present the issues “in a scientific and technical way” according to local news reports. Details from the British and American embassies in Kuwait City are also inconclusive, as while both cautiously report they are investigating the viability of the threats, no fficial advice has been issued for the companies working on this development, or any of Kuwait’s other infrastructure projects.
The US embassy in Kuwait say no official advice has yet been issued and that if American companies are concerned about their operations in Kuwait they should contact the embassy directly.
The UK embassy’s head of security said threats were assessed for viability on a case by case basis, but that multiple threats would be assessed cumulatively. If found to be realistic advice will be issued.
Currently companies should liaise with the British Business Forum or write to the country’s ambassador Frank Baker, who will take a decision on issuing official advice based on the number of inquiries he receives.
The Murbarak Al-Kabeer port is not the be all and end of Kuwait’s ambition; the country has a number of other infrastructure projects currently under development. Airport expansions and road improvement works valued at $6.2b are due to be completed within the next three years – in addition to megaproject City of Silk, or Madinat Al Hareer, currently being developed by Eric Kuhne and Associates.
And with a name that literally translates as “the invincible citadel”, Kuwait will surely weather the storm.
