May 15, 2012

Talat Zaki Hafiz

Crisis at Riyadh Dry Port

I was very disturbed to read the news about the pile up of food containers in Riyadh Dry Port, especially as we are only three months away from the holy month of Ramadan.
According to the news report, there is a backlog of 7,000 containers waiting to be cleared. Even if they are able to clear 50 containers a day, which is probably an overestimate, it will take at least four more months to clear the current backlog. And it is also estimated that 25 to 30 containers continue to come every day from Dammam. Based on this it is fair to say the net clearance is not more than 25 containers a day, which means a full nine months will be needed to clear the current backlog. The situation is extremely serious and unless there is pressure from the top, we cannot anticipate any improvement in the near future.
Most of the food items will exceed their shelf life while still in the port. Cleared or not exporters are bound to receive the full value of the goods at the mercy of the importers in the Kingdom, as per contract. At this rate, there will be a severe shortage of consumer goods, triggering a price hike while some importers will be forced to close their businesses in the face of unbearable losses, resulting in unemployment for the workers in these establishments.
The domino effect of the crisis in the Riyadh Dry Port is really frightening. We appeal to all those concerned to act fast to solve this problem at any cost, even if they have to work round the clock.
Seyed Hamid, Riyadh


May 15, 2012
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