Kuwait’s Ambitious Plan: 300 Million Dinars for New Logistics System

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KUWAIT CITY, Oct 3: The government is working to prepare a comprehensive logistical system, starting with storage to meet the country’s needs by providing a strategic stock of basic needs for a period exceeding a year, reports Al-Rai daily.

The sources explained that the state project aims to provide various commercial logistical services, including open and covered warehouses, with the main aspect concerned with storing medicines and foodstuffs for long-term periods in accordance with international quality technologies and standards that contribute to the required sufficiency.

The sources added that the government directives were actually implemented by the Kuwait Investment Authority on the ground by establishing the Kuwait Storage Company with a capital of 50 million dinars (fully paid), while its Investment Committee is currently working on selecting the company’s board of directors, which consists of 7 members of specialized competencies, which include several goals and objectives.

The sources indicated that the storage system aims to operate with a capital capacity within two to three years that will reach 300 million dinars or more, within the framework of the phased progression of the project, noting that the government is in the process of taking precautionary measures to confront emergencies and fluctuations in global medicine and food markets, with an integrated logistical work system.

The sources indicated that the KIA is communicating with the Kuwait Municipality regarding identifying suitable sites and vacant lands expected to be exploited in the targeted project, indicating that the project plan requires starting with warehouses close to the main ports in the north and south of the country in order to provide ease of movement, transportation and distribution.

The sources said that the government storage system will eliminate external storage options, provided that it meets the needs of the public and private sectors as well as private sector companies within the framework of clear legal agreements.

Regarding the possibility of presenting a model for an integrated logistics entity that can offer part of its capital in a public subscription, the sources reported that the project’s work plan has actually begun by establishing a nucleus through the warehousing company, and it will go through several developmental stages that may result in a listing on the stock exchange in the future, if the government so desires, especially if it is achieved.

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