Wednesday, August 28, 2024

DINAR REVALUATION REPORT: AL-FAW PORT : A SIGNIFICANT STEP FORWARD IN IRAQ'S STRATEGIC VISION FOR ECONOMIC DEVELOPMENT & REGIONAL INTEGRATIONK 28 AUGUST

 Al-Sudani Announces Completion Date for First Phase of Al-Faw Port: A Qualitative Addition to the Region

In a significant development for Iraq's infrastructure and economy, Prime Minister Mohammed S. Al Sudani has announced the completion date for the first phase of the Grand Al-Faw Port. The project, a cornerstone of the Development Road initiative, is set to be operational by mid-2025.  marking a milestone in Iraq's vision to transform into a regional trade and development hub.

Strategic Vision and Economic Impact

The Grand Al-Faw Port, located at the mouth of the Shatt al-Arab, where the Euphrates and Tigris rivers meet before flowing into the Persian Gulf, is poised to be the Middle East’s largest port.  Its construction, led by South Korean Daewoo with a $5 billion agreement, spans a vast area of 54 square kilometers (33.5 square miles). Farhan al-Fartousi, the director general of the General Company for Ports of Iraq, highlighted the port's planned facilities, including oil and gas refineries, industrial sites, and tourism venues, as well as its impressive capacity of 90 docks.

The project's strategic vision extends beyond mere infrastructure development. It aims to revitalize Basra and establish it as a central trade and development node. With a phased completion timeline extending to 2030, 2038, and finally 2050, the port's full operational readiness will coincide with the completion of its supporting facilities, heralding a new era of economic prosperity for Iraq.

Key Economic Projects

In a significant move, Prime Minister Al-Sudani emphasized the importance of the Al-Faw Integrated Oil Refinery Project, which is part of the government’s plan to enhance oil refining capacities and attract foreign investments.  The contract for this project was signed between the Ministry of Oil/South Refineries Company and China National Chemical Engineering (CNCEC). With a refining capacity of 300,000 barrels per day and adherence to global environmental standards, the project will utilize modern technology to provide petroleum derivatives for local consumption and export.

The refinery project will be executed in two phases: the first focusing on refining operations, and the second on constructing a petrochemical complex with a capacity of 3 million tons per year, alongside a 2000 MW power plant. Additionally, the establishment of the Al-Faw Oil Refinery Technology Academy will train 5,000 Iraqi personnel to manage the refinery in the future, creating jobs for young people and graduates, and stimulating local industries.

Regional and International Cooperation

The Development Road project, which encompasses the Grand Al-Faw Port, received a boost with a preliminary agreement between Iraq, Türkiye, Qatar, and the United Arab Emirates (UAE).  The $17 billion project involves linking a major commodities port on Iraq's southern coast by rail and road to the border with Türkiye. The 1,200-kilometer (745-mile) infrastructure aims to position Iraq as a transit hub, connecting Asia and Europe and enhancing regional economic ties.

Conclusion

The completion of the first phase of the Grand Al-Faw Port by mid-2025 represents a significant step forward in Iraq's strategic vision for economic development and regional integration. With its potential to create jobs, stimulate industries, and position Iraq as a central trade hub, the project embodies the country's aspirations for a prosperous future.

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