Identifier
Created
Classification
Origin
06BASRAH24
2006-02-22 06:58:00
CONFIDENTIAL
REO Basrah
Cable title:  

INTERNATIONAL STANDARDS, SECURITY ARE CASUALTIES AS BADR AND

Tags:  PGOV ECON EAID ETRD EINV IZ 
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VZCZCXRO4510
OO RUEHDE RUEHIHL RUEHKUK RUEHMOS
DE RUEHBC #0024/01 0530658
ZNY CCCCC ZZH
O 220658Z FEB 06
FM REO BASRAH
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0253
INFO RUEHBC/REO BASRAH 0271
RHEHNSC/WHITE HOUSE NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEKJCS/SECDEF WASHDC
RUCNRAQ/IRAQ COLLECTIVE
C O N F I D E N T I A L SECTION 01 OF 02 BASRAH 000024 

SIPDIS

SIPDIS

E.O. 12958: DECL: 2/22/2016
TAGS: PGOV ECON EAID ETRD EINV IZ
SUBJECT: INTERNATIONAL STANDARDS, SECURITY ARE CASUALTIES AS BADR AND
OMS FIGHT FOR PORTS, PROFIT

REF: 05 BASRAH 125

BASRAH 00000024 001.2 OF 002


CLASSIFIED BY: KEN GROSS, REGIONAL COORDINATOR, REO BASRAH,
DEPARTMENT OF STATE.
REASON: 1.4 (b),(e)



C O N F I D E N T I A L SECTION 01 OF 02 BASRAH 000024

SIPDIS

SIPDIS

E.O. 12958: DECL: 2/22/2016
TAGS: PGOV ECON EAID ETRD EINV IZ
SUBJECT: INTERNATIONAL STANDARDS, SECURITY ARE CASUALTIES AS BADR AND
OMS FIGHT FOR PORTS, PROFIT

REF: 05 BASRAH 125

BASRAH 00000024 001.2 OF 002


CLASSIFIED BY: KEN GROSS, REGIONAL COORDINATOR, REO BASRAH,
DEPARTMENT OF STATE.
REASON: 1.4 (b),(e)




1. (C) Summary: On February 20, the Basrah Regional
Coordinator (RC) and Deputy Regional Coordinator (DRC) met with
Captain Hussain M. Abdallah, the Director General of the Iraqi
Port Authority (IPA). Captain Hussain described Umm Qasr port
operations as being at full capacity. He acknowledged delivery
of laboratory equipment at Umm Qasr for food testing and said
there is a disagreement over whether to install the food-testing
lab at Umm Qasr or in the city of Basrah. A Japanese loan
package for port rehabilitation is on track and funds should be
available in April 2006. The Iraqi ports still have not
attained International Ship and Port Security (ISPS) standards,
although Lloyd's of London visited Umm Qasr in January to review
certification. The politicization of the ports between Badr and
OMS shows no signs of abating, as they battle over control of
the lucrative and strategically important ports in southern
Iraq. End Summary.

Port Operations at Maximum Capacity
-------------- --------------
--------------


2. (C) On February 20, the Basrah RC and DRC met with Captain
Hussain M. Abdallah, the Director General of the IPA. Captain
Hussain said that Umm Qasr is currently operating at maximum
capacity. He said he had been contacted by the Project and
Contracting Office (PCO) with a request to use Umm Qasr instead
of Kuwait for shipments. Captain Hussain would like to
accommodate their request, but there are not enough cranes for
unloading containers to meet current demand. He said that some
ships must wait up to 10 days to unload and some grain shipments
are now coming in overland because of port congestion. He said
a project to relocate cranes from the north to the south port
was delayed because the cranes do not fit through the gates.

Port operations are further hampered because there are only four
workable jetties and a shortage of grain evacuators. He is in
contact with the PCO regarding additional equipment for the
ports.

U.S.-Funded Food Testing Laboratory Still in Storage at Umm Qasr
-------------- --------------
-------------- --


3. (C) Captain Hussain said he had seen equipment for a food
testing laboratory purchased by the PCO in May 2005 and that
this equipment is currently in storage at Umm Qasr. He said
that he would like to install the lab at Umm Qasr and has made
space available. The Ministry of Health, according to Captain
Hussain, prefers the lab be installed in Basrah instead so that
it would be accessible to all four southern ports: Umm Qasr,
Khor az Zubair (KAZ),Abu Floos, and Al Basrah. Captain Hussain
said that nearly all grain is imported through Umm Qasr, so it
would be better to install the lab there. Installing the lab in
the city of Basrah would involve delays while grain samples were
transported back and forth from the port to Basrah. He believed
that the Ministry of Health (MoH) wanted the grain lab installed
in Basrah to avoid having its officials make the 50-mile commute
between Basrah and Umm Qasr and pass through the extensive port
security. (Comment: This is the first time that REO Basrah has
heard mention of the MoH in connection with the food-testing
lab. End Comment.)

Japanese Loan Ready in April 2006
-------------- --------------
--------------


4. (C) Captain Hussain said that a Japanese assistance package
to remove wrecks, dredge the ports to a 12.5-meter depth, and
procure equipment and utilities for the ports is on track (see
reftel). He estimated the project would take three to four
years to complete. He said that the loan should be ready in
April 2006, and he has been working with the Japanese to prepare
tender statements so that the project can be tendered out
immediately after the loan is received.

Iraqi Ports Still Do Not Meet ISPS Standards
-------------- --------------
--------------


5. (C) None of the four ports in Iraq (Umm Qasr, KAZ, Abu
Floos, Al Basrah) have attained ISPS standards. Captain Hussain
mentioned that Lloyd's of London had toured the ports in January
and described the delegation as "surprised at the quality" of
the ports. He hoped a positive report from Lloyd's would result

BASRAH 00000024 002.2 OF 002


in a lowering of sky-high insurance rates for docking at Iraqi
ports, described as being located in an active war zone. Even
if the ports do not have ISPS certification, he said, they had
attained "certain standards," and he hoped this would be
recognized. (Comment: Captain Hussain appeared more interested
in obtaining a favorable report from Lloyd's that would result
in lower insurance fees rather than in actually attaining ISPS
standards. End Comment.)

Port Security Questionable and Political
-------------- --------------
--------------


6. (C) Captain Hussain said that there were currently 500
Iraqi police (IPS) at Umm Qasr port, 280 at Khor az Zubair, and
about 200 at Abu Floos and Al Basrah. If true, these numbers
represent a sizeable increase in police presence at the ports
from October 2005, when former KAZ port manager Basil Abdul
Majeed reported that there were 160 IPS appointed to KAZ (see
reftel). IPS, under the Ministry of Interior, function in the
capacity of customs officers at the ports. Captain Hussain said
that all police at the ports take their instructions from him,
even if their salaries come from the MoI. "Many people tried to
get involved in security," he said, "but we are in control."
Nevertheless, he said that security would be even better if he
had his own "police force," under the authority of the Minister
of Transportation. (Comment: Facility Protection Services,
provided by the Ministry of Transportation, are also present at
the ports. The OMS-controlled Ministry of Transportation has
been consolidating its control over port operations over the
past six months, while the MoI has been increasing police
presence at the ports. End comment.)


7. (C) When specifically asked about security at the ports,
Captain Hussain described security as "good." He was quick to
add, however, that he bears no responsibility for security
outside the gates of Umm Qasr port, which he said is provided by
"private companies." He made no mention of the two British
soldiers who were killed in an IED attack on January 31 near the
main gate of the port.

Vague on Boycott, Iranian Interest
-------------- --------------
--------------


8. (C) When asked if the February 13 suspension of
communication between the Basrah government and the British were
affecting work at the ports, Captain Hussain answered in vague
terms, saying only that he had to "postpone" one meeting with
the British regarding project work. Captain Hussain was also
vague when asked if other countries, and Iran in particular,
were interested in investing in Iraq's ports. He avoided giving
a definitive answer and only said that many dhows came in to
Iraq daily transporting fruits, vegetables, and dairy products,
which were cheaper in Iran than in Iraq. Most of these dhows,
he said, came in to Abu Floos port, which is smaller, located
directly across the Shatt al Arab River from Iran, and is a
twenty-minute drive from the markets of Basrah.

Badr and OMS Fight for Iraqi Ports, Profits
-------------- --------------
--------------


9. (C) Comment: Captain Hussain does not appear to be overly
concerned about obtaining ISPS standards, and instead hopes that
a favorable report from Lloyd's will result in lower insurance
rates. This attitude is worrisome, as it will be difficult for
Iraqi ports to become economically competitive with those of
Iran and Kuwait without ISPS certification. His dismissal of
security concerns at Umm Qasr port is also disturbing. It is
difficult to see how Umm Qasr will attain international security
standards and a lower insurance rating when Coalition forces
were killed recently outside Umm Qasr's main gates.


10. (C) Comment Continued: The battle between Badr and OMS to
win control over Umm Qasr, Iraq's largest, most profitable, and
most strategically located port, shows no sign of abating. This
battle for control over one of Basrah province's major cash cows
(the others being the Basrah International Airport and oil) is
being mirrored in local politics, as OMS, Badr and SCIRI are
engaged in political maneuverings to win influence on the Basrah
Provincial Council and position themselves for success during
the upcoming provincial elections. End comment.
GROSS