AL MAQAL PORT BASRA KEEN FOR MORE BUSINESS

UNCLAS SECTION 01 OF 02 BAGHDAD 000347

SENSITIVE
SIPDIS

DEPT FOR NEA/I AND EEB/TRA

E.O. 12958: N/A
TAGS: ECON ETRD EWWT PGOV IZ
SUBJECT: AL MAQAL PORT BASRA KEEN FOR MORE BUSINESS

SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY

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Summary
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1. (SBU) Al Maqal port, one of five ports in Basra, is keen
to become an important shipping center again, but requires a
permanent bridge to replace the pontoon bridges blocking most
ships. Al Maqal port was neglected by Saddam Hussein after
Shia uprisings in favor of Umm Qasr port. Silt has
accumulated after years of neglect, so further dredging is
required, both around the port and in the Shatt Al Arab
waterway. Captain Salah, Director General of the Port
Authority, was confident that Al Maqal could attract
significant additional commerce to Basra once these obstacles
are overcome. End summary.

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New Bridge Needed
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2. (SBU) In a visit to the Port of Al Maqal (Al Basra) on
February 3, we met with the impressive technocrat Captain
Salah Abood, Director General of the General Company for
Ports in Iraq. Captain Salah was keen to increase the
capacity of the port, and said the most urgent need was to
replace the floating pontoon bridges which are blocking most
ship traffic from coming to the port directly, although the
port has 12 warehouses and plenty of pier space. The pontoon
bridge can be opened to allow ships to pass through, but it
is a slow process and infrequently done. The U.S. and the
U.K. are using I-CERP funds to replace the pontoons with a
permanent bridge with a center section that will raise to
allow ships to pass. A groundbreaking ceremony for the USD
11.5 million Shatt Al Arab bridge took place on February 7
was attended by the Governor, the Chairman of the Provincial
Council, the Commander of MND-SE, the Director of the
Regional Embassy Office in Basra, and the media. The
estimated completion timeline is 12-18 months at a cost of
USD 11.5 million. Captain Abood said that a new bridge will
be a huge positive difference for the daily life of the port
and for Basrawis. Viewing the area below the pontoon bridges
(four kilometers south of Al Maqal),we could see dozens of
vessels berthed tightly together to offload goods, which then
had to be transported by other methods.

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Port Older than Iraqi Army, Established in 1919
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3. (SBU) Al Maqal port is one of five ports in Basra. The
others are the large Umm Qasr, and the smaller ports Khor Az
Zubayr, Al Faw, and Abu Fulus. Captain Salah noted that
since 2005, about 5,000 ) 6,000 ships use Basra's port
facilities each year. Al Maqal port, also referred to as Al
Basra, is on the southwest side of the Shatt al Arab
waterway, in Al Basra reach, southern Iraq. Captain Salah
said the port was established in 1919 and is thus older than
the Iraqi state or the Iraqi army. His office is located in
a building still in good condition, constructed by the
British for the port. The Shatt Al Basra canal was built in
the 1970s from Basra to Umm Qasr and became the only waterway
usable during the Iran-Iraq war. Al Maqal port was heavily
damaged during the Iran-Iraq War, and operations have been
further affected by subsequent conflicts, poor maintenance,
and the natural accumulation of silt. Major revitalization
of Al Maqal was rejected by Saddam Hussein in favor of the
newer Port of Umm Qasr, and as a consequence of the Shi,a
uprisings in Basra after the 1991 war. Thus along with
damage, Al Maqal has suffered deliberate government neglect
for years.
Qfor years.

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Dredging Needed
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4. (SBU) Al Maqal is designed to accommodate 12 large vessels
simultaneously. It has a grain berth, crane support, grain
silos and warehousing for up to 160,000 tons of goods, as
well as cold storage for 1,800 tons. Operations at the port
have been limited to dhow traffic and some transits of larger
vessels. Several wrecks blocking the Shatt al Arab have been
removed but it has not been dredged for years and the silting
is severe: 29 million cubic feet requires removal. After
the war, there was only one dredge working, but now there are
eight operational. There are two types of dredgers, one for
the canal and one for the jetty. Al Maqal needs more jetty

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dredges. Repairs are also underway to the regulators that
control tidal effects and brackish water in the waterway.
Captain Salah told us that there is an Iran-Iraq committee to
review issues related to various waterway issues, including
dredging. He also noted that the Europeans have assisted the
port, with Denmark funding some renovation and Croatia
donating a fireboat. Clearly there was a budding interest
for private sector investment in the port.

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Frustration with Central Government
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5. (SBU) Captain Salah displayed thinly veiled frustration
with the central government noting the Ministry of
Transportation had provided zero technical expertise. He
also said that as of the end of August 2008, only 20 percent
of the funds the port authority needed from the Ministry had
been distributed. He added that the port authority was well
staffed with the right expertise. &We have piers,
warehouses, places for different kinds of storage. Once the
bridge is replaced, I,m confident that there will be a
significant increase in merchant traffic,8 Salah stated.
(Comment: While Al Maqal could attract more business with
infrastructure improvements, throughput compared with Umm
Qasr will always be limited for a variety of structural and
operational reasons. Upgrades to Umm Qasr will provide a
greater return on investment. End comment.)

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ISPS
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6. (SBU) Captain Salah said that two other issues are
hindering port development: lack of compliance with the
International Ship and Port Facility Security (ISPS) Code to
the International Maritime Organization (IMO); and the high
cost of shipping insurance, as many insurers still classify
Iraq as a war zone. A U.S. Coast Guard Port Security
Assessment team visited Umm Qasr Port in May-June 2008 at the
request of the Transportation Attache and will return in
March 2009. The team will focus on achieving ISPS compliance
for the Port of Umm Qasr and develop guidelines that can be
used by the Government of Iraq to establish ISPS
certification for all Iraqi ports. ISPS compliance is key to
reducing insurance rates and drawing new investment and
business to a port.

CROCKER