The United Arab Shipping Company passed a landmark for container transportation last year.

STRATEGICALLY located at the head of the Arabian Gulf, Kuwait is developing the infrastructure to become the trade hub for the region. The emirate is already serving as a gateway for reconstruction in Iraq, and the launch of a common Gulf Cooperation Council (GCC) market due to take place in 2007 will give a further boost to regional commerce.

The United Arab Shipping Company (UASC) has provided regular, uninterrupted shipping services to the Arabian Gulf for almost 30 years. While other shipping lines called a halt during the invasion of Kuwait, UASC simply carried on.

“We are reliable in this part of the world in good times and in bad times,” says Khalifa A. Al-Shebli, Deputy CEO, and Chief Finance and Administration Officer.
With its headquarters in Kuwait, UASC is the largest ocean carrier of dry cargo to the Middle East. It has maintained its market leadership by being the top carrier both in terms of liner cargo and port coverage. “We have great experience and know the area better than anybody,” says Mr. Al-Shebli.

Improvements in operational efficiency and cost control helped to increase UASC’s turnover to more than $982 million, with a net profit of $135 million in 2004—the tenth consecutive year that the company has achieved profitable results. Another landmark was achieved by transporting more than 1 million TEUs (20-foot equivalent units), in addition to 890,000 tons of general cargo.

The 25 ships of UASC’s fleet are maintained to the highest industry standards—all vessels are classified as Lloyds 100A1. As part of the company’s growth strategy, eight new 6800 TEU high-speed container ships have been ordered, and are due for delivery in 2008. Clients are able to make cargo bookings, and track their shipments via the internet.

UASC offers container services for the global trade flows between North Europe, the Mediterranean, North Africa, the Red Sea, the Indian Sub-Continent, Asia, and North America. Its current focus is on expanding its international business. Jorn Hinge, Deputy CEO and Chief Trade and Operations Office, explains: “Today half our business comes from the Middle East. In the next five to 10 years, we would like it to represent one third of the business as we grow in the rest of the world,” he says.

The Kuwait-based Public Warehousing Com-pany (PWC) is already the leading provider of end-to-end supply chain solutions in the Middle East. PWC has been working closely with the U.S. military in the region, and was named New Contractor of the Year for 2004 by the United States’ Defense Logistics Agency (DLA).

By acquiring both the U.S.-based Transoceanic Shipping Company and the Asian-based Trans-Link Group this year, PWC has become one of the world’s largest logistics services providers.

Kuwait’s world-class logistics sector is not limited to shipping, however. Two further large contracts with the U.S. military were awarded to the company’s subsidiary PWC Logistics in June, worth a potential $15.5 billion over a five-year period.

The first means that PWC will continue as the prime vendor for the provision of food and related items to the U.S. Military in Kuwait, Iraq, and Jordan. The second is for the largest heavy-lift transportation contract ever awarded by the U.S. military.