Building Materials Port, Bahrain

Building Materials Port, Bahrain

Bahrain’s economy experienced record levels of investment in 2008 due to the high level of oil prices, which provided Middle East investors with funds for real estate projects and infrastructure development. This led to a chronic shortage of building materials (sand, aggregates, cement and steel reinforcement), due to the inability of pre-boom sources to continue supplying Bahrain, and the lack of alternative means of shipping materials into the country. (2008)

On behalf of the Ministry for Works, Fisher Associates was engaged to undertake a market study and financial / economic investment appraisal for a new terminal handling building materials. Subcontracted by Royal Haskoning, the work involved:

• Preparing a market analysis and future demand projections for materials, primarily based on benchmarking consumption with other countries at various levels of economic activity.
• Examining the financial viability of the BMP with respect to the alternative options and the estimated capital, annual maintenance and annual operating costs.
• Preparing an economic appraisal of the potential savings to Bahrain from its implementation. We looked at the impact on government revenues from additional taxation receipts, which would result from construction projects being completed without delays, and identified two main areas where the construction of the BMP would bring economic benefits:
  • Reducing the costs of imported building materials.
  • Ensuring security of supplies and hence reducing delays and uncertainties in the construction sector.
• Identification of strategies open to the Government for funding and operation of the terminals, and quantitative appraisal and analysis of these in terms of value for money.