Agility, a leading global logistics provider, is set to invest $10 million for expansion of its regional logistics hub in Bahrain to 28,000 sq m besides increasing its storage capacity by an additional 19,000 pallet positions.

The expansion, which is expected to be completed within the next 10 months, will also see a major boost in its workforce which will go up by almost 25 per cent, said the company in a statement.

Agility has been operational in Bahrain since 2003, with the main facility, located in Hidd, supporting contract logistics with ambient, chilled, and frozen storage, as well as unique solutions for high-value cargo.

The company will also make investments in its warehousing, freight, transport and specialty logistics solutions in the kingdom.

Speaking at the launch, Zayed Alzayani, Minister of Industry, Commerce and Tourism, said: "Logistics has a key role in driving economic growth and attracting international investment into the country. The government is committed to delivering a more efficient and advanced logistics sector, and in order to facilitate this, the ministry has introduced a number of policies that directly contribute to the expansion of the logistics sector to build on Bahrain’s strategic location and regional connectivity."

"Agility has been a very important part of the logistic base here in Bahrain since 2003, introducing efficiencies to the sector never seen before," stated the minister.

Essa Al Saleh, the president and chief executive of Agility GIL, said: "This investment reflects our commitment to the clients in the region, and also the strength of Bahrain’s offering as a regional hub with efficient customs clearance, established transport links and an attractive operating environment."

"The expansion of our Bahrain logistics hub will increase the storage capacity and help meet the increasing regional demand for sophisticated and integrated logistics services," he stated.

Khalid Al Rumaihi, the chief executive of Bahrain Economic Development Board (EDB), said: "Agility’s investment is a reflection of Bahrain’s strengths as regional hub for logistics providers."

"The unique geographical location, with the direct access to the region’s largest economy, combined with the ongoing liberalisation of the logistics sector and availability of a well-educated, bilingual local workforce are the key drivers behind the growth of the logistics sector in the Kingdom," noted Al Rumaihi.     

Bahrain has announced plans to invest over $32 billion over the coming years in key infrastructure projects that will support the continued development of the logistics sector.

This includes the expansion of Bahrain International Airport, which is estimated to increase the air cargo volumes to one million tonnes per year once the project is completed in 2020, said the official.

In addition, Hamad Causeway, the second causeway connecting Bahrain to Saudi Arabia, is expected to result in import costs being further reduced by up to 50 per cent.

The transport and logistics contribution to the GDP (gross domestic product) increased from three per cent in 2013 to seven per cent in 2015, demonstrating the growth potential of this important sector, he added.

Agility also offers a secure records management storage solution, as well as turnkey logistics solutions to the Bahrain-based manufacturing industry including fast moving consumer goods.

The company also owns and operates a large fleet of over 200 transport assets including refrigerated trailers and is a leading provider of cross border transportation, and customs brokerage for a number of multinational organisations based in the Kingdom.-TradeArabia News Service