Though Middle East region is pumping millions into construction of new seaports and expansion of existing facilities, the percentage of spending on security by port authorities continues to be minimal, says a report.

This poses a challenge to security system providers, said a new analysis from Frost & Sullivan titled 'Middle East Seaport Security Market Assessment.'

'The market earned revenues of $7.9 million in 2009 which is likely to reach $11.6 million in 2016,' it added.

“Rising terrorism and upcoming new ports are stimulating seaport authorities to spend more on security,” noted YS Shashidhar, vice president and country director, Frost & Sulliva (South Asia-Middle East & North Africa).

“Efficient security systems will need to be procured to protect ports in the region,” he pointed out.

“With public funding at a minimum, port authorities and ship owners are reluctant to spend more on security,” he explained. “The cost of security-related investments is not passed onto customers; instead, owners bear the entire cost,” he added.

Notwithstanding this challenge, by speedily expanding terminal capacity and establishing new seaports, the Middle East seaport security market will be stimulated, the analysis said.

According to Shashidhar, these developments will encourage the procurement of new security systems.'With further expansions anticipated in 2012, the seaport security market in the region is poised to grow,' he observed.

“Security outlays will continue to rise in the wake of proliferating terrorism and piracy,” Shashidhar said.

“The market is projected to grow further when novel, high-technology products are introduced that would enhance the speed of cargo screening in seaports,” he added.-TradeArabia News Service