Bahrain launched the region’s fastest sea-to-air logistics hub on Wednesday, as the kingdom seeks to diversify its economy. The hub is expected to cut costs by 40 percent and reduce the turnaround time for containers, allowing customers to get their shipment in half the time.

The launch of the global hub is a “real opportunity not only for global logistics companies but also for exporters across the world”, said Kamal bin Ahmed, Bahrain’s transport minister. “This service can lead to 40 percent cost savings compared to air freight only and 50 percent faster lead times than pure sea freight.”

Bahrain, the smallest economy in the Gulf, faced economic headwinds during the Covid-19 pandemic. Its economy is estimated to have shrunk 5.4 percent in 2020, driven by a sharp contraction in non-oil output, which according to International Monetary Fund projections, contracted 7 percent. The fund expects Bahrain’s economy to expand 3.3 percent this year on the back of its quick response to minimize the economic fallout of the pandemic.

Source Credit: The National