London: Iraq has issued a freight tender to deliver 200,000 tonnes of sugar to its main Umm Qasr port during December and January, traders said.

The tender is the second under a new buying policy aimed at lowering the cost of commodity imports after Iraq last week sought shippers for 800,000 tonnes of US wheat bought from trading company Dreyfus.

Deputy Prime Minister Ahmad Chalabi, who heads the State Contracts Committee and the Energy Council, told Reuters Iraq has already received offers to ship the wheat and saw no problems for commodity shipments at Umm Qasr.

"We are very pleased at the responses we have received to Iraq's first freight tender," Chalabi said from Baghdad.

"The government of Iraq is committed to ensuring a smooth and efficient discharge process for ships at Umm Qasr port. "Our goal is to cut unnecessary waiting times to an absolute minimum," he said.

Under the now defunct cost insurance freight (CIF) terms, Iraq paid suppliers for delivery as well as for the goods.

Several regional shippers say the port has yet to prove it can handle cargo after disruptions to unloadings a few months ago due to a dispute between the government and trucking companies over new Transport Ministry fees.

Shipping data show Umm Qasr activity at one of its busiest levels since the 2003 US-led invasion.

Unloadings include two vessels carrying 156,000 tonnes of US wheat, the Alwine Oldendorf with 52,000 tonnes of Australian wheat, two Argentine corn vessels and five cement ships from Pakistan and India.