Ras Al Khaimah: The newly-launched RAK Maritime City is expected to boost the local economy and generate Dh40 million in revenue in its first year of operations, its General Manager told Gulf News.
The RAK Maritime City, the UAE's newest maritime free zone, was officially launched yesterday by His Highness Shaikh Saud Bin Saqr Al Qasimi, Member of the Supreme Council and Ruler of Ras Al Khaimah. The City is an effort to "mimic the past with modern tools" as the emirate reconnects with its maritime tradition of trade, he said.
A total of Dh520 million was invested in the 8 million square metre maritime industrial park.
Of this, Dh400 million was spent on construction and Dh120 million on Phase One infrastructure projects including security, fencing and drainage systems, said captain Colin Crookshank, general manager of the City.
The City is fully operational and has three clients operating in it including the German gypsum board manufacturer Knauf, Malaysian barge and tug operator Shin Yang and Greek construction company Archirodon.
The management is in talks with several clients and is aiming to attract 30 to 40 customers in medium to heavy industries within the next 18 months. Crookshank said.
The project is expected to create 5,000 jobs during the next 18 to 24 months when the infrastructure is completed and will boost export and import activity at the nearby Saqr Port by 25 per cent in its first year, City representatives said.
Phase 2 involves deep-sea expansion that will cost $3 billion (Dh11 billion) to $4 billion, he said. Funding is "always a challenge" and the City is still seeking funds from various investors but hoping sea reclamation will start within the next two years, he said.
"It's a massive investment. The RAK government won't do it on its own, it will talk to investors."
Strategic location
With its strategic location, the RAK Maritime City is taking precautions against the growing threat of piracy.
The City, strategically located near the Strait of Hormuz, spent Dh1.5 million on security measures as the threat of piracy creeps closer to the Gulf, said Crookshank.
"We are keeping a close eye on anti-piracy requirements as piracy gets closer to the Gulf."
Asked how the RAK Maritime City will compete with similar facilities and free zones in other emirates, Crookshank said it offers a strictly non-residential, non-leisure space to form industrial clusters, provide large plots, and exclusive access to the water.
Representatives from the City insisted that it will "complement" rather than directly compete with similar existing facilities.
Registering with the City means reduced insurance and fuel costs, easy access to the Gulf, 100 per cent ownership, full repatriation of profits and no corporate tax, Crookshank said.
The City has not announced a contractor for Phase 2, but tenders for various infrastructure projects including road and drainage systems will be announced in the next 6 to 12 months, said Crookshank.
The China Harbour Construction Company was commissioned to develop the City in 2008 for phase 1 and Halcrow Engineering is the project consultant.
RAK Maritime City is aiming to attract medium to heavy industry companies in steel, petrochemicals and construction and is considering three or four "mega" projects which are currently confidential, said city board member Nasser Bustami.
Companies in the City can also ship by road, sea or rail as the Itihad (Union) railway includes Saqr Port as its final station and links with the E611 highway running from Abu Dhabi to the northern emirates, said Alan Pollard, Business Development Manager at the City.
