VZCZCXRO1220
RR RUEHDE
DE RUEHDE #3374/01 1581702
ZNR UUUUU ZZH
R 071702Z JUN 06
FM AMCONSUL DUBAI
TO RUEHC/SECSTATE WASHDC 1128
INFO RUEHAD/AMEMBASSY ABU DHABI 1527
RUEHDE/AMCONSUL DUBAI 4086
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEFHLC/DEPT OF HOMELAND SECURITY WASHINGTON DC
RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RHRVAKS/COMFIFTHFLT
RHMFIUU/HQ USCENTCOM MACDILL AFB FL

UNCLAS SECTION 01 OF 02 DUBAI 003374 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EWWT ETRD ELAB AE IZ IR
SUBJECT: KHOR FAKKAN PORT - A TRANSHIPPMENT HUB 
 
1.(SBU) SUMMARY: Senior officials at Khor Fakkan Port (KFP) met 
with Congenoffs and provided an overview of the port's 
operations, capacity, and expansion plans. Nearly 95 percent of 
the containers entering KFP are transshipped to other countries 
and do not enter the UAE. The port will open berths to handle 
Post Super Panamax container in mid-June 2006. The port is 
installing a container x-ray facility in an effort to meet the 
standards of the US' Container Security Initiative. End Summary. 
 
2.(U) Khor Fakkan Port (KFP) Administrative Manager Mohammed 
Kareem Saad and, KFP Harbor Master Captain Abkar Hasson M. Dabla 
met with Congenoffs on May 20, 2006. The port officials provided 
an overview of the port's operations, capacity, and planned 
expansion. 
 
Background 
---------- 
 
3.(U) KFP, which opened in 1979, is a one of two ports on the 
UAE's east coast. KFP is operated by the Sharjah Ports 
Authority. Although KFP primarily handles container ships, it is 
capable of handling break-bulk and ro-ro vessels.  The lack of 
adequate roads has been an obstacle to KFP's becoming a major 
port of entry for cargo bound for the UAE, Saudi Arabia, and 
other Gulf States. The government of Sharjah plans to build a 
highway that will link KFP with the UAE's main cities and make 
the port more attractive as a gateway to the UAE and other Gulf 
states. There is no free zone associated with KFP. 
 
Transshipment of Containers 
--------------------------- 
 
4.(U) KFP's primary activity is transshipping containers.  Saad 
estimates that about 95 percent of the container traffic is 
transshipped and never enters the UAE.  Large container ships, 
mostly operating on regular schedules, come from Europe and the 
Far East discharge and load cargo in KFP.  The vast majority of 
containers discharged at KFP are loaded onto smaller "feeder" 
ships, which then take the containers to regional ports, 
including Bandar Abbas, Iran, Dammam, Saudi Arabia, Jebel Ali 
(UAE), and to ports in India, Pakistan, and Oman. In addition to 
feeder ships, wooden dhows also call at KFP to take cargo to 
Iran, India, and Pakistan. 
 
5.(U) According to Saad, most containers are discharged onto the 
quay at KFP and remain in the port for only a few days until 
transshipped. If possible, containers are transferred directly 
from a larger vessel to one of the feeder vessels. Congenoffs 
observed containers being transferred directly from a large 
container ship to a feeder ship, the MV Memzar. The smaller ship 
was outboard and the gantry crane lifted the containers from the 
larger liner and placed them on the smaller vessel. The 
containers were not brought onto the quay. 
 
Current Traffic 
--------------- 
 
6.(U) United Arab Shipping Company (UASC), CMA-CGM, and Hanjin 
have the largest operations at KFP.  As the port expands, KFP is 
attempting to attract more shipping companies to use the port. 
Saad claimed that a large East Asian shipping company, whose 
name he couldn't reveal, will soon sign an agreement for 
scheduled service at KFP. 
 
7.(U) Currently, about 60 large container ships and more than 
100 feeder ships dock at KFP every month.  KFP handles 
approximately 2,500,000 TEUs (twenty foot equivalent unit) per 
year, ranking it as the 43rd container port in the world by 
number of TEUs handled. 
 
Container Traffic with the US 
----------------------------- 
 
8.(U) KFP handles nearly 25,000 TEUs going to or coming from the 
US per month. US traffic represents a little over 10 percent of 
the containers handled by KFP.  All cargo between the US and KFP 
is transshipped via European or East Asian ports, as no ships 
sail directly between KFP and US ports. 
 
Container Traffic to Iran and Iraq 
---------------------------------- 
 
9.(SBU) At present, around 3000 TEUs are transshipped to Bandar 
 
DUBAI 00003374  002 OF 002 
 
 
Abbas in Iran.  Saad said he was not aware of the types of cargo 
that was shipped to Iran via KFP.  Over the past few years, KFP 
has seen a resurgence of transshipments to the port of Umm Qasr 
in Iraq.  Most of the 3000 Iraq bound TEUs per month are 
destined for coalition forces. 
 
Port Facilities 
--------------- 
 
10.(U) The port currently operates five berths with 14 gantry 
cranes along 1496 meters of pier. The deepest berths are 14 
meters deep.  Two additional berths with four gantry cranes 
designed to handle "Super Post Panamax" vessels are scheduled to 
begin operating in mid June 2006.  CMA-CMG operates the world's 
largest Super Post Panamax vessel with a 9700 TEU capacity. 
This vessel is expected to call at KFP once the new berths open. 
 
11.(U) KFP has the capacity to store 32,000 TEUs.  An additional 
12,000 TEUs of storage will become available when the Super Post 
Panamax area becomes operational. Three times during 2005 KFP 
reached maximum capacity. 
 
Customs and the Container Security Initiative at KFP 
--------------------------------------------- ------- 
 
12.(SBU) Customs at KFP are handled by the Emirate of Sharjah. 
Only containers that enter the UAE are subject to customs 
inspection. Neither Sharjah Customs nor KFP appear to take 
interest in cargo that enters the port for transshipment. 
 
13.(SBU) KFP is installing an x-ray shed for container 
inspection.  Saad said that the port authority was installing 
the x-ray as part of an overall upgrade that would allow KFP to 
become part of the US' Container Security Initiative (CSI). 
Once the x-ray becomes operational, 100 percent of US bound 
containers will be x-rayed.  Saad commented that he had wanted 
to buy gamma scanners, but the port authority opted for lower 
cost x-ray scanners. 
 
Labor at the Port 
----------------- 
 
14.(U) Laborers at KFP are primarily from Sri Lanka and the 
Philippines.  KFP has an agreement with the Sri Lankan port 
authority, whereby Sri Lankan employees are assigned to KFP for 
periods ranging from three to five years.  This brings well 
trained Sri Lankans to KFP and is a means by which the Sri 
Lankan government rewards staff with a high-paying assignment in 
the UAE. 
BURNS