DAMMAM, 7 August 2003 — The transport business in the Eastern Province is experiencing a virtual mini boom as a result of reconstruction work in war-torn Iraq. Main contractors as well as middlemen for the supply of all kinds of trucks, trailers and mini-trucks have approached all the transport companies in the region, small, medium and big.

The demand is so high that most Arabic dailies in the country are carrying advertisements for the supply of trucks. Transporters say that the demand for the trucks is bound to increase as reconstruction work speeds up. They say rates, which have slightly gone up, are bound to increase further and affect the local market.

Mohsen Al-Amri, a transporter in Dammam who owns a medium-sized fleet, says he has been approached by nearly a dozen middlemen for the supply of trucks and trailers. “These middlemen, who are operating from Kuwait, are agreeing to any rate demanded by the transport companies,” he said.

The region is already witnessing a mini boom in construction, and as a result there is high demand for all kinds of transport. “The construction mini boom in the Eastern Province has led to high demand, and there already exists a shortage,” said Syed Arshad Hussain Qazi, marketing manager of Rashed Al-Rashed Transport Division. “The rates are already going up due to increase in local demands and Iraqi demand will send them sky-rocketing,” he said. The transport companies, however, are apprehensive over the situation in Iraq, and that is working as an impeding factor for the supply of trucks to the contractors there.

“There have been reports of harassment of drivers, and in some cases they were beaten up or kidnapped for ransom,” said a transporter in Alkhobar who preferred not to be identified. He said some of his competitors supplied trucks and received reports from Baghdad that their trucks were badly damaged by criminals in Iraq. It is probably for this reason that insurance companies are also hesitant in insuring trucks for Iraq, while those who do charge a high premium.

“It’s a catch 22. We don’t want to miss the opportunity and at the same time we don’t want to take risks,” said Abdul Aziz Al-Dosarry, a transporter in Dammam.

He said after the end of the Gulf War in 1991, many local businessmen missed opportunities during the reconstruction of Kuwait. “We don’t want to repeat that mistake.”

Businessmen in the region believe that it is just the beginning of the beginning. “Major contracts will come in a few months when reconstruction work will peak. And that is when the region will get the maximum benefit,” said another prominent businessman on condition of anonymity. Some companies in the Eastern Province are working as subcontractors for construction work in Iraq.