Documente Academic
Documente Profesional
Documente Cultură
operated. For those who have local partners already engaged in some aspects of the operations, one
might provide auxiliary or support services that will reduce one's level of investment.
5. Appreciating the use of Free Port/Free Trade Zones as an economics tool
Countries have gained the benefits of opening up Free Ports and Free Trade Zones to allow foreign
investors to establish operations in regions where labor and raw materials are cheap and readily
available. This has allowed port operators to take advantage of such ports and zones while enjoying the
tax relief afforded them as well as their manufacturing partners. Commonly, these zones, however, have
a short or limited life expectancy as many companies that use up their tax-holiday contract period move
to other regions or eventually pay required customs, thus, losing their advantage over their competitors.
A long-term view of entering into such an arrangement is needed to assure that port facilities will have a
long duration of operation and continuing profitability.
Ever since Gulftainer Company Limited started its port facilities in Sharjah, UAE, in 1976, with Ramesh
Shivakumaran, Group Director Business Services - it has grown into a well-oiled and strong company that
can deliver services according to the specifications of its clients. With 8 terminals now in Saudi Arabia, it
prides itself of its accomplishments which it has achieved through applying these and other primary
principles in port management.