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Santhosh Chandran
Doha
THE start of direct shipments from South Asian countries and availability of affordable warehousing facilities in the country will strengthen supply of building materials, dealers in construction sector feel.
This measures may also reduce the cost of the materials by up to 15 percent despite the ongoing blockade on Qatar, they say.
According to the dealers, the middlemen in neighbouring countries and the additional road transportation costs did make the materials expensive in Doha. They added that the facilities at the Special Economic Zones, which are about to be opened, will be a big relief for the sector.
Many stakeholders believe that the opening of new Hamad Port and the new opportunities provided by the leading shipping firms with direct shipping services from Asian ports like Mumbai, Singapore, Sri Lanka will be a boost to the construction sector in Qatar.
"The new sea routes will open opportunities to explore some potential markets in Asian countries. The strong bilateral and business relations between Qatar and these countries will also benefit the business community. I believe the availability of better warehouse facilities at a cheaper rate will be an additional boost for this move," said Shamsudeen Olakara, director of Building Materials Division of Quality Group.
Warehouse manager of a leading construction group handling Ashghal projects, said:"Despite the blockade against the country and its reported impact on supply of some building materials in the local market, our projects are unaffected as we already have enough materials needed for the next six months. Our next consignment of materials will arrive at Hamad Port in a few days."
Traders commented that the additional container charges incurred through the new routes could be compensated with the reduction in warehouse rent.
As part of efforts to assist one another, small and medium-scale business firms have already initiated 'group purchasing' through which they can collectively bear the additional cost needed for logistics and transportation.
Many of such firms have also started direct purchase from manufacturers of India and China in order to boost market supply and meet customers' demands with quality products at attractive prices.
