Lebanon Businessnews News

Cabinet approves support for
exports to Gulf and Jordan
Subsidy estimated
at $150,000 per day
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The Cabinet approved on Thursday an additional allocation of funds to support agricultural exports to Jordan and Gulf countries.

The decision is based on a request by exporters to subsidize additional shipping expenses, according to the Minister of Information, Ramzi Joreige.
The Investment Development Authority in Lebanon (IDAL) stated that the estimated cost of the roll-on-roll-off (RO-RO) ferries to KSA’s Dhuba port ranges from $2,400 (LL3.6 million) to $2,700 (LL4 million).

Exporters have requested from the Cabinet support for the rental costs of the ferries, as they bear the cost of the trucks, which are between $3,000 (LL4.5 million) and $3,500 (LL5.2 million), each.

The cost of shipping refrigerated trucks by land to Saudi Arabia is $3,500 (LL5.25 million), but regular containers cost between $2,800 (LL4.2 million) and $3,200 (LL4.8 million).

Ibrahim Tarchichi, Head of the Association of Bekaa Farmers and a local farmer and exporter said that farmers need to export around 60 trucks per day, this season. For this, they would require assistance from the Government of $150,000, per day.

Land exports of agricultural and industrial products to Arab countries have stopped due to the closure of the Jordan-Syria Nasib cross border.

The Association of Industrialists (ALI) and farmers have previously proposed the creation of a new shipping route to the targeted countries on RO-RO ferries. These would be able to carry up to 100 trucks to the ports of Saudi Arabia, to Mersin-Turkey, Port Saeed or Damietta in Egypt, from which point they would be able to continue to other Arab countries.
Reported by Rania Ghanem
Date Posted: May 14, 2015
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