Until very recently Maersk Line saw Iraq as being too dangerous for to risk opening an office.
Thankfully conditions are changing, and Maersk Line says is determined to do its bit to both capture business for itself and facilitate growth in the local economy. Maersk Line in Iraq now has a dedicated feeder, 80% reliability, fixed berthing, and unmatched (expandable) reefer capacity at the port of Umm Qasr.
Positioning itself in a high growth market, Maersk Line opened a branch office in Iraq in January 2012. This strengthened its sales presence in a region where the value of goods and services produced is expected to grow by 8.6% this year. Maersk Line is currently the fifth biggest player in Iraq, having doubled its market share this year to between 10% and 12%.
Maersk Line’s new branch is in Basra. The company says Iraq is still not an easy place to do business, and there are still the inherent risks of working in a new and delicate democracy. Ayad Sultan, the first external sales representative, admits this risk is the main challenge of working in Iraq in general and that Basra is “no exception.”
“Establishing the office in Iraq is the key to do the business as planned. It ensures that there are no misunderstandings as issues can be dealt with on the spot. Our customers feel the importance that our company attaches to Iraq,” he adds.
In fact, planning for the office began in 2011, but there were a number of challenges; legal issues, security risks, finding the right location, and building a local team committed to, and passionate about, the Maersk values and vision.
Setting up an office in Basra will provide a dedicated team on the ground so customers in and out of Iraq will feel more secure in knowing they have a business partner they can highly depend on.
Providing back office support, third-party agent Inchcape Shipping Services in Umm Qasr will handle documentation and cash services to Maersk Line customers.
As agency setup and staffing is in place, the next step expanding Maersk Line’s market position in Iraq by promoting its competitive service level and products to/from Iraq through Umm Qasr, which is central to trade in Iraq with containers arriving from all over the world.
