Iraq has always been a land of great potential, positioned at the heart of the Middle East and blessed with abundant natural resources, particularly oil and gas. Yet, for decades, the country’s logistics and industrial infrastructure remained underdeveloped compared to its regional neighbors. Today, a new project is changing that reality: Basra Logistics City (BLC). Strategically located near Umm Qasr Port in southern Iraq, BLC is envisioned as a modern logistics and industrial hub that can transform the way goods are stored, processed, and traded in the country.

This article explores the significance of Basra Logistics City, its facilities, services, financial outlook, and its potential role in reshaping Iraq’s economy.

📍 Strategic Location

One of the biggest strengths of Basra Logistics City is its prime location. The project is situated just 1.6 kilometers away from Umm Qasr Port, Iraq’s first and most important seaport. This proximity ensures that imported goods can be quickly transferred from ships into the logistics zone, reducing transportation costs and saving valuable time.

The city spans an impressive 3 million square meters (1,200 Iraqi dunams) and lies within 70 kilometers of Iraq’s super-giant oil fields in the south. In addition, it is connected to major infrastructure networks:

• Only 45 km from Basra International Airport.

• Located directly on the Umm Qasr–Baghdad international road.

• Adjacent to the railway line connecting Umm Qasr Port with Baghdad.

This combination of port access, road networks, airport proximity, and railway connectivity makes BLC a uniquely positioned hub for both domestic and international trade.

🏗️ Facilities and Assets

Basra Logistics City is designed to provide world-class logistics and industrial support. Some of its most notable facilities include:

• Water desalination plant and wells, ensuring a reliable water supply for industrial and residential use.

• Heliport for rapid transportation and business travel.

• Residential complexes and office buildings, enabling workers and companies to operate on-site comfortably.

• Large storage halls and covered areas, currently being utilized for factories.

• Open storage yards that are paved and enclosed for heavy machinery, vehicles, and large equipment.

• Infrastructure for electricity and security, including surveillance towers, cameras, and protective fencing.

• Road networks designed to support heavy trucks and industrial traffic.

These facilities establish a strong foundation for supporting a wide range of industries and services.

⚙️ Supporting Services for Ports

Basra Logistics City is not just about storage; it offers a wide variety of supporting services that make it a comprehensive logistics ecosystem. Key services include:

• Truck Terminal (Truck Village): A specialized hub for trucks with parking, maintenance, fueling, and logistics coordination.

• Customs Bonded Area / Private Free Zone: A secured space where goods can be stored or processed without immediate customs duties, similar to free zones in the UAE.

• Dry Port (Container Terminal): An inland container terminal connected to Umm Qasr Port, allowing efficient handling and clearance of goods.

• Specialized Storage Services: Warehouses for chemicals, drilling fluids, refrigerated goods, frozen foods, livestock, and hazardous materials.

• Office & Accommodation Services: On-site offices, housing, and facilities to support business operations.

• Light and Specialized Industries: Including re-packaging, pharmaceuticals, plastics, and food industries.

• Re-export and Assembly Industries: Adding value to imported materials before re-exporting them.

• Industrial Incubator: A platform for start-ups and growing industries to innovate and expand.

💰 Financial Strength and Investment Incentives

From a financial perspective, BLC presents a highly attractive investment opportunity.

• The property is fully owned by Kufan Group, with an estimated asset and land value exceeding $200 million.

• The project is exempt from taxes and customs tariffs for 10 years, in accordance with Iraqi Investment Law.

• Annual revenue projections for 2026 are estimated at $36 million, with a growth rate of 5% per year.

• Investors have access to banking credit over $50 million, with BLC land serving as collateral.

These figures highlight the strong financial base of the project and its future profitability.