Primed for growth in Kuwait

Kuwait

Sudesh Chaturvedi, managing director of GAC Kuwait, talks to The Energy Year about how the company has become a trusted one-stop shop for supply chain solutions and upcoming opportunities in Kuwait’s offshore drilling campaigns. GAC Kuwait is a global provider of integrated shipping, logistics and marine services.

How important are Kuwait and the oil and gas sector for GAC?
Kuwait’s oil and gas and wider energy sectors are integral to GAC’s operations, and within the GCC a substantial portion of our business activities are closely associated with major energy operators. In Kuwait specifically, our primary focus lies in shipping and freight forwarding.
We act as port agents for cargo carriers, representing major shipping lines, managing the loading and unloading of vessels, handling inward and outward vessel movements and overseeing other related statutory operations.
Our freight forwarding teams are experts in handling a wide range of cargo types, from general cargo to specialised segments such as project freight forwarding, heavy break-bulk cargoes, ro-ro and classified cargoes.
The significance of our position in the region’s maritime industry is also showcased by our role as Kuwait representative for the International Group of P&I Clubs, which provides liability cover for approximately 90% of the world’s ocean-going tonnage.

What are your core logistics activities and how do you see the role of logistics services evolving in Kuwait’s energy industry?
Our logistics services include serving as Iraq and Kuwait’s leading tanker vessel agent, with all operations managed from our Kuwait office. In the ro-ro shipping sector, we are agents for one of the major companies in this segment, placing us in a prominent position among the country’s top ro-ro players.
Our very busy freight forwarding division offers a range of services including LCL [less-than-container load], FCL [full container load] and consolidation on a multimodal basis for general and special out-of-gauge cargoes. We also have extensive experience in mobilising land-based rigs and managing offshore logistics. By maintaining close relationships with major global drilling companies, we coordinate their daily activities within the region and beyond.
As we anticipate an increase in offshore activities, we actively engage with local authorities and our principals, ensuring they are well informed about emerging opportunities in Kuwait. With the ongoing growth of the energy sector in Kuwait, we foresee our logistics services evolving to become even more specialised and integrated, particularly towards supporting complex offshore operations and expanding our tanker and ro-ro services to meet rising demand in these areas.

How do you plan to develop your commercial infrastructure in Kuwait?
To bolster our commercial infrastructure in Kuwait, we are focusing on several key initiatives. These include expanding logistics services for general cargoes and special projects, heavy equipment haulage and last- and first-mile delivery services. We are engaging rigorously vetted vendors, enhancing our warehousing capabilities and integrating advanced technological solutions, including in-house developed software.
Further, we prioritise continuous staff training through the GCA and implement sustainability measures such as using battery-powered vehicles and optimising routes to reduce carbon emissions. Strengthening partnerships with local authorities such as Customs, ports and chambers of commerce is also part of our plan to streamline operations and facilitate business processes. These strategies aim to enhance our operational efficiency, compliance and environmental stewardship, positioning us for sustained growth in the region.

What elements make GAC different from other logistics providers?
As a global provider of integrated shipping, logistics and marine services, we’ve been supporting customers in achieving their goals since 1956. With over 7,500 employees and operations spanning more than 300 offices worldwide, our reach and expertise are extensive.
In Kuwait, GAC distinguishes itself as a comprehensive one-stop shop for supply chain needs. We provide a full spectrum of services, from delivering small documents to chartering ships and aircraft, catering to various logistical needs. We tap into our global network and local expertise to seamlessly coordinate across multiple companies within our Group to fulfil specialised requirements, whether in Kuwait or in other GCC countries and beyond.
This integrated approach makes us a preferred and trusted partner of many clients, especially drilling operators requiring distribution centres for managing procurement, equipment storage and the distribution of critical supplies such as spare parts.
Our commitment to delivering substantial value sets us apart. We prioritise enabling our clients to focus on their core activities, safe in the knowledge that we will take care of their logistical and regulatory needs.

Where do you expect to see the most growth in the next few years?
Kuwait’s shipping agency and freight forwarding industries are expected to witness significant growth in the near future, particularly in sectors aligned with the country’s national development and economic diversification priorities.
Key areas poised for growth include logistics support for the expanding energy sector, facilitation of large-scale infrastructure projects outlined in Kuwait Vision 2035 and the provision of enhanced services for the growing e-commerce market.
We also expect to see growth in specialised logistics services for the healthcare sector, particularly in cold chain solutions for pharmaceuticals. As Kuwait works to diversify its economy beyond oil, sectors such as manufacturing and retail are expected to drive demand for more sophisticated freight forwarding services, and efforts to improve regional trade and connectivity to establish Kuwait as a logistics hub in the Gulf will further stimulate growth in the industry.

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