Bahrain Outlines Major Transport and Aviation Expansion

Bahrain’s plans to strengthen its transport and logistics sectors took centre stage during a session held at the Masaya Pavilion in the Ritz-Carlton Bahrain. The event was opened by H.E. Dr Shaikh Abdullah bin Ahmed Al Khalifa, Minister of Transportation and Telecommunications, who thanked AmCham for hosting and encouraged open discussion. He also highlighted the strong ties between Bahrain and the United States.

Vision 2030 at the Core

The minister reaffirmed the Kingdom’s commitment to Economic Vision 2030, built on sustainability, fairness and competitiveness. He noted that transport and telecommunications currently contribute about 9% of Bahrain’s economy, with ongoing efforts to boost connectivity across air, land, digital and postal services.

Aviation Sector to Lead Growth

As an island nation, the minister said aviation remains central to Bahrain’s future. Plans are underway to grow the sector into a regional centre of excellence covering commercial airlines, private aviation, cargo operations and maintenance services. Key partners include Gulf Air, DHL, VALOA Aviation and AirAsia.

Airport Expansion and New Partnerships

Bahrain International Airport’s new US$1.1 billion terminal has capacity for up to 14 million passengers. Current targets aim for 3 million travellers, rising to 5 million within five years. A new agreement with AirAsia will establish a regional hub, introduce a maintenance facility under Asia Digital Engineering and launch regular cargo flights through Teleport.

Private Jet Services Growing

VALOA Aviation, which recently secured its Air Operating Certificate, is expanding its private aviation services. Plans include a new hangar, a larger fleet and enhanced maintenance capabilities. A letter of intent has also been signed with Millennium Jet to support European private aviation operations in Bahrain.

Cargo Operations Accelerate

Cargo activities continue to grow, with DHL increasing fleet size and transport volumes by 28% over four years. The company plans to build its largest regional maintenance centre in Bahrain. Teleport is boosting its logistics network, while Asia Digital Engineering is planning up to 14 maintenance bases, starting with four.

Boeing Highlights Long-Standing Ties

Boeing Qatar’s Managing Director, Wael Zaoud, noted that Bahrain’s partnership with Boeing began in 1977 with the Gulf Air 737-200. Recent milestones include the introduction of the 737 Connected Cargo and the region’s first 737 converted freighter. He stressed the importance of digital tools, modern infrastructure and skilled talent to support future demand.

Bahrain Positioned as a Logistics Hub

APM Terminals Bahrain CEO Matthew Luckhurst highlighted more than 15 years of cooperation at Khalifa bin Salman Port, as well as a century-long relationship between Bahrain and MERSK. He said port operations follow the same standards used at major ports in the United States.

Efficiency and Innovation Drive Progress

Bahrain continues to modernise and digitalise its port operations, achieving faster turnaround times and reduced costs. In 2024, the port was recognised as the world’s most efficient port of its size. APM Terminals is also using AI and digital twin technology to simulate ship movements and plan resources, helping reduce costs and improve consumer pricing.

Focus on Collaboration

Closing the session, the minister emphasised that Bahrain’s progress in aviation, logistics and digital infrastructure is built on collaboration. He encouraged further questions, partnerships and ongoing support as the Kingdom continues to advance its Vision 2030 goals.