Iran’s Allies Seek to Obstruct Iraq's Grand Faw Port Project

Iraq's director general at the General Company for Ports, Farhan al-Fartousi, signs a contract with South Korea's Daewoo Engineering & Construction, to construct the Grand Faw port, in Baghdad, Iraq, Dec. 30, 2020. (Reuters)
Iraq's director general at the General Company for Ports, Farhan al-Fartousi, signs a contract with South Korea's Daewoo Engineering & Construction, to construct the Grand Faw port, in Baghdad, Iraq, Dec. 30, 2020. (Reuters)
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Iran’s Allies Seek to Obstruct Iraq's Grand Faw Port Project

Iraq's director general at the General Company for Ports, Farhan al-Fartousi, signs a contract with South Korea's Daewoo Engineering & Construction, to construct the Grand Faw port, in Baghdad, Iraq, Dec. 30, 2020. (Reuters)
Iraq's director general at the General Company for Ports, Farhan al-Fartousi, signs a contract with South Korea's Daewoo Engineering & Construction, to construct the Grand Faw port, in Baghdad, Iraq, Dec. 30, 2020. (Reuters)

Iraq’s signing on Wednesday of a $2.625 billion deal with South Korea’s Daewoo Engineering & Construction to build the first phase at its planned Faw commodities port has revealed a dispute between two Iraqi camps over which country should oversee the construction.

Opinion is split between one camp that wants South Korea to take over the project, located in the southern Basra province, and another that wants China to be involved.

The first camp includes Prime Minister Mustsfa al-Kadhimi and political forces that support him, such as the Sairoon coalition of cleric Moqtada al-Sadr and the al-Hikma alliance led by Ammar al-Hakim. The second camp is comprised mainly of the Fateh alliance of the Popular Mobilization Forces and other parties that are known for their allegiance to Iran.

The positions from both camps over the project, expressed before and after the deal was inked, reveal just how deeply local forces are affected by the stances of regional and international powers. The dispute was not born yesterday, but has been brewing for weeks between the abovementioned camps.

The differing positions can be understood by expanding the overall political scene in Iraq and how it is affected by regional and international interests. Moreover, the South Korean company has been overseeing the al-Faw Grand Port for years and has never been met with such strong opposition as it is today from Iran’s allies.

Under the contract, signed in Baghdad by representatives of Iraq’s transportation ministry and the South Korean company, Daewoo E&C will handle construction work including building five berths to unload ships and a yard for containers.

Daweoo will also carry out dredging and drilling works to create an access navigation channel, Farhan al-Fartousi, Iraq’s director general at the General Company for Ports, told Reuters on the sidelines of a signing ceremony at the transportation ministry headquarters.

The first phase should allow the port to receive three million containers, and all the construction work should be finished in around four years, said Fartousi.

No sooner had the deal been announced that the Fateh alliance and other pro-Iran blocs kicked off efforts to collect signatures to file a request to debrief the minster of transportation.

The alliance claimed that the deal will lead to a “massive waste of public funds and confirms the suspicions of corruption.”

Secretary General of the Asaib Ahl al-Haq Qais al-Khazali slammed the deal, saying the corrupt figures who agreed to it will “eventually be exposed.”

“The people know who you are and will hold you accountable for this major crime against their future,” he tweeted.

“For our part, we will work tirelessly to thwart this crime against Iraq and we hope the honorable people will support us,” he added.



Israel-Iran War Accelerates Departure of Tourists from Lebanon

A billboard on the road to Beirut International Airport promoting tourism in Lebanon (AP).  
A billboard on the road to Beirut International Airport promoting tourism in Lebanon (AP).  
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Israel-Iran War Accelerates Departure of Tourists from Lebanon

A billboard on the road to Beirut International Airport promoting tourism in Lebanon (AP).  
A billboard on the road to Beirut International Airport promoting tourism in Lebanon (AP).  

The outbreak of war between Iran and Israel has turned the hopes of Lebanese for a promising tourism season after thousands of tourists decided to cut short their vacation and return home.

A large number of Arab and foreign tourists were seen at the departure gate at Rafik Hariri International Airport. They fear security developments would lead to a sudden halt of flights, especially after the United States joined the conflict and launched directed strikes on three Iranian nuclear facilities last Saturday.

“After most airlines suspended their flights to Lebanon, thousands of passengers rebooked with the Middle East Airlines to be able to leave Lebanon,” a security source told Asharq Al-Awsat on Monday.

The source said tourists are cutting short their stay as fears grow of a wider conflict in the Middle East.

While officials expected that 120 flights would land daily at the airport in Beirut during the summer season, a source at the airport said, “most airlines have cancelled flights to Beirut due to high security concerns”.

In addition to Lebanese flag carrier, Middle East Airlines (MEA), the source said only five other companies are still operating from Beirut’s airport: Emirates, Fly Dubai, Turkish Airlines, Cyprus Airways and Qatar Airways.

The mass cancellation of flights has mainly affected the tourist season in Lebanon, such as hotels, restaurants and other establishments.

“The tourist season in Lebanon is affected. Thousands of hotel reservations were cancelled as Arab and Gulf nationals hesitate to visit the country due to the ongoing war,” Chairman of the Lebanese Economic Organizations and former Minister Mohammed Choucair told Asharq Al-Awsat.

Choucair said “the promising summer season is much more pessimistic. Things could only change if the war stops in a few days.”

He said most airlines that had planned additional flights to Beirut for the upcoming season have now totally suspended their flights.

Also, the war affected tourism companies, which saw a lower demand on tickets and hotel reservations.

Aimee Achkar, general manager at Tania Travel said the war “has dealt a strong blow to the tourist season in Lebanon. Thousands of reservations were cancelled while Arab and foreign tourists are cutting their holiday short.”

Achkar told Asharq Al-Awsat that in the first quarter of June, incoming flights to Beirut airport dropped from 85 flights a day to between 30 and 35 flights, mostly operated by MEA.

In the tourism sector, hotels have suffered the most.

“The occupancy rate in hotels before June 13 ranged between 80 and 90%. After the outbreak of war, it fell to below 30%,” Achkar said.

She explained that according to pre-bookings, the airport was projected to welcome about 125 flights per day during July and August, while the hotel occupancy rate was about 95%.

Also, President of Lebanese Hotel Association, Pierre Achkar said last week the war between Iran and Israel is already casting a shadow over Lebanon’s tourism sector.
In a statement, Achkar said the closure of regional airspace and the cancellation of incoming flights have begun to take a toll, adding that the aviation sector is facing growing disruption and chaos.

But in return, Lebanese expatriates have not cancelled their tickets back home. They are still holding out hope for an improvement in the situation in the coming weeks.

On Tuesday, US President Donald Trump said that a ceasefire between Israel and Iran has been reached.

A MEA official said flights to Lebanon are fully booked by Lebanese expatriates.

“All flights approved by MEA and foreign airlines are still on their previously scheduled dates,” he said.