Higher prices are one result Limburg blast will be felt for years [Archives:2002/52/Business & Economy]

BY FAROUK AL-KAMALI
YEMEN TIMES STAFF
Yemeni economists say overall losses from the Oct. 6 bombing of the French supertanker Limburg are still being assessed, but it’s known already that the average Yemeni will take a big part of that hit through higher prices for commodities.
According to the Minister of Transportation and Marine Affairs, Captain Saeed Yafa’ee, actual losses in the last two months have reached $ 7.7 million.
Those losses include custom duties losses of the terminal containers in the Free Zone in Aden.
The ripple effect, however, has already begun in other less-tangible national revenues such as, tourism, marine life, and investments. So the loss could jump significantly from its present monthly rate of $3.8 million.
In addition, there has been increases of insurance fees for ships heading towards the Yemeni harbors.
Undoubtedly, the incident of the terrorist act has greatly affected marine activity along the whole Yemeni coastlines. This has enabled the international insurance companies to impose additional duties on ships heading towards Yemen.
Despite measures taken to guard the Yemeni harbors, fears have been still haunting the minds of those who take the charge of the international insurance companies not to take risks or sail Yemeni harbors.
To find out more of the consequences of the blast, the Times met with shipping officials.
Mr. Matloob Atef Asharqi, the Chairman of the Boards of Saba International Shipping of Project Investment Comp. Ltd. said while the bombing has caused harm to the Yemen’s economy, fishermen have also been greatly affected also due to the marine pollution.
“Fishermen have been deprived from fishing in the seawaters for a long period. This has also has greatly affected the fish wealth of the territorial waters,” he said.
Aden hurt
Concerning the navigation companies, Asharqi noted that navigation lines used to run to the Free Zone harbor in Aden have been shifted to the Jeddah, Salalah, and Djibouti harbors. Thirty ships a month used to come to Aden.
One of the negative impacts of the Limburg is the decision taken by the insurance companies to raise the insurance fees on the containers coming to Yemen. A fee of $500 has been imposed for each container estimated at 40 f., $250 for a container estimated at 20 f., and $10 for a ton of a wood.
Mr. Abdul Rahman Baasher, the General Manager of al-Mandab Marine Services Co. Ltd. said, “Undoubtedly, the incident has negatively reflected itself in the and a sense of fear has been began to be felt among the navigation companies, particularly the insurance companies entrusted with the insuring ships and commodities. These companies have imposed doubled insurance duties on the regular ships and the supertankers.”
Mr. Baasher also noted the problem at Aden.
“These supertankers will head towards other adjacent harbors due the reduction of insurance duties. This will have its own impact upon the national economy for an unknown period of time.
Losses are not restricted to ships and supertankers.
Baasher emphasized the damage from the environmental pollution for the sea animals including fish and coral reefs. “I’m afraid that this environmental pollution will extend for a long period of time.”
On the negative impacts on the navigation companies Baasher said, “The shift will accompany other aspects, including commerce and custom companies. This will lead to inescapable consequences including to the consumer,” he added.
To summarize, the Limburg incident will not be a normal one in the history of Yemen. Its negative impacts will not be the first or the last. It may extend for years to come.
We can say that the oil tanker blast has added an unexpected new burden on the Yemeni State budget and the government’s development efforts. This urges the speed in removing dangers resulting from the incidence that would hinder the efforts of improving the national economy.

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