USD 4 million in subsidies for exports needed in order to avert a day of wrath

A report prepared by the Investment Development Authority of Lebanon IDAL revealed that USD 2.5 to 4 million in monthly government subsidies toward the cost of sea transport of agricultural and industrial exports to Gulf countries and Jordan, are needed, as a temporary alternative to land transport. According to the study, nearly 98% of Lebanese agricultural exports are headed to Arab countries, 73% of which go to Jordan and GCC states. Statistics also indicated that while 84% of above exports used to be transported in 2011 by land, only 5% were shipped by sea. However, in 2015, and after the closure of Nassib Crossing on the Syrian Jordanian borders, the size of land exports dropped to 25 points against an increase by one fourth in maritime shipments. For 2015, IDAL estimates the size of agricultural exports to the above mentioned countries at 300 thousand tons against 76 thousand tons in food processed exports and 62 thousand tons for industrial exports. The report went on to say that some 11 thousand trucks are needed to ensure transportation during 2015. Furthermore, and based on its sources IDAL estimated the additional cost of maritime shipping at 25%. As such, the cost of one truck will average between USD 1500 and  USD 2500, thus brining the total to USD 2.5-4 million per month that will need to be covered by the Lebanese government. According to the current scenario, 3 ro-ro vessels will need to be hired; each accommodating some 100 trucks and that is for a period of 7 months. In a similar vain, the Minister of Agriculture, Akram Chehayeb, visited the Chamber of Commerce, Industry and Agriculture in Zahleh and Beqaa and met with tens of exporters and farmers who announced heir intention to stage a wide strike and a day of wrath on Saturday June 27 if the Cabinet fails to adopt a decision to support exports. A further discussion meeting will be held next Monday between Chehayeb, exporters, farmers and IDAL. (As Safir, L’Orient Le Jour, 22 & 23 June 2015)