Growing Up

Qatar’s economy is developing at a rapid pace. Business are growing as a result but are also facing several problems caused by accelerated growth. While the government is responding, there is still plenty of room for improvement. But business such as Bin Yousef are eagerly awaiting the many proposed changes.

Managing Director George Matthew (front left) and CEO Sajith Sarathchandran (front right) surrounded by their Bin Yousef Team

“Qatar is probably one of the fastest growing economies in the world,” says Sajith Sarathchandran, CEO, of Bin Yousef Cargo Express, based in Doha. “You can see the changes everywhere, every nook and cranny of the country.”

And his company, he says, is keeping up with this growth. “Turnover-wise, we have experienced more than 15-20 per cent growth in business volume in the past year, and consistently over the past three to five years.”

Established in 1985, Bin Yousef Cargo Express is a door-to-door freight forwarder, offering services ranging from air freight and sea freight, to exhibition and live animal handling.

“Our concentration is only on the local market to meet the requirements of clients based in Doha,” says Managing Director George Mathew. “There is good demand. You can see all the construction works going up here, and everything needs to be imported.”

The government of Qatar is handling this change well, according to Sarathchandran. “The approach of Qatar is different from Dubai’s,” he says. “It’s not going for rapid modernisation of infrastructure alone. It’s got a comprehensive approach, in terms of education, health standards and the quality of work it is offering to its expatriates.”

Still, both Sarathchandran and Mathew admit there is plenty of room for improvement, for example with government procedures such as customs and security clearance. “The system, as it is, is very efficient, but the number of imports coming in is weighing down the system,” says Sarathchandran.

“If you go to a country like China or Japan, you will face much longer delays. At the same time we would like to see these little improvements made.”

“Things need to be streamlined,” adds Mathew.

Both say they are looking forward to the new port development. “Doha Port has a lot of problems. It is overloaded, congested. We face no clearance problems with the customs authorities, but still the facilities are inadequate,” says Sarathchandran.

The current Doha International Airport, however, is no problem, says Mathew. “It is not overburdened. Earlier it was, maybe two years back, but now that I can say they are doing a good job controlling the traffic, and a lot of things have been streamlined. We can say the airport is one of the best in the GCC countries.”

“And airport infrastructure will be even better when the New Doha International Airport is ready,” adds Sarathchandran. “The new airport is going to be one of the best in the world three years from now.”

“There will be a lot of air cargo competition coming in. We’ll have better clearance procedures, so it becomes easier for us.”

Sarathchandran describes Doha as a safe place to do business, with excellent security. “They are very nice people to work with, and very matter of fact,” he says. “They are very, very understanding. If you have a problem, you can approach anyone.”

One of the city’s biggest problems, however, is road congestion, he says. “We do have a lot of traffic. It’s increasing day-by-day, because a lot of expats are coming in. Qatar is announcing its presence to the world now.”

“The roads need a lot of improvement. They are doing a lot of work on them now – that could be the explanation for all this congestion.”

Warehouse prices are also going up. “It is hard to get land, and rental charges are exorbitant,” says Mathew. Bin Yousef has around 1,200 sq feet which it uses for transit storage within the city, and Mathew says it hopes to expand on the fringe areas of Qatar.

By the book Sarathchandran says Bin Yousef, which is ISO certified and a member of FIATA, sits in an industry which is becoming more professional. “The market leaders are following high standards, and there are few two or three man operations. There is room for everyone, because the sector is growing, but there will be a consolidation phase. The bigger companies will slowly grab a hold of all the business, because things are turning more professional.”

Still, Qatar freight forwarders are yet to form an official association. “There is no common platform,” says Mathew. “No one has taken a leap for that. The Qatar Chamber of Commerce also has certain standards which need to be met by any association, but they are not in place.”

“Someone should take the lead to initiate the whole thing,” says Sarathchandran. “The question is, ‘Who’s got the time to do that?”