The deadly explosion at Beirut's port should be the catalyst for a long-overdue reorganisation of the poorly managed port in Lebanon's capital, the World Bank said.
More than 200 people died on August 4 in one of the largest non-nuclear blasts in recent history.
It caused between $3.8 billion and $4.6 billion in damages, including $350 million at the port alone, wrote the World Bank on Tuesday, in a 40-page note that highlighted decades of inefficiency.
The assessment is titled “Reforming and rebuilding Lebanon’s port sector: lessons from global best practices”.
Caretaker prime minister Hassan Diab resigned following days of intense public pressure and his successor Saad Hariri is struggling to form a Cabinet as politicians fight to control key ministries.
The tragedy came as Lebanon was already reeling from its worst economic crisis, with triple-digit inflation rates and severe devaluation of its currency, as well as the effects of the coronavirus pandemic.
The investigation into the causes of the blast, which is widely viewed as resulting from the unsafe storage of thousands of tonnes of ammonium nitrate for seven years at the port, has been slowed by the refusal of several high-ranking politicians to be questioned by an investigative judge.
The current port sector model, "with its opaque governance and lack of accountability, was one of the underlying factors that contributed to the tragedy”, reads the note.
Established at the end of Lebanon’s 15-year long civil war in 1990, a “Temporary Committee” is responsible for spending the port’s revenues and specifying work needs.
The Temporary Committee is not a legal entity, operates with little governmental oversight and does not publish balance sheets or financial statements.
Despite its name, the Temporary Committee remained in place for decades because political parties could never agree on a board of directors.
Like all government bodies, it must reflect the country’s main religious groups to respect Lebanon’s sectarian power-sharing system. This often slows down or blocks important nominations. Government critics also say that the opacity created by this system acted as a convenient smokescreen for corruption.
“The absence of a real port authority, coupled with mismanagement by the Temporary Committee have involved serious governance, transparency, and accountability issues” writes the World Bank. “This has also resulted in a lack of focus on socio-economic development, a lack of planning, poor safety and declining efficiency of operations.”
The port of Beirut “is the main gateway for the external trade of Lebanon, but it has failed in the key role as an enabler of economic development in the country”, added the World Bank.
As a result, Lebanon’s ports are among the least competitive in the Middle East.
The World Bank reported that after the August explosion, shipping lines and the operator of the container terminal realised productivity was down by around 50 per cent due to maintenance issues on cranes.
Spare parts had been destroyed by the blast, and the private operator of the container terminal does not have the required financial autonomy to acquire new ones due to the nature of its contract with the Temporary Committee, the note explained.
The port’s mismanagement has been compounded by the inefficiency and opacity of Lebanese customs, which is comprised of two rival institutions, the Higher Council for Customs and the Customs Directorate. The adoption of a new Customs law, which has already been drafted, should be a priority of the new Hariri government, said the World Bank.
The head of the Customs Directorate, Badri Daher, was charged and imprisoned along with dozens of lower and mid-range officials after the blast. Multiple media reports have said Mr Daher was aware that dangerous chemicals were stored at the port. President Michel Aoun has refused to dismiss him without a formal Cabinet vote.
To restore trust, the World Bank recommended that a new independent Port Authority be created to replace the Temporary Committee. The Port Authority should conduct transparent nominations and publish annual independent audits. Parliament should pass a Port Law that would clearly identify the mandate of the government bodies overseeing the port. Only then can basic infrastructure be rebuilt, with a transparent bidding process. This, in turn, necessitates establishing an anti-corruption commission and enacting a modern public procurement law.
Lebanon should rebuild its port as a public-private partnership along the model of major world ports such as Rotterdam, New York, Singapore and Tangiers Med, wrote the World Bank. Under this model, the port authority acts as a regulatory body and as a landlord, while port operations are carried out by private companies. This model has historically mobilised significant private sector investments in ports worldwide, with an average of $200 million per operation, according to the World Bank.
Lebanon should avoid privatising its port, a rarely used model that could hinder the government’s ability to steer its development and create a local monopoly, according to the World Bank. When The National met members of the Temporary Committee back in August, they said that, in practice, they managed the port like a private company.
Ignoring this roadmap could exacerbate existing vulnerabilities, generate further crises and delay meaningful change, warned the World Bank.
Killing of Qassem Suleimani
Glossary of a stock market revolution
Reddit
A discussion website
Redditor
The users of Reddit
Robinhood
A smartphone app for buying and selling shares
Short seller
Selling a stock today in the belief its price will fall in the future
Short squeeze
Traders forced to buy a stock they are shorting
Naked short
An illegal practice
Green ambitions
- Trees: 1,500 to be planted, replacing 300 felled ones, with veteran oaks protected
- Lake: Brown's centrepiece to be cleaned of silt that makes it as shallow as 2.5cm
- Biodiversity: Bat cave to be added and habitats designed for kingfishers and little grebes
- Flood risk: Longer grass, deeper lake, restored ponds and absorbent paths all meant to siphon off water
Killing of Qassem Suleimani
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
The five pillars of Islam
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
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Dubai Women's Tour teams
Agolico BMC
Andy Schleck Cycles-Immo Losch
Aromitalia Basso Bikes Vaiano
Cogeas Mettler Look
Doltcini-Van Eyck Sport
Hitec Products – Birk Sport
Kazakhstan National Team
Kuwait Cycling Team
Macogep Tornatech Girondins de Bordeaux
Minsk Cycling Club
Pannonia Regional Team (Fehérvár)
Team Auvergne-Rhône-Alpes
Team Ciclotel
UAE Women’s Team
Under 23 Kazakhstan Team
Wheel Divas Cycling Team
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
Sunday's Super Four matches
Dubai, 3.30pm
India v Pakistan
Abu Dhabi, 3.30pm
Bangladesh v Afghanistan
Match info:
Burnley 0
Manchester United 2
Lukaku (22', 44')
Red card: Marcus Rashford (Man United)
Man of the match: Romelu Lukaku (Manchester United)
The biog
Name: Fareed Lafta
Age: 40
From: Baghdad, Iraq
Mission: Promote world peace
Favourite poet: Al Mutanabbi
Role models: His parents
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
More on Quran memorisation:
Mohammed bin Zayed Majlis
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs: 2017 Dodge Viper SRT
Price, base / as tested Dh460,000
Engine 8.4L V10
Transmission Six-speed manual
Power 645hp @ 6,200rpm
Torque 813Nm @ 5,000rpm
Fuel economy, combined 16.8L / 100km
UAE currency: the story behind the money in your pockets
T20 World Cup Qualifier
October 18 – November 2
Opening fixtures
Friday, October 18
ICC Academy: 10am, Scotland v Singapore, 2.10pm, Netherlands v Kenya
Zayed Cricket Stadium: 2.10pm, Hong Kong v Ireland, 7.30pm, Oman v UAE
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Ashfaq Ahmed, Rameez Shahzad, Darius D’Silva, Mohammed Usman, Mohammed Boota, Zawar Farid, Ghulam Shabber, Junaid Siddique, Sultan Ahmed, Imran Haider, Waheed Ahmed, Chirag Suri, Zahoor Khan
Players out: Mohammed Naveed, Shaiman Anwar, Qadeer Ahmed
Players in: Junaid Siddique, Darius D’Silva, Waheed Ahmed
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Read more about the coronavirus
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
KILLING OF QASSEM SULEIMANI
The Birkin bag is made by Hermès.
It is named after actress and singer Jane Birkin
Noone from Hermès will go on record to say how much a new Birkin costs, how long one would have to wait to get one, and how many bags are actually made each year.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Racecard
6.30pm: The Madjani Stakes (PA) Group 3 Dh175,000 (Dirt) 1,900m
7.05pm: Maiden (TB) Dh165,000 (D) 1,400m
7.40pm: Maiden (TB) Dh165,000 (D) 1,600m
8.15pm: Handicap (TB) Dh190,000 (D) 1,200m
8.50pm: Dubai Creek Mile (TB) Listed Dh265,000 (D) 1,600m
9.25pm: Handicap (TB) Dh190,000 (D) 1,600m
The National selections
6.30pm: Chaddad
7.05pm: Down On Da Bayou
7.40pm: Mass Media
8.15pm: Rafal
8.50pm: Yulong Warrior
9.25pm: Chiefdom
T20 WORLD CUP QUALIFIERS
Qualifier A, Muscat
(All matches to be streamed live on icc.tv)
Fixtures
Friday, February 18: 10am Oman v Nepal, Canada v Philippines; 2pm Ireland v UAE, Germany v Bahrain
Saturday, February 19: 10am Oman v Canada, Nepal v Philippines; 2pm UAE v Germany, Ireland v Bahrain
Monday, February 21: 10am Ireland v Germany, UAE v Bahrain; 2pm Nepal v Canada, Oman v Philippines
Tuesday, February 22: 2pm Semi-finals
Thursday, February 24: 2pm Final
UAE squad:Ahmed Raza(captain), Muhammad Waseem, Chirag Suri, Vriitya Aravind, Rohan Mustafa, Kashif Daud, Zahoor Khan, Alishan Sharafu, Raja Akifullah, Karthik Meiyappan, Junaid Siddique, Basil Hameed, Zafar Farid, Mohammed Boota, Mohammed Usman, Rahul Bhatia
RESULTS
6.30pm: Meydan Sprint Group 2 US$175,000 1,000m
Winner: Ertijaal, Jim Crowley (jockey), Ali Rashid Al Raihe (trainer)
7.05pm: Handicap $60,000 1,400m
Winner: Secret Ambition, Richard Mullen, Satish Seemar
7.40pm: Handicap $160,000 1,400m
Winner: Raven’s Corner, Richard Mullen, Satish Seemar
8.15pm: Dubai Millennium Stakes Group 3 $200,000 2,000m
Winner: Folkswood, William Buick, Charlie Appleby
8.50pm: Zabeel Mile Group 2 $250,000 1,600m
Winner: Janoobi, Jim Crowley, Mike de Kock
9.25pm: Handicap $125,000 1,600m
Winner: Capezzano, Mickael Barzalona, Salem bin Ghadayer
KLOPP%20AT%20LIVERPOOL
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Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
More from Rashmee Roshan Lall
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
