How Bahrain became the second highest rated port in the GCC

Annually, the World Bank releases a ranking known as the Logistics Performance Index (LPI), which evaluates the efficiency of countries in managing international trade logistics. The LPI highlights the strengths and areas for improvement in countries' trade facilitation efforts.

According to the 2023 LPI, Bahrain's port has achieved the second-highest rating in the GCC, only behind the UAE, marking a significant climb of 25 places since 2018. The World Bank credits this improvement to the Bahrain Customs Administration's (BCA) effective strategies in enhancing Customs clearance processes and ensuring smooth operations for compliant import and export transactions.

The background

Trade has always been a cornerstone of Bahrain's economy, dating back centuries to its position as a vital hub along ancient trade routes. Today, Bahrain continues to leverage its strategic location and open economy to attract foreign investment and foster economic development.

In 2011, Webb Fontaine was appointed by Bahrain Customs Affairs (BCA) of the Kingdom of Bahrain to implement a groundbreaking initiative to modernise its customs operations and streamline trade processes.

Webb Fontaine implemented Webb Customs, a Customs Management System locally referred to as OFOQ, meaning Horizon in Arabic, which went live in 2012 within seven months of the project launch. Over the past 12 years, OFOQ has evolved considerably to meet emerging functional requirements of BCA as well as adapting to technology-driven dynamics of international trade. It is constantly fine-tuned by Webb Fontaine to meet the complexity of the operations on the ground to the entire satisfaction of traders and customs.

With its ambitious Economic Vision 2030, the Kingdom of Bahrain aims to diversify its economy and promote sustainable growth, making trade facilitation a central pillar of its development strategy. In line with this vision, their partnership with Webb Fontaine has paved the way for a transformative era of efficiency and innovation in customs operations.

 

 

The action

To date, the Customs Management System of Webb Fontaine is operated by BCA. It is fully operational in Bahrain International Airport, all maritime ports, clearance and logistics points, including the causeway bridge between Saudi Arabia and Bahrain.

Webb Fontaine's implementation of the OFOQ system was also designed to integrate all government agencies for the issuance of permits and licenses, leading to the establishment of a customs-centric Single Window system that streamlines both pre-clearance and clearance processes.

The system digitises every customs-related process, encompassing the submission of manifests by shipping agents and airlines, declaration submission by the trade community, and local and international transit between airports, seaports, free trade zones, logistical zones, and the King Fahd Causeway.

OFOQ manages all financial operations issued by the Customs pre-clearance and clearance operations, including deposits, refunds, and guarantees, and manages complete Customs workflow from vessel arrival to port gate passes. The system covers all suspense procedures and incorporates a robust risk management system.

OFOQ includes a mobile app named OFOQ Lite, which inspectors and agents utilise as an on-the-go option to gather verification outcomes, cargo photographs, and declaration PDFs for quick sharing.

OFOQ features many invaluable integrations, making it a comprehensive solution for trade facilitation. These include:



  1. Express courier module: Developed for express companies like DHL and FedEx to expedite the declaration and clearance of personal and low-value imports.
  2. Benefit payment hub and IGA gateway integration: Enables customs duty payment via bank interfaces and external portals, enhancing payment convenience.
  3. Bahrain airport services manifest integration: Automates manifest and bill of lading registration at Bahrain ports, reducing manual processes.
  4. GCC automated dues transfer integration: Facilitates duty exchange between GCC countries, automating payment processes.
  5. Integration with the X-ray operator: ensures that images and scanning outcomes are automatically incorporated into the examining officer's system instructions for efficient processing.
  6. Ministries and Other Government Agencies integrations: Modules manage import licenses and exemptions, streamlining verification processes with various government entities, including the Central Bank of Bahrain.

The results

Bahrain's partnership with Webb Fontaine has yielded remarkable results, revolutionising trade facilitation through the implementation of OFOQ. Bahrain advanced to 25 places on the World Bank’s Logistics Performance Index between 2018 and 2023, rising from 59 to 34. The Kingdom is now the second highest-rated port in the Arab world, only behind the UAE.

The impact of OFOQ is evident in its user base, with a steady increase of 200 users annually, totalling 3,500 active users.

OFOQ processes an average of 1,700 daily declarations submissions through a streamlined clearance process. Notably, 40% of declarations are cleared within a day, with 28% cleared within the next day. Moreover, the system enables online payments, with an impressive 98% of payments conducted online.

Application support remains robust, with 50 to 100 support emails resolved monthly, emphasising Webb Fontaine's commitment to providing prompt assistance to users. Most notably, resolutions are achieved in less than two hours, ensuring minimal disruptions to trade operations.

Through this partnership, a transformative journey toward economic growth and prosperity has been ignited within the region. This collaborative effort is poised to empower the government in achieving the goals outlined in its Economic Vision 2030, thereby shaping a brighter future for Bahrain and its people.

68%

of declarations are cleared within two days

98%

of payments are online

3,500

active users, adding on 200 each year

2 days

resolution time for application support mails

Accolades

In 2019, Bahrain Customs Affairs won the prestigious eGovernment Excellence Award for Best Government Information System for the year 2019

In 2020, Bahrain Customs Affairs won the Best Governmental Development Award for the Economic and Customs Information Governance Initiative to Facilitate Trade “OFOQ” in the Kingdom of Bahrain.

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Webb Customs

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Webb Single Window

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