The Danish shipping giant was forced to quit Iraq after demonstrations and disagreements in 2005. Now it is planning to return.

16 April 2008

Maersk is on its way back to Iraq after more than two years of absence. Maersk Line is planning to start operating from Iraqi ports this spring, according to the news agency Reuters. Marc Gijsbrechts, head of Maersk Line in the Middle East, said: “We are getting very close to operating directly in and out of the port of Umm Qasr in Southern Iraq.”

Maersk had to leave Iraq in a hurry in 2005 after disagreements with the Iraqi government, protest demonstrations against the Danish company and criticism from local trade unions. It was then operating the port of Khor Az-Zubair in Basra.

Contractor for US military

Maersk took over the port in 2003 just after the war. The company held a contract to operate the terminal, but disagreements soon arose. The US Ambassador, Darrell Trent, who was working for the transport ministry in Iraq called the terms of the contract so favourable to Maersk that it was "almost ridiculous," according to a 2006 Corpwatch report.

Now the company hopes to start doing business in the country again. Marc Gijsbrechts said: “We are still negotiating with the Iraqi Ministry of Transport and Iraqi authorities regarding the previous disagreements about Khor Az-Zubair.”

From August 2002, Maersk’s container ships had delivered a third of all US military equipment to the region in preparation for the invasion of Iraq; Maersk Line is still a major US military forces contractor. 

Applies for oil licence

However, the company is not only focusing on container business in Iraq, but is also hoping to be part of the profitable Iraqi oil market.

Maersk Oil Vice President confirmed to Danish agency Direkt that Maersk Oil had applied for prequalification for the coming round of oil licences in Iraq; on 14 April it was appointed one of 35 that had qualified to bid for future oil and gas contracts by the government.