KUWAIT: KIPCO Asset Management (KAMCO) and Anham FZCO LLC plan a joint logistics firm to execute Anham’s prime vendor contract to supply the US military, the Kuwaiti firm’s chief executive said on Thursday.
Last April, Anham was awarded a $2.2 billion contract to supply troops in Kuwait, Iraq and Jordan after the US government replaced logistics firm, Agility.
"As a first step to execute this strategic partnership, we have agreed to set up a closed Kuwaiti shareholding company whose main activity will be logistics services," Sadoun Ali, KAMCO’s chief executive, told reporters.
The new firm will start operating immediately, beginning with the US military contract.
The US government removed Agility amid allegations of fraud over multibillion dollar contracts.
The decision to award the contract to Anham drew protest from another Kuwaiti logistics firm, KGL, which said the Dubai-based firm did not meet minimum bidding requirements.
Anham Managing Director Mogheith Sukhtian declined to comment on KGL but said work on the contract was underway.
"The contract is being executed … we anticipate the transition between the incumbent and us to be completed by the end of the year," he told reporters.
