US embassy cable - 04ROME1437

UNCLAS  ROME 001437 
 
SIPDIS 
 
 
SENSITIVE 
 
FROM U.S. MISSION TO THE UN AGENCIES IN ROME 
 
STATE FOR NEA/IR AMBASSADOR RAPHEL, IO A/S HOLMES, IO/EDA 
USDA/FAS FOR U/S PENN, ETERPSTRA, MCHAMBLISS, RTILSWORTH AND 
LSCHATZ 
USAID FOR AA/DCHA WINTER, AA/ANE, DCHA/OFDA, D/DCHA/FFP 
LANDIS 
JOINT STAFF FOR JE/J4/J5 
NSC FOR JDWORKEN 
 
E.O. 12958:  N/A 
TAGS: EAID, EAGR, AORC, IZ, WFP, IRAQI FREEDOM 
SUBJECT: IRAQ: WFP PROCUREMENT/LOGISTICS UPDATE 
 
REF: (A) BAGHDAD 000188, (B) BAGHDAD 00089, (C) ROME 00983 
 
Sensitive but unclassified -- please handle accordingly. 
 
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Summary 
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1. (SBU) The delivery of a minimum of 2.9 million metric 
tons of food commodities into Iraq, in the period April- 
September 2004, represents a significant operational 
undertaking on the part of both World Food Program (WFP) and 
the Iraqi Ministry of Trade (MOT). This task will require a 
carefully calibrated rationalization of all resources - 
staff, ports, transport, borders, warehouses, etc. WFP 
suggests that several senior-level MOT officials (with 
decision-making powers) be detailed to the WFP Iraq 
Operation in Rome for a period of 2-3 months to: a) 
rationalize allocation of all commodities under procurement; 
and b) adjust allocation plans on the basis of complete 
information on changing circumstances (warehouses, ports, 
supplier delivery, etc.).  The hoped for result is reduced 
competition for the same resources and capacities.  WFP's 
proposal may merit serious consideration. End summary. 
 
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Background 
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2. (U) US Mission/Rome USAID Humanitarian Assistance Attach 
Lavelle and USAID Program Specialist Lamade met with Amer 
Daoudi WFP Senior Logistic officer on April 8. He confirmed 
that WFP had purchased as of March 31 a total of 1.619 
million metric tons of commodities related to the 
CPA/WFP/MOU January 8, 2004 procurement of buffer stocks and 
shortfall commodities. Commodities procured (in metric 
tons-mts) include: rice, 222,500 mts; milk powder, 58,600 
mts; salt, 19,670 mts; ghee, 121,500 mts; tea, 24,000 mts; 
wheat, 897,500 mts; detergent, 56,700 mts; sugar, 201,700 
mts; soap, 13,000 mts; and infant formula, 4,800 mts. The 
tentative supply delivery timeframe is April-June 2004. 
Note. On the wheat purchase, 325,000 mts was procured from 
U.S. suppliers. End note. 
 
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Anticipated Oil-for-Food (OFF) food arrivals 
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3. (U) Confirmed OFF scheduled food commodity arrivals for 
the period March-June 2004 are estimated at 956,427 mts; no 
arrivals are scheduled after June.  OFF food commodities 
without any confirmation of dispatch arriving during the 
period March-September 2004 are estimated at 269,646 mts. 
 
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Some of the logistical difficulties as WFP see them 
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4. (SBU) WFP listed the following problem areas: 
 
a) Um Qasir port - looting reportedly goes on day and night 
and the port is still not, in WFP's view, secure. Moreover, 
as per Daoudi, there has been a large decline in thru-put. 
In February 2003, Um Qasir was reportedly handling 500,000- 
600,000 mts/month. At present monthly thru-put is about half 
that; 
 
b) ships in ports (Um Qasir, Aqaba) are often taking from 
four-six weeks to discharge. WFP gave the following example 
for Um Qasir port. The M/V Anangel Power loaded with 33,000 
mts of wheat arrived at port on February 26; grain samples 
drawn, February 29; samples sent to Baghdad, March 03; 
results received back on March 07; first line ashore, March 
26; same day some insects found and fumigation of holds 
begin; discharge commences on March 31 afternoon; total 
discharge as of April 7, 22,618 mts; 
 
c) In Mosul, WFP trucks are presently waiting seven days for 
offloading to commence; 
 
d) The Iraqi MOT is reportedly going ahead with its own 
 
purchase of 900,000 mts of food commodities (over and above 
the WFP and OFF commitments described above), which will 
place additional strain on the already overloaded logistics 
system; 
 
e) The beginning of June sees the commencement of the wheat 
harvest in Turkey, Syria and Iraq.  This will result in a 
shortage of transport capacity within the Turkish and Syrian 
corridors, as well as a shortage in storage capacity in 
Syria, Turkey and Iraq; 
 
f) the commercial sector and the Coalition Forces are also 
competing for the same trucking fleets. WFP, which has been 
paying on average approximately USD 35/mt, is finding it 
increasingly difficult to find trucks. 
 
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Next steps 
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5. (SBU) WFP proposes the creation of a joint WFP-MOT 
Logistics cell, to be based in Rome, whereby several senior- 
level MOT officials (with decision-making powers) would be 
detailed for a period of 2-3 months to: a) rationalize 
allocation of all commodities under procurement; and b) 
adjust allocation plans on the basis of complete information 
on changing circumstances (warehouses, ports, supplier 
delivery, etc. The favorable result expected is greatly 
reduced competition for the same resources and capacities. 
 
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Comment 
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6. (SBU) US Mission/Rome has worked extensively on major 
emergency operations with Amer Daoudi (Ethiopia, 2000-2001; 
Afghanistan theater, 2002; and in the Iraq operation, where 
WFP effectively moved 2 million tons of food supplies in the 
period April-December 2003) and finds him to be both highly 
committed and effective. US Mission believes that WFP's 
proposal merits serious consideration. 
 
7. (U) Minimize considered. 
Cleverley 
 
 
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	2004ROME01437 - Classification: UNCLASSIFIED