dp world - 'role of ports in the economy' - mohammed al muallem
DESCRIPTION
Mohammed Al Muallem, VP, DP World, presents his topic 'Role of Ports in the Economy' at the recently concluded 'Excellence: the Future of Business' - Day3 - in Dubai.Event was jointly hosted by ASQ and the Dubai Quality Group.http://www.facebook.com/DubaiQualityGroupTRANSCRIPT
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Role of Ports in the Economy
Traditional Port
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- Creek & Hamriya
• The port plays a key role in facilitating trade between Dubai and countries in South Asia and
East Africa. Food, automobile spare parts, and livestock comprise the bulk of trade through
the port.
• The purpose of the port was to handle small fishing ships, as well as to accommodate some
of the commercial ships
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• 2009 saw the first
YOY decline in the
history of container
shipping – 470 Million
Teus
• Shipping Lines lost
upwards of $20 billion
• Global container
handling volume to be
back to around 2008
levels
• We are integral to the
global supply chain
matrix
Global Container Shipping –
A Snapshot
Data sourced from Alphaliner
Port Functions
• Freight distribution as they offer a maritime & land interface for export and import
• Points of convergence/distribution of inland and coastal transportation systems
• Services to ships with berths, docks, navigation channels and repairs
• Services to trade with cranes, warehouses and accessibility
• Mono functional Ports - transit a limited array of commodities(raw materials)
• Poly functional Ports - vast harbours where trans-shipment and industrial activities are
present. Variety of cargo handling facilities
• Cargo Terminal - facility where freight is assembled or dispersed.
• Cruise Terminal – facility for passenger traffic
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Why Ports?
• Ports – catalyst for Economic Development
• Springboards for development of the hinterland
• Manufacturing & Logistics
• Facilitate the efficient transportation of goods
• Marine & Land connectivity
• Job growth
• International trade, transport & goods
• Facilitates export & import opportunities
• Conduit for warehousing & distribution
• Port competition & competitiveness
• Competition with multiple options for planning supply
chains
• Terminalisation offers highly efficient & cost effective
solutions
• Continual investment in technology and processes5
6(1) Historic data on World GDP Growth from IMF World Economic Outlook, April 2008
World container traffic vs. World GDP(1)
Container Traffic and GDP
World GDP data from the IMF World Economic Outlook 2010World GDP data from the
IMF World Economic Outlook 2010
Container Handling Growth data reported from Drewry.
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
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Container Growth GDP Growth
Economic Activity &
Impact on Port
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GCC Economy – Robust
2011 GCC GDP growth estimated at 6%*
* Dubai Statistics Center
*International Monetary Fund, World Economic Outlook Database, October 2010
GDP change % 2008 2009 2010 2011f 2012f
Bahrain 6.31 3.11 3.96 4.50 4.83
Islamic Republic of Iran 1.04 1.05 1.56 3.03 3.03
Iraq 9.52 4.21 2.64 11.48 11.02
Kuwait 5.53 - 4.82 2.33 4.44 5.10
Oman 12.84 3.59 4.72 4.68 4.09
Qatar 25.42 8.65 15.96 18.58 9.30
Saudi Arabia 4.23 0.60 3.42 4.51 4.39
United Arab Emirates 5.14 - 2.47 2.43 3.18 3.94
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GCC Economic
Drivers
Economy
• Industry
• Increased Exports
• Job Creation
• Better lifestyle
• Public Spending(Oil Revenues)
• Increased demand for products
• Economic Growth
• Increased Trade
• Demand for logistics services
• Increasing investment in Ports & Infrastructure
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Share of Middle-eastern capacity in global petrochemicals production
MENA Capacity additions 2008-13
Global Petro Market & the Region
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GCC – Major Ports
Assaluyeh
BIKUmm qasr
Jubail
Abudhabi
Jebel Ali Fujairah
Messaied
Dubai – A Case Study
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• Centre of Gulf activity
Commerce
Tourism
Trade
Entertainment
• Location - Mid way between Asia &
Europe
• Logistics hub for Arabian Gulf
• Centre of trade for GCC, Indian
Subcontinent, CIS & Africa
• Populations access of over 2 billion
• Market access to the world’s most
furiously developing countries/regions
• Port Infrastructure – Best in Class
UAE Population
5.5 Million
UAE GDP/Capita
around
USD 46,000
Efficient Customs
and Government
Agencies
Multimodal
Logistics
Capabilities
Large Base of
Logistics Service
Providers
• Pro – business government
• Availability of qualified resources, both blue and
white collar
• Secure, family oriented living environment
• Excellent healthcare & educational services
• World class infrastructure
• High living standards
• New world – Cosmopolitan city
• Accessibility & Connectivity – mid way between
Europe & Asia
Dubai – Modern State
ConnectivityEase of Doing
BusinessPredictability
0
100
200
300
400
500
600
700
800
900
1000
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Billio
n A
ED
TE
U
Thro put UAE GDP (Bill AED)
GDP source : IMF.org
UAE GDP & DP World
Complementing Growth
GDP source : IMF.org
Dubai –
Port Centric Drivers
• Multiple Trade & Industry Opportunities
• Trade hub – Africa, Iran, Sub Continent (favorable policy framework – TAX free
environment)
• Re-export markets
• Tourism* (over 7 Million in 2008, expected to double in the next 8 years)
• Free Zones (over 20 of them in Dubai)
• Manufacturing, Services, Distribution Centres
• JAFZA, Industrial City, Internet City, Media City, etc.
• Jebel Ali’s HUB status
• Shipping Lines (over 150), Supply Chain & Logistics centers (over 20,000
traders)
• Over 50% of Gulf port capacity is in Jebel Ali
• Multi modal connectivity
• Sea – Air cargo hub
*UAE Year Book 2009
DP World & JAFZA
Complementing Growth
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Cruise - Tourism
• Dubai is a distinctive blend of modern city
and timeless desert, east and west, old
and new
• Dubai's hotels accounted for 8.68 million
guests last year, up by nearly a million
from the 2009 numbers
• The Dubai Cruise Terminal currently can
handle three cruise ships and about 7,000
passengers at a time
• Last year, the terminal handled 390,000
passengers, a number that is expected to
rise to 625,000 by 2015.
• The average expenditure per passenger
per day is $150 to $250 which includes
shore excursions and souvenirs, With
2,000 people on each cruise ship, it's a
very good business for the local economy
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Electronic Gateway
• Through the single window for trade services (www.dubaitrade.ae), more
than 750 e-Services are offered to different stakeholders involved in
trade & the logistics industry.
• Dubai Trade has consistently updated and expanded its portfolio of
integrated innovative services to serve the growing clientele of DP
World, Economic Zones World, Dubai Customs and Dubai Multi
Commodities Centre (DMCC). Today, Dubai Trade offers its customers
758 services, 12 per cent more than the services offered in 2009
• There are over 35,000 registered companies using the electronic trade
portal. Last year, 18,175 new registered users joined the portal taking
the total number of users to 66,775.
• Our services have helped enhance supply chain visibility, quality of
service and improve global competitiveness of Dubai”.
• Online service for the Port, Customs, and recently added Emirates
Skycargo services17
Trading Across Borders
Ranking - 2011
USA (East) 21 days / 4 services
South America 25 days / 2 services
Northern Europe18 days / 9 services
Mediterranean13 days / 6 services
South Africa12days / 4 services
East Africa8 days / 2 services
West Africa16days / 2 services
India4 days / 31 services
South East Asia7days / 11 services
Far East20 days / 23 services
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Oceania27days (Transshipment)
Intra Gulf1 day / 25 services
Red Sea12 days / 5 services
More than 150 shipping lines and 90 weekly services
Sea Connectivity
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London (7.5 hrs)26 weekly flights
New York (14 hrs)14 weekly flights
Tokyo (10 hrs)5 weekly flights
Seoul (8 hrs)12weekly flights
Shanghai (8.5 hrs)14 weekly flights
Mumbai (3 hrs)35 weekly flights
Doha (1 hr)35 weekly flights
Sao Paulo (15 hrs)7 weekly flights
Sydney (14 hrs)14 weekly flights
Moscow (5 hrs)14 weekly flights
Cape Town (9.5 hrs)7 weekly flights
Cairo (4 hrs)10 weekly flights
Los Angeles (16.5 hrs)7 weekly flights
Singapore (7.5 hrs)14 weekly flights
Rome (6.5 hrs)14 weekly flights
Addis Ababa (4 hrs)7 weekly flights
Casablanca (9.5 hrs)7 weekly flights
Air Connectivity
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Land Connectivity
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The Flagship
• Jebel Ali is the largest container port between
Rotterdam and Singapore
• World’s 9th largest container port in 2010
(source : Containerisation international)
• 14m TEU capacity
• A unique, world-class, state-of-the-art port
facility
• Jebel Ali can accommodate any vessel size in
existence or on order.
DP World – Global Reach
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Over a year, laid end to end, the
boxes we handle would circle the
world more than six times
1- As of 25th January 2011
2- Measured by equity-based throughput. Source: Drewry Shipping Consultants
• 49 (1) marine terminals across 28 countries
• Total throughput of around 50 million TEU in 2010.
• Expansion to meet future customer needs 2020 ~92 million TEU , depending on demand
• Team of 30,000 staff
• Top 3 Global Operator (2)
Awards:
2010 Asian Freight & Supply Chain Awards (AFSCA)
– Best Seaport in Middle East – Jebel Ali (16th consecutive year)
2010 Lloyd’s List Global Awards
– Environmental Protection Award
2009 Asian Freight & Supply Chain Awards (AFSCA)
– Best Global Terminal Operating Company – DP World
2008 Annual Supply Chain & Transport Awards (SCATA)
– Port Authority and Terminal Operator of the year
2008, 2006 and 2005 Lloyd’s List Middle East & Subcontinent Awards
– Container Terminal of the year- Jebel Ali
Global Portfolio
24• 49 terminals and 9 new developments and major expansions across 31 countries
The Future – Union Railway
• Union Rail
– General Cargo
• Petrochem
• Iron / Steel
• Rock / Stone
• Aluminum
• Cement
– Passengers
– Containers
– Phase 1
• Shah Hasban leg (2014)
• GCC Rail Network
– International Network
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Jebel Ali – Future Ready
Jebel Ali Port and Free Zone
Dubai
Logistics
City
Dubai World Central International Airport
Jafza South World class multimodal platform
Jebel Ali Port,
JAFZA and
Dubai Logistics City - single customs zone
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Thank you