misinformation

PORT DEVELOPMENT NEWSContainerised trade to/from the Middle East/South Asia (TEU)Region/YearExports toEuropeAsiaNorth AmericaSouth & Central AmericaAustralasiaAfricaTotalImports fromEuropeAsiaNorth AmericaSouth & Central AmericaAustralasiaAfricaTotalAssociate Sponsor20132,195,7002,130,0001,012,300281,400129,900950,7006,700,0003,076,5005,700,1001,047,200284,100206,600454,60010,769,100Notes: M4 = Jan-April inclusive. Source Container Trades Statisticsmuch as 12M TEU, depending ondemand.The port is close to major andfast-growing Saudi Arabian cities,such as Jeddah, Medina, Mecca,Rabigh and Yanbu, and the maineast-west shipping channel linkingEurope and Asia. Potentially,therefore, KAP has considerableopportunities in the domesticgateway, regional hub-and-spokeand interline relay businesses.MSC is KAP’s largest customer,while the carrier’s affiliateTerminal Investment Limited hasHost PortFind out moreGlobal Port Partner20142,358,4002,161,3001,164,800303,100163,6001,086,1007,237,3003,359,9006,191,0001,066,500321,000250,500568,20011,757,100SponsorsChange7.4%1.5%15.1%7.7%25.9%14.2%8.0%9.2%8.6%1.8%13.0%21.2%25.0%9.2%a shareholding in its operation.Emirati expansionThe UAE is not far behind SaudiArabia when it comes to port development.While DP World, the globe’sfourth largest operator of containerterminals, has raised the capacityof its flagship operation atJebel Ali to 19M TEU a year, AbuDhabi Ports Co (ADPC), whichowns the new port of Khalifa, ispushing ahead with its phased expansionprogramme.M4 2014808,100787,300371,30091,80053,700353,8002,466,0001,053,2001,936,100331,80098,40075,700157,6003,652,800www.tocevents-me.comSupported byM4 2015783,600725,600435,700112,00057,400355,5002,469,8001,152,9002,105,100342,200119,400101,600201,1004,022,300Global Media Sponsor8 & 9 December 2015Le Méridien Dubai Hotel& Conference Centre, DubaiIncluding conferencesTOC returns to the Middle EastJoin the industry leaders in Dubai this December High level conference Forum for cargo owners Enhanced networking Stunning new hotel venueChange-3.0%-7.8%17.3%22.0%6.9%0.5%0.2%9.5%8.7%3.1%21.3%34.2%27.6%10.1%The new T3 facility at Jebel Ali,which opened in October 2014, isneeded as the Middle East’s largestcontainer port continues to breakrecords. Last year, its box traffic totalled15.2M TEU, up almost 12%on the volume in 2013.And the momentum has continuedthis year with Jebel Alihandling 7.7% more containersin the January/end-March periodthan in the corresponding semesterof 2014. In all, 3.9M TEU wasprocessed at the port.The port continues to invest inIntroducingmodern equipment and systemswhile capitalising on its role as themaritime centre for the regionand gateway for the UAE andJebel Ali Free Trade Zone (JAFZ).StrengthenedThe relationship with JAFZ hasbeen strengthened by DP World’sdecision to buy Economic ZonesWorld FZE. “This transactionfurther reinforces our position asthe leading logistics hub in theregion,” said DP World chairman,HE Sultan Ahmed Bin Sulayem.“Combining the two assets makeseconomic and strategic sense, includingfor customers, particularlyin the context of the significantgrowth in port capacity at JebelAli and the strong economicoutlook for Dubai and the widerGCC region. It allows DP Worldto coordinate its planned expansionprogrammes and deliver improvedcustomer propositions.”At Khalifa, ADPC and the IndustrialDevelopment Bureau ofAbu Dhabi’s Department of EconomicDevelopment (IDB) recentlysigned a memorandum ofunderstanding to establish a jointprogramme that will help attractinvestment and further developand enhance the fast-evolving in-Supporter ofdustrial sector of the nation.Ayman Al-Makkawy, an executiveat IDB, said. “This agreementand the resulting advancementin expanding current service offeringsfall within the frameworkof IDB’s objectives of developingand implementing policies, plansand programmes as well as providingorganisational, legal andenvironmental guidance for thedevelopment and construction ofindustrial projects in the Emirate.”Among the projects and initiativesthat will be pursued by thetwo entities will be the launchof joint employee training programmesand industry workshopsso that the region can keep up-todatewith global practices.Kizad factoryIn other developments, PolarSpecialized Industries (PSI), awholly owned subsidiary of theindustrial conglomerate Adearest,announced that it would investAED50M (US$13.6M) in anew manufacturing facility in theKhalifa Industrial Zone (Kizad).PSI will produce refrigerationskids, steel pressure vessels, steeltanks, and switch gears for refrigerationand cooling systems at thenew plant, which will occupy anarea of 23,617 m 2 .“Kizad will offer our PSI facilitythe perfect environment toproduce high quality products forour growing customer base, bothin the UAE and beyond,” saidHans Raaymakers, general manager,of Adearest. “In addition, theport will significantly support ourambitions to further expand intothe Gulf Cooperation Councilcountries and the wider MENAregion, as well as into Asia.”Mohamed Juma Al Shamisi,CEO of ADPC, which ownsKhalifa, attributed Adearest’s investmentto Khalifa’s investmentin new technology, its improvinglevels of connectivity and its commitmentto expand.Earlier this year, Abu DhabiTerminals (ADT), which operatesthe cargo handling facilities at theport, concluded a AED300M loandeal with Abu Dhabi CommercialBank (ADCB) to help finance thefurther development of Khalifa.On completion of its phase onedevelopment programme, theport will have the capacity toprocess 2M TEU a year.Oman planIn neighbouring Oman, the portof Sohar continues to be expandedand the port of Duqm graduallybrought on line. In the caseof Sohar, its box handling capacityis being doubled from its currentlevel of about 800,000 TEU. Ultimately,though, the master planinvolves developing facilities thatwill have the capability to process6M TEU a year.The port is located just outsidethe Straits of Hormuz, lying approximately100 km from Khalifaand 160 km from Dubai. In additionto serving the local industrialand free trade zones, Soharis the main gateway for Oman’scapital city Muscat, and is keen tobecome more involved in the regionaltranshipment business.Both the port and the free tradezone are managed by Sohar IndustrialPort Co, which is a joint venturebetween the Omani governmentand the Port of Rotterdam,while the port’s Oman InternationalContainer Terminal is managedby Hutchison Port Holdings.These names bring plenty ofcredibility to the complex andits operations, and cargo volumeshave risen rapidly in recentyears. In Q1 2015, boxtraffic totalled 123,533 TEU, upmore than 159% on Q1 2014.Principally, this reflected theshift of boxes from Mina Qabooswhich was closed for cargohandling activity last summer.Qatar builds bigAlso planning a 6M TEU capacityterminal is the Qatari government.New Doha (Hamad) willcomprise three container terminals– the first 2M TEU moduleis due in late 2016/early 2017 –and a multitude of other cargoprocessing facilities, includingterminals capable of handling 1Mtpa of bulk cargo, 0.5M vehiclesand close to 40,000 head oflivestock.An adjacent logistics zone withsites for light assembly and manufacturingindustries is also beingdeveloped as Hamad looks atvalue-added cargo processing andre-export opportunities.However, the way the Hamadproject is proceeding suggeststhere are concerns about whetherthere is a demand for so much capacity.Speaking at this year’s TOCAsia in Singapore, Dr MohamedBriouig, director of corporate affairsat Qatar Ports ManagementCompany, said the port authorityis still searching for a terminaloperator.The port is taking the unusualstep (nowadays) of purchasing allthe equipment and seeking a terminaloperator to run the port ona relatively short 15-year contract.This tends to indicate potentialoperators regard the project ashigh risk.Briouig was confident a terminaloperator would be announcedthis year. He pointed out that theterminal will begin with livestockand ro-ro operations, which arenot covered by the main containerterminal concession. PhaseI of the container terminal is notscheduled to be ready for full operationuntil January 2017.Containerising IraqHoping to capitalise on the growingtrade to/from Iraq and theaccelerating pace with which thenation’s breakbulk/general cargoexchanges are being containerisedis ICTSI, which manages BasraGateway Terminal (BGT) withinthe port of Umm Qasr.“ICTSI is always looking fornew opportunities,” explainedPhillip Marsham, CEO of BGT.The Manila-based terminal operatingcompany is investingUS$130M in refurbishing theexisting infrastructure and equipmentand constructing a new600m quay and 50-ha storageyard. The first phase of this development,which comprises 250mof berthing line and a 13-hayard, will commence operationsin mid-2016 and have a 300,000TEU throughput capacity. Whencompleted, the new terminal willbe able to handle 600,000 TEU ayear.But Marsham is not only interestedin handling containers. Hesees opportunities in supportingthe country’s burgeoning oil andgas industries, not only by handlingcargo, but in offering a rangeof support and logistics services.Elsewhere in Iraq is the plan bythe government to build Al-FawGrand Port. Representing an estimatedinvestment of US$8B, itwill be the private sector that takesthe leading roles in constructingand operating the complex. Whileno company has been appointedfor the project, WorldCargo Newsunderstands that the nation’sMinistry of Transport is studyinga number of bids, including fromcompanies based elsewhere in theMiddle East, China and Turkey. Amaster design plan has been completedfor Al-Faw, which, if fullydeveloped, will have the capacityto handle 99 Mtpa of cargo.Trading prospects in the MiddleEast are bright and all partiesare gearing up to handle the risingcargo volumes. 20June 2015