DP World - 'Role of Ports in the Economy' - Mohammed Al Muallem

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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/DubaiQualityGroup

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DP World - 'Role of Ports in the Economy' - Mohammed Al Muallem

  1. 1. Role of Ports in the Economy 1
  2. 2. Traditional Port- Creek & Hamriya• The port plays a key role in facilitating trade between Dubai and countries in South Asia andEast Africa. Food, automobile spare parts, and livestock comprise the bulk of trade throughthe port.• The purpose of the port was to handle small fishing ships, as well as to accommodate someof the commercial ships 2
  3. 3. Global Container Shipping – A Snapshot • 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 3Data sourced from Alphaliner
  4. 4. 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 4
  5. 5. 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 processes 5
  6. 6. Economic Activity & Impact on Port Container Traffic and GDP World container traffic vs. World GDP(1) 20.0% 15.0% 10.0% 5.0% 0.0% 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -5.0% -10.0% -15.0% Container Growth GDP GrowthWorld GDP data from the IMF World Economic Outlook 2010World GDP data from the IMF World Economic Outlook 2010 6 (1) Historic data on World GDP Growth from IMF World Economic Outlook, April 2008Container Handling Growth data reported from Drewry.
  7. 7. GCC Economy – Robust 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*International Monetary Fund, World Economic Outlook Database, October 2010 * Dubai Statistics Center 7 2011 GCC GDP growth estimated at 6%*
  8. 8. GCC Economic DriversEconomy• 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 8
  9. 9. Global Petro Market & the Region Share of Middle-eastern capacity in global petrochemicals productionMENA Capacity additions 2008-13 9
  10. 10. GCC – Major PortsUmm qasr BIK Assaluyeh Jubail Jebel Ali Fujairah Messaied Abudhabi 10
  11. 11. Dubai – A Case Study UAE GDP/Capita UAE Population around 5.5 Million USD 46,000 • 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/regionsEfficient Customsand Government Agencies • Port Infrastructure – Best in Class Multimodal Large Base of Logistics Logistics Service Capabilities Providers 11
  12. 12. Dubai – Modern State• 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 Ease of Doing Connectivity Predictability Business
  13. 13. UAE GDP & DP World Complementing Growth 14,000,000 1000 900 12,000,000 800 10,000,000 700 600 Billion AED 8,000,000TEU 500 6,000,000 400 4,000,000 300 200 2,000,000 100 - 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Thro put UAE GDP (Bill AED) GDP source : IMF.org GDP source : IMF.org
  14. 14. 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
  15. 15. DP World & JAFZAComplementing Growth 15
  16. 16. Cruise - Tourism• Dubai is a distinctive blend of modern city and timeless desert, east and west, old and new• Dubais 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, its a very good business for the local economy 16
  17. 17. 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 services 17
  18. 18. Trading Across Borders Ranking - 2011
  19. 19. Sea Connectivity More than 150 shipping lines and 90 weekly services Northern Europe 18 days / 9 services Mediterranean USA (East) 13 days / 6 services21 days / 4 services Red Sea Far East 12 days / 5 services 20 days / 23 services Intra Gulf India 1 day / 25 services 4 days / 31 services West Africa 16days / 2 services South East Asia 7days / 11 services South America East Africa 25 days / 2 services 8 days / 2 services South Africa 12days / 4 services Oceania 27days (Transshipment) 19
  20. 20. Air Connectivity London (7.5 hrs) 26 weekly flights Moscow (5 hrs) New York (14 hrs) 14 weekly flights 14 weekly flights Rome (6.5 hrs) 14 weekly flights Shanghai (8.5 hrs) Doha (1 hr) 14 weekly flightsLos Angeles (16.5 hrs) 35 weekly flights 7 weekly flights Casablanca (9.5 hrs) Seoul (8 hrs) 7 weekly flights Cairo (4 hrs) Mumbai (3 hrs) 12weekly flights 10 weekly flights 35 weekly flights Tokyo (10 hrs) Addis Ababa (4 hrs) 5 weekly flights 7 weekly flights Singapore (7.5 hrs) 14 weekly flights Sao Paulo (15 hrs) 7 weekly flights Cape Town (9.5 hrs) 7 weekly flights Sydney (14 hrs) 14 weekly flights 20
  21. 21. Land Connectivity 21
  22. 22. 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. 22
  23. 23. DP World – Global Reach • 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) Over a year, laid end to end, the – Best Global Terminal Operating Company – DP World boxes we handle would circle the 2008 Annual Supply Chain & Transport Awards (SCATA) world more than six times – 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 231- As of 25th January 20112- Measured by equity-based throughput. Source: Drewry Shipping Consultants
  24. 24. Global Portfolio• 49 terminals and 9 new developments and major expansions across 31 countries 24
  25. 25. 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 25
  26. 26. Jebel Ali – Future ReadyJafza South Jebel Ali Port and Free Zone  World class multimodal platform  Jebel Ali Port, DubaiLogistics  JAFZA and City  Dubai Logistics City - single customs zone Dubai World Central International Airport
  27. 27. Thank you 27

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