2. A (QUICK) GLIMPSE OVER THE PAST 20 YEARS
WHAT IS COMING NEXT
INTRODUCING KOSJAK
CONCLUSION
2
3. UAE has massively invested in its ports;
Jebel Ali, Khorfakkan and now Khalifa are industry
landmarks;
Since the 90’s, billions have been invested to
develop an industry that is both:
an international transshipment hub
a regional growth engine.
3
8. 8
UAE continues to invest:
Khalifa Port
T2 + T3 in Dubai
KCT expansion
Other Projects in the GCC region: Saudi, Kuwait and Iraq
9. 278 295 307 321 335 349 363
166 170 175 181 187 194 20168
72 75
78
83
88
94
142
151
158
166
174
182
192
0
100
200
300
400
500
600
700
800
900
2011 2012 2013 2014 2015 2016 2017
Others
(Kuwait,
Bahrain,
Iraq, Oman)
Qatar
UAE
Saudi Arabia
CAGR %
GDP(US$BN)
51%
5.7%
3.2%
4.5%
Source: World Bank. 2011 GDP are at constant 2000 US$ and are then extrapolated with the expected real GDP forecast
October 1st, 2012
9
10. 10
Far-East to Middle-East traffic has grown by 10% pa over
the last 5 years;
This is the Trade where the largest vessels are put into
Service;
This route may overtake the Trans-pacific volumes by
2020;
Plus tap into large growth in Eastern Africa and the Sub-
Continent.
11. Against this positive background, investing into new ports and
terminals makes sense;
Extraordinary tale of growth;
It may be interesting to compare the UAE Port Sector with other
places;
But which one? Where?
11
13. +
Area (sq. km) 83,600 72,071
Coastline
(km)
1,318
But Khalifa - Khorfakkan
only abt. 250km
518
GDP/ Capita
(USD)
48,800 41,125
Main Ports 4 4
Containers
(mTEU)
16,500 22,750
Population
(million)
Abt. 8.0 27.0
HUB ME - Sub-continent Africa Europe - Russia
Very similar indeed !
13
Snapshot Comparison
14. Etihad Rail in UAE
And very soon, even railways!
14
Betuwe Line and
Ijzer Rhin railway
lines in Europe.
16. 16
Is everything the same?
NO
There is one key difference:
TARIFFS
17. 17
Middle-East has some of the lowest Tariffs worldwide;
2 to 3 times lower than Africa
4 to 5 times lower than US/Europe
Possibly lower than East-Asia
This should have an impact on port performance
18. 18
Revenues/TEU Asset Turnover EBITDA/Capital Employed
0 100 200 300 400 500
Salalah
HPH Trust
DPW
Shangai Int'l
ICTSI
Average
Tanjin Port
HHLA
Tauranga
Asciano group
Global Ports
Mundra
0% 10% 20% 30% 40%
Mundra
Shangai Int'l
Salalah
Tauranga
Tanjin Port
HPH Trust
DPW
Average
Asciano group
HHLA
Global Ports
ICTSI
0% 20% 40% 60% 80%
HPH Trust
Mundra
DPW
Tauranga
Shangai Int'l
Average
ICTSI
Global Ports
Salalah
Asciano group
Tanjin Port
HHLA
19. 19
0.0 5.0 10.0 15.0 20.0 25.0
Tanjin Ports
HHLA
Ascianco
DP World
Salalah
ICTS
Cosco Pacific
Tauranga
Shanghai Intl - China
HPH Trust
Average
Mundra Port
Global Ports
0.0 2.0 4.0 6.0 8.0 10.0 12.0
HHLA
Ascianco
DP World
Salalah
Average
ICTS
Cosco Pacific
Tauranga
Shanghai Intl - China
HPH Trust
Full Sample Without Outliers
20. 20
No Strong Competition
around UAE for large vessels;
All neighboring countries
benefit from UAE
infrastructure;
Gateway Tariffs > T/S Tariffs
Our Neighbors
Accommodate larger vessels
is costly:
Need 400 m of berth;
Need 6 cranes;
Need 250 + moves/hour
UAE Productivity is High
Tariffs are Low
Shipping Lines
21. 21
UAE Tariffs are amongst the lowest in the world;
This has an impact on valuation and profitability;
Still, UAE continues to invest in its port infrastructure which
benefits the country but also our clients and our neighbors;
A Right Balance has to be found.
