GCC countries multimodal transport challenges and opportunities- March,2010

1. GCC Countries Challenges & Opportunities For Multimodal Transport By Deepak Lakshman Gourav Kalra Mithrahari

2. What is GCC? Gulf Cooperation council Incorporated in 1981 Member Countries Kuwait UAE Bahrain Saudi Arabia Oman Qatar

3. Multimodal Transportation Freight transport in which more than one mode of transport is used which can be Road/Rail/Air/Sea It is under the responsibility of single freight/transport operator Required for supply chain optimization for example cost optimization, time optimization etc Need has grown with the growing complexities of globalization

4. Opportunities & Problems Opportunities International multimodal transportation in Arab MASHREQ involving: Roads Railways Seaports Airports Adopted in 2001 Major Problems High cost of logistics and procedures Excessive delays Illegal practices and corruption Lack of predictability of delays and costs

5. Proposed road network to major airports and ports Proposed Road Network Major Ports Major Airports

7. Quabas – Main port in North, handles international and regional trade

9. Mina Al Ahamandi: Mostly Oil exportation, Bubiya: 1.3 M TEU (2008)

12. Major Ports : Jebel Ali , currently handling 15 M TEU, Terminal 3 coming up with 15 M TEU

14. Bahrain Population 791000, area 750km square, GDP 24 billion Port: Mina sulman Major Airport: Bahrain I. Airport at Manama/Al Muharraq

15. Challenges & Opportunites Special causeway to Saudi Arabia and Qatar by 2013 Setting of Bahrain Logistics Zone (investment by DHL, CEVA, ARAMEX) New port : Khalifa Bin Salman Port Extension of existing capacity at the Bahrain International Airport to 1 M Tons Stiff competition to other Gulf countries Limited road connectivity

16. Saudi Arabia Two major Ports: Jeddah & Damam Population: 28 million, GDP: 522 billion Airports: Damam, Jeddah, Riyadh& Madina

17. Challenges & opportunities Opportunities Huge capital reserves for infrastructure Land bridge project : 950 Km link b/w Riyadh & Port of Jeddah extending to port of Damam and Dubai Investment into roads, railways & air link to cater 250 million customers within 3 hrs Challenges Slow custom clearances Orthodox culture in conducive for trade For inter state transportation, Terrain is a challenge

19. Challenges & Opportunites Opportunities Greater city of Doha in planning stage (involving Multimodal transport) Strategic location of country on the world map Mater plan for transportation of LNG Challenges Heavy investment required for infrastructure Other industries need to be groomed

20. Challenges Heavy investment to get world-class facilities like DLC, JAFZA, etc (Debt Trap). Inter-transferability between different modes of transport Attract sufficient trade to the region to fill the capacity of various mode of transport Cannibalization of market share with enhanced infrastructure Harmonization of legal and trade related regulations Common currency (further delayed) Revenue sharing

21. Thanks! Questions