GCC Multimodal Transport


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GCC countries multimodal transport challenges and opportunities- March,2010

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GCC Multimodal Transport

  1. 1. GCC Countries Challenges & Opportunities For Multimodal Transport<br />By <br />Deepak Lakshman<br />Gourav Kalra<br />Mithrahari<br />
  2. 2. What is GCC?<br />Gulf Cooperation council<br />Incorporated in 1981<br />Member Countries<br />Kuwait<br />UAE<br />Bahrain<br />Saudi Arabia<br />Oman<br />Qatar<br />
  3. 3. Multimodal Transportation<br />Freight transport in which more than one mode of transport is used which can be Road/Rail/Air/Sea<br /> It is under the responsibility of single freight/transport operator<br /> Required for supply chain optimization for example cost optimization, time optimization etc<br />Need has grown with the growing complexities of globalization<br />
  4. 4. Opportunities & Problems<br />Opportunities<br />International multimodal transportation in Arab MASHREQ involving:<br />Roads<br />Railways<br />Seaports<br />Airports<br /> Adopted in 2001<br />Major Problems<br />High cost of logistics and procedures<br /> Excessive delays<br /> Illegal practices and corruption<br /> Lack of predictability of delays and costs<br />
  5. 5. Proposed road network to major airports and ports<br />Proposed Road Network<br />Major Ports<br />Major Airports<br />
  6. 6. Oman<br /><ul><li>Major Port – Salalah: Only port between Singapore and Europe which is capable of handling S-class container vessels
  7. 7. Quabas – Main port in North, handles international and regional trade
  8. 8. Major International Airport – Muscat</li></li></ul><li>Kuwait<br /><ul><li>Major Ports: Shuwaikh & Shuaiba, 800K TEU in 2006
  9. 9. Mina Al Ahamandi: Mostly Oil exportation, Bubiya: 1.3 M TEU (2008)
  10. 10. Major airports: Kuwait City </li></li></ul><li>Challenges & Opportunities<br />Oman<br />Super Expressway between Muscat to UAE border<br />Development of Sohar Airport to cater to 100K tons of cargo<br />Depleting oil reserves<br />Kuwait<br />Pledging money for Arab MASHREQ to build road networks<br />Strict trade regulations<br />High land costs<br />
  11. 11. U.A.E<br /><ul><li> Comprises Abu Dhabi, Dubai, Sharjah, Ajman, Ras Al Khaima, Fujirah & Umu Al Qaywan
  12. 12. Major Ports : Jebel Ali , currently handling 15 M TEU, Terminal 3 coming up with 15 M TEU
  13. 13. Major Airport : Dubai International Airport</li></li></ul><li>Opportunities & Challenges<br />Opportunities<br />Transhipment hub for Europe and Africa<br />Efficient , Flexible and cost effective transportation<br /> Attractive FTZ regulations inviting foreign companies<br />DLC<br /> Challenges<br />Heavy debt driven infrastructure growth<br />Heavy competition from other Gulf countries<br />Economy concentrated in only few locations<br />
  14. 14. Bahrain<br />Population 791000, area 750km square, GDP 24 billion<br /> Port: Mina sulman<br /> Major Airport: Bahrain I. Airport at Manama/Al Muharraq <br />
  15. 15. Challenges & Opportunites<br />Special causeway to Saudi Arabia and Qatar by 2013<br />Setting of Bahrain Logistics Zone (investment by DHL, CEVA, ARAMEX)<br />New port : Khalifa Bin Salman Port <br />Extension of existing capacity at the Bahrain International Airport to 1 M Tons <br />Stiff competition to other Gulf countries<br />Limited road connectivity <br />
  16. 16. Saudi Arabia<br />Two major Ports: Jeddah & Damam<br />Population: 28 million, GDP: 522 billion<br /> Airports: Damam, Jeddah, Riyadh& Madina<br />
  17. 17. Challenges & opportunities<br />Opportunities<br />Huge capital reserves for infrastructure<br />Land bridge project : 950 Km link b/w Riyadh & Port of Jeddah extending to port of Damam and Dubai<br />Investment into roads, railways & air link to cater 250 million customers within 3 hrs<br /> Challenges<br />Slow custom clearances<br />Orthodox culture in conducive for trade<br />For inter state transportation, Terrain is a challenge<br />
  18. 18.
  19. 19. Challenges & Opportunites<br />Opportunities<br />Greater city of Doha in planning stage (involving Multimodal transport)<br />Strategic location of country on the world map<br /> Mater plan for transportation of LNG<br />Challenges<br />Heavy investment required for infrastructure<br /> Other industries need to be groomed<br />
  20. 20. Challenges<br />Heavy investment to get world-class facilities like DLC, JAFZA, etc (Debt Trap).<br />Inter-transferability between different modes of transport<br />Attract sufficient trade to the region to fill the capacity of various mode of transport<br />Cannibalization of market share with enhanced infrastructure <br />Harmonization of legal and trade related regulations<br />Common currency (further delayed)<br />Revenue sharing<br />
  21. 21. Thanks!<br /> Questions<br />