This document discusses the growth of ports and trade in the United Arab Emirates over the past 20 years. It notes that billions have been invested to develop ports like Jebel Ali, Khorfakkan, and Khalifa as international transshipment hubs. Looking ahead, it anticipates continued investment in ports and infrastructure to accommodate growing trade volumes, especially with Asia. A key point is that tariffs at UAE ports are among the lowest globally, which impacts their profitability but attracts shipping lines and benefits the broader region.

1. December 2012
Richard Szuflak - Gulftainer

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

4. 4
248 248
267
284
299 325 327
340
382
389 386
449
494
537
585
623
656
624
633
665
0
100
200
300
400
500
600
700
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
GDP growth In UAE
AED Bn

5. 5
2.5
2.9 3.2
3.5 3.8 4.1
4.5 4.9
5.1 5.3
6.1
7.2
8.9
10.1
11.2
13.2
14.8 14.4
15.2
16.7
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
Mn TEU
Arabian
Gulf
66%
Red Sea and
Gulf of
Aden
34%

6. 6

7. Jebel Ali
Khorfakkan
7
Sharjah

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

12. 12
Amsterdam
Zeebrugge
Antwerp
Rotterdam
Amsterdam
Khorfakkan
Sharjah
Jebel Ali
Khalifa

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.

15. 2011
Total TEU
22,600
71% Gateway
16,000
Source: Drewry
15
29% T/S
6,600
Total TEU
16,500
46% Gateway
7,600
54% T/S
8,900
ZARA-range KOSJAK-range

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.

22. 22