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Role of Ports in the Economy

Traditional Port

2

- Creek & Hamriya

• The port plays a key role in facilitating trade between Dubai and countries in South Asia and

East Africa. Food, automobile spare parts, and livestock comprise the bulk of trade through

the port.

• The purpose of the port was to handle small fishing ships, as well as to accommodate some

of the commercial ships

3

• 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

Global Container Shipping –

A Snapshot

Data sourced from Alphaliner

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

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 processes5

6(1) Historic data on World GDP Growth from IMF World Economic Outlook, April 2008

World container traffic vs. World GDP(1)

Container Traffic and GDP

World GDP data from the IMF World Economic Outlook 2010World GDP data from the

IMF World Economic Outlook 2010

Container Handling Growth data reported from Drewry.

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

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91

19

92

19

93

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94

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95

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96

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97

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19

99

20

00

20

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06

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08

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10

20

11

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12

20

13

Container Growth GDP Growth

Economic Activity &

Impact on Port

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GCC Economy – Robust

2011 GCC GDP growth estimated at 6%*

* Dubai Statistics Center

*International Monetary Fund, World Economic Outlook Database, October 2010

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

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GCC Economic

Drivers

Economy

• 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

9

Share of Middle-eastern capacity in global petrochemicals production

MENA Capacity additions 2008-13

Global Petro Market & the Region

10

GCC – Major Ports

Assaluyeh

BIKUmm qasr

Jubail

Abudhabi

Jebel Ali Fujairah

Messaied

Dubai – A Case Study

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• 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/regions

• Port Infrastructure – Best in Class

UAE Population

5.5 Million

UAE GDP/Capita

around

USD 46,000

Efficient Customs

and Government

Agencies

Multimodal

Logistics

Capabilities

Large Base of

Logistics Service

Providers

• 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

Dubai – Modern State

ConnectivityEase of Doing

BusinessPredictability

0

100

200

300

400

500

600

700

800

900

1000

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Billio

n A

ED

TE

U

Thro put UAE GDP (Bill AED)

GDP source : IMF.org

UAE GDP & DP World

Complementing Growth

GDP source : IMF.org

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

DP World & JAFZA

Complementing Growth

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Cruise - Tourism

• Dubai is a distinctive blend of modern city

and timeless desert, east and west, old

and new

• Dubai's 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, it's a

very good business for the local economy

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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 services17

Trading Across Borders

Ranking - 2011

USA (East) 21 days / 4 services

South America 25 days / 2 services

Northern Europe18 days / 9 services

Mediterranean13 days / 6 services

South Africa12days / 4 services

East Africa8 days / 2 services

West Africa16days / 2 services

India4 days / 31 services

South East Asia7days / 11 services

Far East20 days / 23 services

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Oceania27days (Transshipment)

Intra Gulf1 day / 25 services

Red Sea12 days / 5 services

More than 150 shipping lines and 90 weekly services

Sea Connectivity

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London (7.5 hrs)26 weekly flights

New York (14 hrs)14 weekly flights

Tokyo (10 hrs)5 weekly flights

Seoul (8 hrs)12weekly flights

Shanghai (8.5 hrs)14 weekly flights

Mumbai (3 hrs)35 weekly flights

Doha (1 hr)35 weekly flights

Sao Paulo (15 hrs)7 weekly flights

Sydney (14 hrs)14 weekly flights

Moscow (5 hrs)14 weekly flights

Cape Town (9.5 hrs)7 weekly flights

Cairo (4 hrs)10 weekly flights

Los Angeles (16.5 hrs)7 weekly flights

Singapore (7.5 hrs)14 weekly flights

Rome (6.5 hrs)14 weekly flights

Addis Ababa (4 hrs)7 weekly flights

Casablanca (9.5 hrs)7 weekly flights

Air Connectivity

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Land Connectivity

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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.

DP World – Global Reach

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Over a year, laid end to end, the

boxes we handle would circle the

world more than six times

1- As of 25th January 2011

2- Measured by equity-based throughput. Source: Drewry Shipping Consultants

• 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)

– Best Global Terminal Operating Company – DP World

2008 Annual Supply Chain & Transport Awards (SCATA)

– 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

Global Portfolio

24• 49 terminals and 9 new developments and major expansions across 31 countries

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

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Jebel Ali – Future Ready

Jebel Ali Port and Free Zone

Dubai

Logistics

City

Dubai World Central International Airport

Jafza South World class multimodal platform

Jebel Ali Port,

JAFZA and

Dubai Logistics City - single customs zone

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Thank you