COMPARATIVE STUDY OF LOGISTICS IN BAHRAIN AND UAE

Group 1:Divya Susan JacobHaripriya AnbazhaganRamanath Balasubramanian

AGENDA

Objective

About United Arab Emirates

About Bahrain

Research Methodology

Analysis

Recommendations

OBJECTIVE

To perform a comparative study on the logistics in Bahrain and UAE

Study will be based on the various factors that would influence the logistic performance of a country like,Geographic ProfileDemographic ProfileMacroeconomic TrendsLogistic Infrastructure

Recommend steps to improve Bahrain in the field of logistics

UNITED ARAB EMIRATES(UAE)

GEOGRAPHIC AND DEMOGRAPHIC PROFILE OF UAE Located between Oman and Saudi Arabia

Situated close to Strait of Hormuz

Coverage Area - 83,600 square kilometres

Population(5.6 Million) – 80% immigrants

Population Density – 67.3 capita per square kilometre

Median Age – 30.3 years

Imbalanced Sex Ratio

High Literacy Rate

MACRO ECONOMIC OUTLOOK OF UAE GDP - 383.8 billion USD.

Per Capita Income - 41,691.70 USD

Current Account Surplus - 17.34%

Trade Surplus of Export and Import Activities

Member of GAFTA,GCC,MEFTA

Expansionary Monetary Policies

Investments in other sectors other than oil

LOGISTICS IN UAE

Ports located both on Persian Gulf and Gulf of Oman

Offers services such as Freight forwarding, Warehousing, Transportation services, and Value added logistic services

Currently ranks 27th in the Logistics Performance Index ranking of 2014

Connects a huge amount of traffic between the eastern and western regions of the world

UAE AIRPORTS

UAE AIRPORTS

Aviation contributes to 14.7 % of national GPD Dubai International Airport is the busiest in UAE and it is

the fourth busiest in the world Cargo has been an important aspect of Dubai

International Airport development The freight volume rose to 2.28 million tons in the year

2014 in Dubai International Airport Sharjah International Airport’s freight handling has

reached upto 419116 tonnes The Dubai World Central Al Maktoum International Airport

has the capacity to handle 600,000 tonnes per annum

Ports in UAE

Ports in UAE

Jebel Ali is an integrated multi model hub Contains 22 berths and 78 cranes with total capacity of

19 million TEU The main benefits of UAE includes foreign ownership, no

currency restrictions, no corporate taxes, no personal income taxes,ready-made factories and warehouses, developed infrastructure

Fujairah Container Terminal focuses on high transhipment volumes

Port of Fujairah is the largest bunkering terminal in the region. The annual capacity of Port Fujairah is 24 Million Metric Ton

Ports in UAE

Port of Ras Al Khaimah’s main activity focuses on its cargo handling and has a capacity of 1100 tonnes

Hamriyah  port accommodates large and deep drafted vessels and handles all kinds of cargoes with berth capacity of 14

The Khalifa Port handles general cargo and entire Abu Dhabi’s container traffic.

Annual capacity of 2.5 million TEUs and 12 million tons of general cargo

Zayed Port concentrates on the development of its capacity in the segment of general and bulk cargo

UAE already has a national freight and passenger railway system established in 2009

It is built in phases to link principle centers which can also form an integral part of the GCC railways network

Railways in UAE

This will redefine the logistics and transport in the region

Its network distance of Etihad rail is 1200 km which extends from the border of Saudi to border of Oman

But the part network distance for the GCC railways network is 684 km

Their major terminals and distribution centers would be located close to major hubs ,warehouses like Khalifa Port,Jebel Ali port etc.

Economic benefits such as freight cost and travel time savings.

Total length of the road network and highways in the UAE is 4080km

Roadways became an integral part once the Jebel Ali port and free zones opened up

Roadways in UAE

UAE has an amazing road network not only connecting each Emirates but other regions as well

Regional interconnection facilitates movement of cargo and good enhancing UAE’s trade gateway

Future plans of UAE in developing roadways, Mafraq-Ghweifat Highway Project

BAHRAIN

GEOGRAPHIC AND DEMOGRAPHIC PROFILE OF BAHRAIN An archipelago nation

Coverage area:691 square km

Population:1314089 (55%-Immigrants)

Population density-age-1729 capita per square km (positive growth of 70.2% in last 10 years)

Median Age-31.6 years

Sex ratio- 1.54

Literacy rate-94.6%

MACRO ECONOMIC OUTLOOK OF BAHRAIN GDP - 32.79 billion USD

Per Capita Income-24,613 USD.

Trade Surplus of Export and Import Activities of 3388 BHD Million.

Member of GAFTA,GCC,MEFTA

Monetary Policies providing stable environment with low inflation rate and currency exchange

Leading options for investors in the region

AIRPORTS IN BAHRAIN Bahrain International Airport is the only international airport in Bahrain, located in the island of Muharraq

The kingdom of Bahrain is the owner of two airlines - Gulf Air and Bahrain Air

Forty-three airlines currently serve the airport

Overall cargo volumes are approximately 353,000 tonnes

“Airport Modernization Program” - to elevate the Bahrain International Airport infrastructure and services

PORTS IN BAHRAIN Khalifa Bin Salman Port, Sitra Wharf ,ASRY (Arab Shipbuilding & Repair Yard Co) and Mina Salman Port

Khalifa Bin Salman Port is the main sea port now in the Kingdom of Bahrain

consists of general cargo facilities, passenger terminal and roll on/roll off ramps.

The port is updated with modern technologies to enable fast clearing of cargo

Khalifa bin Salman, with the capacity to handle about one million 20ft equivalent units (TEUs) of container cargo annually

PORTS IN BAHRAIN Sitra Wharf is used for the import and export of raw materials of manufacturing and petrochemical industries

Arab Shipbuilding & Repair Yard Co handles the repair of various kinds of vessels

Bahrain enjoys duty free imports of raw materials and equipment for manufacturing

Products manufactured in a Free Zone are subject to 5% customs duties when sold into GCC other Arab markets

Other advantages include 100% repatriation of capital, no recruitment restrictions, no Minimum capital required.

RAILWAYS IN BAHRAIN• In the railway section

Bahrain just has a scheduled train project of GCC railways network

• This is expected to connect from Saudi through the causeway to the state of Qatar through the upcoming Qatar-Bahrain causeway

The total project length of the GCC railway network is 2117 km and the length of the track inside is just 36 km

This project was launched in 2013 and is expected to be completed by 2017

• Positive impact on economies ,enhance trade and mobility among goods and citizens between the GCC countries

Total length of the road network and highways in the Bahrain is 4122 km

Roadways is an integral part in Bahrain as it is a small archipelago nation which can be seen in comparison with length of roadways in UAE

Railways in Bahrain

The King Fahd causeway has been vital link in terms of trade and logistics since 18 years

Between the years 2002-2011 the volume of non oil trade between Bahrain and Saudi exponentially rose 233 BHD ($618 Mn) to 851 BHD ($2.3 Bn)

Plans on a new causeway parallel to King Fahd due to the increase in traffic.King Hamad causeway which will increase in the trade and economic activity by 30%

This causeway will include vehicular traffic lanes as well as 20 kms of rail road.

This new causeway will accelerate logistical and trade transactions and also expand the volume of trade exchange

New causeway planned between Qatar and Bahrain which would be about 40km which would reduce travel time to Qatar from 5hr to 30 mins

RESEARCH METHODOLOGYThe research methodology of our comparative analysis consists of three parts. They are,

Research Framework

Data Collection

Data Analysis

RESEARCH FRAMEWORK

There are a number of factors that influence the logistic performance of a country

Logistic Performance

Geographic Profile

Macroeconomic Trends

Demographic Profile

Logistic Infrastructure

LPI factors

DATA COLLECTION

We will be using data from both Primary and Secondary sources for our analysis.

Primary data – Gathered from field experts for a real time understanding of the current scenario.

Secondary data – Collected from various sources such as Internet, Libraries and Magazines.

DATA ANALYSIS

The data collected for the research is mostly qualitative in nature

Analysis will be based on data backed conclusions derived from our primary and secondary data

Recommendations for Bahrain will be based on the result of our analysis

ANALYSIS OF BAHRAIN AND UAE Geography Bahrain occupies only 0.8% of the total land area occupied by UAE

Population Only 55% of the population is made up of immigrants, whereas in UAE it is 80%

Population density of Bahrain(5th highest in the world) is far greater than UAE(125th highest in the world)

Population growth rate in Bahrain and UAE is expected to drop to 0.84% and 0.34% respectively by 2050.

GDP OF BAHRAIN

RECOMMENDATIONS

More capacity in ports and airports needed to meet growing demands

Creation of man made islands around Bahrain could be a more viable option for establishing new ports

More skilled labour required to meet growing industry requirements

More parks like BIIP(Bahrain International Investment Park) needed to attract foreign companies

Ties with Qatar most important to increase exports through the proposed Qatar – Bahrain causeway

Continue investing in Infrastructure to diversify economy

THANK YOU