The Duqm Port and Industrial Zone Presentation to the Chamber of Commerce in cooperation with Duqm...

The Duqm Port and Industrial ZonePresentation to the

Chamber of Commerce in cooperation with Duqm Development Committee

Muscat, 24 May 2011

Contents A. Introduction and Background to the project

B. Development plans of Duqm port and industrial zone

C. Market assessment

D. Timing of the project

E. Impact of the project on employment

F. What will CAP do?

G. Investment opportunities

Questions

A. Introduction • Early 2000 : GOSO embarked on a visionary project to create a new port in

Duqm• 2006: MoTC started to build the first phase of the port• 2010: Port of Duqm Company (PDC) was created as a Joint Venture

between the Government of the Sultanate of Oman and Consortium Antwerp Port, and is to co-invest, operate and manage the port and industrial zone

• April 2011: concession agreement GOSO with PDC• May 2011: port starts receiving vessels for the Shipyard• End 2011: first cargo handling operations• May 2012: hand-over of the first phase of port infrastructure

A. Introduction

Objective of this presentation is to present the Duqm Port and Industrial Zone to the Business Community in Oman as a first step to identification of possible business opportunities

B. Duqm Port Development plan

B. Duqm Port Industrial Zone

B. Duqm Port and IZ• Area:

– Total port area: 135 km2 , of which 60 km2 is land– Lettable port-related Industrial zone area: about 6,000 hectares

• Breakwaters:– Lee breakwater: 4.1 km– Main breakwater: 4.5 km

• Water depths: to allow safe reception of vessels with capacity up to 150 000 DWT– Approach channel: -19m– Quays: -18m (commercial berths)

• Indicative Capacity of Phase 1 (2.2km berth, 80 ha. terminal, 900 ha. back-up storage):– Multipurpose terminal (300m): 0.2 - 0.5 Mt break-bulk– Container terminal (1625m): 1.9 - 3.5 M TEU – Dry bulk terminal (300m): 1.0 - 5.0 Mt

– Phase 2: at least 10km quay length and/or several liquid jetties (still to be tendered)

B. Duqm Port and IZ

C. Assessment of the Market

– Market for Duqm Port : cargoes and geographical market scope: WHERE IS THE TRAFFIC COMING FROM?

• Tapping into the growth of the Indian Market and attract a share of the growth of demand for container transhipment services

• Exports of Industrial minerals and processed minerals enabled by the creation of the port• Oil and petroleum products, linked to the refinery project (phase 2 of the port)• Import of raw materials and semi-finished products to the Industrial Zone / Free Trade

Zone and export of the finished goods• Project cargoes to serve the Oil Industry in the Al Wusta Region and for the construction

works for the developments in and around Duqm

– Initial Market study carried out by Consortium Antwerp Port (Belgium), Drewry Maritime Consultants (UK and India), TATA Strategic Management Group (India), Chemical Market Associates International (UK)

C.1 Regional distribution function

India Ocean Rim

Mid-East

ISC

East Africa

Red Sea Port Traffic24.1 Mn -12%

Port Traffic11.2 Mn -10%

Total Tanshipment

Market 37 Mn TEU – 11% average

growth

Port Traffic1.9 Mn -7%

Mid-East

ISCEast Africa

The pyramid shows each region’s total and gateway traffic in Million teu and growth rate over last 9 years (2000-09)

Limited potential to serve Red Sea ports

C.2 Regional distribution function

Hinterland Connections– Highway connection to Muscat and

further to UAE

– Projected railway connection UAE – Sohar – Muscat - Duqm (now included in phase 1)

YEMEN

R 32R 31

Sur

Ras Musandam

Masirah

Salalah

Nizwa

Duqm

Muscat

IRAN

UAE

KSA

DUBAI

ABU DHABI

Hayma

SoharAl Buraymi

Phase 1Phase 2Phase 3

C.3 Exports Generated in the IZMineral/Mining Services Agriculture/food Others

Cement Ship Chandlery Fisheries Bunkering

Oil refinery Warehousing Food Processing Project cargo

Petrochemical Strategic food storage

Flour mill Cruise traffic

Glass Support for Oil industry

Livestock Processing

Marble tiles

Ceramic tiles

Paints and coatings

Silica Plant

Pipe coating

Basalt continuous fiber

C.4 Unlocking opportunities for export of minerals from hinterland

• Team of Geologists carried out field visits in April , and found following promising minerals in the area of 250km around Duqm:

– Limestone– Silica– Gypsum– Salt– Dolomite

C.4 Unlocking opportunities for export of minerals from hinterland

Duqm Port

30 km

Edm 3 : D am m am Form ation

M w k : W arak Form ation

O M sy : Shuw ayr Form ation

Eur : U m m Er R adhum a Form ation

First results on Limestone: • Duqm is literally surrounded by limestone deposits • The outcropping conditions are good• The geological structure is simple : nearly horizontal

layers with some faults• Suitable for various applications depending on location:

cement (very white!)• Purity analysis is still underway, with special focus on

steel applications

C.5 Result: Traffic Forecasts• Preliminary Results of the forecast

Containers General Cargo

Dry Bulk Liquid Bulk

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2015 2020 2025 2030 2035 2040

Mn

TEU

Captive Non-captive Transhipment

D. Timing for Start-up

Spa

re P

lot

3500

sq.

m

Fuel Storage

3500 sq.m

Road

Rail/Pipeline/Conveyor Corridor

Utility Corridor

Civil Emergency Centre

Fuel Station

RAS DUQM

Drainage culvert and outfall

Tug berth

0 100

New Port and Drydock at DuqmTug Berth Area - Revised Layout09-Dec-2010 - Revision 0

Basin dredged to -10m CD

15 m

106 m

120 m

Parking A

reaSp a

re P

l ot

3500

sq.

m

Marpol FacilitySpa

re P

lot

3500

sq.

m

Mosque

Terminal Admin Building

Firefighting/Potable Water Tank

Training and Amenities Centre

Prevailing Wind (SW Monsoon)


November 2011: • Multipurpose quay (300m quay at -18m) + 125m quay at -10m) for

• cement and liquid• diesel for powerplant and for port craft• project cargo


Spa

re P

lot

3500

sq.

m

Fuel Storage

3500 sq.m

Road


Utility Corridor


Fuel Station

RAS DUQM


Tug berth

0 100



15 m

106 m

120 m

Parking A

reaSp a

re P

l ot

3500

sq.

m

Marpol FacilitySpa

re P

lot

3500

sq.

m

Mosque






November 2012:• Finger pier (240m berthing face) for small tankers and port craft• Commercial terminal (700m)

• Multipurpose terminal (300m quay at -18m + 125m quay at -10m) • Container terminal (400m quay at -18m), equipped with 4 container gantries


Spa

re P

lot

3500

sq.

m

Fuel Storage

3500 sq.m

Road


Utility Corridor


Fuel Station

RAS DUQM


Tug berth

0 100



15 m

106 m

120 m

Parking A

reaSp a

re P

l ot

3500

sq.

m

Marpol FacilitySpa

re P

lot

3500

sq.

m

Mosque






Q2 2014: • Finger pier (240m berthing face) for small tankers and port craft• Commercial terminal (2250m)

• Multipurpose terminal (300m quay at -18m + 125m quay at -10m) • Container terminal (1650m quay at -18m)• Dry bulk terminal (300m at -18m)


Phase 2 (liquid, oil and gas – related to refinery) to be ready well before 2017

Still to be tendered

E. Impact on employment• The Duqm port and Industrial Zone project will transform the area into vivid economic

development centre, in which the port will act as catalyst for the unlocking of existing opportunities.

• Employment (projected 100 million tonnes throughput + conservative benchmark with other ports):

• PDC promotes employment from Oman, in particular from central Oman15,000 direct 30,000 indirect

45,000 jobs

F. What will CAP do?

• Within PDC: active in port management and planning• Co-investing in utilities and other facilities• Planning and co-investment in housing for port-staff• Marketing abroad and in Oman• Organisation of road-shows (India etc.)• Assist PDC with training of Omani staff• Assist PDC with training of Omani labour• Introducing state-of-the-art port technology• Proposing the port rules and system for sub-concessions including management of the whole

process• Planning for phase 2 of the port in coordination with the future refinery

G. Investment Opportunities?• First wave of Clients is approaching PDC already with request for:

– Unloading of bulk cement and bagging – project cargoes– Export of minerals– Warehousing facilities

• Second wave of potential Clients:– Mining companies– minerals processing companies (more added value for the country)– Shipping lines

• Investment opportunities in the Port area:– Warehousing and value added logistics– Liquid storage – Dry bulk cargo exports – for example minerals– Project cargo imports– Service providers for port services

G. Investment Opportunities?• Investment opportunities surrounding the port

Interested parties are invited to grab the A4 list of potential services they could provide in Duqm port and Duqm town.

This will certainly be covered extensively and profoundly by Dr. Girgis.

Thank you very muchShukran

Questions?

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