GCC supply chain and logistics conference 2015, Muscat Positioned to Win in a... · GCC supply...
Transcript of GCC supply chain and logistics conference 2015, Muscat Positioned to Win in a... · GCC supply...
GCC supply chain and logistics conference 2015, Muscat
Presentation by
Kim Fejfer
CEO, APM Terminals
Oman - Positioned To Win in a Dynamic World
April 15, 2015
World Economy – Developed markets recover but growth still driven by emerging markets
5
Source: IMF, Jan 2015
*All GDP taken at constant prices
GDP Growth Rate
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
World Developed
Economies
Emerging
Economies
2014 2015 2016
World Economy – Developed markets recover but …………
6
GDP Growth Rate
Source: IMF, Jan 2015
*All GDP taken at constant prices
-1.00%
-0.50%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
USA Euro Area Germany France Italy
2014 2015 2016
World Economy – Emerging markets drive growth but oil producing countries under pressure
7
GDP Growth Rate
Source: IMF, Jan 2015
*All GDP taken at constant prices
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
Brazil Russia India China GCC
2014 2015 2016
Container Shipping Trends
• Ever larger container ships
• Carrier alliances
• Freight rate instability
• Pure Transhipment hubs under pressure
• Stringent Environmental Guidelines
8
0
4
8
12
Annualised in m
illion t
eu
Independent Alliance
Source: Drewry Research
10
12
14
16
18
20
22
2012 2016
Fle
et
Capacity -
Million T
eu N
om
inal
>10,000 teu 7,500 - 9,999 TEU < 7,500 TEU
Source: Alphaliner November 2014
Capacity Deployment Pattern: Asia-Europe
Larger containerships adding global fleet capacity:
9
Vessel Size by Capacity (TEUs)
(Source: Alphaliner Februaury 2015)
There are currently 138 Ultra-Large Container Ships (10,000 TEU+) on order
Number of Vessels on Order
138
92
24 18
78
56
40
7
Container shipping Trends – Impact on Ports Infrastructure
10
Bigger ships
• Cascading of vessels
• Fewer port calls and less frequency
• Increasing Capex and Opex for ports
Carrier Alliances
• Concentration of volumes
• Market risk for terminals
Liners’ weak financials
• Pressure on terminals • Mergers and acquisition in liner industry
Growth Opportunities – Middle East and Surrounding Markets
11
• GCC and South Asia witness higher growth
• GCC driven by petrochemical and non-oil sectors
• Far East-Mid. East/S.Asia growth outpaces world average.
• Infrastructure, O&G to boost East Africa
21 22 24 26 28 29
2014 2015 2016 2017 2018 2019
4 4 4 4 5 5
2014 2015 2016 2017 2018 2019
35 38
41 44
47 51
2014 2015 2016 2017 2018 2019
CAGR 6.6% CAGR 5.9%
CAGR 4.3%
M T
EU
M
TEU
M T
EU
Far East-Mid East/S Asia
12.8 Mn teu
South Asia Middle East
East Africa
Oman- Opportunities to win
12
Robust regional trade growth
Development of GCC rail
Regional Focus on manufacturing
and other non-oil sectors
Oman- Winning Location
• Well placed and
strategically located
outside Strait of Hormuz
• Proposed GCC Rail Network
Emerge as a - Regional
Manufacturing and
Logistics Hub
• Mitigate Supply Chain risks
13
Oman – Create an environment to win
14
• Business regulatory environment
• Reduce barriers to trade
• Robust legal framework to build confidence
Countries Ease of Doing Business Trading Cross Borders Enforcing contracts
Singapore 1 1 1
UAE 22 8 121
Saudi Arabia 49 92 108
Oman 66 60 130
Ease of Doing Business – Global rankings
Source: Doing Business 2015, World Bank Group
Oman: Winning - What does it take
15
0
1
2
3
4
5
6
7
Infrastructure
Goods marketefficiency
Labor marketefficiency
Technologicalreadiness
Market SizeRoads
Ports
Air Transport
Control ofinternational
distribution
Oman UAE Singapore
Source: The Global Competitiveness Report 2014-15, World Economic Forum
Oman - Road to Win
• Develop and improve
logistics infrastructure
• Strengthen existing free
trade and industrial zones
16
• Ease of doing business
• Skill development
• Investment in technology
Conclusion – Sure Oman will Win
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• Global economy rebalance
• Emerging markets
to lead growth
• Strategically located to serve key
growth markets
• Changing industry trends resulting
in intense competition in logistics
and port sector
• Oman can improve its
competitiveness to emerge as
Regional Manufacturing and
Logistics Hub