The Duqm Port and Industrial Zone Presentation to the Chamber of Commerce in cooperation with Duqm Development Committee Muscat, 24 May 2011

Contents Introduction and Background to the project Development plans of Duqm port and industrial zone Market assessment Timing of the project Impact of the project on employment What will CAP do? 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: Breakwaters: 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 Port Traffic 24.1 Mn -12% 11.2 Mn -10% Total Tanshipment Market 37 Mn TEU – 11% average growth 1.9 Mn -7% The pyramid shows each region’s total and gateway traffic in Million teu and growth rate over last 9 years (2000-09) Mid-East Mid-East Red Sea ISC East Africa India Ocean Rim East Africa ISC Limited potential to serve Red Sea ports

C.2 Regional distribution function YEMEN R 32 R 31 Sur Ras Musandam Masirah Salalah Nizwa Duqm Muscat IRAN UAE KSA DUBAI ABU DHABI Hayma Sohar Al Buraymi Phase 1 Phase 2 Phase 3 Hinterland Connections Highway connection to Muscat and further to UAE Projected railway connection UAE – Sohar – Muscat - Duqm (now included in phase 1)

C.3 Exports Generated in the IZ Mineral/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 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 Containers General Cargo Dry Bulk Liquid Bulk Preliminary Results of the forecast

D. Timing for Start-up 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

D. Timing for Start-up 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

D. Timing for Start-up 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)

D. Timing for Start-up Phase 2 (liquid, oil and gas – related to refinery) to be ready well before 2017 Still to be tendered

E. Impact on employment 45,000 jobs 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 Oman 15,000 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 much Shukran Questions?