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

2. 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

3. 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

4. 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

5. B. Duqm Port Development plan

6. B. Duqm Port Industrial Zone

7. 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 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): Mt break-bulk
Container terminal (1625m): M TEU
Dry bulk terminal (300m): Mt
Phase 2: at least 10km quay length and/or several liquid jetties (still to be tendered)

8. B. Duqm Port and IZ

9. 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)

10. 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
( )
Mid-East
Mid-East
Red Sea
ISC
East Africa
India Ocean Rim
East Africa
ISC
Limited potential to serve Red Sea ports

11. 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)

12. 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

13. 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

14. 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

15. C.5 Result: Traffic Forecasts
Containers
General Cargo
Dry Bulk
Liquid Bulk
Preliminary Results of the forecast

16. 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

17. 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

18. 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)

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

20. 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

21. 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

22. 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

23. 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.

24. Thank you very much
Shukran
Questions?