Mohammed Al Muallem, VP, DP World, presents his topic 'Role of Ports in the Economy' at the recently concluded 'Excellence: the Future of Business' - Day3 - in Dubai. Event was jointly hosted by ASQ and the Dubai Quality Group. http://www.facebook.com/DubaiQualityGroup

1. Role of Ports in the Economy
1

2. Traditional Port
- Creek & Hamriya
• The port plays a key role in facilitating trade between Dubai and countries in South Asia and
East Africa. Food, automobile spare parts, and livestock comprise the bulk of trade through
the port.
• The purpose of the port was to handle small fishing ships, as well as to accommodate some
of the commercial ships
2

3. Global Container Shipping –
A Snapshot
• 2009 saw the first
YOY decline in the
history of container
shipping – 470 Million
Teus
• Shipping Lines lost
upwards of $20 billion
• Global container
handling volume to be
back to around 2008
levels
• We are integral to the
global supply chain
matrix
3
Data sourced from Alphaliner

4. Port Functions
• Freight distribution as they offer a maritime & land interface for export and import
• Points of convergence/distribution of inland and coastal transportation systems
• Services to ships with berths, docks, navigation channels and repairs
• Services to trade with cranes, warehouses and accessibility
• Mono functional Ports - transit a limited array of commodities(raw materials)
• Poly functional Ports - vast harbours where trans-shipment and industrial activities are
present. Variety of cargo handling facilities
• Cargo Terminal - facility where freight is assembled or dispersed.
• Cruise Terminal – facility for passenger traffic
4

5. Why Ports?
• Ports – catalyst for Economic Development
• Springboards for development of the hinterland
• Manufacturing & Logistics
• Facilitate the efficient transportation of goods
• Marine & Land connectivity
• Job growth
• International trade, transport & goods
• Facilitates export & import opportunities
• Conduit for warehousing & distribution
• Port competition & competitiveness
• Competition with multiple options for planning supply
chains
• Terminalisation offers highly efficient & cost effective
solutions
• Continual investment in technology and processes
5

6. Economic Activity &
Impact on Port
Container Traffic and GDP
World container traffic vs. World GDP(1)
20.0%
15.0%
10.0%
5.0%
0.0%
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
-5.0%
-10.0%
-15.0%
Container Growth GDP Growth
World GDP data from the IMF World Economic Outlook 2010World GDP data from the
IMF World Economic Outlook 2010 6
(1) Historic data on World GDP Growth from IMF World Economic Outlook, April 2008
Container Handling Growth data reported from Drewry.

7. GCC Economy – Robust
GDP change % 2008 2009 2010 2011f 2012f
Bahrain 6.31 3.11 3.96 4.50 4.83
Islamic Republic of Iran 1.04 1.05 1.56 3.03 3.03
Iraq 9.52 4.21 2.64 11.48 11.02
Kuwait 5.53 - 4.82 2.33 4.44 5.10
Oman 12.84 3.59 4.72 4.68 4.09
Qatar 25.42 8.65 15.96 18.58 9.30
Saudi Arabia 4.23 0.60 3.42 4.51 4.39
United Arab Emirates 5.14 - 2.47 2.43 3.18 3.94
*International Monetary Fund, World Economic Outlook Database, October 2010
* Dubai Statistics Center
7
2011 GCC GDP growth estimated at 6%*

8. GCC Economic
Drivers
Economy
• Industry
• Increased Exports
• Job Creation
• Better lifestyle
• Public Spending(Oil Revenues)
• Increased demand for products
• Economic Growth
• Increased Trade
• Demand for logistics services
• Increasing investment in Ports & Infrastructure
8

9. Global Petro Market & the Region
Share of Middle-eastern capacity in global petrochemicals production
MENA Capacity additions 2008-13
9

10. GCC – Major Ports
Umm qasr BIK
Assaluyeh
Jubail
Jebel Ali Fujairah
Messaied
Abudhabi
10

11. Dubai – A Case Study
UAE GDP/Capita
UAE Population
around
5.5 Million
USD 46,000 • Centre of Gulf activity
Commerce
Tourism
Trade
Entertainment
• Location - Mid way between Asia &
Europe
• Logistics hub for Arabian Gulf
• Centre of trade for GCC, Indian
Subcontinent, CIS & Africa
• Populations access of over 2 billion
• Market access to the world’s most
furiously developing countries/regions
Efficient Customs
and Government
Agencies • Port Infrastructure – Best in Class
Multimodal Large Base of
Logistics Logistics Service
Capabilities Providers
11

12. Dubai – Modern State
• Pro – business government
• Availability of qualified resources, both blue and
white collar
• Secure, family oriented living environment
• Excellent healthcare & educational services
• World class infrastructure
• High living standards
• New world – Cosmopolitan city
• Accessibility & Connectivity – mid way between
Europe & Asia
Ease of Doing
Connectivity Predictability
Business

13. UAE GDP & DP World
Complementing Growth
14,000,000 1000
900
12,000,000
800
10,000,000 700
600
Billion AED
8,000,000
TEU
500
6,000,000
400
4,000,000 300
200
2,000,000
100
- 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Thro put UAE GDP (Bill AED)
GDP source : IMF.org
GDP source : IMF.org

14. Dubai –
Port Centric Drivers
• Multiple Trade & Industry Opportunities
• Trade hub – Africa, Iran, Sub Continent (favorable policy framework – TAX free
environment)
• Re-export markets
• Tourism* (over 7 Million in 2008, expected to double in the next 8 years)
• Free Zones (over 20 of them in Dubai)
• Manufacturing, Services, Distribution Centres
• JAFZA, Industrial City, Internet City, Media City, etc.
• Jebel Ali’s HUB status
• Shipping Lines (over 150), Supply Chain & Logistics centers (over 20,000
traders)
• Over 50% of Gulf port capacity is in Jebel Ali
• Multi modal connectivity
• Sea – Air cargo hub
*UAE Year Book 2009

15. DP World & JAFZA
Complementing Growth
15

16. Cruise - Tourism
• Dubai is a distinctive blend of modern city
and timeless desert, east and west, old
and new
• Dubai's hotels accounted for 8.68 million
guests last year, up by nearly a million
from the 2009 numbers
• The Dubai Cruise Terminal currently can
handle three cruise ships and about 7,000
passengers at a time
• Last year, the terminal handled 390,000
passengers, a number that is expected to
rise to 625,000 by 2015.
• The average expenditure per passenger
per day is $150 to $250 which includes
shore excursions and souvenirs, With
2,000 people on each cruise ship, it's a
very good business for the local economy
16

17. Electronic Gateway
• Through the single window for trade services (www.dubaitrade.ae), more
than 750 e-Services are offered to different stakeholders involved in
trade & the logistics industry.
• Dubai Trade has consistently updated and expanded its portfolio of
integrated innovative services to serve the growing clientele of DP
World, Economic Zones World, Dubai Customs and Dubai Multi
Commodities Centre (DMCC). Today, Dubai Trade offers its customers
758 services, 12 per cent more than the services offered in 2009
• There are over 35,000 registered companies using the electronic trade
portal. Last year, 18,175 new registered users joined the portal taking
the total number of users to 66,775.
• Our services have helped enhance supply chain visibility, quality of
service and improve global competitiveness of Dubai”.
• Online service for the Port, Customs, and recently added Emirates
Skycargo services
17

18. Trading Across Borders
Ranking - 2011

19. Sea Connectivity
More than 150 shipping lines and 90 weekly services
Northern Europe
18 days / 9 services
Mediterranean
USA (East) 13 days / 6 services
21 days / 4 services Red Sea Far East
12 days / 5 services 20 days / 23 services
Intra Gulf
India
1 day / 25 services
4 days / 31 services
West Africa
16days / 2 services South East Asia
7days / 11 services
South America East Africa
25 days / 2 services 8 days / 2 services
South Africa
12days / 4 services
Oceania
27days (Transshipment)
19

20. Air Connectivity
London (7.5 hrs)
26 weekly flights
Moscow (5 hrs)
New York (14 hrs) 14 weekly flights
14 weekly flights
Rome (6.5 hrs)
14 weekly flights Shanghai (8.5 hrs)
Doha (1 hr) 14 weekly flights
Los Angeles (16.5 hrs)
35 weekly flights
7 weekly flights Casablanca (9.5 hrs) Seoul (8 hrs)
7 weekly flights Cairo (4 hrs)
Mumbai (3 hrs) 12weekly flights
10 weekly flights
35 weekly flights Tokyo (10 hrs)
Addis Ababa (4 hrs) 5 weekly flights
7 weekly flights
Singapore (7.5 hrs)
14 weekly flights
Sao Paulo (15 hrs)
7 weekly flights Cape Town (9.5 hrs)
7 weekly flights Sydney (14 hrs)
14 weekly flights
20

21. Land Connectivity
21

22. The Flagship
• Jebel Ali is the largest container port between
Rotterdam and Singapore
• World’s 9th largest container port in 2010
(source : Containerisation international)
• 14m TEU capacity
• A unique, world-class, state-of-the-art port
facility
• Jebel Ali can accommodate any vessel size in
existence or on order. 22

23. DP World – Global Reach
• 49 (1) marine terminals across 28 countries
• Total throughput of around 50 million TEU in 2010.
• Expansion to meet future customer needs
 2020 ~92 million TEU , depending on demand
• Team of 30,000 staff
• Top 3 Global Operator (2)
Awards:
2010 Asian Freight & Supply Chain Awards (AFSCA)
– Best Seaport in Middle East – Jebel Ali (16th consecutive year)
2010 Lloyd’s List Global Awards
– Environmental Protection Award
2009 Asian Freight & Supply Chain Awards (AFSCA) Over a year, laid end to end, the
– Best Global Terminal Operating Company – DP World boxes we handle would circle the
2008 Annual Supply Chain & Transport Awards (SCATA) world more than six times
– Port Authority and Terminal Operator of the year
2008, 2006 and 2005 Lloyd’s List Middle East & Subcontinent Awards
– Container Terminal of the year- Jebel Ali
23
1- As of 25th January 2011
2- Measured by equity-based throughput. Source: Drewry Shipping Consultants

24. Global Portfolio
• 49 terminals and 9 new developments and major expansions across 31 countries 24

25. The Future – Union Railway
• Union Rail
– General Cargo
• Petrochem
• Iron / Steel
• Rock / Stone
• Aluminum
• Cement
– Passengers
– Containers
– Phase 1
• Shah Hasban leg (2014)
• GCC Rail Network
– International Network
25

26. Jebel Ali – Future Ready
Jafza South Jebel Ali Port and Free Zone
 World class multimodal platform
 Jebel Ali Port,
Dubai
Logistics  JAFZA and
City  Dubai Logistics City - single customs zone
Dubai World Central International Airport

27. Thank you
27