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LEBANON Logistics Assessment
September 2011
Contents Geography, Population, Political & Economical Situation and Logistics Overview
Referenceswww.customs.gov.lb www.finance.gov.lb www.economy.gov.lb www.public-works.gov.lb www.lfs-lb.org www.bdl.gov.lb www.cia.gov
© Logistics Yard sarl Sept 2011
MARKET STUDY
Background & General Information
Geographic Locationo 10,452 m2 bounded by Syria
from the East & South, Israel from the North and the Mediterranean Sea from the West with 225 km coastline
Populationo Estimated population of 4
millioncomparison to the world: 127
© Logistics Yard sarl Sept 2011
© Logistics Yard sarl Sept 2011
Political Situation
o The country is recovering from long years of war
o Though arms are still to be collected and Militias to be fully dissolved, nowadays the peace is reigning in general and the country is once again viewed as the prime touristic destination it used to be
Background & General Information
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Economyo Small Economy of GDP 32 Billion USD
growing at 7% yearlyo Free Economy, fully open to Foreign
Investment suffering from high taxes and fees and heavy State Liabilities(21 Billion $ external debt)
o No restrictions on money exchange and transfers
o High Imports of 17 Billion $o Exports of 4 Billion $
Background & General Information
2006 2007 2008 20090
2
4
6
8
10
12
14
16
18
Imports in Billion $
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Economy (…continued)
o Strong Banking Sector with Domestic Deposits of 100 Billion $. Lebanese Banks have opened branches all over the MENA region
o Lebanese Franchises and Media companies are becoming very popular in the MENA region
o Local Freight Forwarders are in their turn establishing a good presence in the Levant and GCC
Background & General Information
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Economy (…continued)
o Deficit in the Balance of Payments partially compensated by Tourism and other services especially Banks
oMain compensation of the BP Deficit comes from Immigrants transfer inflows to the country, noting that Lebanese Population being only 4 million, Lebanese Immigrants in Europe, GCC and the Americas exceed 15 million (10% of the Brazil Chamber of Deputies are of Lebanese origin)
Background & General Information
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Once the Storage and Transit Hub of the Middle East, Lebanon is striving to regain its past position
Logistics Overview
SeaportsBeirut & Tripoli Main Commercial Activity
Sidon & Tyre Small Commercial & Fishing
Jounieh for passengers
Byblos, Amchit & Batroun Fishing
Chekka Cement
Oil & Gas Warehouses present in Dora Tripoli Zahrani and Jiyyeh receive directly in their tanks, oil & gas cargo and have customs offices on location
Port Name Activity tons/yearBeirut 11,000,000Tripoli 3,600,000Other 800,000
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(…continued)
Logistics Overview
Airports
Beirut International passengers & cargo
5 million passengers/2009
Tripoli/Kleyat internal flights
Postal Parcels 600k$/yearAirport Activity tons/yearBeirut 100,000Other 0
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(…continued)
Logistics Overview
LandportsOpen through Syria to Iraq, Jordan & GCC from the East, Turkey and Europe from the North
Masnaa (east)
Kaa (east)
Arida (north)
Abboudie (north) Land port Activity tons/year
Masnaa 3,400,000Kaa 35,000Arida 365,000Abboudie 1,050,000
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(…continued)
Logistics Overview
Free zones and TransitSpecial Free ZoneOpen for all companies operating in transit, export and international trade to lease a land parcel and build their own warehouses
Public Free Zone At Beirut Seaport and Airport, warehouse spaces for rent
Transit Activity tons/year
Port & Airport 20,000
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(…continued)
Logistics Overview
Railroads
Railroad infrastructure was completely ruined during the war and still is to the present date.
Overland Transport Fleet
Old fleet of trucks and insufficient for the national overland activity, trucks mainly from Syria are filling the gap.
Efforts are being focused on unifying axis of vehicles and max loads and border fees between Arab Countries
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(…continued)
Logistics Overview
Tariffs (average figures)
Loading/unloading vessel2-5$/tonCharging/Discharging trader 2-4$/tonForklift 15 ton 10$/hourTransport 0.05$/ton/KmPort fees on containerized av. 200$/20ft
350/40ftAdditional Storage at Port50$/20ft/15 daysStorage outside port 6$/month+ 200$ handling/20ft
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(…continued)
Logistics Overview
Freight Forwardingo 126 listed companies in the Forwarders Syndicateo Estimated Total Market Gross Margin 200 million$o Competition includes Customs Clearance Agents
working directly with shipping agencieso Forwarders are opening businesses all over the
Arab countries, current main focus is on Syria o Forwarders are expanding vertically and going into
third party logistics (warehousing and transportation) all Beirut Special Free Zone warehouses were built by forwarders.
o Forwarders consortiums are being formed in this regard e.g. Net Logistics warehouses at the Free Zone area
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(…continued)
Logistics Overview
3rd Party Logisticso Estimated warehousing spaces in Lebanon 8 million
m2
o 3rd Party warehousing spaces currently available = 80 thousand m2 only
o 3PL is still under developed . Additional investment should be sought in the near future especially with the current trend for 3PL worldwide
Last Word Even though being a relatively small
market, yet Lebanon could still be regarded as an attractive destination for Logistics Investments.
Thank You
© Logistics Yard sarl Sept 2011