lebanon logistics assessment italy presentation imdad

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LEBANON Logistics Assessment September 2011 Contents Geography, Population, Political & Economical Situation and Logistics Overview References www.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

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Page 1: Lebanon logistics assessment italy presentation imdad

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

Page 2: Lebanon logistics assessment italy presentation imdad

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

Page 3: Lebanon logistics assessment italy presentation imdad

© 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

Page 4: Lebanon logistics assessment italy presentation imdad

© Logistics Yard sarl Sept 2011

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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© Logistics Yard sarl Sept 2011

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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© Logistics Yard sarl Sept 2011

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

Page 12: Lebanon logistics assessment italy presentation imdad

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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

Page 14: Lebanon logistics assessment italy presentation imdad

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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.

Page 15: Lebanon logistics assessment italy presentation imdad

Thank You

© Logistics Yard sarl Sept 2011