port of salalah - the intersection of opportunities
DESCRIPTION
TRANSCRIPT
The Salalah Hub:The Intersection of Opportunities
Company Profile
• Incorporated in 1997
• Traded on Muscat Securities Market• Market Cap : 86M OMR
1. Government of Oman - 20%2. APM Terminals- 30%3. Institutional Investors - 21%4. Pension Funds, General Public - 29%
Shareholders Investor in People• largest private employer in Dhofar region,
south Oman
• c. 2,200 employees – c. 1,300 Omani (71% Skilled Role Omanization)
• Est. over 10,000 SME jobs created in local economy by port
Ideal Location at the center of World Trade
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Quick Facts about Port of Salalah
0%Duties on Trade
between USA/Oman
14 DaysSailing From Salalah to NYC
SPSIMuscat Market
Symbol
Free ZoneConnected and Aligned
52Major Market Connections
All CommoditiesLiquid Bulk/Dry Bulk/Container/General Cargo
0%Corporate Tax
10 yrs
USDFixed
Economy
21Days to Los
Angeles
+3,200Vessels/Year
Quick Facts about Port of Salalah
65%Dividend Payout
Ratio
2.02Price/Book Value Ratio
10.7Forward P/E
ratio
0%Duties on Trade
between USA/Oman
51% Average Growth Y-o-Y for 13 years13.0
Trailing P/E ratio
5%Dividend Yield
$.10EPS
Top 30 Global Port$234M market cap
14 DaysSailing From Salalah to NYC
1999• 510k TEU• 1m Tonnes
2004• 2.25m TEU• 1.6m Tonnes
2008• 3.1m TEU• 3.5m Tonnes
2012• 3.6m TEU• 7.2m Tonnes
+620% growth
Volume Growth 1999-2012
Port of Salalah = Sustainability
83%Procurement spend is ICV
71%Skilled
Omanization
$260k2012 CSR
Spend
$70MAnnual Cash DIRECT into Omani Economy
$1,000,000 2012 Staff Training Spend
99%Reduction of
Lost Time Incidents
216Dhofari
Children in Outwardbound
Oman
€6mEnvironmental
Investment earmarked
2012 Global CSR AwardContainerization International
2012 Green AwardsOman Economic Review
14 days to NYC
21 days to LAX
13 days to Durban
10 days to Mombasa
3 days to Mumbai
7 days to Singapore
11 days to Rotterdam
12 days to Shanghai
4 days to Abu Dhabi
5 days to Egypt
Strategic Markets - Connected to Salalah by 3200+ vessels / yearPort of Salalah is already part of your supply chain
How can you capture the Competitive Advantage?
Discover the intersection of location, incentives,
connectivity, and infrastructure.
Depth and length capable of handling the largest vessels in the worldManaged by APM Terminals, a leading global Port OperatorSalalah Airport able to handle Boeing 747 and other large airframes
Welcome to Salalah HubINFRASTRUCTURE
Free Zone benefits – including 100% foreign ownership, 0% customs and 0% taxesAbundant and competitive access to natural resources, energy and financingLowest land rate in the region and cost competitive skilled and unskilled laborAccess to the US-Oman Free Trade Agreement, (Tax-free exports and imports to the USA)Future access to the GCC-Singapore Free Trade Agreement
Welcome to Salalah HubINCENTIVES
Center of vital Asia/Europe trade lane Center of Regional markets worth more than $600 billion Over 8% of total global trade either stops or passes within 7 hrs of Salalah
LOCATION
Welcome to Salalah Hub
Fastest transit times to Europe and Asia (and beyond) – Up to 28 % lower than competing portsAirfreight connectivity with Oman Air, Air Arabia, Air-India Express, and Qatar Airways (coming May 2013)Directly connected with the quality GCC road network
Welcome to Salalah HubCONNECTIVITY
THE Major Shipping Lines call Salalah Home
….providing extensive connectivity
• 13 weekly connections to/from Europe• 13 weekly connections to/from Asia• 10 weekly connections to/from Indian Sub Continent• 11 weekly connections to/from Africa• 3 weekly connections to US East Coast• 4 weekly connections to/from Indian Ocean• 8 weekly connections to/from Upper Gulf
- AND INCREASING CONTINUOUSLY
Finished goods from Asia/Europe; Salalah for Distribution and/or Value Add
Benefits• Redirection opportunity
to meet market demands 7-10 days after departure
• Lower reliance on bottleneck infrastructure in region
• Buffer stock for unforeseen disruptive events
• Regional value add services can be applied closer to market
Source parts in Asia/Europe; Salalah for Assembly / Manufacturing
Benefits• Competitively low cost
of OPEX• Diversification of supply
= less disruption• Improved speed to
(many) markets• No currency risk = USD
fixed economy• Low inflation risk• 35% value add in Oman
= FTA status with USA and SIN
Three Segments where The Salalah Hub adds Value
Distribution & Trade
• Intermodal Logistics
• Logistics Maintenance
• Trading Activities
• Garments and Textiles
• Pulp and Paper• Recycling
Processing
• Building Material• Natural
Resources and Minerals Processing (Copper, Salt, Lime, Cement, etc.)
• Plastics and Chemicals
Assembly• Machinery• Electronics• Medical
Apparatus• Furniture• Food Packaging• Pharmaceuticals• Ship Building• Alternative
Energy
Coming Soon to Salalah…RAIL
• Entry to the GCC Railway Network– 30-80% shorter transit
times over current – Lower CO2 / Container
transported vs. Road– Salalah will become the
fastest link between the GCC and the rest of the world
Riyadh
Port of Salalah 20 Year Vision
Key Messages Salalah – Not just a Global Port, but a Logistics and Industry Hub Key Incentives to invest and operate from Salalah
US / Oman Free Trade Agreement 0% Corporate Tax for over 10 years Lower CAPEX USD fixed economy
Local demand has been strong and is forecasted to continue Local and Multinationals find Salalah’s USP attractive (US Gypsum, Octal, TVS) GCC growth is strong and forecasted to continue GCC Rail Network increases Oman (Salalah’s) strategic positioning
Port of Salalah is Future Ready
