Trends in theMaritime Industry in Morocco

MEYS Emerging Markets Research

Organisational structure Moroccan ports

Port strategy 2030

Connectivity

Specialisation

50.000

70.000

90.000

110.000

130.000

150.000

2010 2011 2012 2013 2014 2015 2016 2017

Global cargo throughput (x 1.000 tons)Tanger Med Port traffic excl. Tanger Med

Source: ANP, TMSA, Ministry Transport & Logistics

0,0

1,0

2,0

3,0

4,0

5,0

2010 2011 2012 2013 2014 2015 2016 2017

Container throughput (Million TEU)

Port traffic excl. Tanger Med Tanger Med

Maritime trade on the riseBy 2030 volume is expected to be increased threefold

After opening Tanger Med 2 (+ 5 mln. TEU) in 2019 Morocco will boast thelargest container port in Africa

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1.538

1.688

2.770

2.964

3.850

1.854

1.678

2.666

3.080

3.959

- 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500

Lagos (Nigeria)

Alexandria (Egypt)

Durban (South Africa)

Tanger Med (Morocco)

Port Said (Egypt)

Container throughput largest African ports (1000 TEU)

2014 2015

Source: Lloyd’s List

58%23%

14%

1%

4%

Maritime trade by type of product*2017

Bulk goods

Liquid goods

Containers

RoRo

Other

Majority of products through Moroccan ports are bulk goodsLargest increase in container trade

20.000

25.000

30.000

35.000

40.000

45.000

2010 2017

Total maritime trade bulk goods (1000 tons)

15.000

20.000

25.000

2010 2017

Total maritime trade liquid goods (1000 tons)

6.000

7.000

8.000

9.000

10.000

11.000

12.000

13.000

2010 2017

Total maritime trade containers* (1000 tons)

Note: (*) excluding transshipment, including cabotageSource: ANP

3,2% 0,0%

7,0%

37,1%

35,4%

7,4%

5,9%

0,1% 3,2% 0,8%

Morocco global traffic by sea port, 2017 (%)

NADOR

TANGER VILLE

MOHAMMEDIA

CASABLANCA

JORF-LASFAR

SAFI

AGADIR

TAN-TAN

LAAYOUNE

DAKHLA

Source: ANP

Global Traffic per Port, 2017 (in Tons)(excluding Tanger Med)

Casablanca largest port in Morocco

SEA PORT TOTAL

2017 2016 2017/2016

CASABLANCA 31.002.476 27.715.296 +11,9%

JORF-LASFAR 29.598.292 26.091.046 +13,4%

MOHAMMEDIA 5.889.750 5.721.470 +2,9%

SAFI 6.152.651 5.969.178 +3,1%

AGADIR 4.971.334 4.918.325 +1,1%

LAAYOUNE 2.661.138 2.819.625 -5,6%

NADOR 2.686.745 3.469.373 -22,6%

DAKHLA 650.257 653.614 -0,5%

TAN-TAN 51.136 40.756 +25,5%

TANGER VILLE 5.236 5.038 +3,9%

TOTAL 83.669.015 77.403.721 +8,1%

Source: ANP

Moroccan ports

Source: ANP

▪ Three main ports in Morocco for container traffic: Casablanca, Agadir, and Tangier Med.

▪ Other ports used mainly for break-bulk and conventional cargo, such as Safi, Jorf Lasfar, Dakhla, Laayoune, Nador.

▪ All ports are undergoing continuous development and upgrading in terms of both equipment and infrastructure.

▪ Period 2017 – 2021 6 billion dirham (550 million euro) investments in upgrading, modernizing and expanding Morocco’s port capacity (excluding Tanger Med and NadorWest Med)

▪ Main investments in the ports of Casablanca and Mohammedia

Morocco’s main commercial ports

2769

2271

267

184

115 112

10658

5032

15

Total investments by port 2017 – 2021

Mohammedia

Casablanca

Sidi Ifni

Al Hoceima

Tan Tan

Agadir

Essaouria

Cala Iris

Safi

Laayoune

Ras Kebdana

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651 1.047

520 446 1.023 743 899 746

2.754

1.532

2.700

1.263

1.595

2.389

1.218

2.892

3.371 2.994

3.144

1.824

1.320

2.177

1.518

589

95 418

3.200

2.183

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017p 2018p

Public investments in Morocco's ports

(million dirhams)

ANP TMSA NWM

Majority of public port investmentsfor developing Tanger Med (TMSA)

Note: (p) provisional budgetSource: Ministry of Finance

Port investments divided between new ports, integrationof ports with cities, and extension of existing ports

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Construction of six new major ports between 2016 - 2020Total costs 40 billion dirhams (3.5 billion euro)

1 billion euro 800 million euro 1 billion euro 360 million euro 550 million euro 700 million euro

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Investments in port dredgingImproving competiveness and connectivity

▪ Annually 2.0 – 2.5 million cubic metres, mainly sand▪ 70% dredging activities in Southerns ports (coastline between Safi and Dakhla)▪ Annual budget ANP 137 million dirham (12.5 million euro)▪ Largest local dredging company is Drapor

Current shipyards in MoroccoMain focus on building & repairing fishing vessels

▪ Chantier Naval de l’Afrique (Tan Tan):▪ Founded in 1984▪ Part of Groupe Ominum Marocain de Pêche (OMP)▪ Building primarily fishing vessels for OMP

▪ Chantiers et Ateliers du Maroc (Casablanca):▪ Founded in 1944▪ Surface shipyard 10.000 m2 (7.000 m2 workshops)▪ Yard capacity for vessels up to 20.000 tonnes▪ Primarily repair & maintenance (fishing) vessels▪ Annual turnover (2014 145 million dirham

▪ Chantier Naval Agadir Founty (Agadir):▪ Founded in 2002▪ Building and repairing mainly fishing vessels

Total turnover Moroccan shipyards currently 300 – 500 million dirhams

New long term strategy for shipbuilding industry in MoroccoTotal public and private investments necessary is 4.5 billion dirhams

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2567

2114

1739

788

663 656

550

336 312238 224 211 208 201

158

0

500

1.000

1.500

2.000

2.500

3.000

Marsa Maroc* TMSA ANP APM Tanger Inter Shipping Eurogate

Tanger

Somaport** CMA CGM

Comanav

MSC Maroc Boluda

TangerMed

FRS Maroc Bollore Drapor Petrocab Marcab

Turnover main maritime companies, 2016 (million dirham)

Note: (*) partly privatised in 2016, (**) estimate MEYSSource: Maroc1000.net, Ministry of Finance

Three largest maritime companies are (semi-)public entitiesTerminal operators have the largest turnover; foreign companies dominate Moroccanmaritime industry

With 5% of total maritime transport cabotage is still relativelylimitedA long coastline with dozens of ports gives strong opportunities

Ports with cabotage

1.300.000

2.300.000

3.300.000

4.300.000

2014 2015 2016 2017

Cabotage Moroccan ports* (tons)

Import Export

Note: (*) excluding Tanger MedSource: ANP

▪ Cabotage mainly oil products (from Mohammedia)▪ Moroccan companies active in cabotage (oil products):

Petrocab, Marcab

Cabotage of oil products

Rail network

Modal split container transport Port of CasablancaMain focus on road transport

1%

Import volume containers Port of Casablanca: 494.180 TEU (2017)

Rail Road

Sea (cabotage) 86%13%

CMA CGM opened in 2013 a cabotage container lineRoundtrip Tanger Med – Casablanca - Agadir

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d’Amico Dry Maroc (subsidiary Italian company d'Amico Società di Navigazione) operates a cabotage line between ports Agadir-Casablanca-Tanger Med

Daughter company of CMA CGM OPDR expanded her short sea shipping route May 2016 between Northern Europe and Morocco

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Use of feeders limited in MoroccoOnly Maersk uses feeders between Casablanca – Tanger Med

Source: ALG

Strong trade connections between Tanger Med and the rest of the world including 34 ports in 19 West African countries

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Great potential as regional maritime hubExpanding trade with Africa

Source: Office des Changes

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59,9% 62,6% 66,7%

5,8%6,4%

6,1%21,1%19,0%

16,9%

12,9% 11,8% 10,0%

0,4% 0,3% 0,4%

0%

20%

40%

60%

80%

100%

2011 2013 2016

Total foreign trade Morocco by continent (%)

Oceania

America

Asia

Africa

Europe

Thank you for your attention

MEYS Emerging Markets Research

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