Elevating Sohar Port to New Heights

Transcription

1 Elevating Sohar Port to New Heights GCC Supply Chain & Logistics Conference April 2015 Eric S.C. Ip, Group Managing Director Hutchison Port Holdings Limited Prepared by: Hutchison Port Holdings Limited 1

2 Hutchison Port Holdings The world s leading port investor, developer and operator Hutchison Port Holdings Limited (HPH) The world s leading port investor, developer and operator The network of port operations comprises 319 berths in 52 ports, spanning 26 countries The HPH port network handled a combined throughput of 82.9 million TEU worldwide in 2014 Offers a wide range of transportationrelated services Prepared by: Hutchison Port Holdings Limited 2

3 Hutchison Port Holdings Network of port operations comprises 319 berths in 52 ports, spanning 26 countries Prepared by: Hutchison Port Holdings Limited 3

4 Changing Needs Prepared by: Hutchison Port Holdings Limited 4

5 Age of mega alliances Market Share on Major Trades EUROPE-FAR EAST Others, 1% TRANS-PACIFIC Others, 5% TRANS-ATLANTIC Others, 11% G6, 19% CKYHE, 23% O3, 21% 2M, 36% G6, 31% 2M, 16% CKYHE, 35% O3, 13% G6, 36% CKYHE, 5% O3, 8% 2M, 41% Source: Alphaliner, by capacity deployed Alliances and vessel sharing agreements driven by practical needs: Mega vessel dilemma order mega vessels or risk losing market share Partner up to fill vessels alliances have 95% of market share on major East-West trades Expanding service coverage access wider network that would be hard to accomplish alone Sharing resources, costs, risks Prepared by: Hutchison Port Holdings Limited 5

6 and mega vessels Cost savings a prime driver: Upsizing to realize economies of scale & reduce operational costs Increasing number of shipping lines joining the 18,000+ club Even for vessel orders above 10,000+ TEU, 13 out of top 20 shipping lines currently have deliveries coming in the next few years. All except two of top 20 will ultimately have these vessels after current orderbook is fulfilled. Slot Cost ($/TEU) Source: Internal estimates -13% Asia-Europe k 14k 20k Nominal Vessel Size 18,000+ Club -15% >100 vessels in place/on order Source: Alphaliner, news sources Prepared by: Hutchison Port Holdings Limited 6

7 The attractive growth rates of the Middle East market (Million TEU) Middle East Volumes +10% CAGR +8% 19% 26% 15 21% 25% 10 18% 23% 5 21% 53% 13% 56% 23% 56% 60% 64% Middle East Imports Middle East Exports Intra Middle East Trade Source: Seabury 21% Robust past growth, with a strong outlook: Strong import/export and intraregional growth above world average, and expected to continue Becoming an increasingly important component in the vital Asia-Europe corridor Prepared by: Hutchison Port Holdings Limited 7

8 drive vessel cascading in the region Cascading of larger vessels in the Middle East region: Typical vessels calling the Middle East region grew 50-60% in the past five years. Typical Largest 2,500 5,000 TEU 8,000 TEU % +75% 4,000 7,500 TEU 14,000 TEU Largest vessel calling Port of Sohar is 9,200 TEU, while 14,000 TEU vessels have also started to reach Middle East transhipment hubs. Vessel sizes grew on average +7% over the past two years alone, with most Middle East-related trades seeing high single to double-digit growth. (TEU) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Average Vessel Sizes (Middle East trades) CAGR ( ) 20% 14% 14% 9% 8% 5% 3% 7% Source: Drewry Prepared by: Hutchison Port Holdings Limited 8

9 Challenges to Terminals Prepared by: Hutchison Port Holdings Limited 9

10 Bigger vessels bring higher fluctuations Workload (Quayside) by Vessel Type Higher peak requires more supporting resources Source: Internal simulation Prepared by: Hutchison Port Holdings Limited 10

11 and require more terminal investment and expertise Bigger vessels resulting in higher peak workload, which require new and upgraded facilities to maintain smooth cargo flow: Cross-section diagram of container vessel 9,000 TEU ,000 TEU Facilities requirement Post-Panamax - 9,000 TEU 10,000-18,000 TEU Deeper and longer berths Higher and longer cranes Yard storage capacity Berth Length: 350 m 450 m Draft: m >15-18 m Outreach: rows across rows across Lifting Height: >32-43 m >43-52 m Peaks can typically be accommodated with existing yard space Around 30% more capacity required to accommodate higher peak factor Berth productivity > MPH > MPH Prepared by: Hutchison Port Holdings Limited 11

12 But terminals are just one part of the supply chain Prepared by: Hutchison Port Holdings Limited 12

13 An integrated multi-player approach is required Shipping lines Shippers & Consignees Terminal operators Logistics Providers Government Port Authorities Enhancing cooperation and integration to efficiently distribute cargo Prepared by: Hutchison Port Holdings Limited 13

14 The elements that shape the port Capability new and upgraded facilities to handle the largest size of vessels Mega Vessel new peak workload Capacity ample yard capacity Automation automated equipment & gate operations Regulatory simplified customs procedures with sophisticated technology Connectivity well connected inter-modal facilities and superior infrastructure (e.g. rail, canal, roads) Shipping Lines Terminal Operators Government & Port Authorities Logistics Providers Intermediary Buffer availability of intermediary logistics facilities (e.g. depot, CFS, free trade zone etc) and logistics services Distribution Channel low costs and high reliability Shippers & Consignees Information flow port community system connecting all players Prepared by: Hutchison Port Holdings Limited 14

15 HPH s vision for Oman International Container Terminal Prepared by: Hutchison Port Holdings Limited 15

16 Terminal C A modern and efficient gateway port Oman s gateway port: HPH has achieved its mission to consolidate Muscat and Sohar cargoes and to develop Sohar Port into a modern and efficient gateway port for the North Batinah and the Sohar Freezone Development of Terminal C is being fast tracked to bring facilities up to full capacity to meet the future needs of Oman but we don t stop here Prepared by: Hutchison Port Holdings Limited 16

17 Expanding hinterland and building bigger base Building upon the world class infrastructure and network being established in Oman Rail Expanding our reach: Source: GPCA / A.T. Kearney To take advantage of the world class road and rail network being established by Oman, we envision OICT as an integral part of Sohar Industrial Park and Freezone s rapid development and one of the key gateways for origin/destination cargoes in the GCC. Road Sohar Freezone Source: Sohar Port and Freezone Source: Sohar Port and Freezone Prepared by: Hutchison Port Holdings Limited 17

18 Ambitions for Terminal D A transhipment hub serving the needs of the region when a strong base has been built up A modern transhipment hub to serve future needs: Joint vision of HPH, the Sultanate of Oman and Sohar Port to develop Terminal D as a modern, automated transhipment hub. Potential to serve container vessels of 20,000 TEU class. Autogate Operations Remote-controlled QCs Automated Stacking Cranes Remote Control Center Prepared by: Hutchison Port Holdings Limited 18

19 Elevating Sohar Port to New Heights And more Increased integration and cooperation amongst key stakeholders to jointly develop efficient and competitive supply chain solutions for GCC Prepared by: Hutchison Port Holdings Limited 19

20 Our Mission To be the global market leader in port development, operations and logistics services Prepared by: Hutchison Port Holdings Limited 20