MARKETING OF RED SEA DEMERSAL FISH

by

Peter s. Bromiley

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS UNITED NATIONS DEVELOPMENT PROGRAMME Rome, September 1972 - ii -

THE INDIAN OCEAN PROGRAMME

The International Indian Ocean Fishery Survey and Development Programme, or Indian Ocean Programme for convenience, was formally conceived by the Indian Ocean Fishery Commission and its activities are conducted through that body. The Programme is supported by the UNDP and is being carried out by the FAO Department of Fisheries. Put simply, the objective of the Programme is fishery development in the Indian Ocean region.

~~C.~IT Programme Leader = iii -

MARKETING OF RED SEA DEMERSAL FISH

by

Peter s. Bromiley

SUMMARY

1. The terms of reference for this paper call for an examination of marketing prospects for Red Sea demersal fishes, but because of the general underdeveloped state of the fishery, the subjects of production and processing must also be considereda Accordingly, past, present and potential future harvesting efforts and methods are reviewede

20 Because of the extremely high refrigerated cargo rates from the Red Sea region to areas where bulk average catches of demersal fish can be profitably marketed, it is not possible at this time to identify any bankable investment scheme based' solely or princi­ pally on export marketing0 This situation is unlikely to alter until the Suez Canal is re­ opened and, for the present, thinking must be in terms of local marketing within the region and, furthermore, largely within individual producing oountriesa

30 Mainly because of the narrow, semi-enclosed configuration of the Red Sea, the bulk of the workable demersal fish habitat, that is to say the shelf areas, falls within territorial jurisdiction of three of the five states. However, correlation of resources and national needs presents a complex picture. Sudan, which might usefully absorb the greatest tonnage of fish as a protein deficiency corrective, has virtually no shelf area0 Ethiopia which has a large shelf area and substantial proven trawling grounds has little domestic interest in fish as a diet component e The Arab Republic of Egypt, Ethiopia and Sudan have amongst them over 80 per cent of the population bordering the Red Sea and for varying reasons the least prospects for marketing development at this time.

4. The Red Sea country with the greatest economic and human needs, the Yemen Arab Republic, is fortunate, however, in having available the required resources to support a viable vertically integrated fisheries development project, based on the domestic marketing of demersal fish, and the export marketing of high value crustaceao

5. While the proposal in this paper for an integrated development programme based on marketing of demersal fish in the Yemen Arab Republic is the only clearly identifiable investment prospect in the region at this time, the rationalization of long standing concessional arrangements relative to fishing rights in Saudi Arabia could clear the way for development of a modernized trawl fishery based on domestic marketing of the bulk of the catches and export marketing of selected varieties by airfreighting to the Mediterrannean and Europee Parallel distribution and sales network development to service the local market would be essential, as the traditional infrastructure could not possibly absorb the production.

60 Should the Suez Canal be re-opened, Ethiopia will have excellent prospects for develop­ ment of demersal fish production to service the ready market in the eastern Mediterranean.

7. The Arab Republic of Egypt is a good potential market for Red Sea demersal fish, but the lack of a suitable port on its Red Sea coast, together with the Suez Canal closure, precludes development of this possibility.

# COMMERClALISATION DES POISSONS DEMERSAUX DE LA MER ROUGE pa;r Peter S0 Bromiley RESUME

1 1 0 L objet du pr~sent document est d'examiner les perspectives de commercialisation des poissons d~mersaux de lamer Rouge, mais ~tant donn~ l 1 ~tat g&l~ral de sous-d~veloppement des peches dans cette r~gion, il faut ~galement ~tudier la production et le trai temen'L clu poisson0 Par cons~quent, 1 9auteur passe en revue les efforts et les m~thodes de p~che pass~s, pr~sents et potentiels0

2a Par suite des taux de fret extr&1ement ~lev~s des ca.rgos r~frig~r~s qui assurent le transport entre lamer Rouge et les r~gions o~ l'on peut commercialiser avec profit les captures de poisson d~mersau:x: dans leur ensemble, il n 1 est pas possible~ l 1 heure actuelle d 1 identifier U1l plan d 1 investissement ban.cable reposant uniquement ou principalement sur le march~ d 1 exportation0 Il est peu vraisemblable que cette situation se modifie avant la r~ouverture du canal de Suez et, pour le moment, il faut penser en termes de commerciali­ sation locale au sein de la r~gion, et largement a 1 1 int~rieur des divers pays producteurs.,

3.. Surtout ~ cause de la configuration ~troite et semi-ferm~e de lamer Rouge, l 1 habitat exploitable des poissons d~mersaux, c 1 est~-dire le plateau continental, est en gros sous la juridiction terri toriale de trois des cinq Etats rivera,ins., 'l'outefoio, il existe entre les ressources et les besoins nationaux des rapports complexes. Le Soudan, qui pourrait avec profit absorber le plus fort tormage de poisson pour corriger son insuffisance prot~ique, n'a pratiquement ~ sa disposition auCUlle partie du plateau continental., Par contre, 1 1Ethiopie, qui y a largement acc~s et dispose de fonds de chalutage d 1 une valeur reconnue, s 1 int~resse peu au poisson comme composante du r~gime alimentaire clans le pays. La R~publique arabe d 1Egypte, 1 1Ethiopie et le Scud.an ont ensemble plus de 80 pour cent de la population de la r~gion, rnais, pour diverses raisons, elles offrent les moindres perspectives au d~ve­ loppement du march~ a 1 1heure actuelle.

40 La R~publique arabe du Y~en, pays de la mer Rouge dont les besoins ~conomiques et humains sont les plus grands, a toutefois la chance d 1avoir a sa disposition les ressources n~cessaires A la mise en oeuvre d 1 un projet viable de d~veloppeme:nt des p~ches int~gr~ ver­ ticalement, sur la base de la commercialisation des poissons d~mersaux sur le march~ int~­ rieur et de l'exportation des crustac~s de haute valeur.

5. Si cette proposition de d~veloppement int~gr~ fond~ sur la comrnercialisati.on cles poissons d~mersaux dans la R~publique arabe du Y~men est a 1 1 heure actuelle la aeule per­ spective d' investissement nettement identifiable dans la r~gion, la rationalisation des arrangements conclus de longue date avec des concessiormaires a propos des droits de peche en Arabie saoudite ouvrirait la voie au d~veloppement d 1un ohalutage moderne bas~ sur la commercialisation de la majeure pa:rtie des captures sur le march~ int~rieur et sur 1 1 expor­ tation par fret a~rien de vari~t~s de choix vers la M~diterran~e et 1 1 Europe. Parall~lemen.t, le d~veloppement des r~seaux de vente et de distribution des-Gines ~ approvisionner le march~ local serait indispensable, l'infrastructure traditiormelle n'~tant pas en mesure d 1 absorber la production.

6. En cas de r~ouverture du canal de Suez, 1 1 Ethiopie aurait d 1 excellentes perspectiveR de developpement de la production des poissons d~mersaux, pour lesquels un marche 3Xiste dans la M~diterran~e orientale.

7a La R~pu1)lique arabe d 1 Egypte constitue potentiellement un bon niarche pour les poi0.~<.111s d&iersau.x de lamer Rouge, mais 1 1 absence d 1 un port a.d~quat sur son littoral ainsi que la fermeture du canal de Suez ne permettent pas d 1 exploiter cette possibilit~. #

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THE RED SEA a SURROUNDING STATES

20° 30° 40° 50°

A. R. of SAUDI

ARABIA 20°

S U D A N

10°

ETHIOPIA

oo """ITiii=

TERMS OF REFERENCE

INTRODUCTION 1

THE COUNTRIES AND THEIR FISHERIES • 0 3 0 61 • 0 • 3

THE DEMERSAL RESOURCES 0 F THE RED SEA o ,. • 0 • 6

DEMERSAL FISH PRODUCTION METHODS IN THE RED SEA a 0 0 @ • • 0 7

THE DISTRIBUTION NETWORK 10 AN INVESTMENT PROJECT BASED ON THE CATCHING AND MARKETING OF RED SEA DEMERSAL FISHES • • • o • o o • • • • o • o 0 • • . . . 10 Recommendation 11

Principal Highways in Y.A.R. 16

General Arrangement for Proposed Processing and Freezing Plant • • • • • • • • • o • • • • • • General Arrangement Dravrlngs and Explanatory Notes for Proposed Fish Marketing Sub-Depots Yemen Arab Republic • • • 18

General Arrangement Drawing for Typical Wet Fish Trawler • 0 • 19

Expatriate Support Element 20

BANKING AND COMMERCIAL TRADING PROCEDURES WITHIN THE REGION • • • • • 20

ACKNOWLEDGEMENTS 22 REFERENCES CITED 23

# ABOUT THE AUTHOR

Peter Bromiley was involved in small boat fishing in New Zealand at an early age. He le~ a planned career in accountancy in 1957 to take training for management responsibilities in a largB group of companies involved in the production, processing, distribution and domestic and export marketing of fish. He is a qualified marine engineer with wide experience in plant design and construction and in recent years has worked at executive management level on joint ventures in the Indian Ocean region. He joined FAO Department of Fisheries in 1971 and is now a staff member of the Indian Ocean Programme.

-l<· * *

- 1 -

MARKETING OF RED SEA DEMER SAL FISH

by

Peter S. Bromiley

TERMS OF REFERENCE seriously beyond this statusa However, both the Arab Republic of Egypt and Saudi To conduct a study of the feasibility Arabia have substantial marine coastlines of marketing Red Sea demersal fisheriesa on other seas, which, as well as supporting traditional operations, provide the location INTRODUCTION of bases for more advanced and modern fisheries. The Red Sea fisheries of all the Five countries, the Arab Republic of countries are dependent upon a localized Egypt, Ethiopia, Saudi Arabia, Sudan and the traditional distribution network and have Yemen Arab Republic share the coastline of minimal economic impact. Prior to the 1967 the Red Sea. Their aggregate populations closure of the Suez Canal, Egypt drew total approximately 86 million and the some supplies of groundfish from the Gulf following table, compiled from information of Suez, and in Ethiopia there have been at given in the World Bank Atlas 1971 7 gives least two joint venture attempts to promote population and economic data of each country: a modern trawl fishery. However, develop­ ments from Egypt have been restrained since Country Population GNP (1969- GNP 19670 One of the Ethiopian ventures is (1969) in US$) Growth said to have failed for a variety of reasons, millions per capita Rate including the general adverse effects upon (1960-69) commerce in the region brought on by the Suez Canal closure, and the other has been unable to develop beyond a very modest pro­ Arab Republic 32o5 160 1.2% duction level because of a lack of sales of Egypt outlets.

Ethiopia n. So 24.8 2.3% Taking into account only huma.n factors, such as dietary needs, cultures, eating Saudi Arabia 380 7.2 7.1% habits and traditions, volume local market­ ing of Red Sea demersal fish can most likely Sudan 110 15.2 o.6% be successfully introduced and/or further developed from its existing status, in the Yemen, Arab n. s. 5.6 2.3% Arab Republic of Egypt, the Yemen Arab Republic (est.) Republic, Saudi Arabia and Sudan, in that order of likelihoodo no So ... not stated Demersal fishing grounds sufficient All of the countries have traditional to support viable domestic based trawl fisheries in the Red Sea and, with the fishing operations exist only in, or adjacent exception of Ethiopia, none have ventured to, the territories of the Yemen Arab Republic, Saudi Arabia and Ethiopia. In the other economies of all five countries are in states the coastal fringing shelf area is urgent need of accelerated growth. In either too narrow to support a trawl fishing common with many of the countries of the operation or the bottom is too rough to allow Indian Ocean region, three have an acute trawling. protein deficiency in the diet of their people, as is shown in the following As indicated by the GNP data, the table:

Country Protein ~~pplies Protein Deficit Total National 1964~61/ RequirementsV Protein Deficiency Tons P.A. (Rounded)

Grams/Capita/Day

Arab Republic of Egypt Animal 12.3 Vegetable 64.3 Total 76.6

Ethiopia Animal 10.8 Vegetable 59.7 Total 70.5 61.3

Saudi Arabia Animal 9.5 Vegetable 46.7 Total 56.2 19 500

Sudan Animal 18. 7 Vegetable 40.2 Total 58.9 32 OOO

Yemen Arab Republic Animal 10.l Vegetable 47 o4 Total 57.5 70.2 26 OOO

The deficit in the Yemen Arab Republic will be manifest in infants, children, is particularly desperate a_nd the deficits and pregnant and nursing mothers. While are certainly serious in Saudi Arabia and it is not realistic to suggest that the Sudan. The fact that these data are per total protein requirements of all age groups capita averages means that the protein/calorie could be met from fish, application of the malnutrition among lower socio~conomic formula of eleven pounds of fish equalling sectors of the population is even more acute one pound of protein suggests an interesting and, in particular, adverse health effects and challenging situation, as may be seen in the following table:

Annual National Protein Tonnage of Fish needed Deficiency in Tons to eliminate deficiency

Saudi Arabia 19 500 214 500

Sudan 32 OOO 352 OOO

Yemen Arab Republic 26 OOO 286 OOO

Regional Total 77 500 852 500

1/ FAO Food Balance ShGlet y FAO Estimate - 3 -

THE COUNTRIES AND THEIR FISHERIES in the international shelf areas of the southern Red Sea and frozen demersal fish A country by country summary of the caught by other countries, e.g. Ethiopia, fishing industry status follows: could be imported and marketed. Simple upgrading of the traditional fishery is Arab Republic of EgyI?_t lmlikely to produce any appreciable catch increase of demersal species which would, Egypt is an excellent prospect for market­ in any case, be thinly sprea,d along an ing Red Sea demersal fish and would undoubtedly ex:tended coastlinee Accumulation of indi­ be the greatest immediate potential consumer vidual small localized tonnages would be amongst the surrounding countries, if supplies unprofitable, even if good roads were were available to ito Largely because of available, which they are not. falling domestic production from the Mediter­ ranean, per capita fish consumption declined To summarize, marketing prospects for from 4 kg in 1958 to 208 kg in 19650 As a Red Sea demersal fish in the Arab Republic result of distant water trawling in the Atlan­ of Egypt, while excellent, are severely tic and increased imports, the 1971 per capita constrained by the canal closure and the consumption rose to 3 kg and development plans lack of a modern harbour on the Red Sea call for further raising this to 6 kg by the coast from which a domestic distant water end of the current decade. To effect this, fleet might be operated and/or through taking into account population growth 9 a 30o% which demersal fish from Red Sea fishing increase in supply over 1971 will be required operations of others could be importeda by 1980 and a large propor~ion of this will have to come from sources other than the Ethiopia Mediterranean, according to information received from the General Egyptian Organization The traditional fishery in Ethiopia for Aquatic Resources0 Prior to the Suez Canal handles the greatest volume of fish of any closure, the Red Sea and Gulf of Suez annually in the Red Sea area. The main operation supplied about 15 OOO tons of fish, mostly is the catching of sardine and anchovy, pelagic species, to the local consumer market, which are sun-dried before grinding into a mainly in Cairo. However, with the cutting relatively low-grade meal for export to of the transportation chain which operated Europea There have also been some efforts through the canal by water, and alongside it to mount modernized demersal trawl fishing by road, this trade has slumped to less than operations0 One of ·these is a, joint venture 5 OOO tons. While there may be some scope for with Israeli interests, which exports about increased trawling for demersal species within 800 tons of frozen demersal fish to the the Gulf of Suez where there are smooth bottom Israeli market each year. Unfortunately, and workable depths, the shelf is particularly there is no growth potential in this partic­ narrow along the country's Red Sea frontageo ular operation, as the Israeli market is The taking of useful quantities of the demer­ clearly stated by Grofit (1971) as incapable sal species, which congregate around reefs of absorbing any greater tonnage. Medi ter­ and coral outcroppings, will be contingent ranean style trawlers, the property of the upon development or introduction of new methods Israeli partners to the venture, are employed of catching with proper provision for catch in taking the required tonnage. It is under­ preservation. Essential requirements of port stood that since 1967 these vessels have been facilities and shore installations, for pro­ transporting their frozen catches back to duction of ice for use on fishing vessels and Eilat in Israel, owing to cessation of ashore in the handling of their catches, could refrigerated cargo services. be provided by acceleration of plans for development of a fishing and frozen fish Another recent effort by joint Bulgarian importation harbour at Safaga or Qusei:r:·. This and Ethiopian interests based its economic would also pave the way for some upgrading of justification on the export of frozen demer­ the traditional fishery and the possible mount­ sal species and shrimp to Europe and the ing of distant water trawling in the Indian conversion of incidentally caught scrap Ocean on a similar scale as has been done from fish into meal. Modern shrimp trawlers and Alexandria on the Mediterranean, from where shore facilities were employed, using vessels work as far afield as the North Massawa as a base, but the venture has failed Atlantic. If such development took place, some for reasons which are said to include the trawl fishing could be done by national vessels following: (i) the failure of shrimp catch - 4 -

rates to match the pre-investment projection; the coast to the north-east. Exploratory (ii) lack of both local and export markets for trawling for dernersal fish was conducted groundfish; and (iii) organizational pro­ with good results in 1953-54, but unfort­ blemsa unately this was not followed by successful development. A substantial amount of capi­ Fishery development in Ethiopia in the tal was spent by the promoters of the Saudi foreseeable future will most certainly hinge Arabian Fishing Company, which commenced exclusively on commercial viability, since operations in 1952, with the stated objec­ there is no immediate case for Government sub­ tive of promoting a modern fishery equipped sidies for any projec·t through its formative with a freezing plant and a cannery. How­ years. Past efforts to market fish in volume ever, the venture was a failure and ceased within the country have failed chiefly because operating after one year. In Jeddah, some of high transportation costs and when it is progress has been made in upgrading the considered that (a) ninety per cent of the traditional fishery with improvements to population lives in widespread rural areas and fishing gear, handling methods and market­ (b), while there are pocket areas where people ing, but these have not been fully inte­ suffer from dietary imbalance, meat is rela­ grated efforts and imbalances vis-~-vis tively cheap and fairly widely available, the production and marketing have, as so often utter dependence of any fisheries development happens, caused many problems and restrained upon export markets is obvious. development generallyo A constraint to further investment from ·the private enter­ To summarize, owing to high costs of prise sector has been caused by concessional available transportation, it is not possible rights to take fish commercially from Saudi to identify any potential for substantial Arabian territorial waters being allocated sales development for demersal fish, domestic in the past on an exclusive basiso or export, in Ethiopia at this timea It is, however, likely that, with reasonable encour­ Traditional fishery catches represent agement, private enterprise will develop and the usual mixture of pelagic and demersal take advantage of any favourable changes, as species common in the northern sector of and when they occuro If there were a serious the Indian Ocean and also confirm the pre­ overall food supply problem within the country, sence of valuable exportable varieties, there would be a better case for recommencing such as red snappers, gTOupers, breams, Government support of an integrated fisheries some edible sharks and various flatfish. development programme. A review of all avail­ able data indicates that there are more press­ To summarize, there are definite ing national priorities and such an approach marketing prospects in Saudi Arabia for would not, at this time, be realistic. While demersal fish from the country's Red Sea it might presently be possible to airfreight coast, and a comprehensive marketing pro­ to export markets the top ten percent gramme incorporating both domestic and selection from trawl catches, the question of export placement is operationally feasible. how to support surface freight charges in the Selected premium varieties could be air­ order of $200 per ton on the balance of the freighted to Mediterranean markets from production cannot be solved under current Jeddah, which is on the regular inter­ conditionsa Should the Suez Canal re-open, national routes of several airlines, and the logistical problems vis-~-vis exports substantial tonnages could certainly be would be solved and it is highly likely that sold within the country if the necessary the private enterprise sector would become infrastructure is developed. aggressively involved in fisheries develop­ ment with the object of marketing in the While it is not possible at present to Mediterranean region, which has a presently identify a clear avenue for private invest­ established and continually growing potential ment because of other factors, it is recom­ for Red Sea demersal fish. mended that the Government of Saudi Arabia should consider ways to promote, as a Saudi Arabia national project, the development of an integrated fisheries programme based on the The Red Sea fishery of Saudi Arabia is catching and marketing of Red Sea demer­ entirely traditional. The main centres of sal fishe The fish could be taken by operation are at Jeddah, which is the main simple ice-carrying trawlers, crewed commercial port in the country, and at Yenbo, largely by local crews and based initially a fairly large fishing village 180 miles along on appropriate shore facilities at Jeddahe - 5 -

The bulk of the production could be sold and involve ·the livelihood of far more locally by development of an expanded market­ people. ing and distribution infrastructure which would be an integral part of the programme. Yemen Arab Republic As there are good air services from Jeddah to ready export markets for selected Red Sea With valuable identified marine fish demersal species in the Mediterranean region, resources and a population of 5.5 million from 10 to 15 per cent of landed catches who suffer from a protein dietary deficiency should be graded out for disposal by this of over 20 per cent, the situation in the means, along with incidentally caught crusta­ Yemen Arab Republic presents a challenge ceao to the ingenuity of fisheries development plannerso The traditional fishery produces Sudan something like 7 500 tons of mainly pelagic species per year and is restrained from Sudan has a Red Sea coastal frontage of further development by lack of a supporting approximately 300 miles. The shelf area is distribution infrastructure. Investigations very narrow and dotted with coral outcroppings of FAO field officers working under the and reefs. There is therefore no scope for auspices of the Freedom from Hunger Campaign trawling, and demersal fishing has been con­ reveal that it is not uncommon to find fined to the traditional hook and line, set centres of population desperately short of nets and beach seine methods. Pike (1972) food within a very short radius of fishing states that the traditional fishery has not villages where fishermen are only partly grown above an estimated 300 tons production employed due to the inability of the tradi­ per annum of mixed demersal and pelagic spe­ tional commercial network to absorb, pre­ cies and this finding lends some weight to serve and distribute their catch. A fairly the local opinion that this portion of the Red substantial resource of exportable shrimp Sea coast is exceptionally unproductiveo This and trawling grounds capable of supplying figure is also reflective of distribution and well over 20 1 000 tons of demersal fish per catch handling constraints, such as the lack year have been positively identified in the of landing places for fishing vessels, receiv­ past three years, but both of these resources ing stations for catches, and ice supplies. are beyond the present reach of the tradi­ These factors were identified and commented tional fishermen and will remain so until upon earlier by Reed (1962). suitable new equipment, vessels, and methods are introduced. A great need and the opp­ To summarize, an upgraded artisanal ortunity exist for development of a fully fishery keyed to parallel infrastructure integrated fishery, using modern but simple development would bring an improvement in the techniques and equipment to which local standard of living of the relatively small fishermen can readily adapte Developed on number of fishermen and have a minor impact an integrated, national basis, the fishing on the general animal protein supply defi­ industry could make a substantial contri­ ciency o However, the potential of the thus bution to the national economy by providing improved fishery is unlikely to exceed important foreign exchange from the sales 2 OOO tons and, of this total, it is likely of shrimp, as well as supplying essential that less than 20 per cent would be demersal domestic food supplement from demersal fish. specieso There is 7 therefore, little scope Provided exploitation of the available for development of marketing of nationally fisheries resources within the Yemen Arab caught demersal fish in Sudan based on supplies Republic's territorial jurisdiction is from the traditional fisherye Marketing of undertaken as part of an integrated develop­ groundfish produced by other Red Sea countries, ment programme, the industry could soon or taken by development of a domestic based become self-supporting. However, in view industry using medium range vessels to operate of the fact that (a) development is urgently in the southern sector of the Red Sea, would needed in the national interest, and (b) in either case involve substantial develop­ maximum Government support and cooperation ments of harbour facilities and transportation will be needed to mount the necessary networks within the country. Application of integrated programme, the problem cannot the effort and capital involved in promoting be viewed solely in terms of immediate finan­ such a programme would yield better results cial viability and economic return. Manage­ if applied to development of the inland fish­ ment problems will be complex and great care eries, which have more identified potential will be needed to ensure gradual - 6 -

strengthening and eventual absorption of the per hour in the winter to 400 kg per traditional fishery, in a manner which will hour in the summer. This vessel is of cause no hard.ships. comparable size, horsepower and catching capacity as the NISHIN MARU 52, used by To summarize, the Yemen Arab Republic the FAO/uNDP trawl survey operation in the offers domestic marketing avenues for demer­ Gulf of Aden during 1970/71, where catch sal fish from the Red Sea and export outlets rates averaging 250-300 kg per hour of for available crustacea. Recommendations in marketable fish were experienced and where this respect are examined later in this study. continuing commercial trawl fishing is currently conducted by Japanese vessels THE DEMER SAL RE SOURCES OF THE RED SEA under royalty arrangements with the Govern­ ment of the People's Democratic Republic Other than identification data, very of Yemen. Thus, it can be safely assumed little information of value about the demer­ that there are sufficiently concentrated sal resources can be drawn from the Red Sea stocks of saleable groundfish available traditional fishery. There is, however, a from the shelf areas of the southern sec­ wealth of information available from other tor of the Red Sea to warrant commercial sources. exploitation. It has also been established by shrimp trawlers and TARIQ II that, in Exploratory trawling cruises by Soviet Yemen Arab Republic waters, a very large vessels in the early 1960 1 s provided data tonnage of so-called demersal scrap fish used by Greek commercial operators in will be taken along with the presently 1964-1967, at which time useful quantities of more valued snappers, mullets and breamse good quality groundfish were taken in the A resum~ of various catch analyses drawn southern sector by large factory trawlers en from the fishing logs of the TARIQ II and route to and from Piraeus and the South the Greek trawlers THETIS and GLAF'KI, Arabian and Somali coasts. More recently, fishing off the Yemen Arab Republic, shows simulated commercial trawl fishing operations the following average trawl catch composi­ have been conducted in Yemen Arab Republic tion, categorized according to potential waters by the UNDP/FAO stern trawler TARIQ II. commercial value on the Mediterranean Saudi Arabia, Ethiopia and the Yemen Arab market. Republic possess or are adjacent to the bulk of trawlable waters and they have a combined First category group: shelf area which is capable of providing, on the basis of present knowledge, at least Lethrinus nebulosis Indian Ocean 60 OOO to 80 OOO tons of groundfish per year dentex (Greece) on a continuing basiso Gulland (1972) has Lutianidae Red snappers estimated the demersal fish potential of the Soleidae Soles entire Red Sea at 180 OOO tons per annum. Bothidae Flounders The productivity quotient adopted assesses Serranidae Rock cod - grouper the groundfish crop at 10 kg/ha/year. While Mullus surmulletus Red mullet - the overall estimate for the Red Sea is goat fish certainly realistic in relation to the total Nemipterus japonicus Threadfin bream shelf area, it is apparent from actual trawl­ antak ing results that the waters of the Yemen Arab Republic, at least, come close to the demer­ Fish in this classification average sal productivity capacity of the Gulf of about 35-40 per cent of the total catch. Aden which is assessed at 50 kg/ha/year. They are all export marketable and are Skippers of Greek trawlers in 1966/1972 particularly popular in the Mediterranean reported very clean trawl catches off Ethiopia region a and Yemen Arab Republic with a higher per­ centage of premium varieties of dentex Second category group: (Lethrinus nebulosis), red mullet (Mullus surmulletus) and red snappers (Lutianidae) Spiloticht};lYs pictus - Greyskin than usually found in other Indian Ocean §qualus acanthius - Dogfish - small trawling grounds. TARIQ II, the UNDP jFAO shark stern trawler, has established marketable Sphyraenidae Barracudas trawl fish catch rates in Yemen Arab Republic Oplegrathidae - Coral-fishes waters which vary seasonally between 150 kg - 7

Fish in this classification make up from traditional fishery is as follows: 12 to 15 per cent of the "Gotal catch© Market~

ing efforts initially1 with the exception of Tons sharks, should be confined ·to local or regional placement., Arab Republic of Egypt 5 OOO Ethiopia, 18 OOO Third category group: Saudi Arabia 6 OOO Sudan 300 Pristidae Sawfishes Yemen Arab Republic 7 500 Ariodes dussumieri - Catfish Carrangidae - Jackfish, trevally TOT.AL 36 800 Chorinemus sanotipetri- Queenfish Rhinobatidae, Raiidae, Aetobatidae, The estimate for Ethiopia includes a Dasyatidae Skates and Rays figure of 14 OOO tons for anchovies and sardines, which are sun-dried and ground ~' a host of small mixed g:t'oundfish into meal0 The balance from Ethiopia and including triggerfish, pipefish9 grunts, the total output of the other countries, flatfish, croakers, etc" comprises mainly larger pelagic speciese It is unlikely that, overall, any more than Fish in this classification comprise about 2 500 tons of demersa,l fin-fish are takene 50 per cent of total trawl catch and are Sharks, which can be described as demersal usually returned to the water as of no commer­ or pelagic because of their wide ranging cial value" There is scope for promotional habitat, probably make up about 5 OOO tons efforts to distribute and market at least a of the totale As demersal fin-fish are portion of this wholesome protein source to not favoured for sun drying, the gill-nets the needy populations in regional hinterland which are the principal catching method areas and there should be some export prospect employed are rigged for catching sharks, for skate wings once suitable processing faci­ tunas and mackerels and the bulk of the lities become availablee The success of any estimated total of 2 500 tons of demersal efforts in this direction will depend heavily species is taken by hook and line or beach upon the organizing expertise of the manage­ seine so ment involved, as many of the people living in the areas of acutest need have never seen, Mechanized and Modern 1Rt alone tasted, marine fishe Those who have previously eaten fish have usually done so A study of the history of at·tempts at when visiting coastal areas and have only mechanized trawling in the Red Sea (explo­ experienced fresh fish direct from the seaa ratory Government fishing and commercial Sales promotional efforts must include a fishing from both locally based and off­ simple explanation of the function of ice in shore fleets) reveals a fairly successful fish preservation" In addition to the demer­ pattern at the point of production. Subse­ sal fish species, useful and very valuable quent capitalization has been restrained quantities of crustacea are taken in Red Sea by two principal and somewhat related fac­ trawl catches" Shrimp and shovel-nosed lob­ tors: ster (Tenuis orientalus) will often make up as much as 10 per cent of the catch, depending (a) The Suez Canal closure in 1967• on the mesh size of the trawl nets employed@ which has virtually eliminated These products are readily exportable and the foreign high seas operations as high prices which they attract would bring well as shutting off surface export added financial viability and augment the over­ possibilities for frozen fish from all economic justification of an integrated local operations; trawl fishing development progra:mme0 (b) The lack of a distribution infra­ DEJVIERSAL FISH PRODUCTION METHODS IN THE structure able to move and market RED SEA perishable seafoods, fresh and/or frozen from the Red Sea coast to Traditional centres of population in the inter­ ior of the countries of the area, Estimated annual production of the Red Sea which has constrained locally based effort so The following is a brief operational waters off Saudi Arabia, Yemen Arab review of two FAO executed exploratory trawl­ Republic and Ethiopia. While these ing operations, a foreign based off-shore operations were considered by the commercial trawling venture and a joint owners to be very successful, it is trawling and exporting venture between local difficult to draw many useful conclu­ and foreign interestse sions from the operations of these vessels which have application in (1) During 1953 the !talian Mediterranean development plans of the countries of style trawler PEPPINO (75 Gross tons - the area because: 200 hp) conducted experimental trawling off the Saudi Arabian coast under char­ (a) These sophisticated and expensive ter to FAO, acting on behalf of the vessels could not be contemplated in Saudi Arabian Government. Saby and the immediate future as working tools Farina (1954). The results were most by any of the three local countries encouraging, with catch rates of preferred with available shelf area. varieties averaging 150 to 200 kg per hour, with the usual accompanying higher (b) The trawls which they employed proportion of so-called "scrapfish". It were very heavy and in no way compar­ is notable that the PEPPINO operated for able to any gear which could be handled over seven months with one set of gear, by small vessels which local ventures which was still intact at the end of the would properly use. survey. Th~ greatest operational pro­ blems reported included the lack of navi­ The operations of these large traw­ gational aids and the difficulties of lers did prove profitable and, on working safely in and around reefs at occasions, vessels returning to night and at other times of poor visibi­ Piraeus from the Indian Ocean were lity. able to land iced fish from the southern Red Sea. It sold extremely (2) During the period mid-1970 to the present, well on the Greek market. Substantial the stern trawler TARIQ II, operated by portions of the available shelf area FAO in connection with the UNDP Special in the Red Sea a~e heavily studded Fund Fishery Development Project in Jor­ with coral and rocks and can only be dan, has conducted simulated commercial trawled by large vessels such as these, trawling operations throughout the Red which are able to handle very_ heavy Sea. The principal operational conclu­ ground gear needed. Joint ventures sions to be dra'l'm from results of the to exploit these particular areas, be­ work of this vessel to date are: tween countries of the region and foreign vessel owners, may have attrac­ (a) The only commercially productive tion when the Suez Canal is re-opened. Trawl fishing grounds in the Red Sea are those within and immediately adjacent to (4) In Ethiopian waters, based on the port the territorial waters of the Yemen Arab of Massawa, a joint venture operation Republic, Ethiopia and Saudi Arabia. between loca,l and Israeli interests, has been conducting limited modernized (b) The most productive waters are those trawl fishing with Mediterranean type of Yemen Arab Republico vessels in recent years. However, expansion of this venture has been con­ (c) The estimated catch rate for an ice­ strained by the inability of the carrying trawler of 25/30 metres length Israeli market to absorb more than and around 400 hp working i:n Yemen Arab 7-800 tons per annum and the blocking Republic waters, based on suitable shore off of other potential outlets by the facilities to be erected in Hudaydah 9 is Suez Canal closure. about 600 tons per annum of first cate­ gory groundfish. Potential new methods (3) During 1966 and 1967, the Achilles Line caught demersal fish will always Frangistas Fishing Company, operating out command a premium price over trawl caught of Piraeus in Greece with 86 metre fish and, furthermore, the method can be 2 OOO hp factory trawlers, fished the fairly selective in the varieties which it talces. At present, the actual supply of fish and keep it in top condition for marketing. is not the greatest problem to be solved, and A general arrangement ctrawing of a typical it is unlikely that a line fishery, promoted Mexican Gulf vessel, which is reprinted on as a separate entity could survive. However, page 19, was given by Sundstrom (1957). if the auxiliary needs of ice supply packing There are many reports of very high catch and processing factory were met in Saudi rates by line fishermen in the Red Sea and Arabia, at Jeddah, as a result of other some catches of up to 100 kg/hou:r/8 lines development, such as trawling, there would be of first..:.Class demersal fish were obtained justification for putting one or two suitably by the PEPPINO in 1953• On one occasion, arranged vessels to work on line fishing for six lines took 220 kg of first-grade fish snapper and grouper, particularly around the in ninety minutes. The average handline reefs where trawlers cannot operate, with the catch, over a seven-month period of inter­ object of catching premium fish for exporting mittent tests, comprised 80 per cent snap­ fresh by air. The most suitable vessel for per and rock cod. this work would be a large, local dhow, fitted out in the same manner as a reel-equipped Should the Suez Canal open a:nd/or the Mexican Gulf style Snapper &Dack, which is not proposed fishing port be built on the Red only ideal for the catching operations, but Sea coast of the Arab Republic of Egypt, is also properly equipped to handle the catch the same developnental sequence could have application in several other base areas.

/ SNAPPER FISHING

SNAPPER BOAT

Length in Feet...... 32 to 103

Beam in Feet ...... 10 to 30

Draft in Feet ...... , ...... 3 to 11

Net Tonnage ...... 5 to 98

Construction ...... Wood

Engine: Type ...... Oil

Horsepower ...... 30 to 110

Type of Refrigeration ...... Ice

Cruising Speed ...... 6 to 10 Knots

Average Crew ... , , ...... , .. 2 to 10

Length of Trip ...... 7 to 14 Days

Convertibility to Other Types of Gear ...... Tuna Long Line - 10

THE DISTRrBUTION NETWORK tracks and caravan routes negotiable only by four wheel drive vehicles. Roads and Ex·ternal comnrm1ications are improving constantly and there is a most commendable tendency To the countries of the Red Sea, the for the assistance programmes of bi-lateral closure of the Suez Canal has been a catas­ aid agencies operating in the region to trophe of great dimension0 The effects upon apply considerable effort to road improve­ the economies of Sudan, Ethiopia, and Yemen ments., It is very important that Govern­ Arab Republic have been most severe because ment Minie::rtries responsible for the fish­ they lack other maritime outletse Sea freight eries sector in the va,rious countries which could formerly enter these countries study their requirements carefully in order within weeks of ordering from Europe and North to ensure that fishery needs are considered America, now often talces many months and, when programmes for road development are furthermore, the regular freight lines to and being formulated" from ·Asia and Europe now by-pass this region completely. The only fully-fledged AN INVESTMENT PROJECT BASED ON THE operational commercial airport on the shores CATCHING AND MARI

sels 9 transportation vehicles and elec­ Fisheries Industrial Development Adviser tric power genera,tion equipment employed whose ter,ms of reference should be: on the pro jed (1) To assist the Government of the Yemen (c) Continuing exemption from sales tax Arab Republic in determining CJ, nat­ and duties of all re~exportable Hems ional policy for management and used in the industry such as packaging exploitation of the coun·bry1 s fishery material so resources in the national interest.

(6) Designation of responsibility for moni~ (b) To assisJG the Gover~nment of the Yemen toring the performance of the venture in Arab Republic in planning a national a single Government Ministryo fishing industry based on a modest, expandable fully in·begrated trawl rl'he following are suggested terms of 9 fishing ventureo The venture should reference for the project: be equipped with simple ice-carrying trawlers which will catch both shrimp (1) To plan and carry out development of an and groundfish. The shrimp will be integrated fishing industry, with the processed a·t a factory to be erected principal aim of catching and distribut~ in Hudaydah and the fish will be ing food fish throughout the Yemen Arab distributed and sold within the country Republic in a carefully phc:rned manner by means of a distribution infra~ ensuring at all times that resources of structure which will be developed by capital and manpower are :not too thinly the venture o spreade

(2) To develop, to the maximum extent possible, (c) To assist the Government in obtaining, export income from maximum return lines, from UNDP, bilateral agencies a:nd/or such as crustacea and tuna, in order to lending institutions, the necessary subsidize the cost of food fish to local funding for the implementation of consumers and to keep to a minimum the the planned programme. need for an operating subsidy from Govern= ment in the developing stages of the (d) To ensure that developmental planning industry. incorporates provisions to assist, upgrade a:nd protect the traditional (3) To plan and carry out development in a fisheries structure. manner that will interfere to the least extent possible with the livelihoods Proposed First Stage Development of persons dependent upon any part of the artisanal fishery and related tradi= Production tional activities Four 50 1 - 60 1 simple stern rigged (4) Within the concept of (3), to assist the ice-carrying trawlers would be purchased0 artisinal fishermen and supporting trades Initially, two would be equipped with by improving their operating techniques, semi-balloon shrimp tr·awlers and JGWO with purchasing their increased production, higher lifting, larger meshed wing trawls.

and 1 where possible, ensuring their ~1he vessels would be single riggBd - 12 -

in the .interests of ease of operation and freight of about 3 tons of fish. The load training, and the slightly decreased shrimp would then be taken to main inland depots catching efficieny would be more than off­ which would be established (progressively) set by advantages of gear inte:rchangeability a·t Saana, Dhamarr, Thb and Taizz (see map and by economies in the level of expatriate showing main roads on page 16)0 assistance :required. The main object of the operation in this initial phase would be to Allowing for fishing trips of 4 days balance fish production with market develoP­ duration,. with distribution to depots mente taking place on the fifth day there is no reason why, with good management, any fish Processing should arrive in the hands of the end-user more than five days after being caught. Initital processing of catches at. sea The first unloaded from the holds of the would involve separation of crustacea from vessels would be that most recently caught groundfish, careful washing and packing in ice and the freshest. This top portion of the in containers for storage in the vessels' in­ loaded catch would be used for distribution sulated holds. Shrimp ~ould be headed unless to the remotest receiving station and in the vessel was returning to port within eight effect the quality of fish at these sub­ hours. When the catches are landed, the distribution centres should be fairly uni­ boxes would be taken to the shore factory form. At these points, sales and distribu­ where the shrimp and other c:rustaoea (eog. tion would have to be effected in acco~dance spiny lobster.and shovel-nosed lobster) would with a carefully organized promotional plan. be packed and frozen for export. The fish Eventually, these main depots would become would be sorted according to marketing plans sub-distribution points feeding more :remote and re-iced in distribution.containers, which arease contain about fifteen kilos of fish plus ice. Cost Distribution - All costs are shown in US$ and the The distribution containers would be venture would be a complete turn-key loaded into insulated transport vans, which package., Costs of training support are should be able to carry a gross payload of shown separately, as it would be completely about five t.ons which would represent a net unrealistic to project these as an opera­ tional expense.

Equipment

Vessels: Four 50' steel trawlers arranged for trawling over the stern with single rig and carrying their catches in ice (general arrangement drawing page 19).. Estimated total cost ex-Mexican yard delivered Yemen, com­ plete with fishing gear and spare parts. US $100 OOO each US $400 OOO US $400 OOO

Vehicles: Three low profile insulated bodied vans arranged for transport of wet fish and ice in draining containers. One chassis to be four wheel drive and all with gross payload of 5-6 tonse Estimated cost complete with spares 35 OOO 1 Landrover 3 500 1 ~ton pick-up truck 3 OOO l 5-ton tip truck for ice and fish cartage 7 500 cartage Total vehicle costs US $ 49 OOO US $ 49 OOO

Sub-total carried forward US $449 OOO US $449 OOO

Factory: Sundry equipment othe1' than machine~y (e.ge fish boxes 9 trays, sanitary benches, scales, eto ") US $ 50 OOO

Workshop; Basic 1naint enanoe and servicing tools and equip.• ment for vessels plant and vehicles @ao000 say? 25 OOO Office and depots - desks, files 9 typew11 ite:rs, sb,tionery and sund.ries 15 OOO Single side band radio equipment for communica:tion between depots and high frequency for vessels plus base sets a:t factory 50 OOO

rrotal equipment cost US $ ·140 OOO US $140 OOO

Plant and :Building~ F'dcto:ry (drawing page 17) 200 tons storage at -1cP F, 15 tons per day ice ma.king0 60 tons ioe storage.. 5 tons per day blast freezer, Jaokstone Senior Plate Freezer or equivalent a Office, workshop and sp;;i,re pa.:rta store, 400 OOO Garage and·workshop 60 OOO Contingencies and miscellaneous 40 OOO

US $ 500 OOO Receiving depots (drawing page 18) 35' x 25' = 875 sq. ft" in 4 compartments Estimated cost: Buildings 15 OOO Machinery 10 OOO Installation 5 OOO Pe:r Uni't 30 OOO

3 Units US $ 90 OOO eeo•o• say 100 OOO

Tot al Plant and Buildings cost US S 600 OOO 600 OOO

Total capital cost US$1 189 OOO ~ 14 -

for shrimp and small demersal fish and the other for larger demersal fish and shrimp, While the vessels may be operated with the ca·tch composition is averaged for the two different types of gear, one ·type purposes of these projections.

Per vessel working 200 days per year:

Expenses

Fuel 200 days x 100 gallons c 20 9000 gallons at US $0.,20 US$ 4 OOO Ice - 400 tons at US $10 4 OOO Maintenance 15 OOO Insurance 10 OOO Depreciation 10 OOO Gear replacements 8 OOO US $51 OOO

Revenue

200 tons large demersal fish (over 1 kg) at US $150 US ~~30 OOO 100 tons small fish and sharks at US $75 7 500 200 tons scrap fish at US $30 6 OOO 40 tons shrimp tails at US $1 OOO 40 OOO

Gross revenue 83 500 less 1/3 to crew 27 800

Net revenue per vessel 55 700 55 700

Profit per vessel on trawling account us ~t 4 700

Factory and Depot operating account

Depreciation 8% and Insurance 2 %= lo% on US $600 OOO US $60 OOO Repairs and maintenance 25 OOO US $85 OOO

Water 10 OOO Electricity at US $200 per week 10 OOO Management and Secretarial - 1 at US $8 OOO, 4 at US $4 OOO 24 OOO Sundry office overheads 10 OOO 54 OOO

Vehicle operating costs 60 OOO Vehicle depreciation - 25% 12 250 Vehicle insurance 5 OOO Vehicle contingencies 5 OOO 82 250

Sub-total carried forward US$221 250 us $221 250

Interest on operating capital of US ~~ 200 OOO at 8% US i$16 OOO 16 OOO

Purchases of fish from 4 trawlers 4 at US $83 500 334 OOO Shed wages ~ 30 workers at US $ 80 p.,me x 12 months 28 800 Packing materials and expendab1es 20 OOO Cleaning P.tc. 7 200 390 OOO

Total operating expenses US $627 250

Revenue 2/ 1,800 tons fish at average price US ~i200 per ton (Domestic) US 1P360 OOO 160 tons shrimp at US $3 OOO per ton F.,O.,BE> Huda:vdah 480 OOO

US ~~840 OOO Net trading profit 212 750 Plus profit from 4 vessels 18 800

NET PROFIT us ~S231 550

The domestic selling price of US $200 be realist ice If, however, l;he price per ton for iced fresh fish ex-depots pre·~ of US $0.14 per pound, (YAR Riyals 066) sumes that the production will have to pass, proves too high and creates a barrier to on a a.verae;e 1 ·f. hrough one further inter­ product acceptance and sales development, mediary before reaching the consumere This a substantial reduction can be effectedv will proba.bly result in an increase in price and profitability maintained as can be of about. 33Y31~, makin,c; TJS $26G, say US .lt280 seen from the following table. per ton, or 14.0 cents US per lb which should

Est. Price per ton ex-depots Est. retail price per pound Net profit

-~ (rounded) (rounded)

US Dollars US Dollars YAR Riyals US Dollars

200 Ool4 o.66 230 OOO

175 0.12 0 .. 57 185 OOO 150 0 .. 10 0.48 140 OOO

100 0.07 0033 50 OOO

J} HY7'~ for shrinkage and processing. Note: Nearly all fish w:i.11 be sold in the round. - 16 -

IN Y.A. R.

S A U D I

A R A B I A

1 \ • Sa doh

y E M E N

0 .. :'.' ...... A R A 8 B ...... <{) IJ " ... 16° ·.~::· 16° .. R E p u B L c

Az Zaydiyah

Dhamar . )

14° r IJ •

ADEN

GULF OF ADEN GENERAL ARRANGEMENT FOR PROPOSED PROCESSING AND FREEZING PLANT 1------1 ITEMS: A, B AND c = LOW TEMP. CLIP ON TYPE 1~22 EVAP/CONDENSER UNITS I ENTRANCE TO OFFICE AND PARKING AREA I CHILLING UNIT FOR ICE BIN E D = I 15 metres I ~ E = MAIN ENTRANCE, RAMP TO LOADING LEVEL. AIR CURTAINED ! F = ENTRANCE ICE-CHUTE BAY. AIR CURTAINED

NOTES I. SEA WATER CONDENSING 2. ROOF UNITS FOR AIR CONDITIONING. FACTORY AREA "' DRY ENGINE ROOM 3. F.22 REFRIGERANT. ALL UNITS ON POSITIVE PRESSURE­ STORE I WORKSHOP NO VACUUM AND SPARES u 25 metres

~ A 1--i B I E BLAST FREEZER

I ~ - 30° F. I PROCESSING AND PACKING 65° F. I I POSSIBL~EXT. ~ ! I FOR PAC AGE "'E : BY PRO UCT STORAGE - 10° F. 250 TONS c 0 f-1 I FISHMEA -J

: PLANT RAJll P I I

L_ t ~ I / i / I b I A I cl ~ t

40 metres PLAN

SCALE 1/200 ICE r---iPLANT 11---_J ___ J. __ _

ICE STORE

I 32° F. I I I 1-T------_TJ I I I I I I I I 1111''I 1 I I I I I I I I

SIDE ELEVATION ( .1 .J-"'11 ~~~I - 18 -

GENERAL ARRANGEMENT DRAWINGS AND EXPLANATORY NOTES FOR PROPOSED FISH MARKETING SUB-DEPOTS YEMEN ARAB REPUBLIC

LEAN TO ENGINES. COMPRESSOR ROOM

SALES AND FISH- BOX WASHING S STORAGE

1 375° ICE MAKING AND WET ROOM SrORAGE 32° F FOR STORAGE \ CASED FISH 32°F 1500 cu' 2500 cu' ( FLOOR PLAN 'C

OFFICE S. DRY STORE RAMP 100°' 9' ROLL UP DOOR

10 ' 15 ' 10 '

ICE MAKER

ENTRY AND ELEVATION

EE ROLL-UP DOOR

RE FRJGE RATION ELECTRIC POWER (1) Ice maker 3 tons per day (1) 220 V. 50 cycle A. C. (2) Ambient cooling in wet room by gilled tube grids (2) Two air-cooled diesel driven alternators with (3) Ambient cooling in Ice Store by blower tropicalised windings each capable of carrying (4) Ambient cooling in Sales Room by 3 ceiling-mounted full load plus 25 per cent air conditioning units GENERAL (5) All refrigeration units F. 22 with fresh water (I) High pressure water supply units and, if necessary. evaporative condensing water reserve tank for washing purposes (6) Reefer system should be detailed to avoid (2) Insulation for wet room and ice-store floors of operation on vacuum high density styrofoam (7) Floors of Ice Store and wet room should have generous (3) Sub floors should be graduated rubble cross fall to entry doors from sales hall, which in turn (4) Building sites chosen should be slightly elevated should have generous fall to central trench drain and wherever feasible proper external traps and soakage pit (5) Lean-to roof with 1 :25 fall from front to rear (8) Compressor and engine room should have screened (6) Main building wall construction vibrated concrete forced ventilation masonry (7) Roof construction concrete masonry with poured in situ bond beams I

GENERAL ARRANGEMENT DRAWING FOR TYPICAL WET FISH TRAWLER ~

,_.. '°

0 - 20 -

EXPATRIATE SUPPORT ELEMENT that this presentation is used only as a starting point and for guidance as to the The foregoing costs take into account general situation pertaining at that time. only local salaries and wages. To give effect Under no circumstance should a status to these proposals, the following expatriate quo be assumed nor should the summaries be support and training staff would be necessaryo used as a basis for final detailed invest­ ment evaluation or commercial transactions. Man/years required The Arab Republic of Egypt Project Manager 5 years Chief Engineer 4 years Currenc;y Transportation Foreman 3 years Masterfishermen (2) 8 years The unit of currency is the Egyptian Processing and Marketing Expert 4 years Pound which is equal to about US $2.30. Secretary Administration 4 years Foreign Exchang£ Total Man Years 28 All foreign exchange transactions are Total Man cost at US $30 OOO per rigidly controlled. Regulations which set man year US $840 OOO out in great detail such matters as criteria governing resident and non-resident status All of these experts would have ·to be for the purposes of exchange control are accommodated at Hudaydah and therefore provi­ ad.ministered by a body called the Central sion of suitable housing for up to seven Exchange Control. family units would be necessary. The salary scale presumes that reasonable rentals for Non-Resident Accounts such housing would be paid by the experts concerned. This type of account is available in some instances to resident non-citizens, The total capital exposure for these but there are many varieties of application proposals, including US $200 OOO for operating and it is advisable to apply for a ruling capital, amounts to US $1 389 OOO and the in each instance to the Central Exchange training component to US $840 OOO, giving a Control. total of US $2 229 OOO, exclusive of external agency and project servicing costs. An ideal Imports approach would be to apply fo~ UNDP support to cover the cost of foreign experts and to All imports are subject to the condi­ an agency such as the Kuwait Fund for Arab tions approved on the import permit which Economic Development or The International must be obtained before orders are placed. Bank for Reconstruction and Development, for Advance payment for goods to be imported the balance. FAO Department of Fisheries can only be made if so authorized on the could act as executing agency for management Import Permit. of the project through the auspices of its Operation Service and the Indian Ocean Pro­ Exports gramme. The bulk of exports from the Arab BANKING AND CONIMERCIAL TRADING PROCEDURES Republic of Egypt are not subject to WITHIN THE REGION licensing. However, exporters are required to repatriate foreign exchange proceeds With international exchange rates in a of exports no later than three months after state of flux and uncertainties in some states date of shipment. All payments in advance as to which cu~rency bloc to support, infor­ transmitted to the Arab Republic of Egypt mation on banking can be out of date over­ for goods to be shipped must be clearly night. The country summaries which follow identified upon transmittal from the are based on information from trading banks originator as "Advance payment for the im­ in the region relative to the status as at port of goods". December 1971. It is essential. therefore, - 21 -

Travel considered on merit.

Travellers to the Arab Republic of Egypt Travellers visiting Ethiopia may bring should declare and register with the authori­ in any amount of currency and re-export the ties at the point of entry all currency in balance remaining when they depart. any form (cheques, letters of credit, etc.) in order to have the right to take out an Sudan equivalent or lesser amount when departing. Currency Local currency may not be irnpor~ed or exported. The unit of currency is the Sudanese Pound (Sd. £). 1 Sd. £ = US $2.87. Ethiopia Foreign Exchange Currency Exchange control procedures are The unit of currency is the Ethiopian administered by the Bank of Sudan though Dollar (Eth$). One Eth$ = US $0.434. the bulk of detailed transactions are carried out by the trading banks. There Foreign Exchange are no restrictions on foreign investment in the Sudan and the provisions of the The National Bank of Ethiopia controls Organization and Promotion of Industrial all foreign exchange transactions. Licensed Development Act of 1957 are generous in trading banks can offer exchange transactions respect of repatriation of capital and pro­ service although permits from the National fits. Bank are necessary for each case. Imports All foreign exchange proceeds must be lodged with an authorized trading bank. Importation of goods into Sudan, Application of the exchange controls by the except for small items such as books by National Bank is liberal and generally parcel post, is controlled, and according speaking bona fide commercial transactions to the type of goods and classification, are treated as routine. may be administered by either the Ministry of Economics, Trade and Supply or the There is set criteria governing the Ministry of Commerce and Supply. Imports remittance of salaries abroad by foreign from certain countries are prohibited and nationals who are only temporarily or shor-t­ all transactions require over-riding vali­ term employed within the country. For longer dation in advance from the Central Bank. term expatria,tes the requirements in each case are considered on merit, Exports

Imports Except for certain goods in short supply locally, and exports to the Arab All subject to National Bank approval. Republic of Egypt, export licenses are not required, though an export form must be Export submitted to a trading bank in every case and proceeds of exports must be surrendered All subject to licenses issued by the through the banking system. Exchange Control Division of the National Bank. Foreign exchange receipts must be Yemen Arab Republic lodged within six months with the National Bank. Currency

Travel The unit of currency is the Y.A.R. Riyal which is equivalent to US $0.21. Permanent residents wishing to travel abroad must apply to the Exchange Control for Non-Resident Accounts authority to export funds. Set amounts are allowed for vacations and business travel is Available to bona fide non residents - 22 -

provided funds emanate from an external ACKNOWLEDGEMENTS source 0 In preparing this report, I have Rerni ttances drawn upon FAO archives and held numerous consultations with Technical Officers of All require prior permission from the the Fishery Economics and Institutions Central Finance Office except that indivi­ Division, Fishery Resources Division and duals who qualify for non-resident accounts Fishery Industries Division of the Depart­ may also remit abroad up to 50 per cent of ment of Fisheries of FAOo Industrial and any bona fide income derivede commercial information has been drawn from a wide cross-section of contacts in the Imp,orts administrations and business communities of the various countries in the region, strictly controlled ·through the Yemen and, on the subject of marketing, from Bartle for Reconstruction and Development. outside areas where interests are relevante

Exports While I do not claim credit for all the facts contained in this report, I do Allowable subject to prior approval of accept full responsibility for the the Central Finance Office who insist on pay­ presentation and interpretationo ment remittances in free currencyo

* * * - 23 -

REFERENCES CITED

FAO/UN, Report to the Government of Saudi Arabia on Possibilities for Development of 1954 Marine Fisheries. Based on the work performed by Dr. MeK• El Saby, Fishery Biologist, and Mr. Luigi Farina, Fishery Eng~neer. Rep.FAOjuNDP (TA), (330):29 P•

FAO/UN, Report to the Government of Sudan on the Sudanese Shell Industry and the Red Sea 1962 Fisheries. Based on the work of William Reed, FAO Shell Fisheries Expert. Rep.FAOjuNDP (TA), (1489) :47 P• Grofit, E., The Red Sea Fisheries of Ethiopia (1966-1969). Jerusalem, Ministry of 1971 Agriculture, 82 p. Gulland, JeA. (Ed.), The Fish Resources of the Sea. London, Fishing News (Books) Ltd., 1972 255 p. Revised edition of FAO FisheTech.Pap., (97). Pike, E.G.R., The.Democratic Republic of the Sudan - Fisheries Training and Developments 1972 A Report prepared for the FAO/UN Project for Youth Training Centres in the southern provinces of the Democratic Republic of the Sudan. Rome, FAO, FAO/UN Sudan (46):57 P• Sundstrom, G.T., Commercial Fishing Vessels and Gear.. Circ. U.SoFish. Wildl. Serve, 1957 (48): 48 P• World Bank Atlas, Population, per capita product and growth rate, 6th edition. 1971 International Bank for Reconstruction and Development, Washington, D.C.

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