MARKAZ INFRASTRUCTURE RESEARCH Saudi Ports - September 2012

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MARKAZ INFRASTRUCTURE RESEARCH Saudi Ports - September 2012

Table of Contents

I. Executive Summary ...... 5 ECONOMIC BENEFITS OF SEAPORTS ...... 8 II. GCC Seaports ...... 9 OVERVIEW ...... 9 GCC PORT DEVELOPMENT PROJECTS ...... 11 III. Seaport Sector ...... 13 OVERVIEW ...... 13 UPCOMING AND ONGOING PROJECTS...... 19 IV. Saudi Arabia Ports ...... 20 OVERVIEW ...... 20 PRIVATISATION OF PORTS ...... 21 ISLAMIC PORT ...... 22 ...... 25 KING FAHAD INDUSTRIAL PORT, YANBU ...... 29 KING FAHAD INDUSTRIAL PORT, JUBAIL ...... 31 JUBAIL COMMERCIAL PORT ...... 33 YANBU COMMERCIAL PORT ...... 35 JIZAN PORT ...... 38 DHIBA PORT ...... 40 RAS AL-KHAIR PORT ...... 43 MILLENNIUM SEA PORT ...... 44 JAZAN ECONOMIC CITY SEA PORT ...... 45 DRIVERS FOR PORT DEVELOPMENT ...... 46 Appendix I: GCC World Trade ...... 48 Appendix II: Importance of ...... 50 Appendix III: Saudi Arabia Economy ...... 52 Appendix IV: Saudi Arabia World Trade ...... 53 SAUDI ARABIA- EU TRADE ...... 55 SAUDI ARABIA-US TRADE ...... 56 SAUDI ARABIA-CHINA TRADE ...... 57 SAUDI ARABIA-JAPAN TRADE ...... 58 SAUDI ARABIA-S.KOREA TRADE ...... 59

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MARKAZ INFRASTRUCTURE RESEARCH Saudi Ports - September 2012

Tables Charts 1 Seaports in the GCC 1 Saudi Arabia Seaport Sector in a Snapshot 2 Container Ports world ranking 2011 (TEU 000s) 2 World Container traffic and GDP 3 Seaports projects in GCC 3 GCC Ports Market Share by Container Traffic 2011 4 Saudi Arabia Ports 4 Forecasted port capacity, throughput and utilization of GCC ports 5 Saudi Arabia ports volume trend 5 Saudi Arabian Ports Container Volume Trend 2004-2011 (TEU 000s) 6 Major Saudi Arabia Seaport Projects 6 Forecasted Port Volume (TEU 000s) and Total Trade (USDbn) of KSA 7 Private Sector Operators for Jeddah port terminals 7 Saudi Arabian Ports Bulk Cargo volume trend (000 tonnes) 8 volume trend 8 Saudi Arabian Ports General Cargo volume trend (000 tonnes) 9 Operators for port terminals 9 Saudi Arabian Ports Ro-Ro & vehicles volume trend (000 tonnes) 10 King Abdul Aziz port volume trend 10 Saudi Arabian Ports Passenger traffic (2004-2011) 11 Timeline for Dammam New Container Terminal 11 Saudi Ports Location 12 Private Sector Operators for Yanbu port terminals 12 Jeddah Port Container Volume trend 2004-2011 13 Yanbu Industrial Port volume trend 13 Jeddah Port Cargo Volume trend 2005-2011 (Tonnes millions) 14 Private Sector Operators for Jubail port terminals 14 Dammam port container volume trend 2004-2011 (TEU 000s) Dammam port bulk and general cargo volume trend 2005-2011 (Tonnes 15 Private Sector Operators for Jubail port terminals 15 millions) 16 Jubail Commercial Port volume trend 16 Yanbu Industrial Port container volume trend 2004-2011 (TEU 000s) Yanbu Industrial Port Bulk cargo (Tonnes Millions) and General cargo volume 17 Private Sector Operators for Yanbu port terminals 17 (Tonnes 000s) 18 Yanbu Commercial Port volume trend 18 Jubail Industrial Port volume trend 19 Private Sector Operators for Jizan port terminals 19 Jubail Industrial Port Bulk Cargo volume trend 2005-2011 (Tonnes millions) 20 Jizan Port volume trend 20 Jubail Industrial Port General Cargo volume trend 2005-2011 (Tonnes 000s) Jubail Commercial Port bulk and general cargo volume trend 2005-2011 21 Dhiba Port Volume Trend 21 (Tonnes 000s) 22 GCC as percentage of World trade 22 Yanbu Commercial Port Volume trend 2004-2011 (TEUs) 23 Suez Canal performance (2000-11) 23 Yanbu Commercial Port Bulk cargo volume trend 2005-2011 (Tonnes 000s) 24 Saudi Economy Statistics 24 Yanbu Commercial Port General cargo volume trend 2005-2011 (Tonnes 000s) 25 Saudi Arabia Credit Ratings 25 Yanbu Commercial Port Ro-Ro & Vehicles volume trend 2005-2011 (Tonnes) Hydrocarbon exports as a percentage of KSA‟s 26 26 Yanbu Commercial Port Passenger traffic 2005-2011 (000s) total exports 27 Saudi Arabia merchandise trade trend (USDbn) 27 Jizan Port bulk cargo volume trend 2005-2011 (Tonnes Thousands) 28 Jizan Port general cargo volume trend 2005-2011 (Tonnes Thousands) 29 Dhiba Port general cargo volume trend 2005-2011 (Tonnes 000s) 30 Dhiba Port Bulk Cargo Volume trend 2005-2011 (Tonnes 000s) 31 Dhiba Port passenger traffic 2005-2011 (000s) 32 Dhiba Port Ro-Ro & vehicles volume trend 2004-2011 (Tonnes 000s) 33 World Trade Trend: Imports and Exports(USDbn) 34 GCC Trade Trend : Imports and Exports with the world(USDbn) 35 GCC Forecasted growth in Imports and Exports (%) 36 GCC trade balance 2005-13 (USDbn) Major GCC trade partners (% of trade volume, % contribution to trade surplus 37 in brackets) 38 Suez Canal map 39 Saudi Arabia-EU trade trend: Exports,Imports and trade balance(USDbn) 40 Saudi Arabia-US trade trend: Imports, Exports and trade balance (USDbn) 41 Saudi Arabia-China trade trend: Imports, Exports and trade balance (USDbn) 42 Saudi Arabia-Japan trade trend: Imports, Exports and trade balance (USDbn) Saudi Arabia-South Korea trade trend: Imports, Exports and trade balance 43 (USDbn)

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MARKAZ INFRASTRUCTURE RESEARCH Saudi Ports - September 2012

I. Executive Summary

The Kingdom of Saudi Arabia (KSA) is bordered by two major shipping lines: Kingdom of Saudi the Gulf, which is an extension of the Indian Ocean, is used mainly for Arabia is bordered exporting oil and gas; and the Red Sea, which links the Mediterranean Sea by two major with the Indian Ocean through the Suez Canal. shipping lines: the Saudi Arabia has 9 ports and the ports of Saudi had a Compounded Annual Gulf, and the Red Growth Rate (CAGR) of 9% in container traffic from 3 million Twenty Foot Sea Equivalent Units1 (TEUs) in 2004 to 6 million TEUs in 2011. The Jeddah port

alone accounted for 4 million TEUs of container traffic in 2011 and is one of

the top 50 container ports in the world with a ranking of 27.

According to foreign trade and container traffic data of 2006-2011, the container traffic of Saudi Arabia is dependent on the value of trade that happens in the Kingdom. Saudi‟s trade is forecasted to increase from USD 472bn in 2011 to USD 579bn by 2015 and hence there will also be an increase in container traffic during that period. Apart from the Millennium Seaport mega project in King Abdullah Economic City (KAEC) near Jeddah, other projects in Saudi Arabia are the Jizan Economic City Seaport in Jizan and Dammam port expansion.

There are no major free trade zones in Saudi Arabia except the Tusdeer Bonded and Re-export Zone. The development of the 4 Economic Cities is Saudi‟s attempt to attract Foreign Direct Investment (FDI) to diversify the economy. Hydrocarbon exports that accounted for 90% of the total exports of Saudi in 2005 accounted for 87% of the total exports in 2011. Thus, it is important for Saudi to invest in port developments, to handle the increase in Saudi Arabia has 9 non-oil exports and to attract more FDI through the Economic Cities, Free ports Trade Zones and Industrial Cities located adjacent to the ports.

Saudi Arabia‟s Container volume decreased in 2009 by 5%, but increased by 20% in 2010 and 7% in 2011. The bulk cargo volume too decreased during 2009 by 5%. The bulk cargo volume could not recover in 2010 and further decreased by 0.5% but increased by 4.5% in 2011. The general cargo

1 The „Twenty-foot Equivalent Unit‟ (TEU) is a unit of cargo capacity used to describe the capacity of container ships and container terminals. It is based on the volume of a 20-foot-long (6.1 m) container.

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MARKAZ INFRASTRUCTURE RESEARCH Saudi Ports - September 2012

volume was the most affected because of the global crisis as it decreased by 42% in 2009 but volumes witnessed an increase of 60% from 2009 to 2011. Developing of 4 The ports of Jeddah, Jizan and Yanbu have passenger terminals for hajj economic Cities is pilgrims. Saudi‟s attempt to attract FDI The overall cargo and container volume was affected by the global crisis, but the volumes have not only recovered to the previous figures but have

increased considerably and are forecasted to increase further. Hence port

developments are imminent for Saudi Arabia, but the port developments are concentrated only in a few major ports and not in the smaller ports.

The investment opportunities available in the Saudi seaport infrastructure comprise bidding for operator contracts and investing in the Economic Cities

and Industrial Cities located around the ports.

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MARKAZ INFRASTRUCTURE RESEARCH Saudi Ports - September 2012

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