Port Development Outlook in the Singapore Basin Presentation
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Port development outlook in the Singapore basin Presentation The 7 th PHILIPPINE Ports and Shipping Conference 2013 Manila, January 30, 2013 130104_Conference_Manila v6.pptx 1 Contents Page A. Current situation 3 B. Planned developments 8 C. Traffic outlook 15 D. Singapore basin by 2025 23 © Roland Berger Strategy Consultants 130104_Conference_Manila v6.pptx 2 A. Current situation 130104_Conference_Manila v6.pptx 3 A CURRENT SITUATION Asia already contributes the most to the global maritime trade, recording steady growth in its market share Total maritime trade by region [USD Bn] Share of world maritime trade [%] EXPORTS Africa +18% Oceania 9% 7,034 11% Asia 40% 5,980 19% 3,191 Europe 3,073 -1% 21% America 3,168 3,123 +14% IMPORTS 1,105 Africa 1,516 Oceania 3,844 1,955 1,716 1% 2,907 1,130 5% 1,031 2,063 Europe 1,607 23% 686 825 55% 2006 2010 2006 2010 2006 2010 Asia ASIA AMERICA EUROPE 16% America Exports Imports Sources: Review of Maritime Transport 2011, UNCTAD, Roland Berger 130104_Conference_Manila v6.pptx 4 A CURRENT SITUATION The Singapore basin is an important hub for cargo flows given its strategic location and the strong growth in South East Asia Cargo flow – East Asia 30% of world trade > Situated along main East- travels through the West trade route Straits of Malacca > Natural mid-point between 2 India and China key growth markets – India experienced 25% Tsugaru & China Tianjin annual import Tokyo > Strong inter and intra- growth over the last Busan Yokohama regional trade flows in 5 years Korea Shanghai ASEAN Ningbo 10.2% average > Crossroads for Middle East annual intra- Shenzhen – America west coast Hormuz Kaohsiung ASEAN growth Hong Kong South Mumbai China Laem Chabang Sea Ho Chi Minh City Melaka Kota Kinabalu Port Colombo Bintulu Belawan Klang PTP Singapore Palembang Sunda Tg Priok Ujung Pandang Surabaya Major ports Lombok Torres Main shipping lanes Sources: UNCTAD, Roland Berger 130104_Conference_Manila v6.pptx 5 A CURRENT SITUATION Singapore leads in trade volume, followed by Malaysia and Indonesia Comparison of trade indicators for selected countries Total merchandise trade Total merchandise trade Trade dependency index GDP 2011 2011 1) [USD bn] 2011 1) [USD per person] 2011 2) [%] [USD per person] China 3,971 Singapore 196,171 Singapore 2.98 Singapore 48,588 Vietnam 1.66 India 1,060 Malaysia 16,599 Malaysia 9,659 Malaysia 1.49 Singapore 1,017 Thailand 7,427 Thailand 1.32 Thailand 5,343 Cambodia 1.26 Thailand 516 China 2,955 China 5,046 Germany 0.76 Malaysia 479 Vietnam 2,491 Indonesia 3,492 Philippines 0.53 Indonesia 434 Indonesia 1,790 China 0.50 Philippines 2,370 Indonesia 0.45 Vietnam 219 Philippines 1,598 India 1,457 India 0.45 Philippines 152 India 854 Japan 0.29 Vietnam 1,382 1) Total export and import volumes, but not inclusive of export/import of services 2) Calculated as Total merchandise trade/GDP in current prices Sources: WTO, IMF, World Bank 130104_Conference_Manila v6.pptx 6 A CURRENT SITUATION Within the basin, Malaysia and Singapore have a developed port sector; Indonesia still lags behind Existing Major ports in the Singapore basin - summary Planned Pasir Panjang Johor Port Jurong Port Tanjung Langsat Port Port of Tanjung Pelepas Pengerang (RAPID, Vopak/Dialog Terminal)) Kg. Teluk Ramunia Tanjung Bin Keppel Terminal Tanjung Piai Tanjong Pagar Terminal (Maritime Industrial Brani Terminal Park) Tanjung Uban Asia Petroleum Hub (APH) Kabbil Port Tuas container port Port Telaga Punggur Pulau Busing Port of Batam/Waterfront City Pulau Bukom Pulau Sebarok Note: Tanjung Bin, Pengerang and Tanjung Agas ports are still under development; figures, if any, are forecasts Source: Port authoriiy and operator websites, Ministry of Transport, UNCTAD, Portsworld 130104_Conference_Manila v6.pptx 7 B. Planned developments 130104_Conference_Manila v6.pptx 8 B PLANNED DEVELOPMENTS Singapore aims to consolidate all of its container shipping terminals in Tuas in the long term, almost doubling port capacity per annum NEW CONSOLIDATED CONTAINER PORT IN TUAS, SINGAPORE Current status: > In operation: terminals at Tanjong Pagar, Keppel, Brani; leases expiring in 2027 > Pasir Panjang is also a terminal in operation, currently undergoing expansion > Current combined capacity is 35 mn TEUs Future development > Known expansion plans in Tuas will comprise 15 new berths, with nearly 6000 meters of quay length and a draft of 18 meters > Expansion plans also include an automated container yard and unmanned, rail- mounted gantry cranes > In the long term, capacity will nearly double to 65 mn TEUs to meet future growth of Tuas container terminal global trade and long term needs of customers > Efficiency improvement by minimizing current need for road haulage between terminals for transhipment volumes > Target completion date is 2020 Source: Business Monitor International, Roland Berger analysis 130104_Conference_Manila v6.pptx 9 B PLANNED DEVELOPMENTS Malaysia's new development, Pengerang is being planned to be one of the largest oil and gas hubs in the region and the world PENGERANG PETROCHEMICAL COMPLEX Current status > Malaysia's Economic Transformation Programme (ETP) – EPP 4: Building a regional oil storage and trading hub > Water depth of up to 26m > JV between Johor State Government, Dialog Group & Vopak Asia to develop an independent deepwater petroleum terminal and storage hub - Construction began in late 2011 > 20-year project with initial storage capacity of 1.3 million m3 by 2014 > Construction on-going Future development > Planned construction of USD $20 billion integrated petroleum hub by Petronas - Refinery And Petrochemical Integrated Development (RAPID) > RAPID will feature a crude oil refinery with refining capabilities of 30,000 barrels per day, a naphtha cracker and around 45 petrochemical plants > Further plans: LNG terminal, 3 other refineries and petrochemicals complexes, downstream industries and new townships in infrastructure Sources: ETP, Factiva, press releases, Roland Berger 130104_Conference_Manila v6.pptx 10 B PLANNED DEVELOPMENTS Tanjung Bin is a new liquid bulk port under development; Total capacity can grow to 10-15 million tons of oil products PORT OF TANJUNG BIN Current status > Seaport Worldwide Sdn Bhd is the master developer of the Tanjung Bin Tanjung Bin Petrochemical & Maritime Hub > Spans about 2,255 acres of land and 4.5 km of shoreline/ waterfront land > Designated for oil & petrochemical players to set up operation base for activities inc. processing & blending, tankage & terminaling, trading and logistics of liquid bulk products > Newly-built ATT Tanjung Bin (ATB) oil terminal has started operations in April 2012 > ATB is owned and operated by VTTI, a 50:50 joint venture between Vitol and MISC Bhd Future development > Currently, it is in the 2 nd phase of its development master-plan, developing 20 hectares of land to create an additional 820,000 cubic meters of storage Sources: SWW website, Factiva, press releases, Roland Berger 130104_Conference_Manila v6.pptx 11 B PLANNED DEVELOPMENTS Aggressive expansion plans for fast-growing container port PTP – aims to capture higher transshipment share from Singapore PORT OF TANJUNG PELEPAS (PTP) Current status: > In operations since: 1999; owned and operated by MMC > Pure container port across from Singapore > Fast-growing port that handles mostly transhipment > Throughput around 8.5 mn TEUs in 2012 > With Johor Port - achieved a 44% market share in Malaysia's container business (2011 data) Future development > Undergoing expansion to increase current capacity from 8.5 mn to 10 mn TEUs in 2012 or 2013 to enhance its yard management and upgrade the capacity of its first generation quay cranes > Next phase of development consists of 8 more berths, raising its capacity to over 18 mn TEUs and would require dredging and land reclamation > Long term masterplan envisages a capacity of 150 million TEUs Sources: PTP website, MMC Annual Report, Factiva, press releases, Roland Berger 130104_Conference_Manila v6.pptx 12 B PLANNED DEVELOPMENTS Though "mature", Johor Port continues to improve and expand its capacity – in all cargo types, except containers JOHOR PORT Current status > Operating since: 1977; Owned/operated by MMC > Part of logistic triangle to serve Iskandar Malaysia (with PTP and Senai Airport) > In 8,000 acre Pasir Gudang Industrial Estate (petrochemicals, engineering, furniture, electronics and telecommunications) > One of the largest Palm Oil Hub in the world > No. 6 out of 35 in the World for LME Cargoes > Considered a "matured" port and already operating at full capacity > With PTP holds a 44% market share in Malaysia's container business (2011 data) Future development > Ongoing five-year business and port expansion plan, which will involve redevelopment and restructuring of port infrastructure such as building four new additional berths dedicated for the handling of liquid cargo and major upgrades to the port’s equipment and facilities > Under the five-year modernization plan will be carried out in phases Sources: Johor Port website, MMC Annual Report, Factiva, press releases, Roland Berger 130104_Conference_Manila v6.pptx 13 B PLANNED DEVELOPMENTS Construction of a deepwater port near Batam, Indonesia-fuelling throughput growth opportunities DEEPWATER CONTAINER PORT OF TANJUNG SAUH Current status: > Currently under construction and to be completed in 2015 > Initial investment of USD 792 m > Major transhipment port on an island between Batam and Bintan, Tanjung Sauh > Part of Indonesia's overhaul of its transport infrastructure