Port of Salalah: the Biggest Hub You’Ve Never Heard of Port and Logis�Cs Sector Projects

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Port of Salalah: The Biggest Hub You’ve Never Heard Of Port and Logiscs Sector Projects

Peter Ford Chief Execuve Oﬃcer Port of Salalah Where is Port of Salalah?

. Sultanate of Oman

. Center of Asia/Europe trade lane

. Center of Rapid Growth Markets (India, Africa, Gulf) Where is Port of Salalah?

11 days to Roerdam

5 days to Egypt 14 days to 4 days to NYC Abu Dhabi 3 days to 21 days to 12 days to Mumbai LAX Shanghai

10 days to Mombasa 7 days to Singapore

13 days to Durban Quick Facts about Port of Salalah

0%5% $.1052 TopAll 30Commodities Global Port Liquid Bulk/Dry$234M Bulk/Container/General market cap Cargo Corporate Tax Major Market Dividend Yield EPS 10 yrs Connections Free51% Zone 13.0USD SPSI65% AverageConnected Growth Y-o-Yand Aligned for 13 years TrailingFixed P/E 2.02 Economyratio DividendMuscat Market Payout +3,200 SymbolRatio Price/Book Vessels/YearValue Ratio 0% 10.721 14 Days ForwardDays to LosP/E Duties on Trade Angelesratio Sailing From Salalah to NYC between USA/Oman Port of Salalah 5 Year Expansion Plans

GCT‐Liquid Jey ($155M) Service Corridor Access Roads Berths 7‐9 ($350M)

Northern Breakwater ($250M) Rail Terminal (≈$100M) Northern Breakwater

. 3.5km Breakwater ($250M) . Government Funded . Expected to Tender Q1/2 2013 . Project Owner ‐ Ministry of Transport and Communicaons . Beneﬁts . Weather Protecon . Improved Producvity . Increased Port Safety/Security . Improved Passenger Experience . Hospitality and Tourism Concession Areas . Increased General Cargo Terminal Capacity by 30% Northern Breakwater

Macro‐Economics…

. Strong GCC growth . GCT growth

2012 requirements 2008 • 7.2m . Protects Port Expansion Tons 2004 • 3.5m . Supports Oman’s focus Tons on tourism and SME • 1.6m development 1999 Tons . Creates construcon, • 1m Tons direct, and indirect jobs

Source: WEO database, IMF Entry to GCC Rail Network

. On‐Dock Rail Terminal (≈$100M) . Part of the greater GCC Rail Network . Project Owner – Port of Salalah . Expected to tender in coordinaon with Oman Naonal Rail project . Beneﬁts . Faster connecvity to GCC market . Lower CO2/container than truck travel . Improved Logiscs reliability . Addional 1m containers per year to Port of Salalah . Job Creaon – ≈1,000 direct GCC Rail Network and Port of Salalah

Macro‐Economics…

Rail Impact on GCC Markets GCC Cargo Forecasts . Strong GCC growth Total TEU’s 10% market Reduced Year Desnaon # of Trains / day (M) TEU’s (M) Waste (Days) . Cements Oman’s Strategic Posion 2014 14,634 Muscat 1,463 6.5 8 2015 15,723 Doha 1,572 5.75 9 . Projected Container Cargo growth 2016 16,831 Dammam 1,683 5.75 9 Bahrain 5.75 . Eliminaon of Waste in 2017 17,990 1,799 10 Kuwait 6 supply chain 2018 19,216 1,922 11 Riyadh 7 . Creates construcon, 2019 20,508 2,051 11 direct, and indirect jobs 2020 21,858 2,186 12

Source: DreweryWEO database, IMF Marime Consultants Key Messages

. Salalah – Not just a Global Port, but a Logiscs and Industry Hub . Key Incenves to invest and operate from Salalah . US / Oman Free Trade Agreement . 0% Corporate Tax for over 10 years . Lower CAPEX . USD ﬁxed economy . Local demand has been strong and is forecasted to connue . Local and Mulnaonals ﬁnd Salalah’s USP aracve (US Gypsum, Octal, TVS) . GCC growth is strong and forecasted to connue . GCC Rail Network increases Oman (Salalah’s) strategic posioning

Port of Salalah is Future Ready Port of Salalah Contacts

Arjan Weerstand Peter Ford Port of Salalah Port of Salalah GM Project Implementaon CEO +968 23 219 500 ext 110 +968 24 601 003 ext 110 [email protected] [email protected]