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OUTLOOK FOR CONTAINER TRADES AND TERMINALS IN THE MIDDLE EAST REGION. Jeddah 31 May 2010 Jesper Kjaedegaard MERCATOR INTERNATIONAL. OUR CLIENTS Investors with an interest in maritime assets (mostly vessels and terminals) Banks and other lending institutions Container Carriers
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OUTLOOK FOR CONTAINER TRADES AND TERMINALS IN THE MIDDLE EAST REGION Jeddah 31 May 2010 Jesper Kjaedegaard MERCATOR INTERNATIONAL mercatorintl.com
OUR CLIENTS • Investors with an interest in maritime assets (mostly vessels and terminals) • Banks and other lending institutions • Container Carriers • Port Authorities • Terminal Operators • Various other suppliers to the industry (IT, railroads, equipment providers etc) mercatorintl.com
….AND WHAT WE DO FOR OUR CLIENTS • Investment advisory and due diligence • Strategic analysis for Liner and Terminal operators with a focus on vessel deployment plans. • Intermodal and gateway studies. • Productivity enhancement studies/assistance • Cargo flow projections and development of “what if scenaria” (Risk and opportunity analysis). mercatorintl.com
FOCUS FOR NEXT 20 MINUTES • Macro developments. • Global Recession • Development in capacity • Slow steaming • Regional Supply and Demand scenario. • Capacity • Transhipment • Saudi Land-bridge – implications for regional trades. • A proven concept • “A Bridge Too Far?” • Conclusions mercatorintl.com
PERCENTAGES CAN BE MISLEADING • Freight rate 2008: Usd 2000 • Decrease: - 75% Usd 500 • Increase: +200% Usd 1500 Rates 2010 have certainly improved, but for most trades they remain below freight rates applicable in early 2008. mercatorintl.com
SLOW STEAMING EQUATION (simplified) Saved bunker consumption: (X) Less: T/C cost of extra vessel: (Y) If X Minus Y > USD 0 : Add a ship to the service If X Minus Y < USD 0 : Leave service as is. mercatorintl.com
CONTAINER TERMINALS M.EAST 2008TEU 2009TEU Jebel Ali 11.827.299 11.124.082 Salalah 3.068.000 3.490.000 Damman 1.247.039 1.227.392 Sharjah (incl Khor Fakhan) 2.501.829 2.750.285 Jeddah 3.325.749 3.091.312 Source: CI-Online mercatorintl.com
Thank you very much for your attention! JKJAEDEGAARD@MERCATORINTL.COM mercatorintl.com