Umm Qasr Port

1. Umm Qasr Port UMM QASR PORT BRIEF MARLO CONFERENCE 13 DEC 2009

2. MAJOR PORTS OF IRAQ

3. UMM QASR PORT

4. UMM QASR PORT History and Background Opened in 1958, is the largest of the five Iraq ports. Umm Qasr is a modest-sized port (ranking around 200th in terms of volume or weight), and has the potential to expand capacity. Continuing economic and infrastructure improvements, as more ships and cargo use UQP to access road and rail links to Basra and Baghdad. Drafts designed to 12.5m but requires constant dredging Divided into North, Middle and South Ports, it has 22 operational berths, 33 warehouses, and four container cranes.

5. UMM QASR PORT Importance UQP is the primary port of entry for bulk grain, foods, general cargo, and containerized cargo imports into Iraq. UQP received over 75,000 containers in 2008. Estimated to eventually handle up to 150,000 containers a year by 2012. UQP received 7.5 million tons of imports in 2008, compared to 7.72 million tons in 2007 and 5.99 million tons in 2006. Over 14,000 passengers transited through UQP in 2008. 85% of Iraq’s grain is imported through UQP. Iraq imports about 30 million tons/year of goods, over 50% of this is transported overland via neighboring ports.

6. UMM QASR PORT North & South • North: Berth 21 & 22 ro-ro berths, berth 20 containers; Main cargos handled: containers, break-bulk, ro-ro, construction, bulk grain and sugar. Good warehousing, road access and rail links. South: Break bulk cargo and dhow trading vessels. Berth1 Iraqi Navy, Berth 4 two Nelcon gantry cranes under repair.

7. UMM QASR PORT Operational Overview • Humanitarian aid cargo since May 2003 • Commercial cargo • Volumes (annual): • Over 280 vessels, 1.2 million tons of cargo, 14,000 passengers • Imports: Wheat, rice, flour, powdered milk, vegetable oil, sugar, cement, ro-ro, containers, consumer goods • Warehouses: 33 with over 163,500 sq. meters • 2 ZPMC container cranes operational in North port • Good road access and rail links • Customs/Immigration entry point

8. North Port, Ro-Ro & Container Berths UMM QASR PORT

9. Bulk Grain UMM QASR PORT wheat ship grain silo conveyor Portable vacuvators

10. South port, Berths 1 and 2 UMM QASR PORT

11. Umm Qasr South Port – Dhow traders UMM QASR PORT

12. UMM QASR PORT Passenger Terminal

13. UMM QASR PORT Rehabilitation Dredging Umm Qasr - North Port Wreck removal - Phase I - (4 ) in vicinity of Berth 9, (1) across fm Berth 10, (3) in vicinity of Berth 11 Phase II (2011) – 11 more wrecks in Khor az Zubahr (KaZ) Crane repairs and removal Aids to navigation Weigh stations Designated parking lot for trucks Repairing and replacing fenders on berths Repairing 200 steel piles, concrete slabs on berths, and extensive cracks Constructing a new 2,000 ground slot container stacking yard for berths 20 and 21 Rehabilitating power supply, water network, storm water drainage and fire-fighting capability

14. UMM QASR PORT Improvements to Date Removed empty containers and trucks from the port New container storage yard to remove congestion in port Proposal for new port checkpoint locations and truck parking lot Proposed new law to establish an Iraqi Maritime Authority Iraqi ISPS quick reaction force for port security Iraqi police took over security at the passenger hall Baggage scanners to scan passenger luggage from ferries New vehicle and passenger gates installed at passenger hall Repaired hole in perimeter wall at the passenger hall Metal detectors to screen passengers

15. Purpose: Provide Initial Mission Analysis for the Synchronization of Efforts to Help the GoI Attain International Shipping and Port Facility Security Certification. UMM QASR PORT The JIATF Mission: Rehabilitation & Commercialization BUCCA JIATF: Initial Mission Analysis 15 OCT 09 11/14/2014 15

16. Road Map to ISPS UMM QASR PORT Establish a Designated Authority Develop National legislation by Government of Iraq for ISPS implementation Empower authority at lower levels to start effecting changes in the port Numerous Ministries have influence within the port

17. SECURITY = CAPACITY = EFFICIENCY TRUCKS Entry Control Points Parking Management System Vehicle Accountability CUSTOMS OFFICIALS Train officials Modern practices Longer rotations PEOPLE ID Badge System Personnel Vetting Entry Control Points X-RAY SCANNING Increase capacity Targeting system Effective search methods CONTAINERS Container Management Secure Storage Facilities Inspection Capabilities CLEARANCE PROCESS Reduce the bureaucratic burden Electronic submission/processing Remove cash from the process

18. Questions?

19. What is the status on the new proposed Port that will be constructed on the Al Faw Peninsular? The Ministry and GCPI are determined to do it and will call it the Grand Port, Mega Port. Italian Consultants have been brought in to advise. Theory: To create a container terminal for the transhipment of goods from the Far East to the railways, which will rush them straight up to the East Med and Europe, by-passing the (expensive) Suez transit, and saving time. This will compete with Dubai’s traffic; big ships would steam 2 days further north, and then south again, so that Iraq could handle them and feed their cargoes back down to other Gulf ports. Project is very expensive (billions). Big question on who would fund? The Kuwaitis want to do the same with their Boubyan Island terminal which is taking a VERY long time to develop and might not happen. The Iraqis have a Railway line and the Kuwaitis do not. There is likely to be opposition from other Gulf Ports that will see it as competition, however, the Grand Port could happen in the medium to long term.

20. With regard to ABOT, is there truth to the rumours that 4 x SBM (Single Buoy Moorings) will eventually be added to complement the existing ABOT terminal? 4 new SBMs will be installed in the vicinity of ABOT. Maritime & Underwater Security Consultants (MUSC) have contracts with South Oil Company (SOC), including one to clear the seabed of unexploded ordinance and other detritus between Faw and ABOT prior to the project start date. SOC plan to install the 4 SBMs to the North, East and South of ABOT. SOC are starting a tendering process for the SBMs and the intention is to begin installing them after the pipelines go in. This is expected to take place in mid 2012. Coordinates for the provisional locations for the SBMs are (WGS 84): SBM 1. 29 41 48.0N, 48 48 0.0E SBM 2. 29 40 00.0N, 48 49 42.0E SBM 3. 29 38 18.0N, 48 51 30.0E SBM 4. 23 43 18.0N, 48 50 0.0E

21. When will Dredging and Buoying be given attention in the Khawrabd Allah (KAA) Channel leading to Umm Qasr? • Japanese International Cooperation Agency (JICA) • Night time navigation of the channel is very risky and leads to delays. Port congestion when Master stay alongside until daylight /tide are safer. • No immediate plans to dredge KAA, except for maintenance. • Phase 2 of the JICA Loan will include dredging from Umm Qasr Port to Khor Al Zubair (and Khor Al Zubair Port) • Expected dredging volume: 18 mill m3, start assumed to be from 2012. • Invitation for manufacturing 40-50 new light buoys will be advertised soon. Bid closing date set for January 20, 2010. • Anticipate contract awarded OOA 01 Apr 2010, the new buoys are expected to be delivered to UQP between 01 Nov – 31 December 31, 2010. Add a few months to install them and you are looking at Feb-April 2011. • Proposed Boubyan Port – need for Iraq & Kuwait to agree on channel use

22. When will Umm Qasr be dredged to a uniform & charted depth? The dredging contract is planned signed on December 10. Bathymetric and magnetic survey would start in mid January. After completion of the magnetic survey the actual dredging will start late April or beginning of May, lasting 6-7 months. Two dredgers will be mobilized: TSHD Taccola (4,400m3) HD Francis Beaufort (11,300m3)

23. Why Pilot over carriage has recently shot up again from both Um Qasr and ABOT? • Why is industry forced to pay $ 4,000 US in cash to the over-carried Pilot when there is no mention of such a charge in the IPA port tariff? Industry has to pay repatriation expenses for the Pilot and that is fair enough; but the $ 4,000 US in cash is becoming increasingly difficult to pay as it is 100% against most company's anti-corruption policies. • This is a complicated question - Under the terms of the Laws and Regulations of GCPI, No 21 of 1995, pilots are entitled to charge ships 100 Iraqi Dinars for every day they have to remain onboard after departure from UQP or ABOT. Unfortunately, for many years GCPI have tied this to a long-defunct exchange rate of 1 IQD = 3.34 US$, or $334 per day.   • Recent average over-carriage has been 6-7 days (although there has been a recent case of 15 days), which would cost up to $2,338. This is expensive but legal, although certainly not in the same league as $4,000. It is an official GCPI charge but it is not in the Port Tariff. It is not corrupt if it is paid at the correct rate and if the pilot signs a receipt for the cash. • The ship’s agents close ships’ accounts before they are allowed to sail. Over-carriage fees usually cannot be anticipated as they are weather-related, and it is left to the pilot himself to make the request for his over-carriage payment. Owners / Masters are often not aware that this is an official charge, and that it should be made according to the agreed tariff of $334/day. Nippon Koei will be undertaking a re-write of the official Port Tariff, and this payment should be included in the new edition. • In order to put a stop to these $4,000 payments, more information and evidence is required. Owners / Masters should have the payments logged and, presumably, they make the pilots sign receipts for $4,000. If fully evidenced complaints are registered at the right level in GCPI, action will be taken against the pilots that are doing this. • The IQD 100 figure and associated historic exchange rate should be abolished, and a more sensible US$ dollar figure per day should be established. This is something that can be worked on with the ships’ agents, and will appear in the revised Tariff.