Future ports and 4 ir logistics supply chain - industrial revelution - mahmood sakhi albalushi - almadina logistics - oman - november 2019

Future Ports
Mahmood Sakhi Albalushi
CEO Al Madina Logistics Co.
CEO Muscat Container Depot (Inland Port)
CEO Muscat Container Depot (Inland Port)4th November 2019
Opportunities and Challenges
“Port Operations and
the 4th industrial revolution:
the place for Oman and the GCC Ports in
the world economy.”
Pic: Port of Salalah, Oman

Contents
Future Ports & 4th IR - 2019
Shipping Routes
Ports & Terminal Operators
Ports in Oman
Future Ports and Ships
4th Industrial Revolution
5G Impact

Shipping Types: Land, Sea, Air
By
Land
By
Sea
By
Air

Global Shipping Routes – Ancient Trading
1. SILK ROAD
ROUTE
2. SPICE ROUTE
3. INCENSE ROUTE
4. AMBER ROUTE
5. SALT ROUTE
6. TIN ROUTE
7. TRANS-SAHARAN
ROUTE
Source: National Geography
7
6
5 4
3
2
1

Global Shipping Routes – Current Trading
Source: Atlas du Monde Diplomatique 2006, ISEMAR 2005

Mahmood Sakhi Albalushi Future Ports & 4th IR - 2019
Global Shipping Routes
Source: National Geography, Atlas du Monde Diplomatique 2006, ISEMAR 2005

World’s Top Ports and Port Operators

Busiest Port in the World
Source: VisualCapitalist
Future
Growth
Region
Future
Growth
Region

World’s Busiest Shipping Seaports: 9 out of 20 in CHINA
USA is the Biggest Economy, but is at the end of the list, WHY?
Source: Data from Lloyd’s Top 100 Ports, 2019
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
World Busiest Sea Ports 2018 (TEUs)
2017 2018
China
Asia
Middle East
Europe
N. America
42.0
9.4
15.9
36.6
26.3
5.1
14.5

World Busiest Ports: Continuous Growth
Source: Data from Annual Reports, Lloyds Maritime Intelligence 2005-2019
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Shanghai Singapore Shenzhen Ningbo-Zhoushan Hong Kong
Busan Guangzhou Qingdao Dubai Tianjin
Rotterdam Port Klang Antwerp Xiamen Kaohsiung
Dalian Los Angeles Hamburg Tanjung Pelepas Laem Chabang
Shanghai
Dubai
Singapore
Shenzhen
Ningbo
World Busiest Sea Ports 2018 (‘000 TEUs)

World Top Seaport Terminal Operators
Operator
2013
Capacity
Rank
Hutchison Ports 1
APM Terminals 2
PSA Int’l 3
COSCO 4
DP World 5
Terminal Invest. 6
China Shipping 7
Operator
2020
Capacity
Rank
COSCO-ChinaShipping 1
APM Terminals 2
PSA Int’l 3
Hutchison Ports 4
DP World 5
Terminal Invest. 6
CMA CGM 7
50,000,000
55,000,000
60,000,000
65,000,000
70,000,000
75,000,000
80,000,000
85,000,000
90,000,000
95,000,000
2014 2015 2016 2017 2018 2020
Cosco Pacific Hutchison
APM Terminals PSA
DP World
COSCO
APM
DP World
PSA
Hutchison
Source: Annual Reports 2018, JOC, analysis by author

Main Ports Operators: Main Regional Ports
DP World
 Jebel Ali
 Jeddah
 Sohkna
 Djibouti *
 Doraleh
 Maputo
 Karachi
 Mundra
 Nhava Sheva
 Vallarpadam
Hutchison Port Holdings
 Sohar
 Ajman
 Um Quwain
 Ras Al Khimah
 Dammam
 Karachi
 Dar es Salaam
AP Moller Terminals
(+Shipping Line)
 Salalah
 Bahrain
 Pipavav
 Nhava Sheva
 Colombo
 Port Said
PSA International
 Dammam
 Tuticorin
 Nhava Sheva
ICTSI
 Karachi
 Toamasina
 Basra
Gulftainer
 Khor Fakkan
 Sharjah
 Jubail
 Jeddah
 Umm Qasr
Port Antwerp International
 Duqm
Source: Data from Annual Reports 2018

Omani Ports
1 Port of Khasab(Regional)
2 Port of Shinas(Regional)
3 * Port of Sohar(Major)
4 Port of Suwaiq(Regional)
5 Port of Al-Fahal (Oil)
6 Port of Sultan Qaboos (Tourism)
7 Port of Sur-Jetty(LNG/Urea)
8 * Port of Duqm(Major)
9 * Port of Salalah(Major)
Source: Data from Annual Reports, MOTC

Omani Ports: Major Ports
3 * Port of Sohar(Major)
8 * Port of Duqm(Major)
9 * Port of Salalah(Major)

The $645 million master plan envisages expansion of container and
general cargo terminals, port infrastructure and facilities to reach a
total quay length of 8 km over 20years, bringing capacity to 15m TEUs
per month. Running alongside this is the construction of OR70m,
additional 1266 meters of multi-purpose berths, a new breakwater to
increase capacity to 40 million TPA of dry-bulk and 5 million TPA of
liquid cargo at a cost of OR70m.
Omani Ports: Port of Salalah

Sohar is a deep sea port in the Middle East
situated in the Sultanate of Oman, 220km
northwest of its capital Muscat. The
management of this industrial port lies with
Sohar Industrial Port Company (SIPC SOAC), a
50/50 joint venture between the Government of
Oman and the Port of Rotterdam. The original
agreement between the two parties was signed
in 2002 and included a port area of 2100 ha and
for SIPC to manage and develop the port until
2025. Today, the port is fully operational with
state-of-the-art facilities. With current
investments exceeding $14billion it is one of the
world's largest port development projects.
Located just before the Strait of Hormuz, Port of
Sohar is within easy reach of the booming
economies of the Gulf and the Indian
subcontinent and with great connectivity to Abu
Dhabi, Dubai, Al Ain and Muscat. Sohar houses
three clusters: logistics, petrochemicals and
metals. World-leading companies Air Liquide,
Alcan, Hutchison Port Holdings, Larsen &
Toubro, LG, MAN Ferrostaal, Methanol Holding
International, Odfjell, Oiltanking, Shadeed Iron &
Steel, Steinweg and Suez have already made
Sohar their preferred port of call. The three
terminals are operated by world class leading
companies. Steinweg for general cargo,
Odfjell/Oiltanking for liquid and OICT for
containers.
Omani Ports: Port of Sohar

Duqm Port
Duqm Port is a major new facility with a turning basin of more
than 2km that will comprise the ship-repair facilities, bulk and
general cargo as well as facilities for the Coast Guard and Royal
Navy of Oman.
Omani Ports: Port of Duqm

Selected Top Regional Ports: by Annual TEUs
Source: Data from Annual Reports, IPH World Report 2019, Ports Statistics 2019
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
2015 2016 2017 2018

0
20
40
60
80
100
120
140
160
Ports Productivity (Containers Moves per Vessel)
2012
2013
2014
Ports Productivity: World Top
Source: Data from JOC, IPH World Report 2016, Ports Statistics 2016

Potential Investment Opportunities & Improving Hinterland:
- Logistics Services,
- Supply Chain Services,
- Bonded Facilities,
- Distribution Centers,
- Oil Storage Farms,
- Air Cargo, Free Trade & Industrial Zones
Dry Ports
Oil Storage Farms
Oman – Comparative & Competitive Advantages
Industrial Estates
Special Economic Zones
Bonded
Warehouses
Logistics Parks
Air Cargo Hubs

Competition: Regional Ports & Logistics Hubs

Port and Ships
designs and sizes

Ports Structure: Value Proposition
Infrastructure
Port
Governance
FinancesBerthQuay
Port Performance
Turnaround
Time
Waiting/
Anchoring Time
Vessel
Calls
Ship Size/
Tonnage
Port Efficiency
Profits
Location
Design
Products
Hinterland

Ports Operation: Ships Turnaround Efficiency

Ports Operation: Container Terminals Design
Advantages:
 Shortest Truck Turn-around Time
 Minimal Handling of Each Box
 Safe Terminal
Old Design New Design

Ports Management: Value Proposition
Shipping Objectives VS Terminal Objectives
Minimize Port Time by Faster
Handling & Ship Rotation
Time Schedule or First Come First Serve,
Size of Port, Equipment Investment
Consolidate Cargoes to
Maximize Loads
Consolidation
of Cargo
Maintain Stable Long-term Customer
Base
Flexible Terminal, Multiple Cargo
Handling
Handling
Resources
Optimal Infrastructure, Minimize
Resources
Terminal Need to Cope with
Peak Demand 24hrs
Managing
Resources
Spread Work Over Hours Available
Shipping Objectives VS Terminal Objectives

Evolution of Containership Sizes
800
2,500
3,400
4,500
7,100
8,100
9,600
12,500
15,000
19,000
19,100
21,400
22,000 +
-
5,000
10,000
15,000
20,000
25,000
1960 1970 1980 1985 1996 1997 2001 2004 2006 2013 2015 2017 2018
Ship TEUs Capacity
Source: Data from Annual Reports, IPH World Report 2016, Ports Statistics 2016, JOC

Evolution of Containership: Impacts on Ports
Gantry Cranes
Source: Data from Annual Reports, IPH World Report 2018, Ports Statistics 2018, JOC

Ports Challenges
Rising Competition from Nearby Ports
Infrastructure Upgrade & Operational
Efficiency
Demand of Import & Export
More regional ports, and sometimes, the
major shipping line operate the ports.
With bigger ships and fast turnaround,
ports should be well equipped and staff
be well trained.
The global demands and hinderland play
a vital role in the design, development
of the port.

Ports and Ships of the Future

The Future: More Efficient Ships & Ports
Autonomous
Ports & Ships
Shipping 2020 & Beyond: Navigating uncharted waters
The 4th industrial revolution & 5G are leading towards Ports & Shipping which focuses on:
• Digitization
• Environmental leadership
• Operation & Safety excellence
Source: RollsRoyce, Qingdao Port, 2019

1st
Industrial
Revolution
Steam-based
Machines
18th Century
1784
2nd
Industrial
Revolution
Electrical
Energy-based
Mass
Production
19th-20th
Century
1870
3rd
Industrial
Revolution
Computer and
Internet-based
Knowledge
Late 20th
Century
1969
4th
Industrial
Revolution
Cyber Physical
Systems,
Internet of
things, network
21st Century
2010
Industrial Revolutions: 4th IR
Source: Klaus Schwab, WEF, 2015

4th Industrial Revolution Technologies

5G Technology
A Disruption to Life and Society

Voice
0
Data Transfer
Analogue
Telephonic
1981
Voice & SMS
Up to
40kbps
SMS
Email, Internet
1992
Mobile
Internet
Up to
20Mbps
SMS, Email,
Photos, Apps,
Videos
2001
Mobile Apps
Up to
1Gbps
SMS, Email,
Photos, Apps,
Video, HD
2010
5G: Technology Generations
Digitization
(Real Time)
Up to
50Gbps
Internet of
Things
2020
Source: Huawei 2019
1G 2G 3G 4G 5G
Society & Industry
Digitization
(wireless)

Amazing Volume
Amazing Fast
Always Best Connected
No Perceived Delay
Massive number of connected things and people
Energy Efficient
Flexible Networks
Very Secure Network
Lower Cost
5G: Technology Generations
Digitization
(Real Time)
Up to
50Gbps
Internet of
Things
2020
Source: Huawei 2019
Major Features
5G
Society & Industry
Digitization
(wireless)

Shanghai Yangshan Port: 5G Smart Port
5G Remotely Operated Equipment
Control Part:
• Latency: <20ms
• Reliability: 99.999%
Video Transmission Part:
• Uplink Throughput: 30Mbps
• 6-8 HD Cameras Simultaneously
Source: Shanghai Yangshan Port, Huawei 2019
5G: A Disruption to Life & Society

South Korea, Switzerland, Netherland
> 90% of the country by end of 2020
Source: World Time Zone, 2019
5G: A Disruption to Life & Society

The Future: More Efficient Ports
Automated & Semi-Automated Ports
The 4th industrial revolution is leading towards Ports & Shipping 4.0 which focuses on:
•Digitization
•Environmental leadership
•Safety excellence

Mahmood Sakhi AlbalushiMahmood Sakhi Albalushi
Dubai Innovation: ASRS for Containers
Source: DP World 2019

Mahmood Sakhi AlbalushiMahmood Sakhi Albalushi
Ships: Levels of Autonomy
Source: Lloyd’s List of Containers, 2019
In 2018, IMO’s Preliminary Definition of Autonomous Ships.
Level 1: Ship with automated processes and decision
support: Seafarers on board with some automated functions.
Level 2: Ship remotely controlled with seafarers on
Board: Remotely operated with seafarer on board.
Level 3: Remotely controlled without seafarers on board:
Controlled and operated remotely, no seafarer on board.
Level 4: Fully autonomous ships: Operating system of the
ship can make decisions and take actions.

The Future: More Efficient Ships
Autonomous Ships
The 4th industrial revolution is leading towards Ports & Shipping 4.0 which focuses on:
•Digitization
•Environmental leadership
•Safety excellence

Global Shipping: Technology driven Competition
Source: Atlas du Monde Diplomatique 2006, ISEMAR 2005

THANK YOU
CEO Muscat Container Depot (Dry Port)
CEO Muscat Container Depot (Dry Port)
November 2019
Pic: Maersk.com

Future ports and 4 ir logistics supply chain - industrial revelution - mahmood sakhi albalushi - almadina logistics - oman - november 2019

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