Imdad Logistics Services Logistics Management Logistics Audit Logistics Business Plans

1. LEBANON Logistics Assessment
September 2011
Contents
Geography, Population, Political & Economical
Situation and Logistics Overview
References
www.customs.gov.lb
www.finance.gov.lb
www.economy.gov.lb
www.public-works.gov.lb
www.lfs-lb.org
www.bdl.gov.lb
www.cia.gov
© Logistics Yard sarl Sept 2011

2. Background & General
Information
 Geographic Location
o 10,452 m2 bounded by Syria
from the East & South, Israel
from the North and the
Mediterranean Sea from the
West with 225 km coastline
 Population
o Estimated population of 4
million
comparison to the world:
127
© Logistics Yard sarl Sept 2011

3. © Logistics Yard sarl Sept 2011
Political Situation
o The country is recovering from long
years of war
o Though arms are still to be
collected and Militias to be fully
dissolved, nowadays the peace is
reigning in general and the country
is once again viewed as the prime
touristic destination it used to be
Background & General
Information

4. © Logistics Yard sarl Sept 2011
Economy
o Small Economy of GDP 32 Billion USD
growing at 7% yearly
o Free Economy, fully open to Foreign
Investment suffering from high taxes and
fees and heavy State Liabilities(21 Billion $
external debt)
o No restrictions on money exchange and
transfers
o High Imports of 17 Billion $
o Exports of 4 Billion $
Background & General
Information
0
2
4
6
8
10
12
14
16
18
2006200720082009
Imports
in Billion
$

5. © Logistics Yard sarl Sept 2011
Economy (…continued)
o Strong Banking Sector with
Domestic Deposits of 100 Billion $.
Lebanese Banks have opened branches all over
the MENA region
o Lebanese Franchises and Media
companies are becoming very
popular in the MENA region
o Local Freight Forwarders are in their
turn establishing a good presence in
the Levant and GCC
Background & General
Information

6. © Logistics Yard sarl Sept 2011
Economy (…continued)
o Deficit in the Balance of Payments
partially compensated by Tourism
and other services especially Banks
o Main compensation of the BP
Deficit comes from Immigrants
transfer inflows to the
country, noting that Lebanese
Population being only 4
million, Lebanese Immigrants in
Europe, GCC and the Americas
exceed 15 million
(10% of the Brazil Chamber of Deputies are of
Lebanese origin)
Background & General
Information

7. © Logistics Yard sarl Sept 2011
Once the Storage and
Transit Hub of the Middle
East, Lebanon is striving
to regain its past position
Logistics Overview
Seaports
Beirut & Tripoli Main Commercial Activity
Sidon & Tyre Small Commercial & Fishing
Jounieh for passengers
Byblos, Amchit & Batroun Fishing
Chekka Cement
Oil & Gas Warehouses present in Dora Tripoli Zahrani
and Jiyyeh receive
directly in their tanks, oil & gas cargo and have customs
offices on location
Port Name Activity tons/year
Beirut 11,000,000
Tripoli 3,600,000
Other 800,000

8. © Logistics Yard sarl Sept 2011
(…continued)
Logistics Overview
Airports
Beirut International passengers & cargo
5 million passengers/2009
Tripoli/Kleyat internal flights
Postal Parcels 600k$/year
Airport Activity tons/year
Beirut 100,000
Other 0

9. © Logistics Yard sarl Sept 2011
(…continued)
Logistics Overview
Landports
Open through Syria to Iraq, Jordan
& GCC from the East, Turkey and
Europe from the North
Masnaa (east)
Kaa (east)
Arida (north)
Abboudie (north)
Land port Activity tons/year
Masnaa 3,400,000
Kaa 35,000
Arida 365,000
Abboudie 1,050,000

10. © Logistics Yard sarl Sept 2011
(…continued)
Logistics Overview
Free zones and Transit
Special Free Zone
Open for all companies operating in
transit, export and international trade to lease
a land parcel and build their own warehouses
Public Free Zone
At Beirut Seaport
and Airport, warehouse spaces for rent
Transit Activity tons/year
Port & Airport 20,000

11. © Logistics Yard sarl Sept 2011
(…continued)
Logistics Overview
Railroads
Railroad infrastructure was completely ruined
during the war and still is to the present date.
Overland Transport Fleet
Old fleet of trucks and insufficient for the
national overland activity, trucks mainly from
Syria are filling the gap.
Efforts are being focused on unifying axis of
vehicles and max loads and border fees
between Arab Countries

12. © Logistics Yard sarl Sept 2011
(…continued)
Logistics Overview
Tariffs (average figures)
Loading/unloading vessel 2-5$/ton
Charging/Discharging trader 2-
4$/ton
Forklift 15 ton
10$/hour
Transport
0.05$/ton/Km
Port fees on containerized av.
200$/20ft 350/40ft
Additional Storage at Port 50$/20ft/15
days
Storage outside port 6$/month + 200$
handling/20ft

13. © Logistics Yard sarl Sept 2011
(…continued)
Logistics Overview
Freight Forwarding
o 126 listed companies in the Forwarders Syndicate
o Estimated Total Market Gross Margin 200 million$
o Competition includes Customs Clearance Agents
working directly with shipping agencies
o Forwarders are opening businesses all over the
Arab countries, current main focus is on Syria
o Forwarders are expanding vertically and going into
third party logistics (warehousing and
transportation) all Beirut Special Free Zone
warehouses were built by forwarders.
o Forwarders consortiums are being formed in this
regard e.g. Net Logistics warehouses at the Free
Zone area

14. © Logistics Yard sarl Sept 2011
(…continued)
Logistics Overview
3rd Party Logistics
o Estimated warehousing spaces in Lebanon 8 million
m2
o 3rd Party warehousing spaces currently available = 80
thousand m2 only
o 3PL is still under developed . Additional investment
should be sought in the near future especially with
the current trend for 3PL worldwide
Last Word
Even though being a relatively small
market, yet Lebanon could still be
regarded as an attractive destination
for Logistics Investments.

15. Thank You
© Logistics Yard sarl Sept 2011