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The Salalah Hub:
The Intersection of Opportunities
Company Profile
• Incorporated in 1997

• Traded on Muscat Securities Market
• Market Cap : 86M OMR


                             1 3

                             4 2               Ideal Location at the center
                                                      of World Trade
Shareholders                               Investor in People
1.   Government of Oman - 20%              •   largest private employer in Dhofar
2.   APM Terminals- 30%                        region, south Oman
3.   Institutional Investors - 21%         •   c. 2,200 employees – c. 1,300 Omani    (71%
4.   Pension Funds, General Public - 29%       Skilled Role Omanization)
                                           •   Est. over 10,000 SME jobs created in local
                                               economy by port
Quick Facts about Port of Salalah

 0%               52                All Commodities
                                  Liquid Bulk/Dry Bulk/Container/General Cargo
Corporate Tax   Major Market
   10 yrs       Connections

                                          Free Zone
USD             SPSI                            Connected and Aligned
   Fixed
                                      +3,200

                                                          0%
 Economy         Muscat Market
                    Symbol            Vessels/Year


  21                   14 Days
Days to Los                                               Duties on Trade
 Angeles          Sailing From Salalah to NYC           between USA/Oman
Quick Facts about Port of Salalah

                                   Top 30 Global Port
 5%              $.10                           $234M market cap
Dividend Yield      EPS


                                                     51%
13.0             65%                     Average Growth Y-o-Y for 13 years
Trailing P/E
                                        2.02

                                                          0%
    ratio        Dividend Payout
                                       Price/Book
                      Ratio
                                       Value Ratio


10.7                      14 Days
Forward P/E                                               Duties on Trade
   ratio          Sailing From Salalah to NYC           between USA/Oman
Volume Growth 1999-2012


                                                2012
                                                • 3.6m TEU
                                2008            • 7.2m Tonnes
                                • 3.1m TEU
                2004            • 3.5m Tonnes
                • 2.25m TEU
                • 1.6m Tonnes
  1999
  • 510k TEU
  • 1m Tonnes
Port of Salalah = Sustainability
  216          €6m             2012 Global CSR Award
   Dhofari
 Children in   Environmental         Containerization International
Outwardbound    Investment
    Oman         earmarked



99%                                $1,000,000
Reduction of
                83%                       2012 Staff Training Spend

 Lost Time
                Procurement         71%
                                                    $70M
 Incidents                           Skilled
                spend is ICV       Omanization

 $260k
 2012 CSR
               2012 Green Awards                    Annual Cash DIRECT
  Spend                                             into Omani Economy
                   Oman Economic Review
Strategic Markets - Connected to Salalah by 3200+ vessels / year
 Port of Salalah is already part of your supply chain


                               11 days to
                               Rotterdam



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


                                              10 days to
                                              Mombasa                            7 days to
                                                                                 Singapore




                                                  13 days to
                                                   Durban
How can you capture the
            Competitive Advantage?


 Discover the intersection of
location, incentives, connecti
   vity, and infrastructure.
Welcome to Salalah Hub
Depth and length capable of handling the largest vessels in the world
Managed by APM Terminals, a leading global Port Operator
Salalah Airport able to handle Boeing 747 and other large airframes
Welcome to Salalah Hub
Free Zone benefits – including 100% foreign ownership, 0% customs and 0% taxes
Abundant and competitive access to natural resources, energy and financing
Lowest land rate in the region and cost competitive skilled and unskilled labor
Access to the US-Oman Free Trade Agreement, (Tax-free exports and imports to the
USA)
Future access to the GCC-Singapore Free Trade Agreement
Welcome to Salalah Hub
Center of vital Asia/Europe trade lane
Center of Regional markets worth more than $600 billion
Over 8% of total global trade either stops or passes within 7 hrs of Salalah
Welcome to Salalah Hub
Fastest transit times to Europe and Asia (and beyond) – Up to 28 % lower than
competing ports
Airfreight connectivity with Oman Air, Air Arabia, Air-India Express, and Qatar Airways
(coming May 2013)
Directly connected with the quality GCC road network
THE Major Shipping Lines call Salalah
              Home
….providing extensive connectivity

•   13 weekly connections to/from Europe
•   13 weekly connections to/from Asia
•   10 weekly connections to/from Indian Sub Continent
•   11 weekly connections to/from Africa
•   3 weekly connections to US East Coast
•   4 weekly connections to/from Indian Ocean
•   8 weekly connections to/from Upper Gulf


    - AND INCREASING CONTINUOUSLY
Finished goods from Asia/Europe; Salalah for
Distribution and/or Value Add

       Benefits
• Redirection opportunity
  to meet market
  demands 7-10 days
  after departure
• Lower reliance on
  bottleneck
  infrastructure in region
• Buffer stock for
  unforeseen disruptive
  events
• Regional value add
  services can be applied
  closer to market
Source parts in Asia/Europe; Salalah for
Assembly / Manufacturing

Benefits
• Competitively low cost
  of OPEX
• Diversification of supply
  = less disruption
• Improved speed to
  (many) markets
• No currency risk = USD
  fixed economy
• Low inflation risk
• 35% value add in Oman
  = FTA status with USA
  and SIN
Three Segments where The Salalah Hub adds
                 Value
Coming Soon to Salalah…RAIL

• Entry to the GCC
  Railway Network
  – 30-80% shorter transit
    times over current         Riyadh
  – Lower CO2 / Container
    transported vs. Road
  – Salalah will become the
    fastest link between the
    GCC and the rest of the
    world
Port of Salalah 20 Year Vision
Key Messages
 Salalah – Not just a Global Port, but a Logistics and Industry Hub
 Key Incentives 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 continue
 Local and Multinationals find Salalah’s USP attractive (US Gypsum, Octal, TVS)
 GCC growth is strong and forecasted to continue
 GCC Rail Network increases Oman (Salalah’s) strategic positioning




Port of Salalah is Future Ready
A partner in your supply chain…




www.portofsalalah.com   Info@salalahport.com   Thank You

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Port of Salalah - The Intersection of Opportunities

  • 1. The Salalah Hub: The Intersection of Opportunities
  • 2. Company Profile • Incorporated in 1997 • Traded on Muscat Securities Market • Market Cap : 86M OMR 1 3 4 2 Ideal Location at the center of World Trade Shareholders Investor in People 1. Government of Oman - 20% • largest private employer in Dhofar 2. APM Terminals- 30% region, south Oman 3. Institutional Investors - 21% • c. 2,200 employees – c. 1,300 Omani (71% 4. Pension Funds, General Public - 29% Skilled Role Omanization) • Est. over 10,000 SME jobs created in local economy by port
  • 3. Quick Facts about Port of Salalah 0% 52 All Commodities Liquid Bulk/Dry Bulk/Container/General Cargo Corporate Tax Major Market 10 yrs Connections Free Zone USD SPSI Connected and Aligned Fixed +3,200 0% Economy Muscat Market Symbol Vessels/Year 21 14 Days Days to Los Duties on Trade Angeles Sailing From Salalah to NYC between USA/Oman
  • 4. Quick Facts about Port of Salalah Top 30 Global Port 5% $.10 $234M market cap Dividend Yield EPS 51% 13.0 65% Average Growth Y-o-Y for 13 years Trailing P/E 2.02 0% ratio Dividend Payout Price/Book Ratio Value Ratio 10.7 14 Days Forward P/E Duties on Trade ratio Sailing From Salalah to NYC between USA/Oman
  • 5. Volume Growth 1999-2012 2012 • 3.6m TEU 2008 • 7.2m Tonnes • 3.1m TEU 2004 • 3.5m Tonnes • 2.25m TEU • 1.6m Tonnes 1999 • 510k TEU • 1m Tonnes
  • 6. Port of Salalah = Sustainability 216 €6m 2012 Global CSR Award Dhofari Children in Environmental Containerization International Outwardbound Investment Oman earmarked 99% $1,000,000 Reduction of 83% 2012 Staff Training Spend Lost Time Procurement 71% $70M Incidents Skilled spend is ICV Omanization $260k 2012 CSR 2012 Green Awards Annual Cash DIRECT Spend into Omani Economy Oman Economic Review
  • 7. Strategic Markets - Connected to Salalah by 3200+ vessels / year Port of Salalah is already part of your supply chain 11 days to Rotterdam 5 days to 14 days to Egypt 4 days to NYC Abu Dhabi 3 days to 21 days to 12 days to LAX Mumbai Shanghai 10 days to Mombasa 7 days to Singapore 13 days to Durban
  • 8. How can you capture the Competitive Advantage? Discover the intersection of location, incentives, connecti vity, and infrastructure.
  • 9. Welcome to Salalah Hub Depth and length capable of handling the largest vessels in the world Managed by APM Terminals, a leading global Port Operator Salalah Airport able to handle Boeing 747 and other large airframes
  • 10. Welcome to Salalah Hub Free Zone benefits – including 100% foreign ownership, 0% customs and 0% taxes Abundant and competitive access to natural resources, energy and financing Lowest land rate in the region and cost competitive skilled and unskilled labor Access to the US-Oman Free Trade Agreement, (Tax-free exports and imports to the USA) Future access to the GCC-Singapore Free Trade Agreement
  • 11. Welcome to Salalah Hub Center of vital Asia/Europe trade lane Center of Regional markets worth more than $600 billion Over 8% of total global trade either stops or passes within 7 hrs of Salalah
  • 12. Welcome to Salalah Hub Fastest transit times to Europe and Asia (and beyond) – Up to 28 % lower than competing ports Airfreight connectivity with Oman Air, Air Arabia, Air-India Express, and Qatar Airways (coming May 2013) Directly connected with the quality GCC road network
  • 13. THE Major Shipping Lines call Salalah Home
  • 14. ….providing extensive connectivity • 13 weekly connections to/from Europe • 13 weekly connections to/from Asia • 10 weekly connections to/from Indian Sub Continent • 11 weekly connections to/from Africa • 3 weekly connections to US East Coast • 4 weekly connections to/from Indian Ocean • 8 weekly connections to/from Upper Gulf - AND INCREASING CONTINUOUSLY
  • 15. Finished goods from Asia/Europe; Salalah for Distribution and/or Value Add Benefits • Redirection opportunity to meet market demands 7-10 days after departure • Lower reliance on bottleneck infrastructure in region • Buffer stock for unforeseen disruptive events • Regional value add services can be applied closer to market
  • 16. Source parts in Asia/Europe; Salalah for Assembly / Manufacturing Benefits • Competitively low cost of OPEX • Diversification of supply = less disruption • Improved speed to (many) markets • No currency risk = USD fixed economy • Low inflation risk • 35% value add in Oman = FTA status with USA and SIN
  • 17. Three Segments where The Salalah Hub adds Value
  • 18. Coming Soon to Salalah…RAIL • Entry to the GCC Railway Network – 30-80% shorter transit times over current Riyadh – Lower CO2 / Container transported vs. Road – Salalah will become the fastest link between the GCC and the rest of the world
  • 19. Port of Salalah 20 Year Vision
  • 20. Key Messages  Salalah – Not just a Global Port, but a Logistics and Industry Hub  Key Incentives 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 continue  Local and Multinationals find Salalah’s USP attractive (US Gypsum, Octal, TVS)  GCC growth is strong and forecasted to continue  GCC Rail Network increases Oman (Salalah’s) strategic positioning Port of Salalah is Future Ready
  • 21. A partner in your supply chain… www.portofsalalah.com Info@salalahport.com Thank You

Editor's Notes

  1. Among top 30 transshipment hubs among world’s ports