khalifa port & industrial zone abu dhabi ports company abu dhabi economic forum abu dhabi, 2-3...
TRANSCRIPT
Khalifa Port & Industrial Zone
Abu Dhabi Ports Company
Abu Dhabi Economic ForumAbu Dhabi, 2-3 March, 2009
2
Agenda
• About ADPC
• KPIZ Development Strategy
• The KPIZ Project
• Progress to Date
• Opportunities
3
The Company — Abu Dhabi Ports Company (ADPC)
Established by an Emiri Decree in 2006 by to
• Own, operate, maintain, manage and develop all of the
ports in Abu Dhabi (excluding O&G and military)
• Develop, manage and operate industrial, commercial and
services special economic and free zones
• To provide a viable platform that spurs the sustainable
economic growth, industrial diversification, social
development and global competitiveness of the Emirate
of Abu Dhabi
Establishment
Mission
4
Agenda
• About ADPC
• KPIZ Development Strategy
• The KPIZ Project
• Progress to Date
• Opportunities
5
The Landscape
6
The Approach: From Vision to Business Plan
Abu Dhabilong term
development agenda
'Abu Dhabi 2030'
KPIZvision,
strategy, and competitive positioning
Implemen-tation requirementsfor KPIZ• Real estate• Utilities• Labor• Raw material• Financing• Logistics• Admin. serv.• Other serv.
ADPC's role and business model• Business model• Role of ADPC
ADPC setupADPC setup
•Basicindustries•'Area A'
•Downstreamindustries•'Area B'
KPIZ strategic sectors
KPIZ conceptualdevelopment plan
Building blocksBuilding blocksContext and visionContext and vision
KPIZ business plan• Financial plan• Macroeco- nomic plan
Implemen-tation roadmap• Zone development• Commercial development
Business planBusiness plan
7
AD government agenda on economic transformationSummary
Abu Dhabi long term economic vision
"Abu Dhabi is a sustainable, diversified,
high-value add economy that
encourages enterprises and entrepreneurship and well integrated in the global economy
leading to better opportunities
for all"
Build a sustainable economy
Ensure a balanced social and regional
economic development approach that
brings benefits to all
Reduce GDP volatility through diversification
Stimulate exports to link AD into non-oil trade streams
Enlarge enterprise base by enhancing private sector
Maintain strong GDP growth momentum
Enhance competitiveness and improve productivity
Develop a highly skilled and highly productive workforce
Attract skilled workforce from abroad
Ensure environmental sustainability
Develop an open, globally integrated business environment
Develop a sufficient infrastructure to support economic growth
Policy priority areasPolicy priority areas Long term objectivesLong term objectives
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Co
re
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Education
Healthcare services
Trade
Construction andengineering
Transportationand logistics
En
abli
ng
in
du
stri
es
AD economic plan 2030: Diversification as key thrustManufacturing as major force of diversification KPIZ as hub for manufacturing
He
alth
care
eq
uip
me
nt
Me
tals
an
d M
inin
g
(Pe
tro
-)C
he
mic
als
Ae
rosp
ace
an
d d
efe
nse
En
erg
y, o
il a
nd
ga
s
Focus industries
Manufacturing
Ph
arm
a,
bio
tech
an
d li
fe s
cie
nce
Fo
od
an
d B
eve
rag
e
Ele
ctric
al e
qu
ipm
en
t a
nd
ma
chin
ery
Basic industries
Downstream industries
Co
nst
ruct
ion
ma
teria
ls
Fin
an
cia
l se
rvic
es
Te
leco
mm
un
ica
tion
se
rvic
es
To
uris
m (
Ho
tels
, re
sta
ura
nts
an
d le
isu
re)
Services
Me
dia
an
d I
nfo
rma
tion
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Abu Dhabi targets 8.5% p.a. growth from non-oil GDPKPIZ to be a major contributor
46 67 84 104 120150
3252
84
127
180
266
0
150
300
450
2005 2010e 2015e 2020e 2025e 2030e
(USD B)
Source: UAE interact; UAE Statistical Yearbook 2008; BCG analysis
Total Oil GDP (%)
Total Non-Oil GDP (%)
59 56 50 45 40 36
41 44 50 55 60 64
CAGR(2005–30) (%)
CAGR(2005–30) (%)
8.5
4.7
Oil sector Non-oil sector
CAGR 6.7%
78
119
168
231
300
416
KPIZ to significantly contribute to non-oil sector GDP growth
Abu Dhabi real GDP development projectionAbu Dhabi real GDP development projection
10
By 2030, KPIZ will be a major contributor to Abu Dhabi
36%
55%
9%1
$416B
0
100
20
40
60
80
%
GDP
AD oil GDP
AD non-oil GDP
KPIZ
$180B
Exports2
Abu Dhabi
KPIZ
92%
8%
91%
9%
3.1M
Population
Rest of AD
KPIZ3
Share of KPIZ in Abu Dhabi 2030Share of KPIZ in Abu Dhabi 2030
1. KPIZ contributes 9% to total GDP and 14% to non-oil GDP 2. Including oil exports 3. Population living in KPIZ
11
Agenda
• About ADPC
• KPIZ Development Strategy
• The KPIZ Project
• Progress to Date
• Opportunities
12
Port and basic industries as anchors of KPIZ
Port
Time
Initial anchor
Aluminium, steel, chemical, glass, paper as heavy industry anchors
Basic industries
Value-added products taking basic industryproducts downstream
Support services to basic industries and light manufacturing (commercial, logistics, ...)
Businesses choosing KPIZ as preferred location regardless of links to KPIZ
Light Manufacturing
Logistics & Services
Offices/Commercial
Urban living offering (residential real estate, shopping, leisure/entertainment, ...) Urban living
13
Khalifa Port
• Reclaimed offshore island located 4.6km from shore
• 12km long approach channel with 16m deep harbor
• 5 development phases till 2030
• 4 km2 onshore area
• Phase 1 (Operational mid 2012)
– 3.4km2 port island
– Capacity: 2M TEUs, 5M Tons various cargo and 110k cars
• Final Phase (2030)
– 15km2 port island
– Capacity: 15M TEUs, 45M tons various cargo and310k cars
– 26km quay walls and berth
14
Industrial Zone: Four dimensions for sector prioritization
How much capital could be invested in each sector?
– No. of potential investors– Avg. investment of industry
Size of sector in KPIZSize of sector in KPIZB
12
Bubble size
Why should AD/KPIZ be interested in a specific industry sector?
• Macroeconomic impact• Knowledge development in AD• Environmental impact• Image builder
1234
Attractiveness for Abu DhabiAttractiveness for Abu DhabiA
x-ax
is
Why should a company be interested in setting up in KPIZ?
• Cost advantage• Access to sizable
fast-growing market• Leveraging unique KPIZ
business environment
12
3
Attractiveness of KPIZ for investors
Attractiveness of KPIZ for investors
C
y-axis
Bubble color
• ADPC revenue potential• ADPC capital intensity• Type of customers• Environmental footprint
Why should ADPC be interested in a specific industry sector?
123
Attractiveness for ADPCAttractiveness for ADPCD
4
15
Major strategic industries identified for the Industrial Zone
Basic and downstream industries
Petro-chemicals
Aluminum
Steel
Glass
Paper
Basic industry
Basic industry
1
2
3
4
5
Chemicalproductscluster
Engineeredmetal
productscluster
Paper,printing and packaging productscluster
Constructionindustrycluster
(construction products,
constructioncompanies)
Commercialtrans-
portationequipment
cluster
Electricalequipment
cluster(includinghouseholdappliances)
Aerospaceand
defensecluster
Clean tech
cluster
Machineryand
equipmentcluster
DownstreamDownstream
Nutrition and
healthcluster
(food and beverage, pharma-ceuticals)
1
2
3
4 5 6 7 8 9 10
Other manufactur-
ing
Trading & logistics (JVCO)
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12
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Value proposition
CBDcenter
Retail Community
CommercialResidential
Port
Basicindustries
Down-stream
industries
Maritime cluster
Offices
Logistics
Privileged access to competitively priced feedstock
• Aluminum, steel, petrochemicals, glass, paper
Unique offeringUnique offering
Highly integrated setup ('seamless')• Heavy industries supporting
downstream manufacturing clusters• Downstream manufacturing + services• Industrial zone + urban living
Easy access to major regional and international markets
• Hub for GCC, Africa, South Asia• World class port, rail road under
development
Hub of talent excellence• Labor and education market • Dedicated vocational training centers for
technicians, craftsmen, ...
World class infrastructure & living environment
• Real city infrastructure• Top of the line leisure and entertainment
infrastructure• KPIZ connects Abu Dhabi + Dubai
ConceptConcept
Commuters (Dubai)
Commuters (AD)
17
Modular approach to realizing KPIZ
Master Plan
2011 2015
Port1
CBD: Residential, Commercial, Retail, Community
3
KPIZ: Area B (Downstream Manufacturing)
KPIZ: Area A (Basic Industries)
2
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Base Metals - Mid Stream Aluminum &
Non Ferrous(2.67 sqkm)
Chemicals (Container Glass, Flat Glass, Paper Mill, Others)
(4.98 sqkm)
Downstream Chemicals
(2.48 sqkm)
Base Metals –Steel
(1.49 sqkm)
Mixed Use (Engineered Metals)
(2.57 sqkm)
Clean Tech(3 sqkm)
Warehousing, Logistics, Business
District(3.85 sqkm)
Petrochemicals(9.57 sqkm)
Phase 1 - Development Plan
Base Metals – Upstream Aluminum,
EMAL (5.6 sqkm)
19
Agenda
• About ADPC
• KPIZ Development Strategy
• The KPIZ Project
• Progress to Date
• Opportunities
20
Progress Update
Dredging & reclamation work commenced in November 2007 at a total cost of AED 5.5 billion
Port infrastructure design awarded in September 2007
Earthworks for the industrial zone commenced in April 2008 at a cost of AED 1.1 billion
Infrastructure and utilities design for the Industrial Zone will be completed in April 2009
A Joint Venture Agreement with JAFZA was signed in April 2008 for Trade & Logistics
A Joint Venture Agreement with DPW is in place to establish Emirates Port Company (EPC)
21
Port Progress
22
Industrial Zone Progress
23
Agenda
• About ADPC
• KPIZ Development Strategy
• The KPIZ Project
• Progress to Date
• Opportunities
24
KPIZ implementation requirements create an array of opportunities
KPIZ requirementsKPIZ requirements
• Land incl. networks (road, power, water, etc.)
• Industrial, commercial residential and social real estate
• Electricity, gas, water, waste, and ICT
Land and basic infrastructure
Real estate
Utilities
Ass
ets
1
2
3
Logistics
Other services
Administrative/ government services
• 3PL logistics, warehouse leasing, transportation, etc.
• Licensing, registration, immigration, etc.
• Commercial services• Personal services
Ser
vice
s
4
5
6
Labor
Raw material
Financing
• Recruiting and training
• Procurement of raw materials
• Equity financing, debt financing
Pro
du
ctio
n f
acto
rs 7
8
9
25
Port3.2 km2
1
Khalifa Port
• 15M TEU total capacity• Construction in 5 phases until 2030 with
initial operations envisaged as of 2012
1
Khalifa Port and Industrial Zone (KPIZ)Abu Dhabi’s Unique Integrated Development Project
Area A51 km2
2B
2A
Industrial Zone
Basic Industries• Steel, aluminum
(incl EMAL), paper, flat glass, non-ferrous metals and petrochemical industry
• ~ 51km2
2A
Manufacturing Industries• 11 clusters
(eg, Clean tech, aerospace and defense, construction ...)
• ~ 112km2
Trade and Logistics • JV with JAFZA
2B
2C
2C
Area B367 km2
• Integrated development offering affordable living and balanced habitat
3ACBD
3BCommercial/ResidentialCommunities
3B
CBD
3A
26
KPIZ will have significant impact along all major dimensions
• ~ 150,000 jobs (20,000 basic industries, 130,000 downstream manufacturing, trade & logistics)
• Including 47,000 highly-skilled positions (engineers, technicians, craftsmen, ...), many locally trained
Employment
Population • ~ 300,000 residents
Expected impact of KPIZ(2030)
GDP • $38 Billion
Exports• 60–80% of output for regional and global market• Leveraging KP's world-class logistics infrastructure (port, ...)
Know-how• Migration of international IP in key industries• Development of local technical and commercial skill base
Ripple effects• Substantial spillovers into Abu Dhabi economy (suppliers, trade,
SME development, ...)
Branding• Advancing Abu Dhabi's brand as world-class industrial hub and
attractive place to live
Estimated Investments
• $24 Billion
27
Thank You