Multi-Modal Logistics Hub (MMLH) in Yanbu

Transcription

1 Multi-Modal Logistics Hub (MMLH) in Yanbu 2nd RCYCI Forum program 5 January 2016

2 Agenda Multi-Modal Logistics Hub (MMLH) study outcome in 2014 Education and employment requirements in MMLH Current status and next steps

3 Logistics Services Goals: Provide effective solutions to reduce costs through a highly efficient system to suit all industries and different needs: Storage for chemicals and dangerous substances Cold storage warehouses Labeling & Packaging Transportation services locally and globally Support Services and Laydown areas

4 Yanbu Industrial City Master plan: Multi-Modal Logistic Hub Integrated supply chain system supporting the Kingdom s development Maintain the competitiveness of KSA Diversify Economic Opportunities Attract local and foreign investment Promote knowledge transfer, best practice and training through Yanbu National Center of Excellence in Supply Chain & Logistics

5 Feasibility study was conducted to cover the following phases Extract

6 Involved parties in the MMLH feasibility study MMLH Yanbu

7 RCY targets to attract and develop diverse new industries in future Business Drivers: New investments and new Yanbu require sophisticated logistics services support from RCY (Extract)

8 West Coast Rail Freight corridor will be established in 2018 Multi-Modal Logistics Hub (MMLH) Key elements Red Sea gateways and Multi-Modal logistics hub: West Coast Rail corridor is a segregated project Containers Terminal Export & Re-Export Zone Warehouses Minerals Distribution Hub Ship building industry Provides financial and economic benefits to the Kingdom and the region: Reduce logistics cost by approx. 30% Creates about 18,500 direct jobs GDP growth SR 5.7 Bil expected in 2030 (RCY) Current freight traffic volumes in container export justify a connectivity with the rail. 2014: 2,900 TEU/ Day (1 Mil/year) = 6 trains/day one direction

9 General site layout - Phase 3 (2030) including the Center of Excellence

10 MMLH Railway Operations, Track Schematic

11 MMLH Container Cargo Flow Operation Animations General site layout Phase 3 (2030) Enter to transfer station 4. Move container rail/road with crane 2. Direct enter to container terminal 5. Deliver container to industry by truck 3. Remove main locomotive Transport by rail Transport by truck

12 Local Terminal Size & Expansion

13 Yanbu logistics operations will require a multitude of well educated employees with diverse skill sets Basic performance characteristics Multi Modal Logistics Hub Layout Demand for trained labor force Relevant functionalities and figures MMLH will consist of rail terminal, truck terminal, warehouses, bonded and re-export zone, empty container storage yard Yanbu will serve as a hinterland terminal to JIP and KAP. By 2030 a volume of 2.3 million TEUs is expected Container export traffic will be almost 1.8 million TEUs The terminal will provide National customs Center of clearance Excellence -facilities PIS C4029 services / FOP 3-12 Qualified workers are required particularly within rail and container terminal operations For steering and controlling transportation systems, logistics specialists are essential for leadership Further development as well as long-term operational excellence can be guaranteed only by own research on scientific level

14 The Centre of Excellence thus intends to create an efficient and trained supply chain and logistics talent pool for Saudi Arabia and the region (2014) VISION To establish an industry focused national center of excellence to address industry and technology challenges facing the movement, storage and supply of goods in the Kingdom OBJECTIVE PARTNERSHIPS PROGRAMS OFFERED To serve as a national industry To equip supply chain and logistics practitioners with a world class objective knowledge to make informed decisions To be equipped to enable supply chain and logistics professionals, business and governments to transform complex supply chain and trade corridors by improving logistics performance in the kingdom Top Supply Chain & Logistics Universities around the world Top Supply Chain & Logistics associations around the world Saudi corporates especially located in Yanbu Logistics Service providers and Experts Certification Courses Diploma Courses Professional Education Graduate Programs UNDER SUPERVISION OF ROYAL COMMISSION OF YANBU

15 Impact on total potential MMLH jobs for major activities in 2030 estimated Sr. No. Category Total potential jobs for MMLH (High Estimation) Direct jobs Saudization Direct Jobs Indirect jobs 1+2 Container Terminals % a+b Marine Terminal % Rail Operation Areas % Truck Center % 300 6a+b Logistics Gateway % Special Zone (offices, hotels, etc.) % Tank Farm % 160 9a 9b Others (commercial area) Others (transportation infrastructure) Total % % % 8.560

16 Impact on total potential MMLH jobs for Container Terminal operations in 2030 estimated # Organization Level Total potential jobs for Container Terminal key operations Skill mix Direct jobs Saudization Indirect jobs 1 Executive Management VPs % high skill level (Logisitics Expert, engineers, PhDs, etc.) 5 80% 10 2 Management Managers \ Chiefs % high skill level (Logisitics Expert, engineers, PhDs, etc.) 15 80% 30 3 Professional Supervisors \ Logistics Expert \ Engineers \ Foremen % high skill level (Logisitics Expert, engineers, etc.) 60 60% Highly Skilled Cranes Operator \ Granty Driver \ Team Leader \ Shift foreman % mid skill level (Logisitics Expert, etc.) % Skilled Technicians \ Clerks \ Reach-stacker-driver % mid skill level % Semi - Skilled Hazard Driver \ Handling Expert % mid skill level % Semi - Skilled Craftsman 500 Majority low to mid skill level % Non - Skilled Drivers \ Workers Low skill level 470 0% Total % Majority low to mid skill level

17 The Center of Excellence shall provide operationsoriented trainings as well as fundamental research facilities Different types of education and research will constitute the overall service offer Employee training Objective Scientific research & knowledge generation Apprenticeships for workforces Certifications / diplomas for specific topics (e.g. handling of hazardous goods, quality standards) Academic programs and degrees (bachelor, master, PhD) Strategy seminars on executive level (professional education) Class room based lectures and examinations Teaching method Rail practicing center (for operating personnel) Technical repair shops for terminal equipment Research laboratories (e.g. rail technologies for distinctive climate conditions) Scientific conferences and seminars (international scale) Workshops & operational experience High level education and working labor trainings have to be offered simultaneously A clear focus on Yanbu related technologies (like rail) ensures longterm benefits Serving demand of skilled employees for the whole region

18 Developing long-lasting partnerships and building state of the art facilities is key for the future success of the Center of Excellence Establishing the different educational tracks will follow different planning horizons Certification and diploma courses Immediate start due to need for terminal operations Early partnering with existing rail and terminal operators and their training centers Professional education Elaborate need and respective topics for continuing education of existing employees Setting up distinct certifications and diploma courses for relevant topics in Yanbu Decide from case to case whether external know how is necessary Fostering independency from external parties by enlarging own competencies Setting up and institutionalizing different courses (notably for tactical logistics planning) Graduate programs Start with setting up contacts to international research institutes Organization and hosting of international conferences, strengthening contacts Setting up first own programs, first in cooperation with existing universities

19 3 projects related to RCY MMLH were successfully running in 2015 current status MMLH Feasibility Study OBJECTIVES Identify current logistics requirement & volumes Develop MMLH strategic vision and objectives Identify logistics service and initiatives in the MMLH Design a conceptual design and allocation of the initiatives Develop business model and financial feasibility of the MMLH Align with SAR, PIF and other government bodies to get Yanbu connected with rail Secure funding for the MMLH and rail connectivity to Yanbu Sign MOU with key tenants, potential cooperative and collaborative partners Market MMLH to potential tenants, investors & partners Review the feasibility MMLH study Develop 3 conceptual design for the MMLH and select 1 Phase the MMLH developments Detail land zoning and phase 1 development requirements ACHIVEMENTS Successful forecast and alignment of logistics volumes for 2030 Today s volume feasible for a rail connectivity to Yanbu with JIP and KAP MMLH conceptual design, business model & financial feasibility Key principle buy-in from SAR, SAGIA, SRO and others for Yanbu rail connectivity Principle agreement on MOU with SABIC, Sohar, DP World, Port of Antwerp, King Abdullah Port etc Funding approval in progress with PIF MMLH GPCA SC, Industrial Forum Successfully reviewed the feasibility and updated latest data and information Develop 3 conceptual designs and agreed on the most suitable for MMLH at Yanbu June 14 Dec 14 Feb 15 Ongoing Jun 15 Nov 15

20 Key activities and Milestones for MMLH Phase 1 Development 2015 MMLH Strategy Collaboration Partners Cooperation Partners MMLH Marketing Government Stakeholder alignment Conceptual Engineering Tenant alignment & MoUs Investor Engagement 2017 Government Stakeholder Alignment Design Engineering activities Tendering Activities Construction PMO Investor Engagement Partner Engagement SAR rail construction start (KAEC / Jeddah Yanbu) 2019 MMLH Phase 1 Development - Timeline Bridge Construction completed Terminal construction completed Pilot Operations start Rail Terminal Warehouse operations start Investor Engagement 2016 Start rough grading for Phase 1 Award contract for detailed design Government Stakeholder alignment Collaboration Activities Cooperation Activities SAR / PIF approval & Coordination Partner Search & Selection Design Engineering Activities Roads and Bridges construction MMLH Marketing JV Company activities Investor Engagement 2018 Construction PMO Ongoing construction Rail Connection to KAP & JIP completion Roads construction completion Investor Engagement 2020 Full fledged rail terminal operation Preparation work for Phase 2

21 Conclusion: Yanbu has all the right factors to become a World Class Logistics Hub Yanbu Centre of the Region The development and creation of a multi-modal logistics hub is one of the most important projects, which will not only increase the competitiveness of existing industries but also attract new investments and provide employment opportunities RCY plans to establish MMLH in Yanbu and link it with Red Sea Coast Rail corridor due to: Current freight traffic volumes justify today a connectivity with the rail and it can be before the land bridge connectivity is realized. Future Multi-Modal Logistics Hub (MMLH) will support current customers and is a prerequisite for many potential investors. MMLH will leverage RCY, KAP and JIP as the Red Sea logistics gateway for KSA and the world. Current freight traffic volumes in container export: 2014: 2,900 TEU/ Day (1 Mil/year) = 6 trains/day one direction

22 Thank You. Royal Commission for Jubail & Yanbu