Prof. Dr. Reimelt
15th March, 2010 – Global Logistic Forum
Abu Dhabi and ChemaWEyaat – a logistic challenge
Prof. Dr.-Ing. Stephan Reimelt
CEO of IPIC Ferrostaal Contracting LLC
IPIC Ferrostaal Contracting LLC
Agenda
A. Abu Dhabi in the worldwide logistic network
B. Overview Projects ChemaWEyaat and Tacaamol
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
The Global Logistics Forum Abu Dhabi
March 2010
2
A. Definition of logistics
The term logistics is often misinterpreted to mean purely transportation
 Greek: "logos"— ratio, word, calculation, reason, speech, oration
1. Transport logistics
2. Production logistics
Physical transport of goods
Streamline and control of the flow of goods
Supply Chain Elements like transportation, storage and handling methods, loading,
organization of information flow always have to be analyzed from these two perspectives!
Strategic level decisions:
1.
Make to order vs. make to stock
2.
Push vs. pull systems
3.
Centralization vs. decentralization
4.
Third party logistics (Make or Buy)
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
The Global Logistics Forum Abu Dhabi
March 2010
3
A. Connecting Abu Dhabi to the world
Abu Dhabi needs to continue its logistic integration with regard to
1)
Worldwide development
2)
Regional development - Gulf region
3)
Local development - United Arab Emirates [UAE]
International connection through:
1) Global
2) Regional
3) Local
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
The Global Logistics Forum Abu Dhabi
March 2010
4
A. 1.) Worldwide development
Middle East has important position in world oil reserves and trade
routes
Named countries possess
largest oil reserves
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
The Global Logistics Forum Abu Dhabi
March 2010
5
A. 1.) Worldwide development
2015 Middle East will represent 30% of all grassroots refineries
2
1
0.3
North America
Announced
CIS
Europe
Probable
8
5.5
2
2
South America
Africa
Middle East
Asia
 New world class refining projects in
Middle East mainly dedicated to export
 Long term access to supply is key for
new projects
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
The Global Logistics Forum Abu Dhabi
March 2010
6
A. 1.) Worldwide development
2015 Middle East is becoming a major exporting platform for
polyolefins
Polyolefins
Plastic goods
 Global polymer production:
Middle East from 5% in 2000 up to 18%
in 2015 (estimate)
 Global polymer demand:
Asia from 34% in 2000 up to 45% in
2015 (estimate)
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
Middle East to provide up to 40% of the
incremental Asian demand for polyolefins
The Global Logistics Forum Abu Dhabi
March 2010
7
A. 2) Regional development
Intra GCC trade
Arabian Gulf Region

Intra Gulf Cooperation Council [GCC] trade has
quadrupled from $20 bil. 2002 to $80 in 2009
(CAGR* of 120%)

Gulf countries are expanding their planned
capacities:
1.
2.
3.
4.
5.
6.
7.
Arabian
Gulf

Port Jebel Ali, Dubai, UAE (14 Mio. TEU)
Jeddah, Saudi Arabia (3.5 Mio. TEU)
Muscat, Oman (3.5 Mio. TEU)
Shaheed Rejae, Iran (3 Mio. TEU)
Manama, Bahrain (1.1 Mio TEU)
Abu Dhabi, UAE (0.6 Mio. TEU)
Doha, Qatar (0.4 Mio. TEU)
GCC rail network will be around 2,200 km long
covering the coast of the Gulf and extending
from Oman to Kuwait, passing through UAE,
Qatar and Saudi Arabia. Expected completion
by 2017.
*CAGR= Compound Annual Growth Rate
**TEU=Twenty-foot Equivalent Unit
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
The Global Logistics Forum Abu Dhabi
March 2010
8
A. 3.) Local development
Substantial growth of trade volume in Abu Dhabi





Bn USD
2006
%
2007
%
2008
%
Import
Export
88.1
145.6
+18.3
+24.1
132.1
178.6
+49.9
+22.7
176.3
239.2
+33.5
+33.9
Saldo
+57.5
IPIC Ferrostaal Contracting LLC
+46.5
Prof. Dr. Reimelt
Rapid growth of imports
and exports. Logistic
facilities need to keep pace
At this stage, Dubai reflects
the main hub of UAE
Dubai World Central Al
Maktoum International
Airport:
world's largest passenger
and cargo hub under
construction
Abu Dhabi needs to expand
as 80% of Abu Dhabi‘s
imports come seaway; Port
Mina Zayed is congested
Current Abu Dhabi projects:
1. Expansion of Abu Dhabi
International Airport
2. Construction of port in
Taweelah (Port Khalifa)
+62.9
The Global Logistics Forum Abu Dhabi
March 2010
9
A. 3.) Local development
Oil and gas infrastructure
Major internal trade
routes between hubs
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
The Global Logistics Forum Abu Dhabi
March 2010 10
A. Singapore
Example of a success story
1. Singapore is a city state with 2.7 m. inhabitants on a 40 x 25 km small island
2. No industrialized back-country, no heavy industries
3. Located in the „container belt“ - main contributor to success
4. In 1989 Singapore became the biggest container port of the world (4.36 m. TEU)
5. Today Singapore is ranked 1st in the World Banks Logistics Performance Index (UAE is ranked 20th)
handling 28 Mio. TEU per annum
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
The Global Logistics Forum Abu Dhabi
March 2010 11
Agenda
A. Abu Dhabi in the worldwide logistic network
B. Overview Projects ChemaWEyaat and Tacaamol
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
The Global Logistics Forum Abu Dhabi
March 2010 12
B. Introducing ChemaWEyaat
1. “ChemaWEyaat” is the shortened name for Abu Dhabi National Chemicals Company.
2. It is ChemaWEyaat’s vision to develop a new Chemical Industrial City “Madeenat ChemaWEyaat” in the
Khalifa Port Industrial Zone (KPIZ) which will host large integrated chemical complexes
3. Total investment volume first phase: more than US$ 10 bn.
4. Shipping of goods will be through new Khalifa Port (capacity 2030: 15 m. TEUs)
Port Khalifa
Area A
Heavy Industrial
Area C
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
The Global Logistics Forum Abu Dhabi
March 2010 13
B. First complex Tacaamol
1. Tacaamol is a JV company between ChemaWEyaat and IPIC
2. It houses an Aromatics Complex, a Naphtha Cracker and an AUM (Ammonia, Urea Melamine) plant
3. IPIC Ferrostaal starts soon FEED (Front-End Engineering and Design)
4. Complex logistic requirements: after Phase 1 (2015) export of 4.8 m. metric tons
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
The Global Logistics Forum Abu Dhabi
March 2010 14
Video
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
The Global Logistics Forum Abu Dhabi
March 2010 15
B. First complex Tacaamol
Abu Dhabi is focusing to increase its value added of downstream
chemicals
Basic
Chemicals
C3
C4
Pentane plus
light Naphtha
Medium Naphtha
Heavy Naphtha
Ethylene
Propylene
Ammonia
Methanol
Performance
Polymers
Polyethylene
Polypropylene
PVC
Polystyrene
PET
Polycarbonate
ABS
Nylon
PMMA
Synthetic Rubber
Paraxylene
258 kta
Benzene
4 kta
Cumene
600 kta
372 kta
10 kta
Acetone
Propylene
440 kta
PP
870 kta
MEG
Commodity
Intermediates
Performance
Chemicals
58 kta
DEG
3 kta
TEG
Ethylene Glycol
Benzene
Cumene/Phenol
Styrene
PX/OX
Ethanolamines
Melamine
MDI/TDI
Polyols
Acrylates
29 kta
33 kta
MEA
DEA
433 kta
480 kta
566 kta
187 kta
Increasing value addition
184 kta
201 kta
Prof. Dr. Reimelt
Argon
33 kta
34 kta
IPIC Ferrostaal Contracting LLC
Phenol
END PRODUCTS
Basic
Hydrocarbons
Commodity
Polymers
1655 kta
Will require
about 15% of
Abu Dhabi‘s
annual port
capacity
TEA
C8 HDPE
C8 LLDPE
Urea
Ammonia
MTBE
Butadiene
The Global Logistics Forum Abu Dhabi
March 2010 16
B. Middle East chemicals exports
Total export of liquid
chemicals by Middle East
in 2008
Export volume of ChemaWEyaat by
development phases
9
8
Phase 1 (2015)
7
4.8 Mio. mt
(182 ships)
6
5
4
Phase 2 (2018)
3
7.5 Mio. mt
(290 ships)
2
Phase 3 (2030)
22 MORE
PYGAS
PX
C-Hexane
BNZN
EDC
SM
CSS
MTBE
GLYCOL
0
MEOH
1
19.7 Mio. mt
(840 ships)
Sum 22.2 Mio. metric tons
1.
2.
3.
Abu Dhabi will turn into a major player in the worldwide petrochemical market
Modern Middle East chemical plants are likely to replace existing plants in Europe and the USA
This will eventually change worldwide shipping patterns
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
The Global Logistics Forum Abu Dhabi
March 2010 17
B. Supply chain elements of Tacaamol
Zeppelin: “The cost for bagging and packaging […] amount to more than 6% of the polymer value. This has led in North
America and Western Europe to a substantial increase in bulk shipments, which require less than 2% in packaging cost
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
The Global Logistics Forum Abu Dhabi
March 2010 18
B. Concluding remarks
Perspective Abu Dhabi / Middle East
 Unique geo-strategic location at the crossroads of Asia, Europe, Africa (as well in
terms of ecological sustainability)
 Strategic development priority of many
Middle East governments
 Continuous build-up of world-class logistics
infrastructure
 Rapidly growing domestic economies
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
The Global Logistics Forum Abu Dhabi
March 2010 20
‫شكرا جزيال إلهتمامكم‬
Thank you for your attention!
IPIC Ferrostaal Contracting LLC
Prof. Dr. Reimelt
The Global Logistics Forum Abu Dhabi
March 2010 21