1. « THE ROLE OF BEIRUT CONTAINER TERMINAL IN THE EAST MEDITERRANEAN BASIN » Presented by E. Zakhour, President of International Chamber of Navigation of Beirut

2. INTRODUCTION Allow me first to express my gratitude to the organizing committee for having giving me the honor of addressing your distinguished assembly and reviewing the present state of affairs of Beirut Port Container Terminal as well as our strategic plan for the coming years. PRESENTATION Before presenting the facts and figures about our brand new Container Terminal, I find it crucially important to point out that all along its history which dates back to 3000 years B.C., Beirut Port played a key role within the Phoenician Kingdoms which dominated during those days both banks of the Mediterranean Basin. Nowadays Beirut Port stands as the nearest port to any of the capital cities of the Arab Hinterland. Therefore, and in spite of all obstacles and extra borders charges and taxes on goods and trailers transited from Beirut Port to any Arab Countries, it will always be more profitable for Arab traders to use Beirut Port than their own national Ports as a point for imports.

3. Table 1: Distance between Ports and the following Capital Cities Beirut-Damascus120KmBeirut-Amman235kmBeirut-Bagdad1085Km Lattakia-Damascus360KmLattakia-Amman625kmLattakia-Bagdad1475km Tartous-Damascus260kmTartous-Amman525kmTartous-Bagdad1375km Aqaba-Damascus452kmAqaba-Amman335kmAqaba-Bagdad1185km

4. In addition to the above, Beirut Port happens to have a unique strategic position which makes it the most convenient crossing point and port of passage for ships trading within the nearby 3 continents. Bearing this reality in mind, and taking into account the forthcoming Euro-Med partnership, the Lebanese Authority has in the last 15 years spent more than 230 millions US Dollars to rehabilitate, modernize and expand Beirut Port, allowing it to accommodate giant carriers. The most significant part of modernization that was brought about is a new container terminal which became officially operative as from March 2005. A consortium between a British company MDHC (Mersey Docks & Harbour, UK) and an American company IMA (International Maritime Associates, Washington, USA) and a third Lebanese partner BCTC (Beirut Container Terminal Consortium) has won the bid to operate the Container Terminal, led by experts seconded by MDHC.

5. Table 2: Main specifications of Beirut Container Terminal. Quay 15 : Length : 250 meters. Depth : 11 meters. Quay 16 : Length : 600 meters. Depth : 15.5 meters. Ship-to-shore gantry cranes : 3. Rubber tyred gantry cranes : 6 (RTG). Reach stackers : 6. Terminal tractors : 4 x 2 drives. Terminal chassis : 30. Stacking area : 245000 square meters. Capacity : 450000 TEU per year. Waiting period : nil.

6. Current Situation of Beirut Port

7. The competitiveness of Beirut Container Terminal coupled with good performance, flexibility and low handling costs, has already attracted MSC to make weekly calls as from July 2005, with their mega vessels (7500TEU) from the Fareast calling directly Beirut. MSC has actually decided to use Beirut as a HUB where their mega vessels discharge their loads for forward voyages towards neighboring Mediterranean countries such as Syria, Turkey, Cyprus and Egypt. In July and August 2005, the Terminal has handled 89000 TEU out of which 27000TEU transshipment containers, compared with 70000TEU discharged in Beirut during the same period of 2004, thus the increase of 27 percent.

8. Table 3: Total TEU from January to August YEARTOTAL TEU+ / - ( % ) 2001 2005 197000 283000 + 44 % 2002 2005 198000 283000 + 43 % 2003 2005 195000 283000 + 45 % 2004 2005 251000 283000 + 13 % In 2004, Beirut Port dealt with 390000 TEU and is expected to handle in 2005 around 460000 TEU with an increase of 18 %.

9. The rapid growth of the Terminal turnover has, however, promoted the expansion of the Terminal in order to accommodate with the increasing demands of the shipping community. Bearing this in mind, Beirut Port Authority took recently the following steps to enhance the ability of the Container Terminal to handle simultaneously any numbers of vessels: 1- Allow to the geared vessels to use their own cranes, to the gearless vessels to use the mobile cranes and to berth alongside quays nrs. 13 & 14, whenever the quays of Container Terminal nrs. 15 & 16 are occupied by other vessels. 2- To stack the empty containers outside the stacking area of terminal, alongside the open space of quay nr. 14. The operators of the terminal have also left their options opened, by hiring shore equipments when needed in order to preserve the main quality of Beirut Port: No waiting Time Furthermore, the customs authority issued a memorandum allowing the shipping agents to stack the empty containers outside the port. The terminal is also equipped with an online Data System, updated regularly, allowing the shipping agents to transmit and receive any information on the containers positions.

10. Expansions looking ahead plans are being elaborated to increase the capacity of the Terminal in the next 6 years. Two scenarios are in preparation: First Scenario -The first is expected to be put in place in the next 2 years, provides for the following works to be executed: -Filling up part of 4th basin to extend the quay nr. 12 from 242 meters up to 492 meters. -Extend the quay nr. 16 from its present length of 600 meters up to 782 meters

11. Table 4: Beirut Container Terminal at Year 2007 Quay 12 : Length : 492 meters. Depth : 13 meters. Quay 13 : Length : 315 meters. Depth : 11 meters. Quay 14 : Length : 200 meters. Depth : 10.5 meters. Quay 15 : Length : 250 meters. Depth : 11 meters. Quay 16 : Length : 782 meters. Depth : 15.50 meters With 5 ship to-shore Gantry Cranes. Stacking area 450000 square meters capacity up to 825000 TEU. Meanwhile a 4th ship-to-shore gantry cranes is expected to reach Beirut Port in second half of November 2005, while the 5th one will arrive in mid next year.

12. Situation of Beirut Port in 2007

13. Second Scenario The second scenario which is expected to be released during the next 6 years consists: -Filling up the rest of 4th basin, to connect quay nr. 12 with quay nr. 16. -To extend quay nr. 16 from its length of 782 meters (in 2007) up to 1800 meters, till the border of Beirut River. -To dredge the depth of all the new quay nr.16 up to 15.5 meters Table 5: Beirut Container Terminal in 2011 QUAY 12 : Length : 1800 meters. Depth : 15.50 meters. With 15 ship-to-shore gantry cranes. Capacity : 1.750 million TEU The second scenario also envisions building an extension of the present auxiliary breakwater to secure maximum protection for the new quay nr. 16. Long-term Third Scenario A long-term third scenario is also to be studied at a later stage. It endorses the project of making Beirut Port the biggest and most important platform in the East Mediterranean Region by expanding the port beyond the north bank of Beirut River.

14. Situation of Beirut Port in 2011

15. CONCLUSION In light of the above and as we go forward expanding and modernizing Beirut Port, the latter will be by excellence the HUB of the East Mediterranean providing all transport needs in North Africa and the Middle East countries. In conclusion, we Lebanese are keen on resuming our ancestors leading role in the shipping industry, and the Chambre International de Navigation de Beyrouth will be delighted to collaborate with all of you and with the rest of the Shipping Community, joining forces and heading together towards a peaceful and prosperous partnership. Thank you.