JEDDAH, 1 May 2005 — Privatization and inward foreign investment could help ease the pressure on Gulf ports as exports of petrochemicals and plastics soar, delegates were told at the MariChem Middle East 2005 conference that has just ended in Qatar. The conference focused on supply-chain planning and transport solutions to cope with the industry’s booming export growth. The Arabian Gulf is set to become the world’s biggest user of sea transport, logistics services, and cargo-handling facilities as the region’s exports soar to 80 percent of output. By 2007, exports by chemical tanker are projected to top 28 million tons with a further 17 million tons in container shipments, a 40 percent growth on 2003.
Current annual output will grow 20 percent to 50 million tons by 2007, as Gulf states become the world’s dominant production center for petrochemicals and plastics. By 2008, 80 percent of production will be for export, creating intense pressure on the region’s transport systems, particularly ports and shipping. The Gulf region is poised to overtake North America as the world’s leading center for petrochemical-related production, but despite relatively low feedstock costs, growth is hampered by proportionately higher delivery charges. Delivery accounts for 39 percent of costs for plastics producers in the Gulf, the biggest single overhead apart from raw materials, and the MariChem conference explored ways of achieving more cost-effective delivery — especially in East Asian waters and along the China coast.
The two-day MariChem conference that ended April 26 brought together more than 200 delegates from 35 countries representing the major players in petrochemicals and plastics, as well as logistics, supply-chain, and shipping organizations. They identified privatization and inward foreign investment as potential solutions to managing the export demand and the need to provide facilities for cargo-handling and tanker and container shipping. Held under the patronage of Abdullah Al-Attiyah, Qatar’s second deputy premier at the Ministry of Energy and Industry, the conference’s speakers included Hamad Rashid Al-Mohannadi, general manager of Qapco, Homood Al-Tujwairi, vice president of petroleum coordination at SABIC and Dr. Werner Pratorius, president of petrochemical division at BASF. The conference was organized by the London-based Turent Group Ltd. and was the fourth in annual series following previous events in Dubai.
Next year’s conference will take place in February but the venue has yet to be decided.
Turret Group Chairman Richard Hease said: “The 2005 MariChem Middle East conference was by far the most successful to date, providing an ideal opportunity for plastics and petrochemical companies to develop ideas that will help the industry deal as efficiently as possible with the rapid export growth. Delegates were able to identify the way forward and now have a framework on which they can work together to implement mutually beneficial solutions.”