Arab ports have dominated the Container Port Performance Index (CPPI) by the World Bank. Salalah in Oman, Khalifa in the UAE, Tangier in Morocco, Hamad in Qatar, and Port Said in Egypt ranked among the best in the world. This is an Arab achievement highlighting the efficiency of the governments and workers in these ports.
Container Port Performance Index
The CPPI is a comparable data-driven index that ranks 348 container ports worldwide. It is based on the total number of hours a vessel spends at the port, measured by the elapsed time between when a ship reaches a port to its departure from the berth having completed its cargo. The workload is accommodated by examining the basic data within 10 different ranges according to the size of the vessel anchored in the port. The methodology used includes 5 distinct ship size categories due to the potential for greater reduction in fuel and emissions used by larger vessels.
Arab ports showcased their efficiency by dominating the CPPI issued by the World Bank and Standard & Poor’s Global Market Intelligence, as shown in the following figure:
For two consecutive years, Salalah Port has ranked second among the most efficient container ports in the world and ranked first in the West Central and South Asia region. The advantages that Salalah Port enjoys in terms of location and growing connectivity, in addition to its world-class operations, provides all port customers with a competitive edge that is unparalleled in a highly competitive region. Salalah’s position as a transshipment hub is also important for the growth of the local economy in the Dhofar Governorate, where both importers and exporters benefit from the best connectivity the port provide to trade their products globally. In addition, a highly efficient port improves confidence in local businesses, and will thus attract more investment including foreign direct investment.
Salalah Port Services Company announced its results for the first quarter of the current year, showing that the container terminal at Salalah Port handled 1.056 million standard containers (twenty-foot equivalent unit, TEUs) in the first quarter of 2023, compared to 1.093 million TEUs for the same period of the previous year. The general cargo terminal also handled 5.039 million tons of general cargo in the first quarter of this year, compared to 4.363 million tons during the same period of the previous year. Consolidated net profit for the first quarter of 2023 is 1.170 million OMR compared to the same period of the previous year with a profit of 908,000 OMR. Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) were recorded at 4.118 million OMR during the first quarter of 2023 compared to 3.155 million OMR during the same period of 2022. The EBITDA margin was affected by lower maintenance, marine and personnel costs. Salalah Port sought to record 20 million tonnes by the end of this year, with a growth rate of 10 percent year-on-year.
Abu Dhabi Ports Group (ADPC) disclosed the classification of its Khalifa Port among the top 5 ports globally on the CPPI issued by the World Bank in 2022, a year which witnessed major bottlenecks in ports and disruption in the global supply chain due to the repercussions of the Russo-Ukrainian war. CPPI is a global economic index with great significance since four-fifth of global commodity trade is transported by sea, and about 35 percent of total cargo volume and more than 60 percent of commercially valuable shipments are shipped in containers.
CPPI also highlights the use of digital technologies and green fuel alternatives as key criteria for ports modernization and supply chain resilience enhancement, two criteria in which Khalifa Port has achieved outstanding results. ADPC has been keen to continue investing in innovative technologies in 2022 to ensure its technological progress. Maqta Gateway, the Group’s digital arm, offers more than 160 digital services to stakeholders and customers at Khalifa Port, fostering overall efficiency and allowing the reduction of the time required to complete operations.
Port of Tangier
The port of Tangier Med advanced from sixth to fourth place, out of 348 ports in the CPPI 2022, compared to last year. CPPI also included the port of Casablanca, which ranked 159th, and Agadir Port which ranked 252nd globally. The port of Tangier Med dealt with a total of 107,822,662 tons in 2022, a growth of 6 percent compared to 2021. This processed load represents about 54 percent of the total tonnage. Containers traffic has also increased, according to a statement by the port authorities, as the port of Tangier Med handled 7,596,845 TEUs in 2022, a growth rate of 6 percent compared to 2021.
Hamad Port ranked 8th globally and 4th in the Arab world in the CPPI. It received 1,569 vessels in 2022, handled more than 1.40 million TEUs, 1.5 million tons of bulk cargo, 45.8,000 head of livestock, and more than 72.5,000 units of vehicles and equipment.
This achievement demonstrates the efficiency of Hamad Port’s operations and the development of the port’s infrastructure and facilities in line with the highest international standards. Hamad Port plays a strategic role in ensuring the smooth flow of goods and materials to meet the requirements of the local market. It is among the most important long-term projects that embody the Qatar National Vision 2030.
Port Said Port
Port Said Port advanced 3 ranks in the CPPI to the 10th place globally in 2022 out of 348 ports, compared to 13th place in 2021 out of 370 ports.
CPPI aims to identify gaps and opportunities for improvement and development in the container handling process, which ultimately reflects on the interest of all stockholders in the trading process, starting from shipping lines and governments to consumers. CPPI pointed out that maritime transport is the basis of global trade and manufacturing supply chains, as the maritime industry provides the most cost-effective, energy-efficient and reliable means of transportation over long distances, transporting more than 80 percent of the global commodity trade (by volume) via sea routes.