Invest in Yemen - Infrastructure


 
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Infrastructure

Overview:

Yemen's well established infrastructure gives investors the tools necessary for growth and development. Highlights include its 71 thousand plus kilometers of paved and unpaved roads through the nation and to bordering countries. It is connected by 8 international airports feeding 17 airlines that, together, span the globe, and has developed a thriving telecommunications network that offers high speed internet, mobile telephone services and competitive prices. Electricity fees in Yemen range from as low as USD 0.02$ per KW/h and the country’s large ports, perhaps its greatest asset, are equipped to handle 20 thousand plus vessels and vast cargo needs annually.

Road Transport:

  • 71,300 km of roads, including 6,200 km paved roads
  • In the north, highways connect Sanaa, Taizz, and Hodeidah. In the south, a major road connects Aden with Taizz. The second major freeway connects Sana’a with Saudi Arabia and Oman.
  • With aid from the World Bank and the government's commitment, Yemen's rural roads network - historically difficult to maneuver - are currently providing all-weather paved roads to 25% of the population. This is set to increase to 45% by 2014.
  • Plans are well advanced to build an estimated US$1.6 billion highway linking Aden in the south and Amran in the north. The road will include more than 10 tunnels and halve the travel time between the southern seacoast and the northern border with Saudi Arabia.
 Air Transport
  • Yemen has six international airports which are located in Aden, Hodeidah, Sana'a, Ghaida, Sayoun, and Ta'izz. Sana'a International Airport (SIA) – Yemen’s largest international airport - is roughly 13 kilometers north of the city. Aden International Airport is the second biggest airport in the country. Moreover, there are 44 feeder airports in Yemen.
  • Yemen is served by 13 major international airlines (Air Arabia, Egypt Air, Emirates, Ethiopian Air, Gulf Air, Kuwait Airways, Qatar Airways, Royal Jordanian, Saudi Arabian, Turkish Airlines and Yemenia) whose combined routes span the globe. Locally tourists and travelers can choose from one of two national airlines: Yemenia and Felix Airways. 


Maritime Transport:
  • Yemen is geographically situated at the junction of principal maritime routes linking Asia, Africa and Europe. With a strategic location on Bab-al-Mandab, the strait linking the Red Sea and the Gulf of Aden, it has become one of the world’s most active shipping lanes worldwide.
  • Served by two deepwater ports – the Port of Aden and the Port of Hodeidah – and 4 separate smaller seaports, Yemen now handles 3.4% of total ship calls in the Middle East and North Africa regions.
  • There are about 18,000 vessels annually passing through the territorial waters of Yemen with the total cargo volume of 560 million tones
Port of Aden:
  •   Cost Reduction as an International Hub:   The Port of Aden’s direct location on the main shipping route provides huge cost reduction advantage for container companies, justifying Maersk’s use of the port as its main hub for its East African and Middle Eastern operations. The Port’s 1500 to 2,000 yearly calls, nine days steaming from Europe and seven from Singapore, and record 500K+ TEUs of containers handled in 2007 identifies it as an ideal player in the mainstream shipping network from the Asia-Europe trunk route to minor routes in the Middle East and Africa.
  •  Readily Available Facilities: The largest seaport in Yemen, it holds 5000 hectares of sheltered warehousing facilities with room for expansion. The harbor canal has a width of 185 meters and is planned for easy accessibility. The Port is a major transshipping base for the Gulf region, Indian Ocean region and Africa – and is capable of handling containers and bulk/general cargos.

Approximate Distance from Aden to Major Asian & European Ports:

Amsterdam (16 days 7 hours)
4690 miles (12147)km
Colombo (7 days 7 hours)
2100 miles (5439)km
Mumbai (6 days 7 hours)
1660 miles (4299) km
Singapore (12 days 14 hours)
3630 miles (9401)km
London (16 days 1 hours)
4630 miles (11991 )km

 Port of Hodeidah:

  • Located on the western coast only 150 km away from Sana’a it is the second largest port in Yemen after Aden and the principal Red Sea exporting port for cargo originating from the country. It is also the main import entrance port to Yemen.
  • Hodeidah Port remains Yemen’s largest dry cargo handling port accounting for some 50% of the nationally imported goods.
  • Some 4 km from the centre of Hodeidah the port is situated at the end of a 20 km long access channel with a draught limited to 9.7 m. It has an extensive site area of which some 300ha are bonded and further 300ha are assigned and protected for use as an associated Industrial Area.
  • The port consists of 8 berths able to accommodate vessels up to a maximum draft of 9.75 m and an LOA of 200 m and provides 11 sheds totaling 21000 m2, 1 million m2 open storage and 300,000 m2 for the container terminal. There are also nine dock yards and 10 paved dust areas for use.

There are also several other ports open to receive foreign vessels:

  • Port of Saleef: situated within Kamaran Bay 50 km west of Hodeidah towards the Saudi Arabian border. This port is a natural deep-water port accepting vessels up to 16 mts draft. The port has a single general cargo berth of 400 m and is primarily designed for the reception of bulk grain vessels discharging into silos situated within the port.

  • Port of Mokha - situated to the south east of Hodeidah almost equidistant between Hodeidah and Aden. This 175m long 35m wide port consists of one pier and allows for vessels to berth on either side.

Yemeni Oil and Gas Terminals:

  • Ash Shihr Oil Terminal: operated by Canadian Nixen Yemen, This terminal is situated approximately 230 nautical miles east of Aden and consists of a Single Point Mooring Buoy (SPM) capable of handling export tankers ranging from 80,000 DWT to a maximum of 400,000 DWT.
  • Bal Haf Gas Terminal: the terminal is being constructed for handling the exports of Liquified Natural Gas (LNG) from the gas fields situated in the Mareb governorate.
  • Ras Isa Oil Terminal: operated by Yemen Hunt Oil Company on behalf of Yemen Exploration & Production Company, this terminal consists of a 409,000 DWT Floating Storage and Offloading Vessel (FSO) "SAFER" which is permanently moored 4.8 nautical miles offshore Ras Isa.

Telecommunications:

Telecommunications services in Yemen are provided by TeleYemen, which is operated by Yemen’s Public Telecommunication Corporation (PTC) that, in 2003, signed a management contract with France Telecom. TeleYemen offers its customers a variety of services including direct international telephone, Dawli prepaid calling cards, Internet, Inmarsat, BGAN, VSat , leased circuits, and data transmission services.

Yemeni telecommunications market meets investors’ growing demand for competitively priced internet and telecommunications services. A recent regional study showed that the Yemeni GSM market is expanding rapidly compared to the markets in other Arab countries.The Yemeni mobile phone market has grown substantially serving over a quarter of the population (6+ million users) in 2008, up from 4.3 million just a year earlier.

Internet Prices:

Internet services are considered as basics in our business today. Yemen Net offers two options for the investor, which are the gold and the silver subscription services, and they vary in speed and price.

*ADSL service the golden subscription:

Dollar exchange rate = 250 YR.

High-speed Internet service aimed at people with great use of the Internet, for example, (companies - Internet cafes), and the usage is calculated according to the expiration date of the renewal, regardless of data volume.

Cost

Details

NO.

5000 YR

Fee to enter service 

1

free

Fees lifting speed    

2

2000 YR

Fees speed reduction

3

3500 YR

Transfer fee service  

4

 Reduction of the prices to the Gold category up to 50. 

4 Mega

2 Mega

1 Mega

512 kilobyte

256 kilobyte

Internet speed

42000 YR

33000 YR

27000 YR

21000 YR

13500 YR

List price

28000 YR

16500 YR

13500 YR

10500 YR

6750 YR

Price after discount

Golden subscription service ADSL

* ADSL service the silver subscription

High-speed Internet service aimed at people with limited use of the Internet, for example, (houses - small offices), and the usage is calculated according to the balance of the units (data volume) whether downloading files, files upload, browse or chat.

NO.

Details

Cost

1

Fee to enter service  

3000 YR

2

Fees lifting speed     

free

3

Fees speed reduction

2000 YR

4

Transfer fee service  

3500 YR

  Increase capacities in the silver category at a rate ranging between 28 % to 100%.

256 kilobyte

512 kilobyte

1 Mega

2 Mega

4 Mega

Internet speed

2250 YR

3000 YR

4500 YR

6750 YR

11250 YR

Monthly subscription

7GB

9GB

11GB

15GB

20GB

previous Capacities

9GB

12GB

18GB

25GB

40GB

The new capacities

Silver subscription service ADSL

For more information, please visit the Website Yemen Net.


Utilities:
The main provider of electricity in Yemen, the Public Electricity Corporation, guarantees competitive prices for electricity in the country as low as 0.02 $/KWh. The national grid in Yemen, which provides adequate services for major cities and ports, has not yet reached full capacity. As a step towards maximizing the utility of electric power, the government has been looking to promote independent power projects, with a particular focus on using gas from the Marib Oilfield. The Ministry of Electricity hopes to increase power capacity by 1.1 gigawatts over the next ten years to meet increasing demand for electricity. (See Table Below).

Representative Prices for Electricity Cost in Yemen:

Consumption
Cost
Services Fees
US $/KWh
1 Phase
2 Phase
Current Transformer
Urban Areas
100-200 KWh
$0.02
300
800
3500
201-350 KWh
$0.03
300
800
3500
351-700 KWh
$0.04
300
800
3500
More than 700
$0.08
300
800
3500
Rural Areas
001-100 KWh
$0.03
300
800
3500
More than 100
$0.08
300
800
3500
Commercial
$0.08
400
1500
3500
Industrial
$0.08
400
1500
3500
Governorate
$0.08
400
1500
3500
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Headquarter  Address:

P.O Box: 19022
Hadda Street, Opposite to Al-Rahman Mosque, Beside Shammr Tourist & Trading,
Sanaa, Republic of Yemen

Tel: (+967) 1 434-312/13
Fax: (+967) 1 434-314
E-mail: info@giay.org
 

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