MGIT presentation

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Logistic and Transportation Concept for
Contracts in Iraq Issued by M.G.
International Transports GmbH
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1. Organisation
MGI has more than 45 years of experience in
Project freight forwarding. Today, the following
companies are a part of the group M.G.
International (Holding) GmbH As a management
holding company it is taking responsibility for a
smooth administration process. Next to the common
tasks, such as controlling and personnel
management it will take further steps into the
future development of the enterprise. M.G.
International Transports GmbH is representing
the project logistics focussing on the Near and
Middle East Area with our own offices and
representatives in the Near and Middle East.
Together with our partnerships we have been
extending our activities in the Near and Middle
East Region continously. M.G. International
Logistics GmbH is handling intercontinental
traffic, ocean and airfreight services worldwide,
as well as contract logistics (3PL). They are
also permanently expanding their activities e.g.
in Eastern Europe, as well.
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1.1. Ready for the future
Offices in Iraq and the region
Regional Headquarter Amman, Jordan
Iraq HQ Baghdad, Iraq
Branches Zakho, Dohuk, Basrah and Umm Qassr
Offices in Jordan, Syria, Turkey
Agencies in Kuwait, Saudi Arabia, UAE, Qatar,
Bahrain .
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2. IRAQ Key figures
IRAQ Key figures
Republic of Iraq, Capital Baghdad
Area 437.072 sq km, Population 27,5 Mio.
State Budget 2009 ca. 70 Mrd. USD
90 of the budget due to Oil exports
Oil production till 2012 4,5 Mio. b/d
1,5 Bn barrels proven reserves
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3. IRAQ Key sectors
IRAQ Key sectors
Electricity (production, transmission,
distribution)
Oil Energy (oil wells, production,
exploration, refineries)
Fresh and Waste Water Treatment
Agricultural (Supply of machines, equipment,
frigation systems)
Health Sector (Rehabilitation, building of new
hospitals)
Communication (new land/mobile networks)
Infrastructure (airports, seaports, rail tracks,
housing complex)
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4. Financing of IRAQContracts
Today there are three main sources for the
financing of contracts for Iraq
Iraqi Central Bank / Trade Bank of Iraq Letter of
Credit.All opening via a consortion of
international banks under the leadership of J.P.
Morgan Chase (HVB in Germany) Iraqi Central Bank
/ TBI Trade Bank of Iraq Letter of Credit via
non-consortion member banks e.g. Dresdner Bank,
Deutsche Bank, Commerzbank as well as
international banks in the middle east Donation
by Governments e.g. EU, Japan, US, others
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4.1 TBI L/C
Iraqi Ministry
CBI/TBI
Instructionsto open the L/C
Request to open the L/C
Bank of the Beneficary
J.P. Morgan Chase UK
L/C opening
Receivingthe L/C
Supplier
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4.1 TBI L/C
L/C
TBI Costs forL/Cs

• Average costs for L/C issued by consortium
  members and/or TBI
• Confirmation charges 0,6 up to 6 month L/c
  valdity
• Advising fee 0,1 of the L/C value
• L/c processing fee 0,3 of the L/C value
• Transfer fees 0,2 of the L/C value
• Bid bond fees per quarter 0,4 plus taxes
• Please contact for further questions
• Hypo Vereinsbank AG Duesseldorf Mr. Ronald
  Weber
• Phone [phone], ronald.weber_at_unicredit
  group.de

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4.1 TBI L/C
L/C
Difficulties of TBI L/Cs
L/C opening can take several weeks depending on
thefunding situation Payment terms are difficult
to accept by suppliers a) 100 after arrival
and finding it complying with the contract spec.
b) 80 after arrival of goods at consignees
warehouse 20 after complying with the contract
terms c) 50 against shipping documents 50
after arrival of goods and complying with the
contact terms d) 80 against shipping
documents 20 after arrival of goods Bid Bond
required
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Baghdad
Amman
Main Roads within Iraq
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5. Jordan route
Trebil
Amman Trebil 500 km Aqaba Trebil 1.000 km
Transitroute from Aqaba seaport or Amman airport
to the Jordan / Iraqi border (Trebil)
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5. Jordan route

• TREBIL
• (Jordan / Iraqi border point)
• One of the most important routes into Iraq
• Regular sailings available from all main European
  ports to Aqaba
• Short transit times upto the final destinations
  in Iraq
• As the security situation within the Anbar region
  has improved, we are using this gateway again
  more and more

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6. Turkish route
Mersin Habur 850 km
Main transitroute from Mersin port or Iskenderun
port to the Iraqi border (Zakho)
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6. Turkish route

• ZAKHO
• (Turkish / Iraqi border point)
• Mainly used for shipments to the three Northern
  Governorates (Dohuk, Erbil and Suleimaniyah)
• Attractive route for central Iraqi destinations
  as well subject to the final destination
• Suitable for general cargo, containerized
  shipments and project cargo subject to cargo
  dimensions and unit weights
• Short transit times from Europe to Iraq

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6. Turkish route
Discharging of Heavy Lifts at Iskenderun
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6. Turkish route
Movement of Heavy Lift Equipments Zakho - Erbil
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6. Turkish route
Staging areas for trucks at Zakho
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7. Syria route
Main transitroutes from Lattakia or Tartous to
Iraq (Al Waleed border or Al Yaroubiyah border)
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7. Syria route

• Al Waleed / Al Yaroubiyah
• (Syrian / Iraqi border point)
• Used to be one of the most important routes into
  Iraq
• Regular sailings available from all main European
  ports to Lattakia / Tartous
• Short transit times upto the final destinations
  in Iraq

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8. Umm Qassr route
New port
Old port
Port of Umm Qassr and the canal
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8. Umm Qassr route

• UMM QASSR
• (Iraqi port in the Arabian Gulf)
• Regular sailings subject to transshipment in
  Dubai, for break bulk and containerized shipments
• Direct calls to Umm Qassr port, but subject to
  the quantity per vessel
• Suitable port for general cargo. For project
  cargo it is subject to cargo specification
• Very suitable gateways for all supplies to the
  Sou-thern part, particularly from the saftey
  point of view

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9. Kuwait route

• Safwan / Abdali
• (Commercial gate)
• This border has TWO crossing points (military
  and non-military / commercial goods)
• Commercial gate used for all kind of cargo which
  is not belongs to any military supplies
• 3. Even goods under donation programs needs to
  be delivered via the commercial gate only
• 4. Due to governmental (Iraq/Kuwait) the cargo
  has to be transhipped after exit customs
  clearance at Abdali onto Iraqi trucks. Only for
  heavy items we can arrange by special permit to
  enter with Kuwati equipment (hydraulic low beds),
  but on case by case only.

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9. Kuwait route
Commercial gate (Abdali / Safwan)
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10. Customs clearing
Customs Clearing / Customs Registration
According to the Iraqi law, all goods are subject
to a 5 Reconstruction Tax / Levy Imports for
the Government or Governmental Entities are
exempted from this 5 Reconstruction Tax / Levy
if a duty exeption letter is available If the
consignee is a private company or person, the 5
Reconstruction Tax will apply
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10. Customs clearing
Required Documents
For imports to Iraq, the following documents are
required
Bill of Lading / Transport Document Commercial
Invoice Packing List Certificate of Origin Duty
Exemption Levy Form
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11. Security/protection
by cargo insurances
WPA

FPA
SRCC
All risk
War risk(water borne)
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11. Security/protection
Departure of the convoy from Umm Qassr port
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12. Case Study
Installation work for Power Stations in Iraq
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12. Case Study
Delivery to the final destination in Baghdad
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Airfreight to IRAQ

• Regular flight services into Iraq
• Erbil Airport -gt frequent service
• Baghdad Airport -gt frequent service
• Basrah Airport max 100 kgs pce weight -gt
  frequent service
• Larger cargo on request or via Jebel Ali - Umm
  Qassr / Ferry Service or Split Charter
• Other Airports in service
• Balad, Al Taqaddum, Kirkuk, Mosul, Tirkrit,
  Talil, Suleimaniyah and Nasseriah all on request

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Our network in the area
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Links
Iraqi Governments Baghdad Municipal
Governmentwww.export.gov/iraq/exit/bmg_01.html Ku
rdistan Regional Governmentwww.krg.org Kurdistan
Development Corporationwww.kurdistancorporation.c
om Ministry of Agriculturewww.iraqmoa.com Ministr
y of Communicationswww.iraqimoc.net Ministry of
Construction and Housingwww.uruklink.net/moch Min
istry of Culturewww.cultureiraq.org Ministry of
Displacement and Migrationwww.iraqi-modm.org Mini
stry of Educationwww.moeiraq.info Ministry of
Electricitywww.iraqelectric.org
Ministry of Human Rightswww.iraqi-mohr.org Minist
ry of Tradewww.motiraq.org Iraqi Armed Forces
www.iraqiarmedforces.org Ministry of Industry
Minerals www.industry.gov.iq Financial
Institutions Central Bank of Iraqwww.cbiraq.org T
rade Bank of Iraqwww.tbiraq.com Iraqi Trade
Information Centerwww.iraqitic.com Iraq
Investment Promotion Agencywww.iraqipa.com
Iraqi Middle Market Development Foundation
www.immdf.org.jo
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Questions?
Please contact
M.G. International Transports GmbH
Joachim Donath donath_at_mgit.de ? 49 271
409336 Uwe Stupperich stupperich_at_mgit.de ? 49
271 409327 Matthias Weber weber_at_mgit.de ? 49
271 409338
eMail mgit_at_mgit.de Internet www.mgit.de
Offices in Baghdad and Basrah, Jordan, Syria,
Turkey, UAE, Kuwait