NOV 2017

ALTERNATIVE ROUTINGS IN THE EUROPEAN NORTH-SOUTH CORRIDORS FOR THE BENEFIT OF OVERSEAS TRADE

DANIELE TESTI MARKETING & COMMUNICATIONS DIRECTOR CONTSHIP ITALIA GROUP WHAT BCOS REALLY CARE

 AVAILABILITY OF RELIABLE END-TO-END TRANSPORT SERVICES

 COMPETITIVENESS BY INCLUDING IMPACT ON INVENTORY COSTS

 REDUCE COMPLEXITY AND SUPPLY CHAIN DISRUPTION RISKS

 FULL TRANSPARENCY AND ACCESS TO DATA

2 THE KEY ELEMENTS

BUSINESS MODEL

INTEGRATED CORRIDOR

CONNECTIVITY

CUSTOMS & DATA SAVINGS

3 CONTSHIP: MORE THAN JUST A TERMINAL OPERATOR

UNIQUELY INTEGRATED PORT-TO-DOOR OFFER

CONTAINER RAIL CY DEPOT LAST MILE TERMINAL TRACTION RAIL HUB TRUCKING

+ CUSTOMS + CUSTOMS + WAREHOUSING + CNTR DEPOT

4 CONTSHIP ITALIA GROUP

RAIL CONNECTIONS 2,700 EMPLOYEES

US$ 390 million TURNOVER/YEAR*

25% of Italian IMPORT/EXPORT

25% INTERMODAL market in

22% T/S HUB Market in the MED

* Forecast 2017

5 THE KEY ELEMENTS

BUSINESS MODEL

INTEGRATED CORRIDOR

CONNECTIVITY

CUSTOMS & DATA SAVINGS

6 CONTSHIP ITALIA GROUP ALTERNATIVE CORRIDOR

RAIL CONNECTIONS

7 GDP PER CAPITA (2015) BY EUROPEAN REGION

8 SERVING MULTIPLE MARKETS IN ITALY

250 km

TRIESTE 150 km VENICE

GENOA

RAVENNA

LIVORNO

9 LA SPEZIA - GATEWAY TO SOUTHERN EUROPE

10 LA SPEZIA - FIRST PRIVATE TERMINAL IN ITALY

1971 1987

US$ 240 million of PRIVATE INVESTMENT

2017 The future

11 RAIL HUB MILANO

RAIL TRACKS 300,000 m2 300,000 TEUs SURFACE HANDLING CAPACITY 4 x 750 m 3 x 550 m 12 x 600 m (shunting)

7,000 TRAINS/YEAR IN & OUT US$ 33 million of PRIVATE INVESTMENT THE KEY ELEMENTS

BUSINESS MODEL

INTEGRATED CORRIDOR

CONNECTIVITY

CUSTOMS & DATA SAVINGS

13 SEA CONNECTIVITY 43 Asian ports 4 Asia-Med services 3 Alliances

2M Ocean Alliance THE Alliance

25 EAST Days BOUND

23 Days WEST BOUND

14 RAIL CONNECTIVITY

UpDOMESTIC to RAIL200 LINKS trains perTrains/week week LA SPEZIA RUBIERA (Modena) 34 LA SPEZIA PADUA 28 LA SPEZIA DINAZZANO (Reggio Emilia) 27 LA SPEZIA () 27 LA SPEZIA BOLOGNA 16 LA SPEZIA (Milan) 10 LA SPEZIA RIVALTA (Alessandria) 10 LA SPEZIA VERONA 10 LA SPEZIA VITTUONE (Milan) 6

160+ TRAINS/WEEK

INTERNATIONAL RAIL LINKS Trains/week MELZO ROTTERDAM 22 MELZO VENLO 10 MELZO DUISBURG 6 MELZO FRENKENDORF (Basel) 6 >MELZO 35% BUDAPESTof cargo delivered4 by rail 40+: ranked TRAINS/WEEK 1st in Italy UPDATED MAY. 2017

15 THE KEY ELEMENTS

BUSINESS MODEL

INTEGRATED CORRIDOR

CONNECTIVITY

CUSTOMS & DATA SAVINGS

16 100% PAPERLESS CUSTOMS PROCESSES

ANTICIPATE DEFER

-48 H preclearing

17 TRANSPARENCY, BEFORE

18 TRANSAPRENCY, BEFORE

19 TRANSPARENCY, DURING AND AFTER

20 THE KEY ELEMENTS

BUSINESS MODEL

INTEGRATED CORRIDOR

CONNECTIVITY

CUSTOMS & DATA SAVINGS

21 SOUTHERN GATEWAY TO EUROPE TO REDUCE TRANSIT TIME

16% OF TOTAL TRANSIT TIME SAVING

31 days

26 days

22 SHANGHAI CONTAINERIZED FREIGHT INDEX

2,000 NORTH EUROPE vs MED SPOT RATES

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

NE Med Linear (NE) Linear (Med)

23 PORT-TO-DOOR COSTS

Assumption: 40ft standard cntr Haulage to Basel (CH) 120% ROTTERDAM : base 100 (data in Euro)

100% BARGE HAULAGE 80% RAIL HAULAGE MERCHANT FEE 60% OTHERS T1 40% ISPS

SHIPPER’S COST SHIPPER’S INSPECTION FEE 20% DELIVERY ORDER THC 0% ROTTERDAM - BASEL LA SPEZIA - BASEL ROTTERDAM - BASEL (RAIL) (RAIL) (BARGE)

PORT-TO-DOOR IS STRATEGIC FOR THE TOTAL END-TO-END COST

24 INVENTORY COST IMPACT (HONG KONG – BASEL)

US$ ASSUMPTION US$ 544 •Capital costs : 15% Value container •Storage space costs : 2% •Inventory service costs : 2% Potential SAVING per 40ft cntr US$100,000 •Inventory risks costs : 6% Interest p.a. 25,000 US$ US$ 2,312 Interest per day 68 US$ 2,108 US$ US$ 1,768

Basel via Average Transit-Time Basel via Basel via LA SPEZIA Rotterdam Rotterdam https://www.lokad.com/definition-inventory-costs (by RAIL) (by RAIL) (by BARGE)

25 SERVING THE SWISS MARKET via CONTSHIP

Trains: round trips / week 1 1 2 2 3 5

14,000

+ 71% TEU 12,000

10,000

8,000 + 178%

6,000 4,000 + 41% + 244% 2,000

- FROM 2013 2014 2015 2016 2017 Fcst DEC 2017

26 WHY CONTSHIP LA SPEZIA AS ALTERNATIVE

 Contship PRIVATE INVESTMENTS integrating PORT- TO-DOOR assets and transport services.

 Milan CY Platform + La Spezia together enabling RAIL ACCESS and FINAL-MILE TRUCK DELIVERIES to ITALY and SOUTH EUROPE  IMPORT Rail Share (35%) offering 200 trains per WEEK providing GREEN CREDENTIALS for YOUR CARGO  Potential Saving on INVENTORY COSTS by reducing END-TO-END TRANSIT TIME via Contship’s integrated product SCAN THE QR CODE FOR FURTHER INFO

27 Come and visit CONTSHIP stand G52

28 NOV 2017

THANK YOU FOR YOUR ATTENTION [email protected] [email protected]

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WWW.CONTSHIPITALIA.COM