APEC Port Development Report 2020.Pdf

APEC Port Services Network APEC Port Services Network APEC Port Services Network

APEC Port Services Network APEC Port Services Network APEC Port Services Network APEC Port Services Network APEC Port Services Network APEC Port Services Network

APEC Port Services Network APEC Port Services Network APEC Port Services Network

APEC Port Services Network APEC Port Serv Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port APEC Services Network Port APEC Network APEC Services Network Port Network Services Network Port Network Services APEC Services Port Services Port APEC Services APEC Port Port APEC Network APEC APEC Network Network Services Network Network Services Port Services Network Port Port APEC Services Services APEC Port APEC Services Port Port APEC Network APEC Network APEC Network Network Services Services Port Network Services Port Services Port Network APEC Port APEC Services Port APEC Services APEC Network Port APEC Network APEC Services Network Network Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network Services Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port APEC Port Services NetworkAPEC (APSN) is an international organizationServices established in response to the directives of the 14th APEC Economic Leaders’ Meeting in 2006 and Network with the support of all leaders from APEC member economiesPort to promote exchanges APEC and cooperationNetwork among port and port-related industries in the Asia-Pacific region. The mandate of the APSN is to facilitate tradeAPEC and investment and enhance supplyNetwork Services chain security by strengthening economic cooperation, capacity building, information Port Network Servicesand personnel exchanges among port and port-related industries and services in the Network region, so as to achieve Networkthe common prosperity of the APEC member economies as Port a whole. Services APEC Services Port Ever since establishment of APSN, as a complimentary service for port-relatedServices Port APEC Services industries in the Asia-Pacific region, APECAPEC Port Development Report Porthas published Port11 issues. This report focuses on the development of Asia-Pacific ports in 2020, APEC Network covering trade, ocean shipping, port infrastructure and operation, laws and APEC regulations, intelligent and sustainable development. WithAPEC its detailed statistics, Network and in-depth analyses, APECNetwork Port Development Report has become an important Services reference for those engaging in port-related industries. Network Network Services Port The APSNServices secretariat sincerely welcomes your advice, and we hope that ports and Network organizationsPort can contribute variously valuable information so that wePort can follow APEC Services the development of the industryServices even closer, and provide our readers with more APEC accurate informationPort in a more timely fashion. APEC Services Port Port APEC Network APEC Network APEC Network Network Services Services Port Network Services Port Services Port Network APEC Port APEC Services Port Jia Dashan APEC Services Secretary General APEC Network APEC Port Services Network Port APEC 2021 JulyNetwork APEC Services Network Network Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network 3 Services 2020 APEC Port Development Report www.apecpsn.org 3 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Network Port Table of Contents Services Port Network APEC Services ChapterPort 1 APEC Services Network Port APECReview of Global and Asia-Pacific Economic and Trade Development in 2020.....6 Network 6 1.1 Review of Global Economic and Trade Development...... APEC Services 1.2 Review of Asia-Pacific Economic and Trade Development...... 9Network Network Services Port Chapter 2 Network Network Review Portof Global and Asia-Pacific Ocean Shipping Industry DevelopmentServices APEC Services in 2020...... Port 18Services Port APEC2.1 Review of Global Ocean ShippingServices Industry Development...... 18 APEC Port 2.2 Review of Asia-PacificPort Ocean Shipping Industry Development...... 26 APEC Network 38 2.3 Variations ofAPEC Shipping Costs...... APEC Network 2.4 Changes in Shipping Laws and RegulationsNetwork...... 44 Services 2.5 Development Trends of International Shipping Organization...... 46 Network Network Services Port Services Network Chapter 3 Port Port APEC Services Review of Asia-Pacific Port DevelopmentServices in 2020...... 48 3.1 Comprehensive Service Time Efficiency Evaluation of Major ContainerAPEC Portsin the Services Port APEC Port Asia-Pacific Region...... 48 Port APEC 3.2 Review of Port Production...... Network 52 APEC Network APEC 3.3 Business Performance of Port Enterprises...... 77 Network Network 88 Services3.4 Review of Multimodal Transport DevelopmentServices of Ports...... 3.5 Review of Port Infrastructure Construction...... Network 95 Services Port Port Network 3.6Services Review of Smart, Green, and Safe Port Development ...... 102 Port APEC Port3.7 Impacts of COVID-19 PandemicAPEC on Ports and Ports' CountermeasuresServices ...... 106 3.8 Review of International Port Organization DevelopmentPort ...... 115APEC Services APEC Network Port Chapter 4 APEC Network Review and Comment on Major Shipping and Port Events in the Asia-Pacific APEC Network RegionServices in 2020 ...... 118 Port Network Services 4.1 Review and Comment on 9 Major Shipping Events in Asia-Pacific Region in 2020 Network Services ...... 2 Port 118 APEC Services Port 4.2 Review and Comment on 10 Major Port EventsAPEC in Asia-Pacific Region in 2020 ...... Port Services123 APEC Reference...... Port ..128 APEC Network APEC Network Services 5 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 1 Network Services ChapterNetwork 1 Review of Global and Asia-Pacific Port Economic and Trade DevelopmentServices in 2020 Port Network APEC Services Port 1.1 Review of GlobalAPEC Economic and Trade DevelopmentServices Network 1.1.1 Global economy shrank Port APEC Network The COVID-19 pandemic broke out in 2020APEC and the world economy experienced Services a deep recession. The World Economic Outlook report published in April 2021Network by Port Network Servicesthe International Monetary Fund (IMF) estimated that the global economic growth would slump by 3.3% inNetwork 2020, a record low since 2009. Following a worldwide Network Port economic recession amid the "Great Lock-down" implemented Servicessince April 2020 to APEC Services contain the pandemic, some economies have eased thePort lock-down restrictions to APEC boost economicServices recovery and implemented prompt fiscal, monetary, and regulatoryServices Port measures that have never been seen before, which has successfully mitigatedPort the Porteconomic recession to some extent. Overall,APEC the world economy in 2020 featured a APEC Network synchronous recovery after a deep recession. APEC APEC Network Table 1-1 GlobalNetwork GDP Growth Rates in 2019-2022 (Unit: %)

Services Item 2019 2020 2021* 2022* Network Network Services Port ServicesGlobal GDP 2.8 -3.3 6.0 4.4 Network PortAdvanced Economies 1.6 -4.7 5.1 Port3.6 APEC Services The United StatesServices2.2 -3.5 6.4 3.5 Euro Area 1.3 -6.6 APEC4.4 3.8 Services Port APEC Port Japan 0.3 -4.8 3.3 2.5 Port APEC APECUnited Kingdom 1.4 Network-9.9 5.3 5.1 Network Canada 1.9 -5.4 5.0 4.7 APEC Emerging Markets and Network 3.6 -2.2 6.7 5.0 Network Developing EconomiesServices Services Russia 2.0 -3.1 Network3.8 3.8 China 5.8 2.3 8.4 5.6 Services Port Port Network Services India 4.0 -8.0 12.5 6.9 Port APEC Port APECASEAN-5 4.9 Services-3.4 4.9 6.1 Brazil 1.4 -4.1 3.7 2.6 APEC South Africa Port0.2 -7.0 3.1 2.0 Services APEC Network Port Note: * indicates projections;APEC ASEAN-5 represents Indonesia, Malaysia,Network Philippines, Thailand, and Viet Nam. APEC Services Source: IMF Network Port Network Services In 2020, the global economy and trade growth rates declined significantly. Most Networkof the economies in the world, from developedPort economies such as Europe and the Services APEC ServicesUnited States to emerging markets such as South Asia and South America, have Port Port been hit hard by the pandemic.APEC According to a recent report by IMF,Services the advanced economies, emerging markets, and developing economies all experienced economic APEC growth slowdowns to varying degrees compared to the previousPort year. The economic APEC growth ofNetwork advanced economies slowed down by 4.7%, 6.3% higher than a year APEC Network 6 Services 2020 APEC Port Development Report www.apecpsn.org 6 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port earlier. In comparison, APECthe emerging markets and developing economiesServices collectively registered a decline of 2.2% year-on-year, an increase of 5.8% from the previous Network year. Port APEC Network The U.S. and European economies wereAPEC among the "worst-hit areas." Due to a Services complete lock-down and decreasing consumption in the second quarter, the U.S.Network Port Network Serviceseconomy registered the most significant decrease in annualized quarterly growth since 1947. The U.S. GDPNetwork shrank by 3.5% for 2020 as a whole. Although various Network Port European economies have adopted strict social distancing measuresServices to prevent APEC Services and control the epidemic and introduced loose monetaryPort and fiscal stimulus policies which are more extensive than those during the financial crisis, the results have beenServices Port APEC Services limited due to the collective decision-makingAPEC mechanism of the EU andPort Euro Area Portmembers. The annual economic growth of the Euro Area still shrank significantly (by APEC Network 6.6%). Subject to dual implications of the COVID-19 pandemic and Brexit, the U.K. APEC economy contracted by 9.9% in 2020, as its largest annual contractionAPEC since records Network began. Network Services Network Among the emerging markets and developingNetwork economies, China did well in theServices Port resumptionServices of work and production and maintained positive GDP growth. India's Network economyPort contracted by 8% due to factory production freeze, large-scalePort poor sales APEC Services of agricultural products, andServices plummeting agro-product exports. Brazil also recorded the sharpest economicPort downturn in the recent 120 years APECas it banned business Services Port APEC activities on a large scale to fight against the pandemic, and its services sector, accounting for 63% of its GDP output, was severely hit. Due to the weak economic Port APEC foundationAPEC and low industrial competitiveness,Network South Africa experienced many Network difficulties for economic recovery after the COVID-19 pandemic and its economy APECwas thrown into a deep recession, shrinking significantly by 7% for the year, the biggest Network Networkannual fall since 1946. Services Services Network The global economyPort is expected to recover in 2021, given the multiple vaccines Services Port Services licensed for use, which may promote economic recovery, and the additional Port Network supportingAPEC policies launched by main economies. However, the resurgence of the APEC Port variant virus, as well as the increasing competitionServices among economies, prospective regional economic sanctions, and Portgeopolitical conflicts in the post-pandemicAPEC Services APEC era might all inflict the global economic recovery. Overall, the world economy is Networkprojected to rebound in 2021, but substantial growth seems unlikely. Port APEC Network 1.1.2 Global trade volume dipped into negative territory APEC Services Network Port In 2020,Network the COVID-19 pandemic spread acrossServices the world. Many industries were frustrated or shut down, factories stopped production, and cargoes failed to beNetwork transported smoothly. Various economiesPort have adopted trade restrictions one after Services APEC Servicesanother in response to the pandemic. The trade activities fell sharply, making the Port already sluggish global tradeAPEC situation even worse. In terms of growth by quarters, Port the global trade showed a V-shape trajectory. In the second half ofServices the year, owing to work and production resumption and dividends fromPort earlier easing policies APEC APEC implementedNetwork across the major economies, signs of recovery were seen on both APEC Network Services 7 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 1 Network Services Port Network Services Port Network APEC Services Port supply and demand sidesAPEC globally. Trade activities gradually rebounded,Services but overall the trade volume remained in the negative growth territory. According to World Trade Network Organization (WTO) estimates, the global trade volumePort in 2020 fell by 5.3% in 2020, APEC and theNetwork growth rate dropped by 5.5% from 2019. APEC Network 10% Services globally. Trade activities gradually rebounded, but overall the trade volume remained in the Network 5% Servicesnegative growth territory. According to World Trade Organization (WTO) estimates, the global Port 0% Network trade volume in 2020 fell byNetwork 5.3% in 2020, and the growth rate dropped by 5.5% from 2019. Port -5% Services APEC Services -10% Port -15% Services Port APEC Services -20% APEC Port Port 2Q2015 4Q2015 1Q2016 2Q2016 1Q2017 3Q2017 4Q2017 1Q2018 3Q2018 4Q2018 2Q2019 3Q2019 2Q2020 3Q2020 APEC Network 1Q2015 3Q2015 3Q2016 4Q2016 2Q2017 2Q2018 1Q2019 4Q2019 1Q2020 4Q2020 APEC APEC Network NetworkAverage Export Import

Services Source: WTO Network Network Services Port Figure 1-1Services Global Trade Import and Export Growth Rates in Different Quarters in Network Port 2015-2020 Port Source: WTO Services APEC Services 1. WTOI readings stayed weak Figure 1-1 Global Trade Import and Export Growth Rates in Different QuartersAPEC in 2015-2020 Services Port APEC Port According to the latest World Trade Outlook Indicator (WTOI) released by the WTO, Port the1. readingsAPEC WTOI readings for the first stayed three weak quarters of 2020 were all under 100, with particularly low performance in the second and the thirdNetwork quarters. In response to the continued APEC Network According to the latest World Trade Outlook Indicator (WTOI) released by the WTO, the readingsAPEC spreadfor the of first COVID-19, three quarters economies of 2020 were around all under the 100, world with imposed particularly lock-down low performance restrictions, in the Network Networkwhich second has and disrupted the third the quarters. global In value response chain to the and continued production spread and of COVID-19,manufacturing economies supply Services logisticsaround thenetworks world imposed and blocked lock-downServices global restrictions, trade whichchannels. has disrupted A large the number global value of import chain and and exportproduction companies and manufacturingPort went out supplyof business, logistics trimming networks and the blocked trade globalactivitiesNetwork trade significantly. channels. A Services Port Thelarge WTOI number readings of import were and exportwell companiesbelow the went baseline. out of business, In the trfourthimming quarter, the trade benefiting activities Network Services fromsignificantly. the worldwide The WTOI economic readings resumption were well below and the noticeable baseline. In improvement the fourth quarter, of benefitingthe global Port APEC Port trade,fromAPEC WTOI the worldwide reading economic rose remarkably resumption and to noticeable100.7,Services indicating improvement a high of the probability global trade, of WTOI global tradereading pickup rose in remarkably the coming to 100.7,few months. indicating a high probability of global trade pickup in theAPEC coming few months. Port Services APEC Network Table 1-2 WTOI and Trends in 2020 Port APECTable 1-2 WTOI and Trends in 2020 Network 2020Q1 Trend 2020Q2 Trend 2020Q3 Trend 2020Q4 Trend APEC Network Services WTOI 95.5 ↓ 87.6 ↓ 84.5 ↓ 100.7 ↑ ExportNetwork orders 98.5 ↑ 83.3 ↓Services88.4 ↑ 113.5 ↑ Port Network Air freight 94.6 ↑ 88.0Port ↓ 76.5 ↓ 88.5 ↓ Services APEC Container port Services 94.8 ↓ 88.5 ↓ 86.9 ↓ 102.0 ↑ Port throughput APEC Port Note: “↑” indicates growth; “↓” indicates decline. Services Note:Source: “↑” WTOindicates growth; “↓” indicates decline. Port APEC APEC Source: WTONetwork 2. Global cargo trade volume on downward trendAPEC generally 3 Network 8 Services 2020 APEC Port Development Report www.apecpsn.org 8 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port 2. Global cargo trade APECvolume on downward trend generally Services Network Subject to the rising tensions globally, the global tradePort growth has slowed down APEC continuouslyNetwork since a peak in 2017. In 2020, amid the COVID-19 pandemic, the global cargo trade volumes were on a downwardAPEC trend across the board. Specifically, Services the United States and Europe registered more significant trade declines and limitedNetwork Network Serviceseconomic and trade recovery, subject to "a second outbreak". In contrast, the Asia Port region realized faster resumptionNetwork of trade activities and smaller decreases in trade Network Port volume overall, which can be credited to China's effective pandemicServices controls, sound APEC Services industrial system, and the status as the world's largest consumPorter market. APEC Services Port TableServices 1-3 Growth Trend of Global Cargo Trade Volumes in 2017-2020 Port APEC Port APEC 2017 2018 2019 2020 Change (%) Network APEC Network APEC Global Trade VolumeNetwork4.9% 3.2% 0.2% -5.3% -5.5 North America 3.4% 3.8% 0.3% -8.5% -8.8 Services Network Services Port Network ServicesSouth and Central America 2.3% 0.0% -2.2% -4.5% -2.3 Export Port Network Port EuropeServices4.1% 1.9% 0.6% -8.0% -8.6 APEC Services Asia 6.7% 3.8% 0.8% 0.3% -0.5 APEC Port APEC Services Port North America 4.4% 5.1% -0.6% -6.4% -5.8 Port APECSouth and Central America 4.5% 5.4% -2.6% -9.3% -6.7 APEC Import Network Network Europe 3.9% 1.9% 0.3% -7.6% -7.9APEC Network Network Asia Services8.4% 5.0% -0.5% -1.3% -0.8 Services Source: WTO Port Network Services Port Services 1.2 Review of Asia-Pacific Economic and Trade Development Port Network APEC Port 1.2.1 Asia-PacificAPEC economic growth contractedServices significantly APEC Services In 2020, the Asia-Pacific region experiencedPort weakened economic performance, but APEC Networkits global influence continued to expand. Given the disruption to industrial chains Port and supply chains amid massiveAPEC lock-down and quarantine restrictions,Network continuous stagnation of cargo trade demands, coupled with rising unilateralism and multiple APEC Services outbreaks of geopolitical conflicts, resulted in the significantly impeded economic Network growth ofNetwork the Asia-Pacific region . According toServices the IMF data, in 2020, the economic Port aggregate of Asia-Pacific economies was USD 52.5 trillion, down by 1.8% year-on-Network year. Specifically, the United States, PortChina, and Japan accounted for 39.8%, 28%, Services APEC Servicesand 9.6% of the economic aggregate in the Asia-Pacific region respectively in terms Port of GDP, seizing the top threeAPEC places securely. As the Asian economies were among Port the earlier ones to contain the pandemic effectively and stoppedServices the pandemic- induced economic downturns, the region had a lower levelPort of economic contraction APEC APEC than the Networkworld overall. In terms of the share in the global economic aggregate, APEC Network Services 9 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 1 Network Services Port Network Services Port Network APEC Services Port the Asia-Pacific regionAPEC remained a key engine in leading globalServices economic growth. In 2020, the region's share in the global economic aggregate further expanded to Network 62.2%. Port APEC Network APEC Australia Brunei Darussalam Network Services Canada Network Chile Services China Port Hong Kong,China Network Network IndonesiaServices Port Japan APEC Korea, Republic of Services PortMalaysia APEC Mexico Services Port Services New Zealand APEC Papua New GuineaPort Port Peru Philippines APEC Russian Federation Network APECSingapore APEC Chinese Taipei Network Network Thailand United States Vietnam Services Network Services Network Source: IMFServices Port Port Network Port Figure 1-2 APEC Economies' Shares in APEC's Total GDP in 2020 APEC Services Services Impacted by the intensified COVID-19 pandemic and tradeAPEC tensions, most of the Services Port APEC Port economies in the Asia-Pacific region experienced significant economic downturns. Port AccordingAPEC to the World Economic Outlook released by the IMF in April 2021, Japan and Korea faced impediments to manufacturingNetwork industries, and Hong Kong, China, APEC Network APEC experienced weakening consumption and decreasing investment. As a result, the Network NetworkEast Asian economies recorded a minor economic growth rate of 0.8%, 3.6% lower Services than 2019. The South AsianServices economy shrank by 6.5%, mainly driven by the severe recession in the IndianPort economy. The Southeast Asian economyNetwork registered a lower Services Port Services growth rate of 3.3%, also subject to the weakening trade demands. Port Network APEC Port Specifically,APEC except China, Viet Nam, ChineseServices Taipei, and Brunei whose economy grew against the trend in 2020, all other economies in the region experiencedAPEC Services economic contractions to a varied extent.Port The United States and China, as the APEC Networklargest and second-largest economies in the Asia-Pacific region, had drastically Port different economic performanceAPEC in the year. China's economy reboundedNetwork quickly to a positive annual growth rate, owing to stringent anti-pandemic controls, a strong APEC Services government, and high administrative efficiency. Suffering from the deterioration of Network the pandemicNetwork situation, the United States' manufacturingServices industry fell into recession Port at some point. The quick economic growth pickup later failed to offset the drasticNetwork economic contractions in the first halfPort of the year. Among the ASEAN economies, Services APEC ServicesSingapore, Thailand, and the Philippines recorded the biggest economic slowdowns. Port Regional blockade measures,APEC border closures, and economic sluggishness caused Port by the COVID-19 pandemic, combined with occasional internationalServices trade frictions, have severely impacted Singapore's manufacturing and exportPort trade. The Philippine APEC APEC economyNetwork contracted by 9.5%, the worst recession after WWII. The Thai economy APEC Network 10 Services 2020 APEC Port Development Report www.apecpsn.org 10 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port also shrank significantlyAPEC due to global economic slowdown, increasingServices global trade Network barriers and weakened tourism from a sudden drop of foreignPort tourists. APEC 6%Network China APEC Services 4% Chinese Taipei Network Network Services 2% Brunei Viet Nam Port Darussalam Network Network 0% Korea Services Port United States APEC Services Australia Indonesia PortRussian -2% New Zealand Federation Services APEC Services Japan Port -4% Canada Papua New Thailand Hong MalaysiaAPEC Port Port Guinea APEC -6% Kong,China Network Chile Mexico APECSingapore APEC -8% Network Network Philippines -10% Peru Services Network Services Network -12% Services Port Port Network Port -14% Services APEC Services Note: The size of the bubble represents GDP (price of the year). APEC Port APEC Services Port Source: IMF Port APECFigure 1-3 GDP Growth Rates of APEC Economies in 2020 APEC Network Network The United States has reached the end of its longest economic expansion in historyAPEC and Network recorded a V-shaped economic trend in the year. Hit by the pandemic, due to a full lock- Network Services down and decreasing consumptionServices in the second quarter of 2020, the U.S. economy recorded the largest contractionPort in terms of annualized quarterly growth sinceNetwork 1947. In response to Services Port the pandemic, the United States imposed super-loose fiscal and monetary policies. In March Network Services 2020, the Federal Reserve lowered the fund rate to a range of 0—0.25% as an urgent counter- Port APEC Port measureAPEC and concurrently implemented unlimitedServices quantitative easing that was never seen before, causing the Federal Reserve asset sheets to expand drastically from USD 4.2 trillionAPEC Services to almost USD 7 trillion. In the meantime,Port with an offering of massive fiscal stimulus, the U.S. APEC Networkeconomic prosperity gradually recovered in the second half of the year, as evidenced by large- Port scale return-to-job and rapidAPEC resumption of consumption and production,Network leading to significant recovery of economic growth. Its manufacturing Purchasing Managers' Index (PMI) continued APEC Services to pick up after dropping to 36.1% in April, which returned to 57.1% in October and garnered Network a six-yearNetwork high in December. After a four-month-longServices freefall, the retail sales value of the Port United States started to recover too. However, as the Trump administration pushed businessNetwork resumption too hard before the pandemic wasPort fully under control, leading to a resurgence of Services APEC Servicesoutbreaks and undermining the production end, the job market was weaker than expected. According to the IMF projection, the U.S. economy is expected to contract by 3.5% in 2020. Port Port APEC Services Port APEC APEC Network APEC Network Services 11 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 1 Network Services Port Network Services Port Network APEC Services APEC Port 120 Services 16% 14% 100 Network Port 12% APEC 80 Network 10% 60 APEC 8% 6%Network Services 40 Network 4% Services20 Port Network 2% Network Port 0 Services 0% 2011 2013 2014 APEC Services 2010 2012 2015 2016 2017 2018 2019 2020 Michigan Consumer Sentiment Index (LeftPort Axis) Services Port APEC Services Unemployment Rate (Right Axis) Source: The University of Michigan APEC Port Port APEC Network Figure 1-4 Consumer Sentiment Index and Unemployment Rate in the United States APEC APEC Network Japan's economy contractedNetwork by 4.8% in 2020 from the previous year, as its first Services negative growth since the 2008 financial Networkcrisis. Hit hard by the pandemic in the first Network half of theServices year, the Japanese economy started to enjoy recovery in manufacturingServices Port and services industries as the social and economic activities resumed in the Network secondPort half of the year when the economy stabilized at low levels. However,Port amid APEC Services a pandemic rebound sinceServices November at home and abroad, Japan's manufacturing APEC and services industriesPort relapsed again, and its overall economyAPEC failed to recover Services Port to the pre-pandemic levels fully. Moreover, the unemployment rate in Japan has Port risenAPEC to 3.0% gradually since February, a significant deterioration in 2020. Japan's APEC Network unemployment situation did not change Networkas significantly as the United States, mainly attributable to the predominant use of informal employment by JapaneseAPEC Network companies. During the pandemic, Japanese companies mostly opted to suspend Networkthe use of informal employeesServices or impose employee suspension to elude lay-offs. In Services the meantime, to relieve the impact of the pandemic on the economy,Network the Japanese Services Port Central Bank intensifiedPort the quantitative easing to support business funding needs Network Services and stabilize the market. Driven by quantitative easing monetary policies, Japan's Port APEC Port exportAPEC to China has increased significantly inServices nonferrous metals, automobiles, and plastics. APEC Services Port APEC NetworkIn 2020, as a pillar of economic development in the Asia-Pacific region, the Chinese Port economy realized growth,APEC despite the pandemic. The COVID-19 outbreak inflicted short-term impacts on China's supply chains and industrial chains,Network but China's APEC Services industrial PMI rebounded stably after a sudden drop in February. Starting from April, Network the ChineseNetwork national economy has been recovering at a stable pace. In response to Port the impacts of the pandemic, China followed threeServices main directions in its monetary policies: maintaining proper monetaryPort aggregate, lowering financing costs, andNetwork Services APEC supporting the real economy to address uncertainties with certainty in systems and Servicespolicies. In 2020, China released the monetary policies in three stages with periodic Port Port milestones set in May andAPEC August, including comprehensive easingServices policies to mitigate the pandemic in the first stage, marginally tightenedPort and more structured APEC APEC policies inNetwork the second stage, and robust and neutralized policies in the third stage, APEC Network 12 Services 2020 APEC Port Development Report www.apecpsn.org 12 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port which has facilitated theAPEC strong recovery in domestic and externalServices trade demands on Network top of implementation of effective pandemic controls. Port APEC 14%Network APEC Services 9% Network Network Services4% Port Network Network Port -1% Services APEC Services -6% Port APEC Services Port Services2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Port APEC Port the United States Japan China APEC Network APEC APEC Source: IMF Network Network Figure 1-5 GDP Growth Rates of Major APEC Economies (2000—2020) Services Network Network 60 Services Services Port Port Network Port55 APEC Services Services 50 APEC Services Port APEC Port 45 Port APEC APEC Network Network 40 APEC Network Network35 Services Services 30 Port Network Services Port Services 2016 2017 2018 2019 2020 Port Network APEC Port APEC the United States ServicesChina Japan Source: iFind Port APEC Services APEC Network Figure 1-6 Manufacturing PMI Trend of Major APEC Economies Port APEC Network In 2020, the Viet Nam economy grew remarkably, outperforming the Chinese APEC Services economy in terms of growth rate, namely at 2.9%. At the early onset of the Network pandemic,Network the Viet Nam government took stringentServices controls to contain the spread Port of the virus. In the whole year, less than 2,000 cases were confirmed in Viet Nam,Network so the overall impact on its economy wasPort less significant. Besides, given the much Services APEC Serviceswider use of work-from-home arrangements during the pandemic, export demands of Port semi-conductors, laptops, APECand other IT-related products manufactured in Viet Nam Port were driven up. Additionally, Viet Nam utilized multiple policies to supportServices production and foreign investment to enhance productivity, accommodatePort companies' APEC APEC productionNetwork shift trends, and further stimulate economic growth. APEC Network Services 13 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 1 Network Services Port Network Services Port Network APEC Services Port 1.2.2 Trade activities ofAPEC economies in the Asia-Pacific regionServices Network In 2020, global trade demands weakened due to thePort COVID-19 pandemic. In APEC addition,Network to contain the spread of the virus, various economies have imposed restriction measures on different levels toAPEC limit cross-border exchanges of people Services and cargoes, causing disruptions to the supply-chain operation. The weak demand-Network Port Network Servicessupply situation has dragged down trade activities in the Asia-Pacific region, with the total trade volume loweredNetwork by 5.5% year-on-year. Multiple economies in the region Network Port were sent to negative growth in terms of foreign trade. Services APEC Services Port 15% Services Port APEC Services 10% Viet Nam Port China APEC Chinese TaipeiPort APEC 5% Network Hong 0% Kong,China APEC APEC Brunei United States Network Network Malaysia Thailand -5% Darussalam Korea New Zealand Chile Services -10% Australia NetworkPeru Singapore Network Indonesia Services Services Russian Port -15% Canada Japan Network Mexico Federation Port Port-20% APEC Services Services Philippines -25% APEC Services APEC Port Papua New Port -30% Guinea Port -35%APEC Network APEC Network APEC Note: The size of bubbles represents the import and export trade value scale. Network NetworkSource: WTO Services Services Network Figure 1-7 ImportPort and Export Trade Value Growth of APEC Economies in 2020 Services Port Services Port Network The importAPEC and export trade of major economies in the Asia-Pacific region in 2020 APEC Port presented the following features: Services Port APEC Services APEC Network1. China's foreign trade reached a record high, with its overall economic Port structure continuing to optimizeAPEC Network In 2020, despite the impact of the COVID-19 at the year beginning, benefiting from APEC Services the strong and effective pandemic controls, the undersupply caused by continued Network Port businessNetwork suspension outside of China, and a Servicesseries of trade support policies and measures released by the Chinese government, China's foreign trade set anotherNetwork record after a V-shaped rebound. AccordingPort to the General Administration of Services APEC ServicesCustoms, China's total cargo import and export values reached RMB 32.2 trillion, up Port Port by 1.9% over 2019. Its exportAPEC value totaled RMB 17.9 trillion, up Servicesby 4.0% year-on- year; and its import value totaled RMB 14.2 trillion, down by 0.7% year-on-year. The APEC annual accumulative trade surplus was RMB 3.7 trillion.Port New records were set in APEC both grossNetwork import and export values and gross export values. APEC Network 14 Services 2020 APEC Port Development Report www.apecpsn.org 14 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port Concurrently, China continuedAPEC to optimize its foreign trade structureServices and witnessed booming new business models such as cross-border e-commerce and market Network procurement trade, being key forces in foreign trade Portstabilization. In 2020, China's APEC annualNetwork cross-border e-commerce import and export values reached RMB 1.69 trillion, up by 31.1% year-on-year. More APECthan 1,800 overseas warehouses servedNetwork Services as key nodes in overseas marketing and new-style infrastructure in foreign trade. Port Network ServicesAn annual export value of approximately USD 100 billion was realized via market Network Port procurement trade, hittingNetwork a record high or up by 25.2% year-on-year.Services APEC Services Moreover, China witnessed significant changes in thePort rankings of its key trade partners in 2020. ASEAN overtook the EU to become China's largest cargo tradeServices Port APEC Services partner with a total of RMB 4.7 trillion worthAPEC of bilateral trade, followedPort by the EU Portand the United States with trade value totaling RMB 4.5 trillion and RMB 4.1 trillion, APEC Network respectively. The Sino-ASEAN trade relationship realized a historic leap, thanks APEC to the mutually complementary trade, the geographical andAPEC cultural proximity, and Network more importantly, the deepenedNetwork bilateral trade liberalization and faster promotion of Services the "Belt and Road" initiative. Benefiting from the continued upgrade dividends from Network the China and ASEAN Free Trade Area (CAFTA)Network and the Regional ComprehensiveServices Port EconomicServices Partnership (RCEP), China and ASEAN expect to see stronger trade ties. Network Port Port APEC Services (Unit: billion US dollars)Services 3000 APEC 700 Services Port APEC Port 2500 600 Port APEC 500 APEC Network 2000 Network 400APEC Network 1500 Network Services 300 Services 1000 Port Network 200 Services Port Services 500 100 Port Network 0APEC 0 APEC Port 2013 2014 2015 2016 2017Services2018 2019 2020 Port APEC Services APEC Network Export value Import value Trade value difference Port Note: The left coordinate indicatesAPEC the import and export value, andNetwork the right coordinate indicates trade value differences. APEC Network Services Source: General Administration of Customs of China Port Network Services Figure 1-8 China's Import and Export Values and Trade Value Difference in 2013- Network Port2020 Services APEC Services Port Port 2. U.S. foreign trade importAPEC and export shrank with a wider tradeServices deficit APEC Faced with the weakened global trade demands amid thePort COVID-19 pandemic, the APEC Network APEC Network Services 15 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 1 Network Services Port Network Services Port Network APEC Services Port U.S. export trade valueAPEC has contracted by a great margin, withServices a further widened trade deficit that was the highest since the 2008 global financial crisis. According Network to the United States Department of Commerce, the U.S.Port import and export values APEC decreasedNetwork by 8.8% from 2019 to USD 3,839.18 billion. Due to the weaker demands of capital goods, industrial products and materials,APEC the U.S. export value contractedNetwork Services by 12.9% to USD 1,431.64 billion. The declines of industrial materials, automobiles, Port Network Servicescomponents and parts, and engines, among other products, also led to the shrinking Network import value by 6.2% year-on-yearNetwork to USD 2,407.55 billion. Although the Trump Port administration attempted to mitigate the trade deficit by imposingServices tariffs and other APEC Services measures, as the U.S. economy and job market were underPort dual implications ofServices the Port APEC Sino-U.S.Services trade frictions and the pandemic, the U.S. trade deficit continued to widen along with lower foreign direct investment. APEC Port Port APEC Network China became the largest trade partner of the United States again in 2020, as the APEC U.S. export to China grew by 16.9% year-on-year. Specifically,APEC The U.S. petroleum Network export value to China grewNetwork by 133%, and soybean export value rebounded to a Services record-high USD 14.2 billion, up by 77.8% year-on-year, becoming dominant factors Network driving the Sino-U.S. trade. The U.S. exportNetwork value to Canada, Mexico, and JapanServices Port declined Servicesby 12.7%, 17.0%, and 14.2% year-on-year, accounting for 17.8%, 14.9%, Network andPort 4.5% of its total export value. In 2020, the United States' top four Portsources of APEC Services trade deficits included China,Services Mexico, Viet Nam, and Germany. Specifically, the U.S. trade deficitPort with Viet Nam expanded by 24.9%, indicatingAPEC an accelerating role Services Port APEC of Viet Nam in the U.S. trade. The U.S. trade surplus still mostly came from the Netherlands and Hong Kong, China, at USD 18.1 billion and USD 16.1 billion in Port 2020,APEC down by 38.3% and 15.8% year-on-year,Network respectively. APEC Network APEC (Unit: billion US dollars) Network Network 3000 0 Services -100 Services 2500 Network Port -200 Services -300 Port 2000 Network Services -400 Port APEC Port 1500APEC Services -500 -600APEC 1000 Port Services -700 APEC -800 Network 500 Port APEC Network-900 0 -1000 APEC Services 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Network NetworkImport value Export valueServicesTrade value difference Port Network Note: The left coordinate indicates the importPort and export value, and the right coordinate Services APEC Servicesindicates trade value differences. Port Port Source: WTO APEC Services APEC Figure 1-9 United States Import and Export Values and TradePort Value Difference in APEC Network 2010-2020 APEC Network 16 Services 2020 APEC Port Development Report www.apecpsn.org 16 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port 3. Japan's import andAPEC export values plummeted, turning theServices foreign trade deficit Network into surplus Port APEC In 2020,Network subject to the substantive declines of foreign demands for automobiles, car components, and mineral fuel, among APECother products, Japan's total export value Services declined by 8.4% to JPY 69.5 trillion year-on-year, which is the first significantNetwork drop Network since the Lehman crisis in 2008. In addition, as imports of crude oil, liquefied natural Port Servicesgas, and coal, among other products, decreased, Japan's import value contracted Network Port by 11.6% to JPY 68.2 trillion.Network According to the 2020 trade statisticsServices released by the APEC Services Ministry of Finance of Japan, Japan's foreign trade has turned from deficit to surplus at JPY 1.3 trillion in the year, as the first surplus in the Portpast three-year period. Services Port APEC Services Due to declining exports of automobiles, engines,APEC and aviation products,Port Japan's Portexport to the United States declined by 16.5% to JPY 12.5 trillion, a continued trend APEC Network for two consecutive years. Japan's export to the EU also decreased by 12.5% to APEC JPY 6.4 trillion. Owing to China's quick economic recovery, APECJapan's exports to China Network in non-ferrous metals, automobiles,Network and plastics increased significantly, driving up Japan's annual export value to China to JPY 15.9 trillion at a growth rate of Services 9.6%, which has facilitated Japan in turningNetwork the deficit around, as China and Japan Network developedServices deeper economic inter-dependencies. Services Port Port Network 4.Port Indonesia registered aServices wider trade surplus; Viet Nam posted strong growth in APEC Services foreign trade imports and exports APEC Port APEC Services Port According to Statistics Indonesia (BPS), Indonesia's import and export values both weakened in 2020, but a second highest trade surplus in history was achieved. Port APEC Due APECto significantly lowered export volumesNetwork of mineral, petroleum, and agricultural Network products, Indonesia's export contracted by 2.6% year-on-year to USD 163.31 billion.APEC The annual oil-gas product export declined by 29.5% to USD 8.31 billion, along with Network Networka 14% drop in agricultural product export to USD 4.12 billion. As Indonesia faced Services increasing daily new infectionServices cases, it imposed stronger social restrictions, leading to the continued Portsluggish demands domestically. Its import Networkvalues of consumer Services Port products, raw materials, and capital goods shrank by 11.0%, 18.3%, and 16.7%, Network Services respectively, leading to an annual gross import value of USD 141.57 billion, down Port APEC Port by 17.3%APEC year-on-year. In this backdrop, IndonesiaServices recorded a trade surplus of USD 21.74 billion, the second-highest on record. APEC Services Port APEC NetworkIn 2020, Viet Nam's gross import and export values rose by 5.4% year-on-year to Port USD 545.36 billion, includingAPEC a total export value of USD 282.65 billion (a 7% year- on-year increase) and a total import value of USD 262.7 billionNetwork (a 3.7% year-on- year increase). It recorded a trade surplus of USD 19.95 billion, which has nearly APEC Network Services doubled since 2019, marking the fifth consecutive year of steady surplus growth. In Port terms ofNetwork trade partners, China remained Viet Nam'sServices largest trade partner, with which the trade ties continued to expand amid the pandemic to bilateral trade totaling USDNetwork 133.09 billion, up by 13.8% year-on-year.Port The manufacturing industry (20.1%) and Services APEC Servicesconstruction materials (104.1%) were the key drivers of the strong bilateral trade Port growth. As the EuropeanAPEC Union–Viet Nam Free Trade Agreement (EVFTA) has Port taken effect, Viet Nam is expected to see stronger momentum in exportServices growth. Port APEC APEC Network APEC Network Services 17 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 2 Network Services ChapterNetwork 2 Review of Global and Asia-Pacific Port Ocean Shipping Industry DevelopmentServices in 2020 Port Network APEC Services Port 2.1 Review of GlobalAPEC Ocean Shipping Industry ServicesDevelopment Network 2.1.1 Review of international container market developmentPort APEC Network The container market experienced drasticAPEC ups and downs in 2020. In the first half Services of the year, the container shipping trade was among the hardest-hit sectors in Networkthe Port Network Servicesglobal shipping market, as the freight was also put under strong downward pressure. But in the second half, containerNetwork shipping became the best-performing sector in the Network Port shipping industry, and both spot freight and time charter reachedServices a record-high level. APEC Services But overall, the global container shipping market in 2020Port has fallen below the 2019 level but has regained good recovery momentum as of the year-end. Services Port APEC Services Port1. Global seaborne container shipping volumeAPEC plunged Port APEC Network In 2020, global economic and trade activities remained weakAPEC amid the COVID-19 Network APEC pandemic, inflicting impactsNetwork on container shipping demands. The 2020 annual global container shipping volume was only 194.5 million TEUs, down by 1.1% and 2.9% Services year-on-year, its first negative growth sinceNetwork 2009. Specifically, the Pacific routes Network recorded Servicesa total capacity of 26.79 million TEUs, up by 2.27% year-on-year, being theServices Port fastest-growing container shipping routes worldwide in 2020. Network Port Port APEC Services （Unit:million TEUs） Services 250 APEC 15.0% Services Port APEC Port 200 10.0% Port APEC Network 5.0% APEC Network 150 0.0%APEC Network 100 Network Services -5.0% Services 50 Port Network-10.0% Services Port 0 -15.0% Network Services 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Port APEC APEC Port Global container shipping volume(left)ServicesYoY growth(right) Source: Clarksons Port APEC Services APEC Network Figure 2-1 Global Container Shipping Volume in 2005-2020 Port APEC Network 2. Total shipping capacity maintained low-rate expansion but fleet efficiency APEC Services failed to be fully utilized Network Network Services Port The global container shipping capacity growth slowed down further in 2020. As ofNetwork the end of the year, the total shipping capacityPort stood at 23.6 million TEUs at a year- Services APEC Serviceson-year growth rate of 2.9%, down by 2.1% from 2019. The ship upsizing trend Port continued while small and APECmedium-sized ships had minor changes in capacity. Ships Port in the tonnage range of 3,000—5,999 TEUs registered a narrowServices decline of 1.2% in capacity. However, the capacity of large ships increasedPort significantly, including APEC APEC a 7.8% capacityNetwork growth rate of 12,000—14,999-TEU ships and a 24.8% capacity APEC Network 18 Services 2020 APEC Port Development Report www.apecpsn.org 18 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port growth rate of 15,000-TEUAPEC and above ships. Services 100-2999 TEU（left） 3000-5999 TEU（left） Network 6000-7999 TEU（left） Port8000-11999 TEU（left） APEC (Unit: million TEUs) 12,000-14999 TEU（left） 15000＋TEU(left) Network （） 25 YoY growth rightAPEC 18.0% Services 16.0%Network Port Network Services20 14.0% Network Network 12.0% Port 15 Services APEC Services 10.0% Port 8.0% APEC 10 Services Port Services 6.0% APEC Port Port 4.0% APEC 5 Network APEC 2.0% Network APEC 0 Network 0.0% * 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Services Network 2020 Network Source: Alphaliner Services Port Services Network PortFigure 2-2 Total Capacities of Global Container Fleets (Classified by PortShip Type) APEC Services Services The idle capacityPort of container fleets fluctuated greatly.APEC In the first half of the Services Port APEC year, liner companies took counter-measures such as suspending or canceling routes to accommodate weak demands amid the pandemic. The total idle capacity Port APEC shareAPEC of container ships rose quickly to 11.6%Network as of mid-May from 6.1% at the Network beginning of 2020. Into the second half of the year, due to the shipping demandAPEC pickup and the lower ship turnover efficiency, many idle ships were put into the Network Networkmarket. As a result, the proportionServices of idle container ship capacity promptly declined. Services (Unit: million TEUs) Idle capacity of global container shipsNetwork (left) 20 Port 9% Services Port June 2020 Network Services 18 highest point 8% Port 16APEC APEC Port Services 7% 14 Port 6% APEC Services 12 APEC 5% Network February 2018 Port 10 lowest point APEC 4% 8 Network 3% APEC Services 6 Network 4 Network Services 2% Port 2 1% Network 0 Port 0% Services APEC Services2017-01 2017-042017-072017-102018-012018-042018-072018-102019-012019-042019-072019-102020-012020-042020-072020-10 Port APEC Services Port Source: Alphaliner Port APEC APEC FigureNetwork 2-3 Idle Capacities of Global Container Ships in 2017-2020 APEC Network Services 19 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 2 Network Services Port Network Services Port Network APEC Services Port 3. Container freight onAPEC V-shaped recovery but over-supply persiServicessted Network In 2020, the China Containerized Freight Index (CCFI)Port averaged at 971, up by APEC 14.0%Network year-on-year, following a V-shaped trend overall. In the first half of the year, subject to the dual implications of the pandemicAPEC and the weak market, the container Services trade volume shrank significantly, which also impacted the freight, as CCFI bottomedNetwork Port Network Servicesat 834 in May. In the second half of the year, as the global pandemic situation eased, market sentimentNetwork and CCFI quickly recovered. In the fourth quarter, in Network Port particular, the daily goods and medical supply demands rose drasticallyServices when the APEC Services pandemic situation deteriorated in the United States andPort Europe. Consequently, the APEC global container shipping demands trended high. As of the end of December, CCFIServices Port was recordedServices at 1,659 points, as the highest since 2005. Port APEC Port 1,800 APEC Network APEC APEC 1,600 Network Network 1,400 Services Network Services Network 1,200 Services Port Port Network Port1,000 Services APEC Services APEC APEC 800 Port Services Port Port 600APEC APEC Network Network 400 APEC Network 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Network Services Services Source: Shanghai Shipping Exchange Port Network Services Port Services Figure 2-4 Fluctuations of China Containerized Freight Index (CCFI) in 2010-2020 Port Network Port APEC Services APEC APEC 2.1.2 Review of international dry bulksPort market development Services APEC Network Port 1. Dry bulks shipping demandsAPEC tumbled Network The global seaborne dry bulks shipping volume in 2020 approximated 5.14 billion APEC Services Network tons, a Networkyear-on-year decrease of 2.1%, echoing the growth slowdown trend. Port Specifically, the iron ore shipping volume wasServices 1.5 billion tons, accounting for 29.3%; coal was 1.17 billion tons, accountingPort for 22.7%; grain was 508 million tons,Network Services APEC Servicesaccounting for 9.9%; and minor bulks was 1.96 billion tons, accounting for 38.1%. Port Port APEC Services Port APEC APEC Network APEC Network 20 Services 2020 APEC Port Development Report www.apecpsn.org 20 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services APEC Port 14% Services Network 12% Port APEC 10%Network APEC Services 8% Network Port Network Services6% 4% Network Network Port 2% Services APEC Services 0% Port Services APEC -2% Services Port Port Port-4% APEC APEC 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Network APEC Network APEC Source: Clarksons Network Services Figure 2-5 Growth of International Dry Bulk Shipping Demand in 1990-2020 Network Network Services Port 2. Dry bulksServices fleet capacity grew at an accelerated rate, with a steady increase in Network PanamaxPort capacity Port APEC Services Services In 2020, the global fleets recorded 11,971 carriers in total, APECadding up to 878 million Services Port APEC DWT, a drop of Port3.8% year-on-year. In 2020, the Capesize carriers totaled 1,777 in number and 348 million DWTs in capacity, with the capacity down by 3.8% year- Port APEC on-year;APEC the Panamax carriers totaled 2,700Network in number and 217 million DWTs in Network capacity, with the capacity up by 5.1% year-on-year; the Handymax carriers totaledAPEC 3,745 in number and 208 million DWTs in capacity, with the capacity up by 3.7% Network Networkyear-on-year; and the Handy-sizeServices carriers totaled 3,749 in number and 104 million Services DWTs in capacity, with the capacity up by 1.3% year-on-year. Network Unit:MoM Portgrowth(%) Services Port Total capacity Capesize Panamax Network Services 30 Handymax Handysize Port APEC25 Services APEC Port Capesize 3.9% Total capacity 3.9% APEC 20 Port Services APEC Panamax 5.2% Network 15 Handymax 3.7% Port APEC 10 HandysizeNetwork 1.2% APEC Services 5 Network Network0 Services Port Network -5 Port Services APEC Services 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Port Port Source: Clarksons APEC Services Figure 2-6 Growth Structure of Global Dry Bulk ShippingPort Capacity (DWT) APEC APEC Network in 2009-2020 APEC Network Services 21 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 2 Network Services Port Network Services Port Network APEC Services Port 3. BDI volatile throughoutAPEC the year following decline — quickServices recovery — feeble Network rebound curve Port APEC The 2020Network BDI average was 1,066, down by 21.2% from 2019. The BDI had drastic ups and downs throughout the year. In APECthe first quarter of 2020, under the dual Services implications of the Spring Festival seasonality featuring lower demand and Networkthe Port Network Servicesquick spread of COVID-19 in China, the overall market demands slumped. Although the grain and minor bulksNetwork demands sustained the small and medium-sized ship Network Port freight, overall the global dry bulks freight roiled at low levelsServices amid the shadow APEC Services of the pandemic. In the second half of the year, as thePort demands from the China APEC market wereServices released at an accelerated pace, the grain trade boomed, coupled Serviceswith Port the shipping supply capacity impediment by tornadoes and monsoonPort in multiple Portlocations, overall the freight was lifted significantly,APEC but the high-season freight did APEC Network not last long. Since October, the BDI fell again when market sentiments were hit as APEC China restricted coal import from Australia. At the end of 2020,APEC as the Chinese steel Network makers and traders were Networkrebuilding raw material inventory for the upcoming Spring Festival, the BDI registered a strong rebound due to the strong demands on iron ore Services and other raw materials. Network Network Services Services Port Port Network Port2500 Services APEC Services APEC APEC 2000 Port Services Port Port 1500APEC Network APEC Network APEC 1000 Network Network Services Services 500 Network Services Port Port Network Services 0 Port APEC Port APEC… … … … … … …Services… … … … … 202 202 202 202 202 202Port202 202 202 202 202 202 APEC Services APEC Network Source: Baltic Exchange Port APEC Network Figure 2-7 Fluctuations of Baltic Dry Index (BDI) in 2020 APEC Services Network 2.1.3 ReviewNetwork of international oil tanker market development Port Services 1. Global oil demand plunged Port Network Services APEC ServicesAccording to the statistics of the International Energy Agency, the global petroleum Port Port demand in 2020 hit 90.26APEC million barrels/day, decreasing by 9.72%Services year-on-year. Specifically, the Organization for Economic Cooperation and Development (OECD) APEC economies contributed 42.04 million barrels/day, decreasingPort by 11.85% year-on- APEC Network APEC Network 22 Services 2020 APEC Port Development Report www.apecpsn.org 22 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port year. According to Clarksons'APEC statistics, the global seaborneServices oil shipping volume in 2020 recorded 2.77 billion tons, falling by 8.75% year-on-year. Specifically, the Network crude oil shipping volume was 1.86 billion tons, a dropPort of 7.53% year-on-year, and APEC the refinedNetwork oil product shipping volume was 917 million tons, a drop of 11.14% year- on-year. APEC Services Network Port Network ServicesTable 2-1 Crude Oil Demands of Global Economies (Unit: million barrels/day) Network Network Services Port Time APEC 2019 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Services Economy Port Services Port APEC Services OECD-Americas 25.65 24.35 APEC20.01 22.72 23.44 Port22.63 Port APEC Network OECD-Europe 14.25 13.35 10.99 12.83 12.29 12.37 APEC APEC Network OECD-Asia Pacific 7.79Network7.75 6.54 6.69 7.20 7.04 Services Total for OECD 47.69 45.45 Network37.54 42.24 42.93 42.04 Network Services Services Port China 13.48 10.94 13.05 13.87 14.28 13.04 Network Port Port APEC Global Total 99.98Services93.10 82.82 91.18 93.89 90.26 Services APEC Services Port APEC Port Note: The 2020 data is projections. Port Source:APEC Organization of Petroleum Exporting CountriesNetwork (OPEC). APEC Network APEC Network Network(Unit:million tons) Services Services 3,500 Port Network Services Port Services 3,000 Port Network 2,500APEC APEC Port 2,000 Services 1,500 APEC Services Port APEC Network1,000 Port 500 APEC Network 0 APEC Services 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Network Network Port Crude Oil Shipping Volume Refined Oil ProductServices Shipping Volume Global Total Port Network Services APEC ServicesSource: Clarksons International Oil Tanker Shipping Demand in 1992-2020 Port Port Figure 2-8 APEC Services Port APEC APEC Network APEC Network Services 23 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 2 Network Services Port Network Services Port Network APEC Services Port 2. Global oil tanker fleetAPEC size continued to rise Services Network As of 2020, the total capacity of global oil tanker fleetsPort has grown for 19 consecutive APEC years.Network According to Clarksons, the global oil tanker fleets (10,000 tons or above) in commission in 2020 totaled 640 millionAPEC DWT, increasing by 3.02% year-on- Services year, with the growth rate falling by 2.77% year-on-year. Specifically, the capacityNetwork Port Network Servicesof Very Large Crude Carrier (VLCC) tankers was 256 million DWT, a year-on-year increase of 3.57%; the capacityNetwork of Suezmax tankers was 95 million DWT, a year- Network Port on-year increase of 4.48%; the capacity of Aframax tankers wasServices 115 million DWT, APEC Services a year-on-year increase of 0.89%, significantly lower year-on-year;Port and the capacity of Panamax and Handysize tankers increased by 1.54% and 3.18%, respectively.Services Port APEC Services Various types of tanker fleets all maintainedAPEC a growth trend in capacity.Port Specifically, Portthe capacity share of VLCC tankers increased gradually after the adjustments in the APEC Network previous years and reached 39.7% of the total capacity inAPEC 2020, one percentage APEC point higher than the previousNetwork year. Network Services Table 2-2 Capacities of International Oil Tanker Fleets Network Network Services Services Time Port YoY Network Type 2019 2020 Port Port Services Growth APEC Services International Oil Tanker Fleets Million DWT 622.35APEC641.13 3.02% Services Port APEC (Carriers of 10,000Port DWT or Above) VLCC Million DWT 247.37 256.20 3.57% Port APEC APEC Network Network Suezmax Million DWT 91.42 95.52 4.48%APEC Network Network Aframax Million DWT 114.47 115.49 0.89% Services Services PanamaxPort Million DWT 33.84 Network34.36 1.54% Services Port Network Services Handysize Million DWT 135.25 139.55 3.18% Port APEC Port APEC Services Source: Clarksons Port APEC Services APEC Network Port APEC Network APEC Services Network Network Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network 24 Services 2020 APEC Port Development Report www.apecpsn.org 24 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port Table 2-3 Crude Oil TankerAPEC Supply and Demand List (Unit: millioServicesn DWT, unless Network otherwise stated) Port APEC Capacity Capacity Capacity NetworkOil Tanker Crude Contributed APECSupply (100 Demand (100 Oil Tanker Year Fleet Oil Trade Network Services by Other million ton- million ton- Utilization Capacity Capacity Network Services Fields miles) miles) Port Network Network Port 2015 340.6 16.5 357.1 106780 97400Services91.2% APEC Services Port 2016 360.1 20.6 380.7 116670 103100 88.4%Services Port APEC Services Port2017 376.9 21.1 398.0 APEC123780 107140 Port86.6% APEC Network 2018 380.3 21.4 401.7 125960 APEC108230 85.9% APEC Network Network 2019 404.9 22.6 427.6 125590 106450 84.8% Services Network 2020 417.6 20.9 438.5Network117600 97680 83.1%Services Port Services Network Source:Port Drewry Port APEC Services Services 3. Crude oil tanker freights volatile APEC Services Port APEC Port The Baltic exchange dirty tanker index (BDTI) fluctuated violently throughout 2020, Port APEC with APECan annual average value of 742.62 points,Network a decrease of 13.8% year-on-year. Network From a long-term perspective, the lowest BDTI during the year was 404.8, a recordAPEC low. At the beginning of the year, the COVID-19 was viral globally, hitting the oil Network Networkshipping market hard in theServices first quarter, and oil consumption demand dropped Services sharply. In the first half of the second quarter, the crude oil Networkprice war started, and the rush for oil productsPort was intense, pushing the index to a ten-year high. From the Services Port Services second half of the quarter to the third quarter, Europe and the United States showed Port Network an obviousAPEC trend of inventory reduction. The oil capacity on the sea and the land APEC Port was low. Coupled with the fact that OPEC+ reachedServices the production cut agreement, this pushed down the oil shipping volumePort to low levels. Affected by the secondAPEC Services APEC wave of COVID-19 outbreaks in the third quarter, the oil shipping market entered a Networkdownturn again. The tanker capacity was oversupplied and the freight index hit a Port record low. At the end of APECthe year, the oil storage was gradually Networkreleased, the supply and demand tended to balance, and the market slowly recovered. APEC Services Network Network Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network Services 25 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 2 Network Services Port Network Services Port Network APEC Services APEC Services Port 2,500 Network Port APEC 2,000Network APEC Services 1,500 Network Network Services Port 1,000 Network Port Network Services APEC Services 500 Port APEC Services Services Port 0 Port APEC Port

2019-1 2019-2 2019-3 2019-4 2019-5 2019-6 2019-7 2019-8 2019-9 2020-1 2020-2 2020-3 2020-4 2020-5 2020-6 2020-7 2020-8 2020-9 APEC 2019-10 2019-11 2019-12 2020-10 2020-11 2020-12 Network APEC Network APEC Source: Baltic Exchange Network Services Figure 2-9 Fluctuations of Baltic Exchange Dirty Tanker Indexes (BDTI) in Network 2019-2020Network Services Port Services Network 2.2Port Review of Asia-Pacific Ocean Shipping IndustryPort APEC Development Services Services APEC Services APEC 2.2.1 Review of Asia-PacificPort container market development Port Port 1. AsianAPEC container shipping market APEC Network Network Subject to the pandemic implications, the container trade volume in the Asia regionAPEC Network shrank, but its share in the global container shipping total maintained growth Networkmomentum, which rose to 30.54%Services as of the end of 2020. Services Network (1) Seaborne containerPort shipping volume in the Asia region edged down Services Port Services Port Network In 2020,APEC the container shipping volume in the Asia region was 59.38 million TEUs, APEC Port down by 0.2% year-on-year, the first negativeServices growth in a decade. But this decline was still far lower than the global levelPort (at -1.1%), and its share in the global totalAPEC Services APEC Networkwas also on a low-rate rising trend. Port APEC Network APEC Services Network Network Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network 26 Services 2020 APEC Port Development Report www.apecpsn.org 26 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port (Unit: million TEUs) APEC Services 70 30.5% 35% Network Port 30% APEC 60 24.7% Network 25% 50 APEC Services 15.5% 20%Network Network Services40 15% Port 30 10% Network Network Services5% Port 20 APEC Services 0% 10 Port -0.2% APEC -5%Services Port Services-7.7% 0 APEC Port-10% Port2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 APEC Network Intra-Aisa container trade volume APEC APEC YoY growth Network NetworkProportion against global container shipping volume Services Source: Clarksons Network Services Port Network Services Network Figure 2-10 Seaborne Container Shipping Volumes in Asia Region in 2008—202Port 0 Port Services APEC Services (2) Container shipping capacity in the Asia region increased APEC Port APEC Services Port According to the latest data of Alphaliner, the top 20 global container liner companies Port allocatedAPEC 11.6% of their shipping capacity to Asian routes, higher than the 10.2% in APEC Network 2019. Specifically, COSCO expanded its AsianNetwork resource allocation from 17% in 2019 to 18% in 2020, the highest among the top 20 container liner companies. MaerskAPEC Network also increased its offering in the Asia region from 5% to 7%. Network Services Services (Unit:1,000 TEUs) Network 600 Port Services Port Network Services 500 Port APEC APEC Port 400 Services 300 APEC Services Port APEC Network 200 Port 100 APEC Network 0 APEC Services Network SITC MSC ONE Network KMTC Port Evergreen Services APM-Maersk Wan Hai Lines COSCO Group Antong(QASC) Network Zhonggu Logistics CMA CGMPort Group Services APEC ServicesSource: Alphaliner Port Port APEC Services Figure 2-11 Container Shipping Capacities of Major Liner CompaniesPort in Asia Region APEC APEC Network in 2020 APEC Network Services 27 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 2 Network Services Port Network Services Port Network APEC Services Port (3) Freights on main routesAPEC in the Asia region increased to Servicesvarying degrees Network Despite that the Asian shipping market was weakenedPort in the first half of 2020 due APEC to theNetwork pandemic, the container shipping freight in the region was on the rise in the longer run. The freights increased on threeAPEC routes in the region, including China— Services Japan, China—Korea, and China—Southeast Asia. Among them, the China—Network Port Network ServicesSoutheast Asia routes saw far higher freight increases than the other two, to a Network Port historical record of 1,411.4Network points at the year-end. Services APEC Services Port 1,400 Services Port APEC Services Port1,200 APEC Port APEC Network 1,000 APEC APEC Network Network 800 Services Network Services Network 600 Services Port Port Network Port400 APEC 2014 2015 Services2016 2017 2018 2019 2020 Services APEC Services APEC China-JapanPort routes China-Korea routes China-Southeast-Asia routes Port Port Source:APEC Shanghai Shipping Exchange Network APEC Network APEC Figure 2-12 CCFI Trend of Major Container Routes in the Asia Region Network Network Servicesin 2014—2020 Services Network 2. Far East—NorthPort America container shipping market Services Port Network Services (1) Far East—North America container shipping volume eye-catching Port APEC Port APEC Services In 2020, the United States was amongPort the hardest-hit economies by the pandemic.APEC Services On the one hand, its domestic economy and production activities were impeded, APEC Networkresulting in higher demands for daily necessities and pandemic supplies. On the Port other hand, as the U.S.APEC government continued to effect economicNetwork stimulus and expanded fiscal subsidies amid the outbreaks, personal consumption roared APEC Services significantly. Given this, the container shipping volume on trans-Pacific routes was Network 27.5 millionNetwork TEUs, up by 5.36% year-on-year,Services which is the highest growth in all Port container shipping routes. Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network 28 Services 2020 APEC Port Development Report www.apecpsn.org 28 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services APEC Port (Unit: million TEUs) Services Network 30 Port 20% APEC 15.21% 25 Network 14.14% APEC 15% 20 Network Services 10% Network 15 Port Services 5.36% Network Network 5% Port 10 2.71% Services APEC Services 5 Port 0% APEC -2.25% Services Port 0 Services -5% Port 2012 2013 2014 2015 2016APEC2017 2018 2019 2020Port APEC Network Annual container shipping volumes on Far East-NorthAPEC America routes APEC YoY growth Network Proportion againstNetwork global container shipping volume Services Source: Clarksons Network Services Port Network Services Figure 2-13 Annual Container Shipping Volumes in the Far East—NorthPort Americ a Network Port Region in 2012-2020 APEC Services Services APEC (2) Pacific routesPort regained growth momentum in shippingAPEC capacity Services Port Port In 2020,APEC the total shipping capacity on the Pacific routes was 16.65 million TEUs at APEC Network a year-on-year growth rate of 6.3%, up by Network8.8% over the -2.5% in 2019, posting a notable growth trend. Quarter specific, the total shipping capacities input on PacificAPEC Network routes increased quarterly. In the first half of the year, as the manufacturing supply Networkcapacity and consumption Servicesdemands were undermined by the pandemic on both the Services China end and the U.S. end, the Pacific shipping demands slidNetwork significantly, and Services Port shipping companiesPort inventoried capacities partially to lower their operating costs. Network Services In the second half, as the U.S. import demands surged amid economic stimulus, Port APEC Port containerAPEC shipping orders spiked with roaringServices prices, pressing the ship companies to release the inventoried capacities and add multiple routes. In the third and fourthAPEC Services quarters, the Pacific routes recordedPort a quarter-on-quarter increase in shipping APEC Networkcapacity. In the third quarter, the growth rate was as high as 31%. Port APEC Network APEC Services Network Network Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network Services 29 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 2 Network Services Port Network Services Port Network APEC Services Port (Unit: 1,000 TEUs) APEC Services Network Port 40% APEC 5000 Network 30% 4000 APEC 20%Network Services 3000 Network Services 10% Port 2000 Network Network 0% Port 1000 Services APEC Services Port -10% 0 -20%Services Port APEC Services Port2016Q1 2016Q22016Q32016Q42017Q12017Q22017Q32017Q42018Q12018Q22018Q32018Q4APEC2019Q12019Q22019Q3 2019Q42020Q12020Q22020Q32020Q4Port APEC Total capacity of Far East-North America routes QoQ growth Network APEC Network APEC Source: Alphaliner Network Services Figure 2-14 Quarterly Total Shipping Capacities of the Far East—North America Network Region in 2016-2020Network Services Port Services Network (3)Port Container freight rates on the Far East—North America routes spikedPort APEC Services Services Impacted by the Portpandemic, the container freights all had variedAPEC increases globally in Services Port APEC 2020. In the first half of the year, the container trade volume went down along with downward freight. Against this backdrop, as the pandemic situation eased in the Port APEC secondAPEC half of the year, the Sino—U.S. tradeNetwork activities started to resume, with the Network market freight leading the recovery. The average CCFI of Far East—US West routesAPEC was 885.76 points, as annual average freight increase by 28.3% year-on-year, and Network Networkthe average CCFI of Far ServicesEast—US East routes was 1,040.53 points, as annual Services average freight increased by 17.5% year-on-year. Port Network Services Port Services 1400 Port Network 1200APEC Services APEC Port 1000 Port APEC Services APEC 800 Network600 Port APEC 400 Network APEC Services 200 Network Port 0 Network Services Network Services 2019-01 2019-03 2019-05 2019-07 2019-09 2019-11Port2020-01 2020-03 2020-05 2020-07 2020-09 2020-11 APEC Services U.S. west coast routes U.S. east coast routes Port Port APEC Services Source: Shanghai Shipping Exchange APEC Port APEC FigureNetwork 2-15 CCFIs of China's Exports to North America in 2019-2020 APEC Network 30 Services 2020 APEC Port Development Report www.apecpsn.org 30 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port 2.2.2 Review of Asia-PacificAPEC dry bulks market development Services Network 1. Asia-Pacific share in dry bulks import market continuedPort to expand APEC Network In 2020, major economies in the Asia-PacificAPEC region continued to see increases Services in import demands of dry bulks (iron ore, coal, and grain), at a 3.0% growth rateNetwork Network Servicesover 2019, achieving positive growth though the global dry bulks shipping volume Port decreased by 1.4%. The Networkregion's share in the global total dry bulks shipping volume Network Port also expanded to 73.8% in 2020 from 70.6% in 2019. Amid theServices overall weak dry APEC Services bulks trade globally, the stabilization of foreign tradePort activities in Asia-Pacific APEC economies represented by China has played important roles in promoting worldServices Port economicServices and trade recovery. APEC Port Port(Unit:million tons) APEC Network 1,600 APEC 100% 91% 90% Network APEC 1,400 Network 80% 1,200 Services 70% 1,000 Network63% Network Services 60%Services Port 800 50% Network 49% Port Port 1362.2 40% 600 Services APEC Services 30% 400 732.9 APEC APEC Port 20% Services Port 200 250.2 10% Port APEC0 0% Iron ore CoalNetwork Grain APEC Network APEC Seaborne import volume of Asia-Pacific region Seaborne import volume of other economies Network Network Share of Asia-Pacific economiesServices Services Source: Clarksons Port Network Services Port Note: "Asia Pacific" in this figure includes 14 major economies, including Russia and China, Network Services covering nearly all the dry bulks import and export shipping volumes of major economies in Port APEC Port the Asia-PacificAPEC region. Therefore, it is used to referServices to the Asia-Pacific region. Similarly, other economies refer to the major economies outside the Asia-Pacific region APEC Services Port APEC NetworkFigure 2-16 Shares of Asia-Pacific Economies in Global Total Dry Bulks Shipping Port APECVolume in 2020 Network In terms of iron ore, the global iron ore shipping volume reached 1.5 billion tons in 2020, APEC Network Services including 1.36 billion tons by Asia-Pacific economies (91% of the global total). Among the Network Port major economies in the region, China had steady growthServices in steel production. As the pandemic situation eased, business activities started to resume. China was in high iron ore demands,Network as the utilization rate of blast furnaces in steelPort mills rose. In 2020, China imported about 1.15 Services APEC Servicesbillion tons of iron ore via seaborne shipping, up by 9.4% year-on-year, accounting for 76.0% Port Port of the global iron ore import volume.APEC In 2020, Australia exported 871 millionServices tons of iron ore, up by 4.1% year-on-year. Port APEC APEC Network APEC Network Services 31 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 2 Network Services Port Network Services Port Network APEC Services Port Table 2-4 Iron OreAPEC Import and Export Volumes and GrowthServices Rates of Major Network Economies in the Asia-Pacific Region in 2020Port (Unit: million tons) APEC Network Trade Volume Economy Import ExportAPEC Total Services Growth Network Network Services China 1145.4 1145.4 9.4% Port Network Network Port Korea 70.4 70.4 Services-5.8% APEC Services Port Japan 99.4 99.4 -16.9% Services Port APEC Services Chinese Taipei 21.4 APEC 21.4 Port-10.8% Port APEC Network Viet Nam 11.6 11.6 14.9% APEC APEC Network Malaysia Network3.8 3.8 5.6% Services Indonesia 6.5 Network 6.5 32.7% Network Services Services Port Australia 870.8 870.8 4.1% Network Port Port APEC Canada Services 53.8 53.8 5.9% Services APEC Services APEC United StatesPort 3.7 3.7 -21.3% Port Port APEC APECPeru Network16.4 16.4 -15.5% Network Total 1362.2 941.0 2303.2 4.9% APEC Network NetworkSource: Clarksons Services Services In terms of coal, global coal production fell modestly in 2020,Network which was projected Services Port Port Services to be 6.5% lower than the previous year. The coal shipping volumes by major Port Network economiesAPEC in the Asia-Pacific region also contracted by 7.3%, with negative APEC Port import growth and export growth at -4.9% andServices -9.0%, respectively. Specifically, due to restrictions on Australian coalPort imports, the coal import volume dropped APECfor Services APEC Networkconsecutive months at the year end. In 2020, China's seaborne coal import trade Port volume declined by 7.1%.APEC In addition, Korea, Japan, and Chinese Taipei, among other economies, also experienced declines in coal consumptionNetwork to various extent. However, Viet Nam recorded positive growth in seaborne coal import trade volume APEC Network Services at a year-on-year rate of 34.4%. Network Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network 32 Services 2020 APEC Port Development Report www.apecpsn.org 32 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port Table 2-5 Coal ImportAPEC and Export Volumes and Growth Rates Servicesof Major Economies Network in the Asia-Pacific Region in 2020 (Unit:Port million tons) APEC Network Trade Volume Economy Import ExportAPEC Total Services Growth Network Network Services Russia 148.1 148.1 -0.2% Port Network Network Port China 237.9 2.6 240.5 Services-7.1% APEC Services Port Korea 117.4 117.4 -12.7% Services Port APEC Services Japan 169.2 APEC 169.2 Port-6.2% Port APEC Network Chinese Taipei 67.9 67.9 -4.1% APEC APEC Network Viet Nam Network52.8 52.8 34.4% Services Thailand 23.2 Network 23.2 5.0% Network Services Services Port Malaysia 33.0 33.0 3.1% Network Port Port APEC Philippines Services25.5 25.5 -3.0% Services APEC Services APEC Indonesia Port 2.9 402.5 405.4 -11.8% Port Port APEC APECAustralia 360.9Network360.9 -5.8% Network Canada 28.6 28.6 -11.2% APEC Network Network United States Services3.1 59.0 62.1 -25.7% Services Network Total Port 732.9 1001.7 1734.6 -7.3% Services Port Services Port Network APEC Port Source:APEC Clarksons Services In 2020, the global seaborne grain tradePort volume reached 508 million tons, markingAPEC Services APEC a year-on-year growth rate of 6.5%. Major economies in the Asia-Pacific region Networkalso registered a high growth rate of 15.1% in seaborne grain shipping volume. Port Among them, due to largeAPEC orders placed by the Chinese feedNetwork producers, farming businesses, and traders in the international market, China became the largest grain APEC Network Services buyer in the year with an unprecedented purchase record. China's annual grain import volumeNetwork was 132 million tons, up by 29.5%Services year-on-year, making China a Port main driving force of seaborne gain shipping volume growth in the region. Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network Services 33 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 2 Network Services Port Network Services Port Network APEC Services Port Table 2-6 Grain ImportAPEC and Export Volumes and Growth RatesServices of Major Economies Network in the Asia-Pacific Region in 2020 (Unit:Port million tons) APEC Trade Volume NetworkEconomy Import Export Total APEC Growth Network Services Russia 37.7 37.7 11.5% Network Services China 132.2 132.2 29.5% Port Network Network Port Korea 17.1 17.1 Services3.6% APEC Services Japan 26.3 Port26.3 -0.4% Services Port APEC ChineseServices Taipei 9.1 9.1 2.2% Viet Nam 16.7 APEC 16.7 Port4.4% Port APEC Network Thailand 8.6 8.6APEC 17.8% APEC Malaysia Network6.2 6.2 3.3% Network Philippines 7.0 7.0 -4.1% Services Indonesia 14.2 Network 14.2 -2.1% Network Services Services Port Australia 12.5 12.5 -1.6%Port Network PortCanada 1.4 30.0 31.4 3.3% APEC Services Services APEC United StatesPort 4.8 127.9 132.7APEC 21.1% Services Port Peru 6.6 6.6 0.0% Port APEC APECTotal 250.2 208.1Network458.3 15.1% Network Source: Clarksons APEC Network Network2. Asia-Pacific dry bulksServices shipping capacity grew steadily for three consecutive Services years Port Network Services Port Services Main ship owners in the Asia-Pacific region, for the long term, have owned more Port Network than halfAPEC of the global dry bulk shipping capacity. In 2020, their share of the global APEC Port total had increased for three consecutive yearsServices to 59.9% in 2020. As of the end of 2020, the Asia-Pacific region owns 15Port of the top 20 dry bulks ship owners globally,APEC Services APEC Networkconsistent with the 2019 level. Port APEC Network APEC Services Network Network Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network 34 Services 2020 APEC Port Development Report www.apecpsn.org 34 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services APEC Port (Unit: million tons) Services Network 600 Port APEC Network 500 APEC 59.9% Network Services 400 59.0% 58.3% Network 58.6% 58.2% 57.8% Port Services 300 59.8% 59.1% Network Port 59.2% Network Services APEC Services 200 Port 100 Services Port APEC Services Port0 APEC Port APEC 2012 2013 2014 2015 2016 2017 2018 2019 2020 Network APEC European Union Asia Pacific OthersAPEC Network Source: Clarksons Network Services Network Figure 2-17 Ownership of Dry BulksNetwork Ships by Registry in 2012—2020 Services Port Services Network Port Table 2-7 Rankings of Global Top 20 Dry Bulks Ship Owner GroupsPort APEC Services Services APECFleet Size APEC Ranking DryPort Bulk Shipowner Economy Services Port Quantity Million DWT 1 China COSCO Shipping Group China 326 37.57 Port APEC APEC Network Network 2 NYK Lines Japan 160 14.90APEC 3 Wisdom Marine Group Chinese Taipei 130 7.05 Network Network Services 4 FredriksenServices Group Cyprus 122 15.35 5 China Merchants Group Hong Kong, China Network119 13.43 Services Port Port Services 6 Star Bulk Carriers Greece 116 12.86 Port Network APEC Port 7APECPacific Basin Shipping Ltd HongServices Kong, China 115 4.78 8 KLINE Port Japan 109 13.04 APEC Services APEC Network 9 Oldendorff Carriers Germany 79 Germany 106 11.30 Port 10 Mitsui O.S.K.APEC Lines Japan 97Network11.41 11 Nissen Kaiun Japan 84 8.26 APEC Network Services 12 China Development Bank China 82 8.62 Network 13 Imabari Shipbuilding Co., Ltd JapanServices 78 8.38 Port Network 14 Nisshin Shipping Port Japan 76 4.46 Services APEC Services15 Pan Ocean Shipping Korea 74 11.01 Port Port 16 Navios HoldingsAPEC Greece 74 Services8.27 17 Mitsubishi Group Japan Port65 5.65 APEC APEC Network APEC Network Services 35 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 2 Network Services Port Network Services Port Network APEC Services Port 18 DounAPEC Kisen Japan Services63 5.72 Network 19 Fednav Canada Port 62 2.37 APEC 20NetworkBerge Bulk Bermuda 62 11.94 APEC Services 19 Fednav Canada 62 2.37 Network 20 Berge Bulk Bermuda 62 11.94 Port Network Services Network Port Source: Clarksons Network Services APEC Services 3. Asia-Pacific dry bulks shipping freight experiencedPort intensive volatility APEC Services Port In the firstServices half of 2020, due to the pandemic, the overall market demands for dry Portbulks plummeted. In the Asia-Pacific region,APEC the dry bulks demands werePort hit and APEC Network turbulent freights at low levels. In the second half of the year, as the pandemic situation improved, the demands were released at a fasterAPEC rate, the grain trade Network APEC boomed, and the ship turnoverNetwork was undermined due to tornadoes and monsoon in multiple locations, the overall freights on major shipping routes in the Asia-Pacific Services region went up significantly. Network Network Services Services Port （Unit: US dollars/ton） Port Network Port70 Services APEC Services 60 APEC Port APEC Services Port 50 Port 40 APEC 30 Network APEC Network APEC 20 Network Network10 Services Services 0 Network 2012 2013 Port2014 2015 2016 2017 2018 2019 2020 Services Port Services Port Network APEC U.S. Gulf Coast-Japan Handysize grain carrier 49,000 tons APEC Port Tubaro-Japan Capsize ore carrierServices 165,000 tons Port APEC Services APEC NetworkSource: Clarksons Port Figure 2-18 FreightsAPEC Rates on Major Routes in the Asia-PacificNetwork Region APEC Services 2.2.3 Review of Asia-Pacific oil tanker market development Network Network Port 1. Asia-Pacific oil shipping demands declinedServices significantly Network Services According to OPEC's latest data, the Portcrude oil demands in the Asia-Pacific region APEC Servicesslowed down dramatically in 2020 to an average of 7.04 million barrels/day, down by Port Port 9.62% from the previous year.APEC Impacted by the pandemic, multiple Serviceseconomies in the region were stuck in a standstill, suffering from sabotagedPort transport and logistics, APEC APEC Network APEC Network 36 Services 2020 APEC Port Development Report www.apecpsn.org 36 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port delayed business resumptionAPEC and even shut-down of factoriesServices and constructions, subjecting the shipping market to persistent turmoil with plummeting diesel demands. Network Relevant economies enhanced border controls in responsePort to the pandemic, so APEC cross-regionalNetwork transport and travels were significantly reduced, causing gasoline demands to drop and the market's oil demandsAPEC to decline severely. Services Network Network Services2. Asia-Pacific oil tanker shipping capacity growth slowed down Port Network Network Port According to Clarksons, among the top 20 oil tanker owners globally,Services Asia-Pacific APEC Services economies own nine places with a total shipping capacityPort of 88.54 million DWTs, APEC significantlyServices lower than the 2019 level. Capacity-wise, the region's share in the globalServices Port top 20 oil tankers also dropped modestly to 46.1% from 46.9% in 2019.Port Subject to Portmultiple factors such as the pandemic and APECglobal oil production cut, the Asia-Pacific APEC Network economies' oil tanker capacity supply growth continued to slow down. APEC APEC Network Table 2-8 RankingsNetwork of Global Top 20 Oil Tanker Owners Services Fleet Size Ranking Oil Tanker Owner NetworkEconomy Network Quantity Million DWTServices Port Services Network Port1 China COSCO Shipping Group China 180 Port22.23 APEC 2 Mitsui O.S.K.Services Lines Japan 167 13.42 Services APEC Services Port APEC 3 ChinaPort Merchants Group Hong Kong, China 138 20.70 4 Scorpio Group Monaco 134 9.01 Port 5APEC SCF Group NetworkRussia 123 11.86 APEC Network APEC 6 Ocean Tankers Singapore 99 4.87 Network Network 7 BW GroupServices Bermuda 92 5.72 Services 8 Pertamina Indonesia 91 2.77 Port Network Services Port Services 9 Stolt-Nielsen Bermuda 87 2.30 Port Network 10APEC Bahri SaudiServices Arabia 85 15.23 APEC Port 11 A.P. Moller Holding Denmark 77 3.72 Port APEC Services APEC 12 Sinokor Korea 76 7.04 Network 13 Tsakos Group Greece 76 8.03 Port APEC 14 TORM A/S Denmark 75Network4.63 APEC Services 15 Fredriksen Group Cyprus 74 12.56 Network 16 NetworkDynacom Tankers Mgmt Greece 73 12.38 Port Services 17 Petronas PortMalaysia 72 11.23 Network Services APEC Services18 Euronav NV Belgium 70 18.21 Port Port 19 Eastern PacificAPEC Shpg Singapore 69 Services5.24 20 Junzheng Energy China Port66 1.04 APEC APEC Source: ClarksonsNetwork APEC Network Services 37 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 2 Network Services Port Network Services Port Network APEC Services Port 3. Asia-Pacific oil tankerAPEC freights rose significantly Services Network Overall the oil tanker freight in the Asia-Pacific regionPort was on a notable rising trend APEC amid Networkthe pandemic and the resulting shrinking oil demand and supply globally. Specifically, the time charter hire of routesAPEC from the US West to China, from Gulf Services to Japan, and from Gulf to Singapore went up significantly compared with 2019.Network Port Network ServicesAccording to Drewry, oil tanker freight in the Asia-Pacific region is projected to drop Network Port by a large margin. Network Services APEC Services Table 2-9 Freight Rates of VLCCPort Ships APEC Services Port ServicesCurrent Freights (WS) TCE (US dollars/day) APEC Port Port U.S. West U.S. West Gulf to Gulf to Gulf to Gulf to Coast to Coast to APEC Japan Singapore Japan Singapore Network China China APEC APEC Network Network 2017 61 59 60 21100 18300 20600 Services 2018 56 56 53Network18900 18200 17200 Network Services Services Port 2019 65 65 66 39800 38100 40700 Network Port Port APEC Services 2020 60 Services60 62 48600 47500 50300 2021* 43 42 42 14600 APEC13150 14350 Services Port APEC Port 2022* 50 51 50 22400 22400 23400 Port APEC 2023* 51 52 51Network23300 23400 24300 APEC Network APEC 2024* 53 54 53 24700 24800 25700 Network Network Services 2025* 54 Services55 54 25800 25800 26800 Port Network Services Port Note: * indicates projections. WS (World scale) refers to the New Worldwide Tanker Nominal Network Services Freight Scale. Port APEC APEC Port Source: Drewry Services Port APEC Services APEC Network2.3 Variations of Shipping Costs Port 2.3.1 Ship-building costsAPEC continued to contract throughout theNetwork year APEC Services The COVID-19 outbreak at the beginning of 2020 interrupted the global ship-building Network industry,Network as pessimist projection of the shipping market undermined ship owners' Port willingness to accept new ships. Although dataServices on new ship completion improved significantly at the year end, the annualPort international market sentiment was weakNetwork Services APEC overall, with persistently low new ship orders and increasing competition in the Servicesindustry. Low price became an important strategy for ship-builders to compete for Port Port orders, leading to a downwardAPEC trend of new ship prices. According Servicesto the Clarksons, Newbuilding Price Index shrank to 123.30 as of year-endPort from 128.03 as of year- APEC APEC start in 2020,Network down by 3.2%. The annual average was 127.29, down by 2.4% from APEC Network 38 Services 2020 APEC Port Development Report www.apecpsn.org 38 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port the previous year. TheAPEC annual average Newbuilding Price IndexServices for container ships, oil tankers, and bulks ships was 77.32, 148.97, and 125.04, marking a year-on-year Network decline of 4.1%, 3.7%, and 3.9%, respectively. Port APEC Network APEC Services 160 Network Network Port Services140 Network Port Network Services APEC 120 Services Port Services Port APEC 100 Services APEC Port Port80 APEC Network APEC APEC 60 Network 2014 2015 2016Network2017 2018 2019 2020 Services Comprehensive Container ShipNetworkOil tanker Bulk carrier Services Network Source: ClarksonsServices Port Port Network PortFigure 2-19 Newbuilding Price Indexes of Various Ship Types in 2014-2020 APEC Services Services 2.3.2 Fuel oil prices started high and then went down APEC Services Port APEC Port 2020 was the first year after IMO's sulfur rule took effect. Contrary to the general Port APEC expectationAPEC that the fuel oil price would go Networkup against undersupply of very low sulfur Network fuel oil (VLSFO), under the backdrop of the COVID-19 outbreak and plummetingAPEC crude oil prices, the annual average ship fuel price globally saw significant declines. Network NetworkAccording to the Ship & Bunker, the VLSFO and IFO380 prices at 20 major global ports Services hit high prices at the beginningServices of 2020 but then had a descending trend. As the surging pressure induced fromPort the sulfur rule led to an undersupply sinceNetwork the end of 2019, the Services Port VLSFO price hit a high position at 672 dollars/ton in January 2020. However, due to Network Services the sufficient fuel oil supply and the plummeting crude oil price, VLSFO price declined Port APEC Port rapidlyAPEC to USD 210 dollars/ton in April. By the Servicestime OPEC+ reached a production cut agreement, the crude oil price had stabilized.Port As the shipping market resumed withAPEC Services an eased pandemic situation, the shipping fuel price also rose. It is worth noting that APEC Networkthe gap between high and low prices continued to narrow throughout 2020, from the Port more than 300 dollars/ton APECas of year start to the 70 dollars/ton as Networkof the end of March, and then to sustained fluctuations within a range of 50–100 dollars/ton. Though with APEC Services potential implication on scrubber installation ROI for ship owners, a narrowing price gap Network is unlikelyNetwork to undermine their decision to install the facilities in the longer run. Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network Services 39 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 2 Network Services Port Network Services Port Network APEC Services Port APEC Services Network Port APEC Network APEC Services Network Port Network Services Network Port Network Services APEC Services Port Services Port APEC Services APEC Port Port APEC Network APEC APEC Note: The price is the averageNetwork price of 20 major ports in the world Network Source: Ship&Bunker Services Network Network Figure 2-20 International Ship Fuel Price Trend in 2020 Services Port Services Network 2.3.3Port Port costs presented wider differences across regions Port APEC Services Services In 2020, under the impact of the COVID-19 outbreak, the keyAPEC container ports in the Services Port APEC Asia-Pacific regionPort experienced frequent cargo detentions and terminal congestions. Some economies in the region released related policies or subsidies to bail port and Port shippingAPEC businesses out, so overall, the port costNetwork was cut down in 2020. However, some APEC Network ports in the region raised port fee standards or faced accusations of neglect amidAPEC the pandemic outbreak. Network Network Services Subsidy policies relating toServices major Asia-Pacific ports are mostly twofold. First, on the government levelPort, the local government provides port enterprisesNetwork and other relevant Services Port companies in the port and shipping sector with fund support via operations grant or Network Services direct funding to help business in distress get through a difficult time of the pandemic, Port APEC Port a typicalAPEC case being the Port of Busan in Korea.Services Second, on the port enterprise or local port authority level, they voluntarily offered lower port charges, free stackingAPEC Services period, or lower-cost stacking to attractPort transport demands that have gone down during APEC Networkthe pandemic to help port enterprises stay alive. The representative cases include the Port Chinese ports and the PortAPEC of Singapore . Network APEC Services Network Network Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network 40 Services 2020 APEC Port Development Report www.apecpsn.org 40 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port Table 2-10APEC Port Fee Reduction and Subsidy PoliciesServices in 2020 Network Port APEC EconomicNetwork port Main content of specific policies APEC 1) For passenger transport companies, ferry companies and shopsNetwork Services stationed in the Busan Port Passenger Terminal, rents and port Network Services facility fee reductions ranging from 20% to 100% are provided. Port Network Network Port 2) For enterprises in hinterland parks that areServices facing difficulties APEC Services due to reduced port throughput, aPort 10% reduction of rent for 6 APEC months will be granted. At the same time, for ship supplies, Servicesport Port Serviceslabor companies, ship repairing and other port-related industries, a Port 6-month rent and a 50%APEC reduction in port facility usagePort fees will be granted. APEC Network APEC APEC 3) For port loading and unloading enterprises, if the throughput Network decreases by more than 15% year-on-year, a 6-month port facility Busan, South Korea Network usage fee will be exempted by 10%. For large-scale container Services terminal operators, aNetwork total of 2 billion won in subsidies will be Network Servicesgranted. Each operator will allocate one by one according to theServices Port proportion of annual rent. Network Port Port APEC 4) ForServices ships sailing in Busan, China, and Japan, a total of 5 billion Services won will be awarded as operating rewardsAPEC within one year. The APEC Portamount of support will be allocated one by one according to Services Port the ratio of the total number of ships entering Busan Port to the number of arrivals of each shipping company. At the same time, Port APEC APEC for goods that need to beNetwork transferred to other terminals, part of the Network transportation cost subsidy will be given to alleviate the operatingAPEC burden of the shipping company. Network Network Services LaunchedServices 27 million USD Maritime SG Together Package support plan, which includes: Network Services Port Port Network Services 1) Provide a 50% port fee discount for passenger ships that call Port at the port for no more than 5 days. The discount period is from APECSingapore APEC Port March 1, 2020 to DecemberServices 31, 2020; Port APEC Services 2) For cargo ships that stay in the port for no more than 5 days, a APEC Network 30% reduction will be added to all existing port fee reductions. The Port preferentialAPEC period is from May 1, 2020 to DecemberNetwork 31, 2020. On March 09, the "Notice on the Phased Reduction of Port APEC Services Charges and Other Matters" was issued. From March 1 to June 30, Network Network2020, the government-priced cargo port charges and port facility Port security charges will be reducedServices by 20%, respectively. Cancel the mandatory emergencyPort response services and charges for non-tankNetwork Services APEC Services China cargo ships. Port On JuneAPEC 28, the "Notice on Relevant Matters Concerning the Port Continuation of the Phased Reduction of PortServices Charges" was issued, extending the phased reductionPort of some port charges APEC APEC Networkintroduced in March until December 31, 2020. APEC Network Services 41 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 2 Network Services Port Network Services Port Network APEC Services Port However, some economiesAPEC raised port fee standards, such asServices Viet Nam. Currently, the Port of Hai Phong charges USD 33-53 dollars/TEU for container handling, Network while in the case of Thailand, Cambodia, and Singapore,Port this cost is 59 dollars/ APEC TEU, Network65 dollars/TEU, and 111 dollars/TEU. An overly low port handling fee would make it difficult for the port to re-invest APECwith their owned fund for higher serviceNetwork Services quality, so Viet Nam has proposed to increase the fee to close to the regional level. Port Network ServicesAdditionally, some port faced accusations and investigations for failing to offer fee Network reduction proactively. PortNetwork of Los Angeles and Port of Long Beach experienced port Port congestion and substantive container detention due to import Servicesspike in the second APEC Services half of the year, which has led to high detention and stackingPort fees. These two portsServices Port APEC did not offerServices fee reduction/waiver policies upon cargo owners' appeals. Facing the increasing accusation from cargo owners,APEC Port of Los Angeles and PortPort of Long PortBeach face the investigation by the Federal Maritime Commission (FMC). APEC Network APEC APEC 2.3.4 Ship operating costsNetwork surged Network 1. Ship operating cost growth hit record high Services Network Services Port Network AccordingServices to the Ship Operating Costs Annual Review and Forecast 2020/21 by Network Drewry, the ship operating costs worldwide increased by 4.5% in 2020,Port setting a newPort record in the recent ten years due to the increasing costs of insurance and anti- APEC Services Services pandemic facilities. Specifically, as the highest-growing item,APEC labor cost increased by Services Port APEC 6.2% in 2020. H&MPort and P&I also rose by 4.5%. In addition, the supply interruption and manual shortage caused by the pandemic have led to a 3% increase in Port warehousing,APEC spare parts and maintenanceNetwork costs, and a 5% increase in dry dock APEC Network cost. APEC Network Network Services Services Port Network Services Port Services Port Network APEC Port APEC Services Port APEC Services APEC Network Port APEC Network APEC Services Source: Drewry《Ship Operating Costs Report 2020/21》 Network Network Port Figure 2-21 Growth of Ship OperatingServices Costs in 2010-2020 Port Network Services APEC Services2. Crew cost continued to rise Port Port According to the China Crew'sAPEC Remuneration Index by Shanghai ShServicesipping Exchange, the Chinese crew overall had the largest remuneration increases in 2020, where APEC ratings' remuneration grew the most. Quarter specific, as thePort pandemic hit the global APEC Network APEC Network 42 Services 2020 APEC Port Development Report www.apecpsn.org 42 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port market in the first quarter,APEC crew change was delayed, causing Servicesa substantive backlog of crew unable to be onboard. After the Spring Festival, crew remuneration was on Network the rise as the domestic crew change continued. ThePort demands for second officers APEC and ratingsNetwork continued to grow, so drastic remuneration increases were recorded. In the second and third quarters, the high uncertaintyAPEC in the international crew market,Network Services particularly in two key sources of ship crew – India and the Philippines, indirectly Port Network Servicescaused the Chinese crews to be sought-after by the market. The international Network market showed much higherNetwork needs for the Chinese crew, and ratings' remuneration Port also roared. Third officers were undersupplied. As of the end ofServices the third quarter and APEC Services the fourth quarter, subject to the second wave of the pandemic,Port the undersupplyServices of Port APEC the ChineseServices crews persisted, but the remuneration gaps across ship types narrowed gradually. APEC Port Port APEC Network APEC APEC Network Network Services Network Network Services Port Services Network Port Port APEC Services Services APEC Port APEC Services Port Source: Shanghai Shipping Exchange Port APEC Note:APEC The base period is the fourth quarter of 2016,Network and the base period index is 1000 points. Network Figure 2-22 China Crew's Remuneration Indexes (January 2019 – March 2021)APEC Network Network Table 2-11 China Crew'sServices Remuneration Index Comparison of January 2020 and Services December 2020 (Remuneration in USD) Network ContainerPort Ship Dry bulk carrie r Oil tanker Chemical tanker Services Port Position December Incre ase from December Incre ase from December Incre ase from December Incre ase from Network Services salary January salary January salary January salary January Port APEC APEC Port Captain 8354 6.9% 8121 7.1%Services 11327 14. 1% 9549 6.4% Chief Mate 6720 3.7% 6448 3.5% 8657 8.2% 7885 3.4%APEC Second Officer 3754 6.5% 3329Port 22.1% 4195 17.7% 3537 9.7% Services APEC Third Officer 3161 14.4% 2913 45.8% 3423 19.9% 2891 26.1% NetworkChief Engineer 7974 5.8% 7611 4.3% 10769 12.3% 8938 5.5% Port Second Engineer 6551 1.1%APEC 6442 3.5% 8543 7.3%Network 7759 4.9% Third Engineer 3754 6.5% 3305 21.5% 4188 17.5% 3529 10.4% APEC Electrical Engineer 4071 14.4% 3435 16.6% 4438 20.7% 3718 14.1% Network Services Fourth Engineer 3142 13.8% 2905 45.8% 3423 20.6% 2883 30.0% BosunNetwork Port 1978 24.8% 1992 29.9%Services 2144 24.0% 2042 15.2% Chief Motorman 1978 24.8% 1973 28.2% 2144 24.0% 2027 14.7% Network Sailor 1661 23.5% 1646Port 22.7% 1851 26.6% 1582 8.3% Services APEC Motorman 1661 23.5% 1646 22.7% 1851 26.6% 1697 16.2% ServicesChef 1869 17.9% 1778 19.9% 1980 18.1% 1834 12.2% Port Port Waiter 1129 31.9%APEC 802 19.5% 1209 32.4%Services 969 16.0% Note: Data from Shanghai Shipping Exchange, sailors are paid in USPort dollars. APEC APEC Network APEC Network Services 43 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 2 Network Services Port Network Services Port Network APEC Services Port 2.4 Changes in ShippingAPEC Laws and RegulationsServices Network 2.4.1 Changes in international shipping laws and regulationsPort APEC Network 1. IMO Initial Strategy on GHG emissionsAPEC reduction from ships implemented Services gradually Network Network Port ServicesIn 2018, IMO adopted an Initial Strategy on reducing GHG emissions from ships, Network Port setting out emission reductionNetwork goals for 2030 and 2050. SinceServices then, IMO has APEC Services released multiple detailed rules to facilitate the shipping industry in meeting these targets. In November 2020, the 75th Session of MarinePort Environment ProtectionServices Port APEC CommitteeServices (MEPC) of IMO approved an amendment to Appendix VI of MARPOL, specifying that the mandatory measures to APECcut the carbon intensity of allPort ships. Two Portkey factors are included: the technical index Energy Efficiency Existing Ship Index APEC Network (EEXI) requirements and the operating carbon intensity rating system CII Rating. APEC These will come into effect on January 1, 2023. This agreementAPEC applies to all ships Network in the world, which requiresNetwork them to adopt a series of carbon dioxide emission reduction measures with legal binding enforcement to provide a strong incentive to Services ship owners on improving ship carbon efficiencyNetwork and phasing out disqualifiedServices ships Port Network in carbonServices intensity to ensure the target of reducing CO2 emissions of global shipping Network by at least 40% by 2030 than in 2008. Port Port Services APEC Services 2. Multiple new rules on marine pollution reduction took effect APEC Port APEC Services Port As marine pollution has increasingly become an international concern, the "threshold" of shipping companies – ship environment protection requirements – Port APEC has APECbeen raised. In 2020, multiple new environmentNetwork protection rules relating to the Network shipping industry took effect, which has a profound impact. The most influentialAPEC rules are IMO's sulfur rule and the Ballast Water Management System (BWMS) code Network Networkapproval standards. Services Services IMO 2020 Sulfur PortRegulation, as part of Appendix VI of MARPOL,Network took effect on Services Port January 1, 2020, reducing sulfur content in ship fuel oil to 0.5% from 3.5%. Impacted Network Services by the regulation, ship owners have taken measures such as desulfurizing tower Port APEC Port installationAPEC and desulfurized fuel to lower ships'Services sulfur emissions. Larger shipping companies and some small and medium-sized ship owners have been preparedAPEC Services for the rule to complete the transition,Port but some smaller ship owners with poorer APEC Networkmanagement exited the market promptly. On top of that, a set of implementation Port rules based on the sulfur APECregulation began to enforce. Although some of these rules are not mandatory, they provide effective guidance on implementingNetwork sulfur regulation for ship owners. APEC Services Network Port The BWMSNetwork type approval standards have Servicesbeen effective since October 28, 2020. As the BWMS Approval Rules went into effect on October 10, 2019, theNetwork existing BWMS systems have been givenPort installation approval, but systems installed Services APEC Serviceson or after October 28, 2020, must follow IMO's BWMS Code for approval. The code will play an important role in cutting marine pollution. Port Port APEC Services 3. Regulation amendment effort accelerated amid the Portpandemic APEC APEC Network APEC Network 44 Services 2020 APEC Port Development Report www.apecpsn.org 44 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port The COVID-19 pandemicAPEC has prompted an amendment to Servicesthe Maritime Labor Convention (MLC). Since taking effect in 2013, the MLC has been considered Network an important milestone to protect seafarer’s rights. PortHowever, with technological APEC advancesNetwork and pandemic outbreaks, many issues have emerged, such as internet connection at sea and shift changes.APEC In response, the International Labor Services Organization decided to amend the MLC in April 2021, requiring members to submitNetwork Network proposals before October 2020. The MLC after amendment will better protect the Port Servicesinterests and rights of the seafarer. Network Port Network Services APEC 2.4.2 Changes in Asia-Pacific shipping laws and regulations Services Port Services Port APEC 1. ChinaServices and Korea promoted sulfur emission control areas in response to IMO 2020 APEC Port Port APEC Network After the new IMO 2020 sulfur emission regulation came into effect, in addition to the APEC six emission control areas (ECAs), including the Baltic SeaAPEC area, China and Korea Network in the Asia-Pacific regionNetwork took active measures in 2020 to respond to the new rule and made new progress in sulfur ECA setting-up. In line with the Implementation Services Plan of Ship Air Pollutant Emission ControlNetwork Area, China has entered the secondServices Port Network phase whereServices maritime ships entering inland river ECAs shall use fuel oil with a sulfur content of no more than 0.1%m/m since January 1, 2020. Korea has implementedPort Network newPort sulfur emission control standards and set up ECAs in eight ports, including Port APEC Services of Busan and Port of Incheon.Services In the transition period from September 1 to the end APEC of 2020, ships neededPort to switch fuel one hour before/after berthing.APEC When the rules Services Port become officially effective in 2021, ships must use 0.1%m/m low sulfur fuel oil the entire time when they are in the ECAs. Port APEC APEC Network Network Exhaust Gas Cleaning System (EGCS) is one of the approved equivalent methodsAPEC for SOx content compliance to meet the global sulfur limit. Via the Resolution Network NetworkMEPC.259(68), IMO provided detailed requirements on the use of EGCS by ships Services globally. However, in additionServices to following the IMO rules, multiple economies in the Asia-Pacific regionPort have issued special regional requirements.Network China, Singapore, Services Port and Panama prohibit the discharge of scrubber water in ECAs. Hong Kong, China, Network Services requires filing written applications 14 days before ship arrival at port. The United Port APEC Port StatesAPEC imposes higher requirements on scrubberServices water discharge based on IMO Resolution MEPC.259(68). APEC Services Port APEC NetworkIn March 2020, China Maritime Safety Administration released the Management Port Measures on AgreementAPEC for Ship Pollution Response, specifying detailed requirements on emergent pollution response capacity, administrationNetwork of ship pollution response entities, ship pollution response agreement signing management APEC Network Services and performance, and ship emergency operator training. Port Network Services 2. Multiple Asia-Pacific economies enhanced shipping administration forNetwork higher shipping safety Port Services APEC Services Port With the continued technicalAPEC evolution such as electronic chart display systems and Port the improvement of ship management system theories, the Asia-PacificServices economies have updated the relevant domestic laws and regulations,Port sought standardization APEC APEC and managementNetwork with new technologies in shipping, and raised the requirements APEC Network Services 45 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 2 Network Services Port Network Services Port Network APEC Services Port for ship management systems,APEC to improve the navigation safetyServices in the waters under their jurisdiction. In 2020, Canada, Brazil, and China, among others, introduced new Network regulations. Port APEC Network Canada introduced new Navigation SafetyAPEC Regulations. Transport Canada Services integrated the existing nine safety regulations into four parts – navigation, radio-Network Network communications, limitations and prohibitions, and transitional provision – on October Port Services28, 2020, to form the new regulations. The new regulations also reflected new Network Port Automatic Identification NetworkSystem (AIS) requirements, electronic Serviceschart display system, APEC Services and Bridge Navigational Watch Alarm System to be more aligned with global maritime conventions, such as SOLAS Convention. Port Services Port APEC Services Brazil issued amendments to operationalAPEC regulations in the BrazilianPort waters. PortThe Brazilian Directorate of Ports and Coasts (DPC) issued amendments to APEC Network regulations, imposing requirements that all ships navigating in Brazilian waters must APEC be certified by the Institute for Supply Management (ISM),APEC effective from December Network 31, 2020. Network Services China amended the Management RegulationNetwork on Domestic Waterway Transport.Services Port Network In April 2020,Services the Ministry of Transport issued a decision on amending the Regulation. In addition to enhancement on existing provisions, thePort amended Network regulationPort introduced new content on waterway passenger transport service quality, APEC Services which falls heavily on six Servicesperspectives, namely company burden reduction, approval APEC hierarchy optimization,Port procedure facilitation, real-name passengerAPEC management, Services Port and ticket management, and service quality improvement. The new regulation took effect on May 1, 2020. Port APEC APEC Network Network 2.5 Development Trends of International ShippingAPEC Organization Network Network Services Services 1. World Shipping Council Port Network Services Port The World Shipping Council (WSC) was founded in 2003. Its 19 members operate Network Services approximately 90 percent of the global liner shipping capacity. WSC is a loose Port APEC Port organizationAPEC that continuously focuses on shippingServices affairs, including maritime safety and environment standard setting in the global shipping industry. It is now a keyAPEC advisor to the IMO. Port Services APEC Network Port In 2020, WSC continuedAPEC to address issues on maritime safety, environment protection, and customs information. In maritime safety, NetworkWSC was actively engaged with economic organizations (such as the U.S. National Maritime Security APEC Network Services Council) and international organizations (such as IMO and World Customs Port Organization)Network to promote and implement measuresServices for port, vessel, cargo, and personnel safety. Additionally, amid the pandemic outbreaks, WSC operatedNetwork information release sections to collectPort and organize information resources issued Services APEC Servicesby the governments and organizations in various economies to help the shipping Port industry fight against the virus.APEC In terms of the maritime environment, WSC has been Port dedicated to working with relevant organizations to address shipServices waste discharge and ballast water discharge issues. It was also engaged inPort extensive environmental APEC APEC research Networkon containing the spread of invasive species and reducing maritime noises, APEC Network 46 Services 2020 APEC Port Development Report www.apecpsn.org 46 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port among other issues. APEC Services Network 2. The Baltic and International Maritime Council Port APEC Network The Baltic and International Maritime APECCouncil (BIMCO) is a global shipping Services organization with more than 100 years of history. BIMCO has more than 2,500Network Network members, including managers, brokers, and agents, in more than 120 member Port Servicesstates. With close contacts with other shipping organizations, BIMCO is an observant Network Port in IMO and many other UNNetwork organizations. Its goal is to promoteServices fair and balanced APEC international shipping policies and regulations. Services Port Services Port APEC In 2020,Services BIMCO continued to endorse environment protection, maritime digitalization, maritime security, and cybersecurity.APEC In terms of Portenvironment Portprotection, BIMCO initiated an investigation on hazardous materials list under the APEC Network EU Ship Recycling Regulation (EU SRR) and called upon the EU ship-owners to be APEC involved in the shipborne waste investigation for standard-settingAPEC on reducing waste Network generated by ships and managingNetwork such waste in sustainable and environmentally- sound ways. In terms of maritime security and cybersecurity, BIMCO hosted an Services online Maritime Security Seminar to discussNetwork defense in line with the IMO 2021 RuleServices Port Network and introducedServices a cybersecurity clause to the charter party. It also worked with ICS, INTERCARGO, and INTERTANKO on IMO-compliant new-type fuel qualityPort and Network securityPort surveys. It supported upgrading the reporting procedures for containers APEC Services lost at sea and participatedServices in preparing and releasing the fourth edition of The APEC Guidelines on CyberPort Security Onboard Ships with improvementsAPEC on risks and risk Services Port management concepts. In maritime digitalization, BIMCO called for accelerated digitalization of trade and logistics at sea. It promoted global standard-setting on Port APEC ship-shoreAPEC communications and advised establishingNetwork global industrial standards on Network ship-port data exchanges to minimize delays and enhance port efficiency. APEC Network Network3. International Chamber of Shipping Services Services The International PortChamber of Shipping (ICS) is an industrial Networkorganization of ship- Services Port owners globally. Its members operate more than 80% of the shipping capacity of Network Services global commercial fleets. ICS resolutions are highly influential to shipping policy- Port Port makingAPEC worldwide. Services APEC APEC In 2020, ICS's key efforts in the globalPort shipping industry included addressing Services APEC Networkthe challenges on ship operations and crew change situation amid the pandemic, Port working on zero emissionsAPEC in the shipping industry, fighting against rampant pirates in West Africa, and handling the ongoing MediterraneanNetwork immigration crisis, supporting the implementation of IMO 2020 sulfur rule and discussion and APEC Network Services amendment of IMO's Ballast Water Management Convention, safeguarding the Port global pollutionNetwork accountability scheme, and promotingServices the basic review of seafarers training standards in the International Convention on Standards of Training,Network Certification and Watchkeeping for PortSeafarers (STCW). Specifically, regarding Services APEC Servicesshipping emission reduction and carbon neutralization, ICS was actively involved in Port IMO negotiations and submittedAPEC a proposal on expediting the setting-up of a USD 5 Port billion fund to sponsor global zero-carbon technology R&D efforts. Services Port APEC APEC Network APEC Network Services 47 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services ChapterNetwork 3 Review of Asia-Pacific Port Port Development in 2020 Services Port Network APEC Services Port 3.1 ComprehensiveAPEC Service Time EfficiencyServices Evaluation of Network Major Container Ports in the Asia-PacificPort Region APEC 1. TotalNetwork number of ships arriving at ports dropped significantly APEC Network Services According to the recently released Global Port Development Report (2020) by Port Network ServicesShanghai International Shipping Institute, the number of ships arriving at the 16 Network major container ports inNetwork the Asia-Pacific region decreased by 12.3% from the Port previous year, significantly higher than the -0.2% throughputServices decline of top 20 APEC Services container ports. The year-on-year decrease in the numberPort of ships arriving atServices the Port APEC ports wasServices primarily attributed to three reasons. First, the global pandemic outbreaks in the first half of the year. With the tightenedAPEC pandemic prevention requirements,Port the Portnumber of ships calling at ports decreased. Second, ship enterprises adopted slow APEC Network steaming or suspended some ships to improve ship loadingAPEC rates to control their APEC operational costs. This has lengthened the operating cycle of ships and reduced the Network frequency of calls at ports.Network Third, after most ports resumed normal operations in the Services second half of the year, many ports experienced congestion and ships' stay at the Network port increased. This also lengthened the operationalNetwork cycles of ships. Month specific,Services Port after the outbreakServices of the COVID-19 pandemic in China at the beginning of 2020, the Network numberPort of ships arriving at the port plummeted in February, followed byPort the global APEC Services outbreaks in April and MayServices when all economies took measures to prevent the viral APEC spreading and thePort number of ships arriving at the port stayedAPEC low. May registered Services Port the largest decline of ship arrivals year-on-year. After June, as the ports of various economies resumed normal operations, the number of ships arriving at the port Port APEC beganAPEC to pick up. However, due to port congestionNetwork in September, the number of Network arriving ships decreased slightly but maintained a stable level overall. APEC Network Network Services 12000 Services 10000 Port Network Services Port 8000 Network Services 6000 Port APEC Port 4000APEC Services April May June July APEC January March August Services February Port October APEC Network September November December Port APEC 2019 2020 Network APEC Services Network Source: ShanghaiNetwork International Shipping Institute. Port Services Figure 3-1 Monthly Trend of Ship ArrivalsPort at Global Top 20 Container Ports in Network Services APEC Services 2019—2020 Port Port APEC Services Port APEC APEC Network APEC Network 48 Services 2020 APEC Port Development Report www.apecpsn.org 48 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port 2. Number of ships arrivingAPEC at each port declined across-the-boServicesard Network In 2020, 15 of the 16 major container ports in the Asia-PacificPort region registered year- APEC on-yearNetwork decreases in ships arriving at the port. Specifically, the decreases of three ports were between 0% and -10%, and 11APEC were between 10% and 20%. Dalian Port Services was the only port with the growth rate falling by more than 20%. It can be seen thatNetwork Port Network Servicesthe COVID-19 pandemic has exerted a huge impact on port production. The statistics reflected several featuresNetwork bear attention. 1) Port of Long Beach (0.6%) was the only Network Port port with the growth of ship arrivals, which was largely due toServices the higher number APEC Services of medium-sized and large ships (4,000—12,000 TEUs)Port which called at the Port of Long Beach, as the demands on cross-Pacific routes rebounded in the secondServices half Port APEC Services of 2020. 2) The numbers of ships calling atAPEC ports such as Singapore, PortHong Kong, Portand Busan, which had higher shares in the international container transshipment APEC Network business, dropped significantly. This is primarily due to the APECsuspension of trunk route APEC capacity and the fewer callsNetwork at transshipment hubs. Network Services 3. Share of 4,000-TEU ships or above in ships arriving at ports decreased Network Network Services Port In 2020, Servicesexcept for the 0—4000TEU ship type, the proportion of arrival ships of Network otherPort ship types decreased to varying degrees. According to the analysis,Port possible APEC reasons for this result areServices as follows: 1) ship enterprises suspended much of their Services capacity to cope with the plummeting freight volume duringAPEC the pandemic. Most Services Port APEC of the active carriersPort were large container ships to avoid low loads caused by the insufficient cargo volume, which may undermine the operational benefits. The Port APEC proportionAPEC of total idle capacity of containerNetwork ships increased rapidly from 6.1% at Network the beginning of the year to a relatively high level of 11.6% in June; 2) in 2020,APEC the global container fleets prolonged their speed-down cycle, and the average sailing Network Networkspeed continued to decline.Services The average speed index of the global container fleet Services stood at 73.79, a decrease of 1.4% year-on-year, which markedNetwork a drop of 26.2% from 2018; and 3) Portto comply with the pandemic prevention and control requirements, Services Port Services trunk route ships reduced calls at ports, reducing the call frequency of large ships at Network ports to a certain extent. Port APEC Port APEC Services APEC Services Port 0-4k APEC 2020 56.5% 22.9% 12.6% 8.0% Network 4-8k Port APEC 8-12k 2019 53.8% 23.8% 13.0%Network9.3% >12k APEC Services Network Network Port Services Source: Shanghai International Shipping Institute.Port Network Services APEC ServicesFigure 3-2 Structure of Ships of Call at 16 Major Container Ports in the Asia-Pacific Port Port APEC Region Services Port APEC APEC Network APEC Network Services 49 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port 4. Ship upsizing trend slowedAPEC down at US West ports but persistServicesed at US East ones Network Boosted by the scaled effect from the ship upsizing trendPort at US West ports and the APEC PanamaNetwork Canal expansion, which benefited the US East ports, the upsizing trend of ships arriving at the US West and USAPEC East ports developed to higher levels in Services succession. According to IHS Markit, the shares of new Panamax carriers (10,000Network Port Network ServicesTEUs < Capacity < 15,000 TEUs) at ports on the west coast and east coast of the United States reached aboutNetwork 18% and 15%, respectively. In particular, the east Network Port coast of the United States has enjoyed rapid development sinceServices the Panama Canal APEC Services expansion, with its share rapidly increasing from 3% toPort 14.5% in 2020. Based on the AIS data, more than half of the ships calling at Port of Los Angeles and ServicesPort Port APEC Services of Long Beach on the west coast of the UnitedAPEC States had a capacity ofPort more than Port8,000 TEUs. The share of the Port of New York-New Jersey on the east coast of the APEC Network United States was also close to 40%, exceeding the average level of the major ports APEC in the Asia-Pacific region. However, under the influence ofAPEC the COVID-19 pandemic Network in 2020, the ship upsizingNetwork trend on the west coast of the United States slow down Services due to the port congestion. The ship structure on the east coast of the United States Network further developed to larger sizes. In particular,Network after the port congestion on the westServices Port coast, someServices larger ships chose to call at the port on the east coast instead. The data Network resultsPort showed that the share of ships calling at the ports of Los AngelesPort and Long APEC Services Beach with a container capacityServices of more than 8,000 TEUs decreased by 2.0 and APEC 2.5%, respectively,Port to 50.2% and 48.3%. At the same time, APECthat of the Port of New Services Port York-New Jersey increased by 2.1% to 39.2%. Port APEC Network APEC Network APEC Network Network Services Services Port Network Services Port Services Port Network APEC Port APEC Services Port APEC Services APEC Network Port Source: IHS Markit. APEC Network APEC Services Figure 3-3 Shares of neo-Panamax Ship Arrivals of U.S. East Coast and West Network Network Coast Port Services 5. Ship detention time increased dramaticallyPort Network Services APEC ServicesAccording to statistics, the average ship detention time of the 16 major container Port Port ports in the Asia-Pacific regionAPEC increased greatly by 11.7% in 2020.Services Specifically, berth operation time and auxiliary operation time increased by 9.8% and 26.6%, APEC respectively. The increase in auxiliary operation time wasPort greater than that of the APEC Network APEC Network 50 Services 2020 APEC Port Development Report www.apecpsn.org 50 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port berth operation time, attributedAPEC partially to the additional inspectionServices and quarantine measures at port calls to prevent the pandemic spread and partially to the longer Network waiting time for berthing due to the port congestion. PortIt is worth noting that month APEC specific,Network the berth operation time showed a significant year-on-year increase at the end of the year, while the auxiliary operationAPEC time was relatively stable. This wasNetwork Services largely due to the increase in container cargo volume at the end of the year after the Port Network Servicespandemic was brought under control compared with the end of last year. As a result, Network Port the laytime of ships at theNetwork berth was lengthened. Services APEC Services Port Services Port APEC Services APEC Port Port APEC Network APEC APEC Network Network Services Network Network Services Port Services Network Port Port APEC Services Services APEC Port APEC Services Port Port APEC Network APEC Network APEC Network Network Services Services Port Network Services Port Services Port Network APEC Port APEC Services Port APEC Services APEC Network Port APEC Network APEC Services Source: Shanghai International Shipping Institute. Network Network Port Figure 3-4 Ship Stay Time Trend of 16 Major ContainerServices Ports in Asia-Pacific Region in 2019-2020Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network Services 51 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port 3.2 Review of PortAPEC Production Services Network 3.2.1 Port throughput growth Port APEC Network 1. Global ports maintained slow growth APECin cargo throughput Services Network Network ServicesIn 2020, as the COVID-19 pandemic continued to spread across the globe, the Port world economy fell into aNetwork deep recession. International trade started at a low level Network Port and then picked up in the second half of the year, but it was stillServices difficult to return APEC Services to the level before the pandemic. In this context, globalPort port production fluctuated APEC accordingly. In 2020, the cargo throughput of major global ports dropped by 1.3%Services Port year-on-year.Services Port APEC Port APEC Network Region-specific, except South American ports which achieved slight growth in cargo throughput, major ports in all the other regions saw their cargoAPEC throughput fall into Network APEC the negative growth range,Network with the largest declines recorded in Europe and North America. Specifically, due to the strict lock-down measures implemented by various Services economies in the European region, the Networkmaritime trade demand shrank sharply.Services Port Network Although Servicesthe economic situation in Europe improved in the second half of the year, Network the repeated outbreaks, the lack of confidence in the market, and thePort increasing globalPort uncertainties curbed the economic recovery momentum in Europe and caused APEC Services Services the throughputs of major European ports to plummet by 5.8%APEC in the year. Subject Services Port APEC to the pandemic,Port the North American economy also shrank sharply, and the port throughputs in major economies such as the United States, Mexico, and Canada Port wereAPEC suppressed. The annual cargo throughputsNetwork of North American ports fell by 2.8% APEC Network year-on-year. APEC Network NetworkIn comparison, the port production situation was better than expected in the South Services America region thanks to theServices normal operation of ports and the strong drive of dry bulks throughput. PortIn particular, the Port of Santos recorded a growthNetwork rate of 9.3% in Services Port cargo throughput against the trend, benefiting from its agricultural strength and the Network Services port's flexibility in maintaining cargo flows. The Port of Paranagua also maintained Port APEC Port a highAPEC growth rate of 7.8% in cargo throughput,Services benefiting from China's import of soybeans from Brazil. In the Asia region,Port port production was significantly weakenedAPEC Services APEC by the sluggish import and export demands from Japan and Korea. Port production Networkalso declined in Southeast Asian economies such as Malaysia, Indonesia, and the Port Philippines. Although ChinaAPEC took the lead in resuming work and Networkproduction amid the pandemic and brought strong trade demands, the cargo throughput of Asian ports APEC Services still declined by 0.6%. In the Oceania region, the cargo throughput of major ports Network Port only slightlyNetwork decreased by 0.3%, benefiting fromServices China's strong demand for iron ore imports. Specifically, the cargo throughput growth of the Port of Hedland turned fromNetwork negative to positive, with a year-on-yearPort increase of 4.8%. Services APEC Services Port Port 2. Cargo throughput growthAPEC of Asia-Pacific ports slowed downServices dramatically In 2020, in the context of the continuous global spread Portof the pandemic and the APEC APEC intermittentNetwork rise of trade protectionism, many economies in the Asia-Pacific region APEC Network 52 Services 2020 APEC Port Development Report www.apecpsn.org 52 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port were hit hard, and theAPEC regional commodity trade as a whole Serviceswas under pressure, which further reduced the trade volume in the Asia-Pacific region and thereby Network affected port production. Throughout the year, major portsPort in Asia-Pacific economies APEC recordedNetwork a cargo throughput of 15.74 billion tons, a year-on-year drop of 1.0%, being 3.1% lower than the growth rate in 2019.APEC Except for China, Viet Nam, and Networkthe Services United States, all the other economies suffered declines to varying degrees in port Network Servicescargo throughput growth. Port Network Network Port Table 3-1 Cargo Throughputs and Growth Rates of Major PortsServices in Asia-Pacifi c APEC Economies in 2020 (Unit: million tons) Services Port Services Port APEC Services 2020APEC 2019Port Port Port Growth Growth APEC Throughput Throughput Network Rate APEC Rate Network APEC Major Ports in China Network7778 2.7% 7575 2.4% Port of Hong Kong, China 249 -5.3% 263 1.8% Services Network Services Network Major PortsServices in Chinese Taipei 227 -1.1% 229 -4.9% Port Port Network PortMajor Ports in Japan Services588 -12.1% 669 -1.9% APEC Services Major Ports in Korea 1508 -8.9% 1656 1.2% APEC Port APEC Services Port Major Ports in Viet Nam 689 3.7% 665 23.9% Port APEC MajorAPEC Ports in Indonesia 62 Network-20.9% 78 17.0% Network Major Ports in Thailand 101 -6.9% 109 1.0%APEC Network Network Major Ports in Malaysia 566 -4.9% 595 4.9% Services Services Major Ports in the Philippines 230 -13.3% 265Network3.4% Services Port Port Services Port of Singapore 591 -5.7% 627 -0.6% Port Network APEC Port MajorAPEC Ports in the U.S. 822 Services0.4% 819 -2.6% Major Ports in Canada 185 -2.3% 189 -0.8% APEC Services Port APEC Network Major Ports in Australia 1322 -0.1% 1323 -1.6% Port APEC Ports in Russia 821 -2.3% 840Network2.9% APEC Services Network Note: StatisticsNetwork for major ports of the economies in theServices table can be found in Table following. Port Source: Official websites of various ports or port associations in various economies Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network Services 53 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port Table 3-2 StatisticsAPEC for Major Ports in Asia-Pacific ServicesEconomies Network Port APEC EconomyNetwork Economy Major Ports for Statistics Ningbo Zhoushan, Shanghai,APEC Suzhou, Tianjin, Guangzhou, Services China Tangshan, Qingdao, Dalian, Rizhao, Yingkou, Yantai, Huanghua,Network Shenzhen, Xiamen, Lianyungang, Zhanjiang, Qinhuangdao Port Network Services Network Port Chinese Taipei Kaohsiung,Network Taichung, Taipei, Keelung, Hualien, ServicesSuao APEC Services Japan Nagoya, Yokohama, Kobe, Tokyo, Kawasaki,Port Osaka, Shimizu Busan, Incheon, Taesan, Pohang, Mukho, Taean, Hadong, Masan,Services APEC KoreaServices Port Gwangyang, Pyeongtaek-Dangjin, Ulsan, Mokpo Port APEC Port APEC Indonesia Tanjung Bulu, Balikpapan, Tanjong Pera, Makassar, Bela Bay Network Kelang, Tanjung Pelepas, Penang Pulau,APEC Johor, Kuantan, Bintulu, Malaysia Network APEC TanjungNetwork Bruas, Kuching, Miri, Rajang, Sabah, Dickson, Kemaman Services Thailand Bangkok, Laem Chabang,Network Chiang Saen, Chiang Khong, Ranong Network Los Angeles, South Louisiana, Long Beach, Northwest SeaportServices the UnitedServices States Port Union, Virginia, Savannah Network Port Port APEC Services Canada Vancouver,Services Montreal, Halifax Hedland, Dampier, Newcastle, Gladstone,APEC Hay Point, Melbourne, Services APEC Australia Port Port Fremantle, Brisbane, Flinders, Weipa, Abbotport Port APEC APEC Network （Unit: billion tons） Network 9 30%APEC Network 8 25% 7 20% Network Services 15% Services 6 10% 5 Network Port 5% Services Port 4 0% 3 -5% Network Services -10% Port APEC2 -15% APEC Port 1 Services -20% 0 Port -25%APEC Services APEC Network Port APEC NetworkPorts in Russia Port of Singapore APEC Major Ports in China Major PortsMajor in Ports Japan in Korea Major Ports in Canada Network Major Ports in the U.S. Services Major PortsMajor in Ports VietnamMajor in IndonesiaPortsMajor in Ports Thailand in Malaysia Major Ports in Australia Port of Hong Kong,2019 China (Left Axis) 2020 (Left Axis) NetworkMajor Ports in Chinese Taipei Major Ports inServices the Philippines Port Growth Rate in 2019 (Right Axis) Growth Rate in 2020 (Right Axis) Port Network Services APEC ServicesSource: Official websites of various ports or port associations in various economies Port Port Figure 3-5 Cargo ThroughputsAPEC and Growth Rates of Major PortsServices in Asia-Pacific Economies in 2019-2020 Port APEC APEC Network APEC Network 54 Services 2020 APEC Port Development Report www.apecpsn.org 54 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port In a comparison of theAPEC growth rates of major ports in Asia-PacificServices economies, Hong Kong (China) saw its cargo throughput fall into the negative growth range. In Network 2020, both arriving and departing cargo volumes of thePort Port of Hong Kong declined APEC due toNetwork the sharp drop of 10.4% in the number of calling ships. Hong Kong, China, recorded a cargo throughput of 249.29 millionAPEC tons throughout the year, downNetwork by Services 5.3% year-on-year. Its export was under great pressure, with the departing cargo Port Network Servicesvolume plummeting by 14.1% year-on-year. In contrast, major Chinese Taipei ports Network continued the negative growthNetwork in cargo throughput, but the decline narrowed by 3.8%. Port Except for the Kaohsiung Port and the Su'ao Port, all the otherServices ports in Chinese APEC Services Taipei achieved positive growth to varying degrees, withPort overall performance betterServices Port APEC than expected.Services Specifically, the operating efficiency of the Keelung Port has been greatly improved, benefiting from the phasedAPEC completion and commissioningPort of Portmodern warehousing facilities in its port area. In 2020, the cargo throughput of the APEC Network Keelung Port increased against the trend, up by 5.2% year-on-yearAPEC to 16.19 million APEC tons. The growth rate roseNetwork by 12.2% from that in 2019. Network Services Subject to the fluctuations in domestic and foreign pandemic prevention and Network control and economic and trade development,Network China's port cargo throughputServices Port growth presentedServices a strong recovery after bottoming out in 2020. The annual cargo Network throughputPort reached 14.55 billion tons, a year-on-year growth rate of 4.3%,Port exhibiting APEC Services strong resilience against Servicesthe throughput slumps across many Asia-Pacific ports. In terms of domesticPort and foreign trade, the foreign trade cargoAPEC throughputs of ports in Services Port APEC China maintained stable growth as a whole, benefiting from the supply of pandemic prevention materials, the rapid recovery of foreign trade supply chains, and the Port APEC firstAPEC phase of economic and trade agreementNetwork signed between China and the United Network States. In 2020, the foreign trade cargo throughput stood at 4.5 billion tons,APEC an increase of 4.0% year-on-year. Network Network Services Services Concerning domestic and foreign trade cargoes, the domestic and foreign trade cargo throughputs of ports in mainland China maintained steadyNetwork growth in 2020. Services Port Port Services China's ports recorded a total of 4.5 billion tons of foreign trade cargo throughput in Port Network 2020,APEC up by 4.0% year-on-year, benefiting from the supply of pandemic prevention APEC Port materials, the rapid recovery of foreign tradeServices supply chains, and the first phase of economic and trade agreement signedPort between China and the United States.APEC Services APEC NetworkThe domestic trade cargo throughput also achieved a steady growth rate of 4.4% Port to 10.08 billion tons, drivenAPEC by the policies such as "accelerating the construction of domestic circulation as the mainstay" and "upgrading consumption,Network expanding domestic demand and adjusting industrial structure". In terms of main cargo types, APEC Services Network China'sNetwork crude oil import volume in 2020 went up by 7.3% year-on-year to 540 Port million tons, hitting a new record due to the strongServices demand brought by oil prices plummeting to a multi-decade low and its quick economic pickup from the pandemic.Network Services Similarly, China's domestic natural gasPort demand continued to be strong with the APEC Servicescontinuous advancement of its coal-to-gas policy. Its natural gas market was hit hard Port Port by the pandemic, with pricesAPEC dropping significantly, which furtherServices boosted natural gas imports in China, maintaining a relatively high growth rate of 5.3% year-on-year APEC to 1.02 billion tons. In addition, impacted by the strategic materialsPort reserves buildup APEC Network APEC Network Services 55 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port amid the pandemic, China'sAPEC grain and meat imports increased byServices 28.0% and 60.4%, Network respectively. Port APEC (millionNetwork tons) 5000 APEC 15%Network Services 4000 10% Network Services3000 5% Port Network Network Port 2000 Services0% APEC Services 1000 Port -5%Services Port APEC 0 Services -10% Port APEC Port APEC 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 Network Foreign trade throughput (Left Axis) APEC APEC Domestic trade throughput (Left Axis) Network ForeignNetwork trade throughput growth rate(Right Axis) Domestic trade throughput growth rate(Right Axis) Services Network Network Source: General Administration of Customs of China Services Port Services Network FigurePort 3-6 Domestic-trade and Foreign-trade Cargo Throughputs and GrowthPort Rates Servicesof Chinese Ports in 2018-2020 APEC Services APEC APEC （million tons） Port Services Port 1400 20% Port APEC1200 10% APEC 1000 Network 0% Network 800 APEC -10% Network 600 Network 400 Services -20% Services 200 Network -30% 0 Port -40% Services Port Services Port Network SuzhouTianjin DalianRizhao Yantai Qingdao Yingkou Xiamen APECShanghai Tangshan ServicesHuanghuaShenzhen Zhanjiang APEC Port Guangzhou LianyungangQinhuangdao APEC Ningbo Zhoushan Port Hong Kong, China Services APEC Network Port 2019 (Left Axis) APEC 2020 (Left Axis) MajorNetwork ports in Chinese Taipei Growth Rate in 2019 (Right Axis) Growth Rate in 2020 (Right Axis) APEC Network Services Source: Ministry of Transport of China and official websites of various ports Port Network Services Figure 3-7 Cargo Throughputs and Growth Rates of Major Chinese Ports in 2019- Network Port2020 Services APEC Services Port Port In 2020, port production inAPEC major economies of North America wasServices under pressure. In the early days of the pandemic, the United States was under strict lockdown, with APEC consumption falling sharply. In the second half of the year,Port many workers returned to APEC work, consumerNetwork spending and production activities were quickly resumed. However, APEC Network 56 Services 2020 APEC Port Development Report www.apecpsn.org 56 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port the trade growth throughoutAPEC the year was still limited, and the tradeServices deficit continued to worsen, which inhibited the throughput growth of ports in the United States. Port Network of South Louisiana, which is highly dependent on internationalPort trade, recorded a APEC 3.2% Networkdecline in cargo throughput to 230 million tons because the transport capacity of grain and energy sources was constrained,APEC and the port was forced to close Networkfor Services a short period due to the hurricane in the second half of the year. Benefiting from Port Network Servicesthe consumer demand increase and retailers' stocking up for the holiday shopping Network season, the imports of theNetwork Ports of Los Angeles and Long Beach surged in the Port second half of the year, offsetting the decline in commodity Servicesdemand caused by APEC Services the pandemic in the first half of the year. The Port of PortLong Beach recorded a Servicesslight Port APEC increaseServices of 1.1% in cargo throughput for the year. Similarly, Canada's international trade also suffered a heavy blow, with theAPEC good values of the importPort and export Portfalling by 8.5% and 12.4%, respectively. Port production was weakened accordingly. APEC Network The Port of Halifax registered a cargo throughput of 4.22 milliAPECon tons, a drop of 5.4% APEC year-on-year. Due to cargo overstock and shipment delays caused by dock workers' Network strikes, the Port of MontrealNetwork saw its cargo throughput plummet by 13.5% to 35.1 Services million tons. Port of Vancouver maintained a positive growth rate of 0.9% in cargo Network throughput for the year, as a result of the Networkcontinuous increase in global demand Servicesfor Port CanadianServices grains, as well as the arrivals of ships that were transferred from some Network portsPort on the west coast of the United States due to congestion. Port APEC Services Services The port throughputsPort of Southeast Asian economies dippedAPEC on the whole. In 2020, Services Port APEC except Viet Nam, all the other major economies in the Southeast Asia region saw port production fall into the negative growth range. The declined demand for Port APEC importedAPEC cargoes in the Philippines resultedNetwork in a sharp drop of cargo throughput Network by 13.3% at Philippine seaports. Major ports in Malaysia were affected by APECport congestion and other factors and their cargo throughput declined by 4.9%. Regional Network Networkblockade measures, borderServices closures, and economic sluggishness caused by the Services COVID-19 pandemic, combined with occasional internationalNetwork trade frictions, have Services Port severely impactedPort Singapore's manufacturing and export trade. In addition, the oil Services throughput plunged (by 11.4%), which also contributed to a cargo throughput decline Port Network at theAPEC Port of Singapore by 5.7% year-on-year. Thanks to the smaller impact of APEC Port the pandemic on the import and export trade,Services coupled with the effective promotion of trade agreements such as the ComprehensivePort and Progressive Agreement APECfor Services APEC NetworkTrans-Pacific Partnership (CPTPP), EU-Viet Nam Free Trade Agreement (EVFTA), Port and Regional ComprehensiveAPEC Economic Partnership (RCEP), Viet Nam's ports maintained a positive growth rate of 3.7% in cargo throughput. However,Network the growth APEC Services rate still fell by 20.2% from last year. Network Network Port The port production of Northeast Asia economiesServices was weak on the whole. Due to the sluggish international trade, Korea's export value shrank greatly, especially theNetwork Services exports of automobiles, aircraft parts, autoPort parts, and other products, which affected APEC Servicesthe Port of Busan, the Port of Gwangyang, the Port of Incheon and other ports. Port Port Korean ports recorded 1.51APEC billion tons of throughput throughout theServices year, a year-on- year decrease of 9.6%. Except for Port of Masan, all other major ports in Korea fell APEC to the negative growth range in terms of cargo throughput.Port Amid the pandemic, the APEC Network APEC Network Services 57 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port sluggish domestic manufacturingAPEC industry in Japan dampenedServices the performance of ports such as Port of Tokyo and Port of Yokohama. In particular, the Port of Nagoya Network was negatively affected by the decline in iron ore tradePort and its throughput dropped APEC significantly.Network The cargo throughput of major ports in Japan totaled 5,878.45 billion tons throughout the year, a drop of 12.1%APEC year-on-year. Due to the sluggish exportNetwork Services of liquid bulks, seaports in Russia saw their annual cargo throughputs drop by 2.3% Port Network Servicesyear-on-year to 820 million tons. Specifically, the cargo throughputs of the ports Network in the Baltic Sea and theNetwork Azov-Black Sea regions decreased by 5.8% and 2.4%, Port respectively. Services APEC Services Port APEC 3. RankingsServices of top 30 Asia-Pacific ports by cargo throughput Services Port Port PortThe competition landscape among Asia-PacificAPEC ports was further differentiated in APEC Network 2020. The top 10 ports in the region kept their places relatively, while the last 20 APEC ports on the top 30 list highlighted a reshuffle. The top 30APEC ports in the Asia-Pacific Network region recorded a total cargoNetwork throughput of 11.34 billion tons, a decrease of 0.1% Services year-on-year. Specifically, the cumulative cargo throughput of the top 10 ports Network reached 6.49 billion tons, accounting for Network57.2% of the top 30 ports' total, the ratioServices Port being a riseServices of 1.7% year-on-year. The total cargo throughput of the top 10 ports Network increasedPort by 2.9% year-on-year. Among the top 30 ports in the Asia-PacificPort region APEC Services ranked by cargo throughput,Services 18 ports are located in China, four ports in Japan and Korea, three ports in the United States, three ports in Australia,APEC and two ports in Services APEC Southeast Asia. Port Port Port APEC AmongAPEC the Chinese ports on the list, NingboNetwork Zhoushan Port saw its cargo throughput Network hit a record high in 2020, increasing by 4.7% year-on-year to 1.17 billion tons APECand ranking first securely in the Asia-Pacific region. This is attributable to a series of Network Networkmeasures taken by the portServices during the pandemic, such as using digital means to Services improve port operation efficiency and reducing fees to attract Networkships to call at the port. The cargo throughputPort growth of Shanghai Port has stagnated for two consecutive Services Port Services years, but Shanghai Port currently focuses more on high-quality services than Port Network throughputAPEC growth. Benefiting from the continuous advancement of port resources APEC Port integration in Shandong Province of China, QingdaoServices Port, Rizhao Port, and Yantai Port achieved steady growth. Specifically,Port Qingdao Port recorded a higher cargoAPEC Services APEC throughput than the Port of Singapore, ranking among the top five. The ranking of NetworkRizhao Port also rose by one place to enter the top ten. Dalian Port and Yingkou Port Port, affiliated with the LiaoningAPEC Port Group, were advancing integration.Network Yingkou Port curbed the decline in cargo throughput, but the throughput of Dalian Port fell APEC Network Services during the adjustment, and the ranking of the two ports remained unchanged. Port Network Services In 2020, Korea's import and export trade suffered a severe setback under theNetwork prolonged pandemic and trade protectionism,Port with its import and export values falling Services APEC Servicesby 7.2% and 5.4% year-on-year, respectively. As a result, the cargo throughput Port Port growth of major ports in APECKorea has stagnated successively. AmongServices the Korean ports on the list, Port of Busan, Port of Kwangyang, and Port of Ulsan all recorded APEC declines in cargo throughput to varying degrees. As a result,Port the ranking of Busan APEC Port fell outNetwork of the top ten. Port of Singapore was surpassed by Guangzhou Port and APEC Network 58 Services 2020 APEC Port Development Report www.apecpsn.org 58 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port Qingdao Port, two portsAPEC with stable growth in terms of throughputServices due to the falling oil shipping volume, and its ranking fell to the 6th. Benefiting from the surging import Network demand for consumer goods in the United States in thePort second half of the year, the APEC Port ofNetwork Long Beach recorded cargo throughput growth against the trend, raising its ranking by three places to the 27th. InAPEC addition, the overall rankings of portsNetwork in Services Australia did not change much. Network Services Port Network Network Port Table 3-3 Rankings of Top 30 Asia-Pacific Ports by Cargo ThroughputServices in 2020 (Unit: APEC Services Table 3-3 Rankings of Top 30 Asia-Pacificmillion Ports tons) by Cargo ThroughputPort in 2020 (Unit: million tons) APEC Rankings Growth Services Port Services Port Economy 2020 2019 2020 2019 Trend APEC PortRate Port 1 1 ← NingboZhoushan China 1172 1120 4.7% APEC Network 2 2 ← Shanghai ChinaAPEC 711 717 -0.8% APEC 3 3 ← Tangshan China 703 657 7.0% Network 4 5 ↑ NetworkGuangzhou China 612 606 1.0% Services 5 6 ↑ Qingdao NetworkChina 605 577 4.7% Network 6Services 4 ↓ Singapore Singapore 591 627 -5.7% Services Port 7 7 ← Suzhou China 554 523Port 6.0% Network Port8 8 ← Hedland Australia 547 522 4.8% APEC Services 9 9 ← ServicesTianjin China 503 492 2.2% APEC 10 11 Port↑ Rizhao China 496APEC 464 7.0% Services Port 11 10 ↓ Busan Korea 411 469 -12.5% Port APEC12 12 ← Yantai China 399 386 3.4% APEC Network 13 13 ← Dalian NetworkChina 334 366 -8.8% 14 15 ↑ Huanghua China 301 288 4.7% APEC Network 15 14 ↓ Gwangyang Korea 273 310 -11.8% Network 16 17 ↑ ServicesShenzhen China 265 258 2.8% Services 17 16 ↓ Hong Kong, China Hong Kong, China 249Network 263 -5.3% Services Port 18 21 Port↑ Lianyungang China 242 235 3.1% Network Services 19 19 ← Yingkou China 238 238 0.0% Port APEC Port APEC20 23 ↑ Zhanjiang ServicesChina 234 216 8.4% 21 20 ↓ South Louisiana the United States 227 235 -3.2% APEC Services 22 18 ↓ Kelang Port Malaysia 223 243 -8.3% APEC Network 23 24 ↑ Xiamen China 208 213 -2.8% Port 24 22 ↓ APECQinhuangdao China 201Network 219 -8.3% 25 26 ↑ Ulsan Korea 188 202 -7.1% APEC Services 26 25 ↓ Los Angeles the United States 183 207 -11.7% Network 27Network 30 ↑ LongBeach theUnitedStatesServices 172 170 1.1% Port 28 28 ← Dampier Australia 170 171 -0.5% Network 29 27 ↓ Nagoya Port Japan 169 194 -13.3% Services APEC Services 30 29 ↓ Newcastle Australia 165 170 4.7% Note: "↑" indicates upward movement, "↓" indicates downward movement, and "←" indicates no change. Port Note: "↑" indicates upward movement,APEC "↓" indicates downward movement, and "←" indicates no Port Source: Official websites of various ports Services change. Port APEC APEC Source:3.2.2 OfficialNetwork Container websites throughputof various ports growth 1. Container throughput growth of globalAPEC ports slowed down Network In 2020, under the impacts of the COVID-19 pandemic, both supply and demand in the container Servicesshipping market fell. The container throughput growth of global ports entered the negative range, 59 Network Port 50 Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port 3.2.2 Container throughputAPEC growth Services Network 1. Container throughput growth of global ports slowedPort down APEC Network In 2020, under the impacts of the COVID-19APEC pandemic, both supply and demand Services in the container shipping market fell. The container throughput growth of globalNetwork Port Network Servicesports entered the negative range, namely -2.1% year-on-year to 780 million TEUs. Region-specific, the containerNetwork throughput growth rates of all regions posted Network Port significant declines year-on-year. The Europe and America regionsServices registered sharp APEC Services declines in container throughput, down by 4.6% and 4.4%,Port respectively, primarily APEC due to theServices severe pandemic, the sharp drop in import and export trade demands,Services Port and the large-scale suspension of container liner companies. In Asia, portPort production Portpicked up rapidly, and container throughputAPEC only declined slightly by 0.6% since APEC Network major economies in Asia adopted public health measures promptly and implemented APEC massive stimulus policies, especially China, which took theAPEC lead in resuming work Network and production. In Africa, Networkthe economy was hit hard, and the container throughput Services growth suffered a severe setback due to the complex and grave situation of the pandemic and other unfavorable factors,Network including the plunge in international Servicesoil Network prices andServices the raging locust plague in East Africa. Port Port Network (millionPort TEUs) Services APEC Services 1000 20% APEC Port APEC Services Port 800 15% 600 10% Port APEC APEC Network Network 400 5%APEC 200 0% Network Network Services 0 Services -5% 2010 2011 2012 2013 2014 2015 2016 2017 2018Network2019 2020 Services Port PortLoaded containers (Left axis) Services Empties (Left axis) Network Growth rate of total container throughput (Right axis) Port APEC Port APEC Services Source: Drewry Port APEC Services APEC NetworkFigure 3-8 Container Throughputs and Growth Rates of Global Ports in 2010-2020 Port APEC Network APEC Services Network Network Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network 60 Services 2020 APEC Port Development Report www.apecpsn.org 60 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services APEC Port 10% Services Network 8% Port APEC 6%Network 4% APEC Network Services 2% Network Port Services0% Network Port -2% Network Services APEC Services -4% -6% Port Services Port APEC Services2016 2017 2018 2019 2020 Port Global APEC North America Port APEC Europe Asia Network Middle East/South Asia LatinAPEC America APEC AfricaNetwork Oceania Network Services Source: Drewry Network Network FigureServices 3-9 Container Throughput Growth Rates of Ports in Various RegionsServices Port in 2016-2020 Network Port Port APEC Services 2. Container throughputServices growth of Asia-Pacific ports dipped Port APEC Services Port APEC In 2020, major ports in the Asia-Pacific region accomplished a cumulative container throughput of 498.7 million TEUs, a slight increase of 0.2% year-on-year and a Port APEC declineAPEC from the 3.4% growth rate in 2019.Network Except for China, Viet Nam, Malaysia, Network and Australia, all the other major economies saw their port container throughputsAPEC fall into the negative growth range. However, the global status of Asia-Pacific ports Network Networkcontinued to rise, and theirServices share in global container throughput increased by 5.4% Services from that in 2019 to 64.1%. Port Network Services Port Services In 2020, under the impact of the pandemic, China's container throughput growth Port Network furtherAPEC slowed down. As the global economic and trade situations worsened, China's APEC Port foreign trade was also hit hard. In 2020, majorServices Chinese ports recorded a container throughput of 264.3 million TEUs, withPort the growth rate slowed by 3.2% year-on-year,APEC Services APEC being 1.2%. Quarter specific, China's container throughput growth started low but Networkthen increased overall. Although the growth in the first quarter fell sharply to -10.6% Port due to the pandemic, theAPEC throughput growth picked up quarterNetwork by quarter with the resumption of work and production at home and abroad and the recovery of part of APEC Network Services the consumer demand, and reached 8.8% in the fourth quarter, surpassing the level in the sameNetwork period of the previous year. Services Port Network In 2020, the container throughput of PortPort of Hong Kong shrank again since the Services APEC ServicesKwai Tsing Container Terminal became the hardest hit area of the pandemic Port Port that seriously affected theAPEC normal operation of the port. As the Servicestraditional labor- intensive and low-value manufacturing industries in the Pearl River Delta region APEC are gradually transferred to ASEAN regions and even Africa,Port Port of Hong Kong APEC suffered Networka decrease in the supply of cargoes from the hinterland for direct shipment. APEC Network Services 61 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port Meanwhile, the constructionAPEC and development of GuangzhouServices Port and Shenzhen Port also form direct competition with the Port of Hong Kong. The pandemic Network outbreak led to a sharp decline in the number of containerPort ships calling at the Port APEC of HongNetwork Kong, which further reduced the container throughput of Port of Hong Kong. Likewise, subject to the Sino-U.S. trade frictionsAPEC and the impact of the COVID-19Network Services pandemic on China's domestic-trade and foreign-trade demands as well as the liner Port Network Servicesshipping capacity, the annual container throughput of major ports in Chinese Taipei Network Port fell significantly. Network Services APEC Services In 2020, the container throughput growth of ports inPort the Southeast Asia region generally declined under the influence of sluggish global trade. Port specific,Services the Port APEC Services Port of Singapore remained open during APECthe pandemic and further strengthenedPort Portits cooperation with ship enterprises such as Hyundai Merchant Marine (HHM). APEC Network Its container throughput stayed relatively stable, registering a decrease of only APEC 0.9%. The port traffic congestion at the Port of Kelang APECcaused voyage delays and Network detention of ships and containers,Network reducing the container transshipment. Its annual Services container throughput dropped by 2.5% year-on-year. Due to the global shortage of Network containers subject to the pandemic and theNetwork container drops and order cancellationsServices Port due to delaysServices of trans-Pacific ships, the container throughput of Port of Laem Network ChabangPort dropped by 5.4% in the year. Port of Tanjung Pelepas investedPort in new APEC Services container handling equipmentServices and dredged its channels to accommodate the next- generation ultra-largePort container ships. As the shipping demandsAPEC on Asia—Europe Services Port APEC routes picked up in the second half of the year, the transshipment volume at Port of Tanjung Pelepas surged. The port's annual container throughput grew by 8% Port APEC againstAPEC the trend. The ports in Viet Nam maintainedNetwork sound momentum of container Network throughput growth for the year, as its trade agreements with the Eurasian EconomicAPEC Union, European Union, and Korea and the Trans-Pacific Partnership Agreement, Network Networksuccessively came into effect,Services and Chinese multinational companies shifted their Services manufacturing to Viet Nam. Network Services Port Port Services In 2020, the container throughput growth rates of ports in Japan and Korea were Port Network negative.APEC Due to the sluggish manufacturing demand, the import and export volumes APEC Port of Japan's major trade commodities such asServices machinery and appliances, textile materials, and transportation equipmentPort all declined to various degrees, and theAPEC Services APEC Networkport container throughput also shrank sharply. With the declining demands for cars Port at home and abroad, theAPEC car sales of Korea's automakers dropped significantly, and foreign markets were shut down on a large scale. The downturnNetwork in the auto industry and the decrease in imports of related parts and equipment undermined the APEC Network Services container throughput of Korea throughout the year. Port Network Services In 2020, under the impact of the pandemic, major container ports in North AmericaNetwork experienced weak production. In thePort first half of the year, the trade volumes of Services APEC Servicesthe Port of Los Angeles and the Port of Long Beach both declined. However, in Port Port the second half of the year,APEC the suppressed consumer demand wasServices released and retailers stocked up for the holiday shopping season, resulting in the surging import APEC demand and continuous rise in container throughput. PortThe Port of Long Beach APEC Network APEC Network 62 Services 2020 APEC Port Development Report www.apecpsn.org 62 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port recorded a container throughputAPEC increase of 6.3% against theServices trend for the year. The Port of New York-New Jersey, Port of Savannah, Port of Houston, and other Network ports on the east coast of the United States also benefitedPort from retailers' demand APEC for warehouseNetwork replenishment, with their container throughput growth returning to the level in the same period of last year. APECHowever, the Northwest Seaport AllianceNetwork Services (Seattle-Tacoma Seaport) faced weak production, with container throughput Port Network Servicesdropping by 12.0% due to the reduction of container routes and suspension of some Network Port voyages. Network Services APEC Services Table 3-4 Container Throughputs and Growth Rates ofPort Asia-Pacific Ports in 2020 (Unit: million TEUs) Services Port APEC Services APEC Port Port 2020 2019 APEC Port Network Growth Growth Throughput ThroughputAPEC APEC Network Rate Rate Network Services Major Ports in China 261.2 4.5% 264.3 1.2% Network Port of Hong Kong, China 18.3 Network-6.6% 18.0 -1.9% Services Port Services Network PortMajor Ports in Chinese Taipei 15.3 -0.1% 14.5 Port-5.2% APEC Major Ports in Japan Services16.7 -1.0% 15.4 -8.1% Services APEC Services Port APEC Major Ports in PortViet Nam 19.6 8.7% 22.1 12.8% Major Ports in Thailand 9.4 -1.2% 9.0 -5.0% Port APEC APEC Network Network Major Ports in Malaysia 26.4 5.9% 26.7 1.0%APEC Network Port of Singapore 37.2 1.6% 36.9 -0.9% Network Services Services Major Ports in the Philippines 7.9 4.3% 6.8 -14.0% Port Network Services Port Services Major Ports in Korea 29.2 0.9% 29.1 -0.5% Port Network APEC Port MajorAPEC Ports in the U.S. 44.3 Services5.2% 44.2 -0.3% Major Ports in Canada 6.9Port 3.6% 6.7 -2.5% APEC Services APEC Network Major Ports in Australia 5.1 -2.3% 5.1 1.4% Port APEC Note: Statistics for major ports of the economies in the table can be foundNetwork in Table following. APEC Services Source: Official websites of various ports or port associations in various economies. Network Network Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network Services 63 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port Table 3-5 Major ContainerAPEC Ports in Asia-Pacific Economies IncludedServices in Statistics Network Port APEC EconomyNetwork Economy Major Ports for Statistics Shanghai, Shenzhen, APECNingbo Zhoushan, Guangzhou, Qingdao, Services Tianjin, Xiamen, Dalian, Yingkou, Suzhou, Lianyungang, Foshan,Network Network China Nanjing, Rizhao, Yantai, Fuzhou, Quanzhou, Dandong, Tangshan, Port Services Beibu Gulf, Zhuhai, Haikou, Jiaxing, Zhongshan, Shantou, Weihai, Network Port Zhanjiang,Network Wenzhou Services APEC Services Chinese Taipei Kaohsiung, Taichung, Taipei, Keelung Port Japan Yokohama, Tokyo, Nagoya, Osaka, Shimizu, Kobe Services Port APEC Services PortThailand Laem Chabang, BangkokAPEC Port Klang, Tanjong Palapas, Penang, Johor, Kuantan, Bintulu, Kuching, APEC Malaysia Network Miri, Rajang, Sabah APEC Network APEC Philippines Manila,Network Southern Luzon, Weishiye, Mindanao Services Korea Busan, Incheon, Gwangyang,Network Pyeongtaek-Dangjin Network ServicesLos Angeles, Long Beach, New York/New Jersey, Savannah,Services Port The United States Northwest Seaport Union, Ogran, Virginia, Houston, Charleston,Port Network Port Baltimore,Services Jacksonville, Everglades APEC Services Canada Vancouver, Montreal, Prince Rupert, HalifaxAPEC APEC Australia PortMelbourne, Brisbane, Fremantle Services Port Port APEC Source:APEC Official websites of various ports or portNetwork associations in various economies Network (million TEUs) APEC Network 300 20% Network 250 Services 10% Services 200 Network Services Port 150 Port 0% Network Services 100 -10% Port APEC Port APEC50 Services 0 Port -20%APEC Services APEC Network Port APEC Port of Singapore Network Major Ports in China Major Ports in Japan Major Ports in Korea Major Ports in Canada APEC Major PortsMajor in Vietnam PortsMajor in Thailand Ports in Malaysia Major Ports in the U.S.Major Ports in Australia Network Services Port of Hong Kong, China Major Ports in Chinese Taipei Major Ports in the Philippines Network2019 (Left Axis) 2020Services (Left Axis) Port Growth Rate in 2019 (Right Axis) Growth Rate in 2020 (Right Axis) Port Network Services APEC ServicesSource: Official websites of various ports or port associations in various economies Port Port Figure 3-10 Container ThroughputsAPEC and Growth Rates of Major PortsServices in Asia-Pacific Economies in 2019-2020 Port APEC APEC Network APEC Network 64 Services 2020 APEC Port Development Report www.apecpsn.org 64 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services APEC Port (million TEUs) Services Network 50 Port 20% 10% APEC 40 Network 0% 30 APEC Services -10%Network Network 20 -20% Services -30% Port 10 Network Port Network Services-40% APEC 0 -50% Services Port Services APEC Dalian Services Tianjin Xiamen Suzhou Port Shanghai Shenzhen Qingdao Yingkou Port Guangzhou APEC Port Ningbo Zhoushan APEC Network 2019 (Left Axis) 2020 (Left Axis) APEC Growth Rate in 2019 (Right Axis) Growth Rate inAPEC 2020 (Right Axis) Network Source: Official websites of Networkvarious ports or port associations in various economies Services Network Figure 3-11 Throughputs and Growth NetworkRates of Top 10 Container Ports in ChinaServices Port Services in 2020 Network Port Port APEC 3. Rankings of top 30 Asia-PacificServices ports by container throughput Services APEC Services Port APEC In 2020, the topPort 30 ports in Asia-Pacific economies recorded a total container throughput of 375.46 million TEUs, generally the same as in the previous year. Port APEC AmongAPEC the top 30 container ports in Asia-PacificNetwork economies, China-based ports still Network took more than half of the seats, namely 17 in total. The United States took APECfive, Southeast Asia also five, and Japan, Korea, and Canada one each. The rankings Network Networkof more than two-thirds ofServices the top 30 container ports in Asia-Pacific economies Services changed from those of last year. The rankings of the top 10 ports,Network except Qingdao Port and the Port Portof Busan - which exchanged their rankings - and Tianjin Port and Services Port Services the Port of Hong Kong - which swapped their positions - all remained the same as Network last year. Port APEC Port APEC Services Among the top 10 ports, Shanghai PortPort maintained a positive growth rate of 0.4%APEC Services APEC in container throughput for the year under the boost of domestic trade. Ningbo NetworkZhoushan Port keeps promoting its strategic cooperation and partnerships with Port container ship enterprisesAPEC on trunk routes and continues to expandNetwork its multimodal transport logistics service network, in a bid to accelerate the recovery of container APEC Services throughput from the impact of the pandemic. The port's container throughput grew by Network Port an impressiveNetwork rate of 4.3%. Benefiting from theServices automation renovation of traditional container terminals and innovation in the autonomous driving demonstration zone,Network Tianjin Port recorded a growth rate ofPort 6.1% in container throughput for the year, Services APEC Servicesranking ahead of the Port of Hong Kong. As the pandemic caused global liner Port Port companies to dramatically APECreduce voyages, the Port of Busan's containerServices throughput dropped significantly year-on-year, and it was surpassed by Qingdao Port on the APEC ranking list. Port APEC Network APEC Network Services 65 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port The ports in the last 15APEC places on the list faced fierce competition,Services with their rankings changing significantly. The most striking move was made by the Beibu Gulf Port, Network which recorded a 32.2% growth of container throughputPort year-on-year in 2020 and a APEC rise ofNetwork 6 places on the rankings. The high-speed growth of container throughput at the Beibu Gulf Port was primarily due to theAPEC fact that the industrial transfer projectsNetwork Services from the eastern region to Guangxi Province were put into operation one after Port Network Servicesanother, and Guangxi vigorously promoted the construction of the new western land- Network sea corridor. In the earlyNetwork stage of the pandemic outbreaks, Dalian Port's containers Port for domestic trade stayed low due to insufficient domestic demand.Services Meanwhile, APEC Services its container business was hit hard due to the integrationPort with Yingkou Port Servicesand Port APEC businessServices adjustments, with its annual throughput dropping sharply and ranking on the list falling by five places. The container APECthroughput of the Port of TokyoPort continued Portto drop as a result of the decline in Japan's import and export trade volume. Except APEC Network for the Port of Long Beach and the Port of New York-New Jersey,APEC all the other ports APEC in the United States slippedNetwork down on the ranking list. Network Services Table 3-6 Rankings of Top 30 Asia-Pacific Ports in 2020 by Container Throughput (Unit: millionNetwork TEUs) Services Port Network Services Rankings Growth Network Port Economy 2019 2020Port Port2020 2019 Trend Rate APEC Services Services 1 1 ← Shanghai ChinaAPEC 43.3 43.5 0.4% Services Port APEC 2 2 ←Port Singapore Singapore 37.2 36.9 -0.9% 3 3 ← Ningbo Zhoushan China 27.5 28.7 4.3% Port APEC 4APEC 4 ← Shenzhen NetworkChina 25.8 26.6 3.0% Network 5 5 ← Guangzhou China 22.8 23.2 1.5%APEC Network 6 7 ↑ Qingdao China 21.0 22.0 4.7% Network 7 6 ↓ ServicesBusan Korea 22.0 21.8 -0.8% Services 8 9 ↑ Tianjin ChinaNetwork 17.3 18.4 6.1% Services Port 9 8 ↓ Port HongKong,China HongKong,China 18.3 18.0 -1.9% Network Services 10 10 ← Kelang Malaysia 13.6 13.2 -2.5% Port APEC Port 11APEC 11 ← Xiamen ServicesChina 11.1 11.4 2.5% 12 14 ↑ Tanjong PalapasPort Malaysia 9.1 9.8 8.0%APEC Services APEC 13 12 ↓ Kaohsiung ChineseTaipei 10.4 9.6 -7.8% Network14 13 ↓ Los Angeles the United States 9.3 9.2 -1.4% Port 15 17 ↑ APECLongBeach theUnitedStatesNetwork 7.6 8.1 6.3% 16 18 ↑ New York/New Jersey the United States 7.5 7.6 1.6% APEC Network Services 17 16 ↓ Laem Chabang Thailand 8.0 7.6 -5.4% Network Port 18 19 ↑ Suzhou ServicesChina 6.3 6.3 0.3% 19 20 ↑ Yingkou Port China 5.5 5.7 3.1% Network Services APEC 20 15 ↓ Dalian China 8.8 5.1 -41.7% Services21 27 ↑ Beibu Gulf China 3.8 5.1 32.2% Port APEC Port 22 25 ↑ Rizhao China 4.5Services 4.9 8.0% 23 23 ← Lianyungang ChinaPort 4.8 4.8 0.4% APEC APEC 24Network 22 ↓ Tokyo Japan 5.0 4.8 -5.2% 25 24 ↓ Savannah APECthe United States 4.6 4.7 1.7% 26 21 ↑ Manila Philippines 5.3 4.4 -16.4% Network 66 27 26 ↓ Foshan China 4.4 4.1 -8.8% Services28 29 ↑ Fuzhou China 3.5 3.5 -0.3% 2020 APEC Port Development Report www.apecpsn.org 66 Network Port 29 30 ↑ Vancouver Canada 3.4 Services3.5 2.1% 30 28 ↓ Northwest Seaport Alliance the United StatesPort3.8 3.3 -12.1% APEC Note: "↑" indicates upward movement, "↓" indicates downward movement, and "←" indicates no change. Source: OfficialServices websites of various ports Port APEC Serv 3.2.3 Major bulks throughput growth Port APEC In 2020, the throughputs of globalNetwork dry bulk ports showed divergent trends. Specifically, iron ore trade demand was strong, but coal demand was generally weak. The world'sAPEC main dry bulk shipping volume registered 5.1 billion tons, decreasing by 2.9% year-on-year. Among the major ports, the PortServices of Hedland benef ited from China's strong demand for iron ore, and its iron ore throughputPort was on the rise. Affected by China's restrictiveNetwork policy on coal imported from Australia, 56 APEC Services Port APEC

Rankings Growth Port Economy 2019 2020 2020 2019 Trend Rate 1 1 ← Shanghai China 43.3 43.5 0.4% 2 2 ← Singapore Singapore 37.2 36.9 -0.9% 3 3 ← Ningbo Zhoushan China 27.5 28.7 4.3% 4 4 ← Shenzhen China 25.8 26.6 3.0% 5 5 ← Guangzhou China 22.8 23.2 1.5% 6 7 ↑ Qingdao China 21.0 22.0 4.7% 7 6 ↓ Busan NetworkKorea 22.0 21.8 -0.8% 8 9 ↑ Tianjin China 17.3 18.4 6.1% 9 8 ↓ Hong Kong, China Hong Kong, China 18.3 18.0 -1.9% 10 10 ← ServicesKelang Malaysia 13.6 13.2 -2.5% 11 11 ← Xiamen China Network11.1 11.4 2.5% 12 14 Port↑ Tanjong Palapas Malaysia 9.1 9.8 8.0% 13 12 ↓ Kaohsiung Chinese Taipei 10.4 9.6 -7.8% APEC14 13 ↓ Los Angeles Servicesthe United States 9.3 9.2 -1.4% 15 17 ↑ Long Beach the United States 7.6 8.1 6.3% 16 18 ↑ New York/NewPort Jersey the United States 7.5 7.6 1.6% Network 17 16 ↓ Laem Chabang Thailand 8.0 7.6 -5.4% APEC 18 19 ↑ Suzhou China Network6.3 6.3 0.3% Services 19 20 ↑ Yingkou China 5.5 5.7 3.1% 20Network15 ↓ Dalian China 8.8 5.1 -41.7% Port 21 27 ↑ Beibu Gulf ServicesChina 3.8 5.1 32.2% 22 25 ↑ RizhaoPort China 4.5 4.9 8.0%Network APEC Services23 23 ← Lianyungang China 4.8 4.8 0.4% 24 22 ↓ APECTokyo Japan 5.0 4.8 -5.2% Port 25 24 ↓ Savannah theUnitedStatesServices 4.6 4.7 1.7% Network 26 21 ↑ Manila PhilippinesPort 5.3 4.4 -16.4% APEC 27Network 26 ↓ Foshan China 4.4 4.1 -8.8% 28 29 ↑ Fuzhou APECChina 3.5 3.5 -0.3% Services 29 30 ↑ Vancouver Canada 3.4 3.5 2.1%Network Network Services30 28 ↓ Northwest Seaport Alliance the United States 3.8 3.3 -12.1% Port Note: "↑" indicates upward movement, "↓" indicates downward movement, and "←" indicates no change. Network Note: "↑" indicates upward movement,Network "↓" indicates downward movement, and "←" indicates no Port Source: Official websites of various ports Services APEC change. Services Source: Official websites of various ports Port 3.2.3 Major bulks throughput growth Services Port APEC Services 3.2.3 Major bulks throughput growth Port PortIn 2020, the throughputs of global dry bulk portsAPEC showed divergent trends. Specifically, iron ore APEC Intrade 2020, demand the wasthroughputs strong, but of coal global demand dry was bulk generally ports weak. showed The world'sdivergent main trends. dry bulk Network shipping volume registered 5.1 billion tons, decreasing by 2.9% year-on-year.APEC Among the major APEC Specifically, iron ore trade demand was strong, but coal demand was generally Network weak.ports, theThe Po world'srt of Hedland main benefNetwork dryited bulk from shipping China's strongvolume demand registered for iron ore,5.1 andbillion its irontons, ore Services decreasingthroughput was by on2.9% the rise. year-on-year. Affected by China's Among restrictive the major policy ports, on coal the imported Port fromof Hedland Australia, Network benefited from China's strong demand forNetwork56 iron ore, and its iron ore throughput Serviceswas Port on the rise.Services Affected by China's restrictive policy on coal imported from Australia, Network thePort coal throughputs of Qinhuangdao Port and Port of Hay Point declinedPort faster. APEC Services Boosted by the increasingServices supply of green energy and the reduced demand for coal APEC and iron ore fromPort the steel industry, the dry bulk throughputAPEC of the Port of Antwerp Services Port plummeted by 17%. Due to the declined steel production in Germany and the falling demand for energy coal, among other reasons, the dry bulk throughput of the Port of Port RotterdamAPEC dropped by 14.3%. Network APEC Network APEC In terms of liquid bulks, the COVID-19 pandemic broke out globally in 2020, and all Network Networkeconomies adopted isolationServices and lock-down measures to prevent the spread. Crude Services oil demand was severely hit, and the supply and demand in theNetwork crude oil market got imbalanced quickly. As all economies actively resumed work and production, crude Services Port Port Services oil demand improved and was hard to recover to the same level last year. According Port Network to Clarksons'APEC statistics, the seaborne crude oil trade volume in 2020 dropped by 7.7% APEC Port year-on-year. Services Port APEC Services APEC Network1. Import and export growth of major Asia-Pacific iron ore ports stayed stable Port In 2020, the iron ore tradeAPEC in the Asia-Pacific region remainedNetwork relatively stable, boosted by China's strong demand for iron ore imports. The dam disaster led APEC Network Services to restrictions on mining activities. Vale's production in Brazil declined, and iron Port ore supplyNetwork was tight. Brazil's iron ore exportsServices fell by 2.0% throughout the year. Meanwhile, as China's import demand remained strong and Brazil's iron ore supplyNetwork continued to be unstable, Australia's ironPort ore exports gained momentum. However, Services APEC Servicesto reduce its dependence on Australia for iron ore supply, China implemented Port Port a diversified strategy of ironAPEC ore imports by opening up other ironServices ore markets, especially the Indian market. As a result, the iron ore trade volume in India surged APEC by 68.0%. Among iron ore importers, Japan and Korea'sPort iron ore import volumes APEC slumped Networkdue to the sharp decline in steel demand and large steel mills' shutdown. APEC Network Services 67 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port Specifically, the weakAPEC demand for iron ore import was causedServices by the sluggish manufacturing demand in Japan, the downturn in the auto industry of Korea, the Network production cuts by steel mills, and the sharp decrease Portin crude steel output. APEC Network (million tons) APEC Services Network Network Services1400 Port 1200 Network Network Port 1000 Services APEC Services 800 Port 600 Services Port APEC Services 400 APEC Port Port200 APEC Network 0 APEC APEC 2014 2015Network2016 2017 2018 2019 2020 Network Australia Brazil India Services Network Services Network Source: ClarksonsServices Port Port Network FigurePort 3-12 Iron Ore ExportServices Volumes of Major Iron Ore Exporters in the Asia-Pacific APEC Region in 2014-2020 Services APEC Services Port APEC Port 20% Port APEC 15%APEC Network Network 10% APEC Network Network 5% Services 0% Services -5% Network Services Port Port Network Services -10% Port APEC Port -15%APEC Services -20% Port APEC Services APEC 2014 2015 2016 2017 2018 2019 2020 Network China Japan Korea Port APEC Network Source: Clarksons APEC Services Network FigureNetwork 3-13 Iron Ore Import Growth Rate of MajorServices Iron Ore Importers in the Asia- Port Pacific Region in 2014-2020 Port Network Services APEC ServicesAmong major iron ore handling ports in the Asia-Pacific region, the Port of Hedland Port recorded a total iron ore throughputAPEC of 540 million tons, increasing by 4.9% year- Port on-year. Although the Port of Hedland was temporarily shut downServices due to the bad weather at the end of the year, its iron ore throughputPort sustained stable growth APEC APEC throughoutNetwork the year, driven by China's iron ore import demand. Ningbo Zhoushan APEC Network 68 Services 2020 APEC Port Development Report www.apecpsn.org 68 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port Port continued to deepenAPEC cooperation with world-class mines.Services It built the Vale Shulanghu Ore Grinding Center and successfully launched the Rio Tinto-Ningbo Network Zhoushan Port iron ore blending business, boosting Portthe steady rise of its iron ore APEC throughput.Network Rizhao Port benefited from the stable operation of steel mills and power plants, among other facilities in the port areaAPEC and hinterland and the developmentNetwork of Services markets along the Watang-Rizhao Railway, recording double-digit growth in iron ore Port Network Servicesthroughput. The Dampier Port carried out planned maintenance in the third quarter, Network leading to wide fluctuationsNetwork in its iron ore export volume. Its iron ore throughput Port decreased by 1.2% year-on-year to 140 million tons for the year.Services Korean steelmaker APEC Services Hyundai Steel closed its hot-rolled steel plant with an annualPort production capacity Servicesof 1 Port APEC million tonsServices in Chungcheongbuk-do in the southern region in June, with steel orders dropping sharply. Gwangyang Steel Works,APEC owned by POSCO, the largestPort steel Portcompany in Korea, was also closed for maintenance and reconstruction in February. APEC Network As a result, major iron ore import ports in Korea, such as theAPEC Port of Gwangyang and APEC the Port of Pohang, showedNetwork poor performance. Network Services (million tons) Network Network 600 10.0% 15% Services Port Services4.9% 8.8% 8.3% Network Port10% Port500 0.3% Services 5% APEC Services -1.2% -1.0% 400 APEC 0% Services APEC Port -7.6% Port -5% 300 Port APEC APEC Network -10% Network 200 -15%APEC -24.5% -20% Network Network 100 Services Services -25% 0 Port Network-30% Services Port Services Port Network Rizhao Pohang Hedland Dampier Qingdao APEC Tangshan Rotterdam APEC Port ServicesGwangyang Ningbo Zhoushan APEC Services Port APEC Network 2020 (Left axis) 2019 (Left axis) YoY Growth Rate (Right axis) Port APEC Network Source: Official websites of various ports APEC Services Network FigureNetwork 3-14 Iron Ore Throughputs and Growth Rates of Major Iron Ore Handling Port Ports in the Asia-PacificServices Region Port Network Services APEC Services2. Coal import and export demands of major Asia-Pacific ports remained weak Port Port In 2020, the coal trade in theAPEC Asia-Pacific region shrank significantly.Services On the supply side, due to China's coal import restrictions, Australia's coal export volume declined. APEC The continued restrictions to prevent the outbreaks in PortIndia and the Philippines APEC Network APEC Network Services 69 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port dampened Indonesia'sAPEC coal shipments. In addition, many IndonesianServices coal miners ceased operations, further accelerating the decline in coal exports. On the demand Network side, due to Australian coal's repeated failures of environmentalPort protection tests in APEC 2019,Network China initiated strict control over customs declarations across the economy in 2020. In addition, many companies that usedAPEC coal as energy gradually transformedNetwork Services to use clean energy such as water power and wind power, resulting in weak coal Port Network Servicesdemand in the market. After the outbreaks, with the power demand declining, many Network Port power plants in Japan andNetwork Korea were closed. Services APEC 50% Services Port Services Port APEC 40% Services Port30% APEC Port 20% APEC Network APEC APEC 10% Network 0% Network Services -10% Network Network Services Port -20% Services Network Port-30% Port APEC Services 2014 2015Services2016 2017 2018 2019 2020 Indonesia Australia NorthAPEC America Services Port APEC Port Source: Clarksons Port APEC APEC Network Network Figure 3-15 Coal Throughput Growth of Major Coal Exporters in the Asia-PacificAPEC Region in 2014-2020 Network Network 30% Services Services Network 20% Port Services Port Network Services 10% Port APEC Port APEC Services 0% APEC Services Port APEC Network -10% Port -20% APEC Network APEC Services -30% Network Network Port -40% Services 2014 2015 2016 Port2017 2018 2019 2020 Network Services APEC Services China India Japan Korea Port Port Source: Clarksons APEC Services APEC Figure 3-16 Coal Import Growth of Major Coal Importers inPort the Asia-Pacific Region APEC Network in 2014-2020 APEC Network 70 Services 2020 APEC Port Development Report www.apecpsn.org 70 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port Among major coal handlingAPEC ports in the Asia-Pacific region, theServices coal throughput of Tangshan Port slightly declined by 0.8%. Despite the significant decrease in coal Network throughput due to the sluggish electricity demand in Portthe first half of the year, the APEC coal throughputNetwork of Tangshan Port rose in the second half of the year, benefiting from the increased transport volume on the Mongolia-HebeiAPEC Railway and transshipmentNetwork Services of some coal from Qinhuangdao Port. Due to restrictions on the coal import from Port Network ServicesAustralia, Huanghua Port supplemented thermal coal to meet the demand of users Network in southern China. In addition,Network the port optimized the equipment and process Port to improve the efficiency of coal handling. As a result, HuanghuaServices Port achieved APEC Services counter-trend growth in coal throughput for the year. ThePort coal throughput of TianjinServices Port APEC Port continuedServices to decline, affected by the ban on road transport of coal to the port. BHP Billiton, a major coal operator of the PortAPEC of Hay Point in Australia, Portwas affected Portby the strike, and its Cerrejon coal mine suffered a slump in coal output. Meanwhile, APEC Network China imposed restrictions on coal imports from Australia.APEC As a result, the coal APEC export volume of the Port ofNetwork Hay Point dropped sharply. Network (million tons) 4.8% Services 350 3.8% Network 10% -0.8% -2.7% Services Network Services -5.4% -6.0% Port 300 -9.8% -8.6% 0% Network -13.3% Port Port250 -15.7% -10% Services -22.8% APEC Services 200 -20% Port APEC Services Port APEC 150 -30% 100 -40% Port APEC -51.9% 50 Network -50% APEC Network APEC 0 -60% Network Network ServicesTianjin Pohang Services TangshanHuanghua Hay Point Shanghai Rotterdam Richard bay Guangyang NetworkAmsterdam QinhuangdaoPort Services Port Ningbo Zhoushan Network Services 2020 (Left axis) 2019 (Left axis) YoY Growth Rate (Right axis) Port APEC APEC Port Source: Official websites of various ports Services Port APEC Services APEC NetworkFigure 3-17 Coal Throughputs of Major Coal Handling Ports in the Asia-Pacific Port APEC Region Network 3. Liquid bulks throughput of major Asia-Pacific ports APEC Services Network Port In 2020,Network the demand for oil products droppedServices sharply, refineries cut production on a large scale, and the international oil prices slumped. From the perspectiveNetwork of demand, due to the sharp global economicPort recession, ships were suspended Services APEC Servicesfor operations worldwide on a large scale, the global industrial chain and supply Port Port chain were interrupted, andAPEC the shipping volumes of both service-purposeServices oil and production-purpose oil fell sharply. The operation rate of refineries dropped and APEC some even stopped operation, contracting the refining oilPort consumption. From the APEC perspectiveNetwork of supply, due to the breakdown of negotiations between Russia and the APEC Network Services 71 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port Organization of PetroleumAPEC Exporting Countries (OPEC), Saudi ArabiaServices lowered prices and increased production. The combined effect of the crude oil demand decline Network and the supply surge has severely disrupted the internationalPort crude oil market. In APEC the secondNetwork half of the year, although the pandemic continued to be rampant, most economies worldwide tended to recover theirAPEC trade activities, and market oil demandNetwork Services also tended to rebound, driving up the global crude oil trade volume slightly. Port Network Services Among the major liquid Networkbulks handling ports in the Asia-Pacific region, the overall Network Port demand for marine oil in Singapore declined in 2020. The internationalServices crude oil APEC Services prices were turbulent, and the Singapore marine oil Portmarket was in a downturn. As a result, the supply of low-sulfur fuel oil arriving in Singapore remained low.Services In Port APEC Services addition, the supply of high-sulfur fuel oil APECresources was also decreasing.Port In this Portcontext, the crude oil throughput of the Port of Singapore dropped sharply. Due APEC Network to the refinery capacity expansion, China's crude oil imports bucked the trend and APEC increased by 7.3% to 540 million tons. The commissioningAPEC of new facilities of the Network private enterprise ZhejiangNetwork Petroleum & Chemical Company Limited boosted the Services crude oil throughput of Ningbo Zhoushan Port, which increased by 10.2% year-on- Network year. Qingdao Port launched China's firstNetwork bonded crude oil mixing and blendingServices Port business Servicesand mixed 1.2 million tons of bonded crude oil. Besides, Qingdao Port Network achievedPort breakthroughs in export tax rebates and bonded direct supply ofPort domestic APEC Services low-sulfur oil for ships, andServices launched the oil supply pilots for large ships in outer anchorages in Qingdao,Port with the oil supply throughput for shipsAPEC increasing by more Services Port APEC than 30%, which promoted the growth of the port's crude oil throughput. In 2020, the drilling activities in the United States decreased, and ports were affected by the Port APEC hurricanesAPEC and low oil prices. As a result, theNetwork U.S. producers reduced the number of Network oil wells and cut the production, causing the crude oil production in the United StatesAPEC to plummet since April. As the U.S. refineries entered the autumn maintenance Network Networkperiod and the pandemic showedServices signs of a rebound, the U.S. crude oil production Services remained sluggish at the end of the year, causing the liquidNetwork bulks throughputs Services Port of major U.S. portsPort such as Port of South Louisiana and Port of Long Beach to Network Services plummet. Port APEC Port APEC Services 3.2.4 Top 10 container port development APEC Services Port APEC Network1. Shanghai Port Port APEC Network Shanghai Port recorded a container throughput of 43.5 million TEUs in 2020, APEC Services becoming the world's largest container port for 11 consecutive years and further Network consolidatingNetwork its position as an international container hub port. Specifically, its Port containers for international transshipment exceededServices 5.3 million TEUs, an increase of over 14% year-on-year. Its containersPort for waterway-waterway transshipmentNetwork Services APEC Servicesaccounted for 51.6%, a rise of about 3% year-on-year. The domestic trade container Port throughput has become aAPEC new driving force for container throughput growth for Port the year. In 2020, the total container throughput for domestic tradeServices of Shanghai Port exceeded 6 million TEUs, increasing by 15% year-on-yearPort and setting a new APEC APEC record. AsNetwork a specialized domestic trade container terminal of Shanghai Port, Yidong APEC Network 72 Services 2020 APEC Port Development Report www.apecpsn.org 72 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port Container Terminal brokeAPEC the historical record of 4.3 million TEUsServices for the first time, setting a record high since the terminal's opening. There are two major reasons for Network the domestic-trade container throughput growth. On Portthe one hand, Shanghai Port APEC benefitedNetwork from China's new development policy of "taking domestic circulation as the mainstay while letting domestic and APECinternational circulations reinforce eachNetwork Services other". On the other hand, as foreign trade was hindered in the early stage of the Port Network Servicespandemic, Shanghai International Port Group tried to tap the potential of domestic Network trade and expand the domesticNetwork trade container business so that the domestic trade Port container throughput maintained a good momentum of growth throughoutServices the year. APEC Services In addition, the container throughput of Yangshan Port PortArea of Shanghai Port brokeServices Port APEC the recordServices of 20 million TEUs on December 10, 2020, on the occasion of the port area's 15th anniversary. In 2020, the containerAPEC throughput of YangshanPort Phase IV PortAutomated Terminal exceeded 4 million TEUs for the first time, basically achieving APEC Network the preliminary goal of the terminal construction. APEC APEC Network 2. Port of Singapore Network Services Network In 2020, the severe disruptions of the globalNetwork supply chain led to congestionServices at Port different Servicesports worldwide and affected the ship waiting time and port productivity Network atPort the Port of Singapore. As a result, the container throughput of thePort Port of APEC Services Singapore declined by 0.9%Services year-on-year to 36.87 million TEUs. However, the Port of Singapore remained a leader among fueling ports, with fuelAPEC sales reaching 49.8 Services Port APEC million tons, an increasePort of 5% year-on-year. The spread of the pandemic triggered a global crew change crisis. The Singapore government facilitated crew changes Port APEC by adoptingAPEC policies such as using floatingNetwork hotels to accommodate foreign workers Network and using floating hotels as crew change centers. In the "Next Generation APECPort 2030 Initiative" proposed by the Maritime and Port Authority of Singapore (MPA), Network Networkthe Port of Singapore willServices focus on building Tuas Port into an intelligent port and Services apply various advanced technologies to Tuas Port, including Networkautomated terminals, intelligent vessel trafficPort service systems and digital port communities. The port will Services Port Services also pay close attention to potential problems in clean energy, ecological protection Port Network of portAPEC waters and coordinated development of port and city, and strive to build APEC Port a stable, efficient, and sustainable port in Servicesthe future. Currently, the regulatory authorities of the Port of SingaporePort have set up the PSA Living Lab Fund andAPEC Services APEC unveiled other supporting policies to explore the application of automated and Networkintelligent technologies based on emerging technologies such as data analysis and Port AI in the port. APEC Network APEC Network Services 3. Ningbo Zhoushan Port Port Network Services In 2020, Ningbo Zhoushan Port recorded a container throughput of 28.72 millionNetwork TEUs, a rise of 4.3% year-on-year, growingPort against the trend and ranking third Services APEC Servicesworldwide in container throughput. In 2020, Ningbo Zhoushan Port actively adapted Port to the new development paradigmAPEC with domestic circulation as the mainstay and Port domestic and international circulations reinforcing each other andServices made full use of its geographical advantages as a hub node of the YangtzePort River Economic Belt to APEC APEC densify itsNetwork service network. Its total number of container routes hit a historical record APEC Network Services 73 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port of 260, the number ofAPEC voyages rose to nearly 5,000, and its Servicescontainer throughput exceeded 10 million TEUs for the year. As the port accelerated the promotion of Network domestic trade business along domestic feeder lines,Port many domestic feeder lines APEC such Networkas Zhapu Line, Wenzhou Line and Damaiyu Line witnessed a steady rise in container throughput. As a result, NingboAPEC Zhoushan Port recorded a year-on-yearNetwork Services increase of over 10% in domestic trade container throughput for the year. Meanwhile, Port Network ServicesChuanshan Port Railway Station was successfully put into operation, giving full play Network to Ningbo Zhoushan Port'sNetwork advantages in directly connecting multiple port areas to Port the railway. 16 sea-rail intermodal transport service outlets, includingServices Anqing and APEC Services Hai'an were newly opened, and two sea-rail intermodalPort transport trains were newlyServices Port APEC opened Servicesto Hai'an and Wuhu, with a total of 19 sea-rail intermodal transport trains. In 2020, the sea-rail intermodal transport containersAPEC handled by Ningbo ZhoushanPort Port Portexceeded 1 million TEUs for the first time, a rise of 24.2% year-on-year. APEC Network APEC APEC 4. Shenzhen Port Network Network Services In 2020, against the backdrop of the COVID-19 pandemic and sluggish international Network trade, Shenzhen Port recorded a containerNetwork throughput of 26.55 million TEUs,Services Port increasingServices by 3% year-on-year and setting a record high. In 2020, Shenzhen Network PortPort was committed to improving its infrastructure, promoting the constructionPort APEC Services of deep-water berths andServices deep-water channels, and accelerating the automated reconstruction of container berths. Meanwhile, breakthroughsAPEC have been made in Services Port APEC the construction Portof green ports. The port has 38 large-scale deep-water berths that can provide on-shore power supply services, ranking first among China's coastal Port APEC portsAPEC in terms of the construction and utilizationNetwork of on-shore power supply facilities. Network Currently, Shenzhen Port is focusing on promoting the "Shenzhen Combined Port-APEC Green Port Chain" project and enhancing the construction of inland dry ports. Network NetworkIn 2020, Shenzhen Port Serviceshandled a total of 7.41 million TEUs of containers for Services waterway-waterway transshipment, a rise of 3.7% year-on-year,Network and handled 181,000 TEUs ofPort sea-rail intermodal transport containers, an increase of 13.5% Services Port Services year-on-year. Port Network APEC APEC Port 5. Guangzhou Port Services Port APEC Services Guangzhou Port completed its deep-water channel widening project during the APEC Networkpandemic, which marked the end of one-way navigation of Guangzhou Port's Port seaward channel and realizedAPEC two-way navigation of 100,000-tonNetwork container ships and 150,000-ton container ships. Moreover, the Nansha Port Phase IV Project, APEC Services the world's first automated terminal using Beidou Navigation Satellite System, has Network Port started Networkconstruction, providing a "GuangzhouServices solution" to constructing intelligent terminals. The continuously optimized infrastructure created favorable conditions forNetwork densifying the shipping logistics network.Port Guangzhou Port has opened 226 container Services APEC Servicesroutes, including 76 new ones, and opened nearly 200 container barge routes, Port including more than 50 newAPEC ones. It is the largest domestic trade container port in Port China and an important hub port reaching Africa, the Mediterranean,Services and other parts of Asia. Guangzhou Port has successfully opened China-EuropePort and China-Asia APEC APEC freight trains,Network opened 11 sea-rail intermodal transport trains for containers, 13 bulks- APEC Network 74 Services 2020 APEC Port Development Report www.apecpsn.org 74 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port to-container transport APECtrains for grain, and four high-quality trainsServices for commodities and automobiles. Benefiting from the pandemic prevention and control, the overall Network planning of port and shipping development, and thePort expansion and optimization APEC of domesticNetwork and foreign trade container liner routes, Guangzhou Port recorded a container throughput of 23.17 million TEUsAPEC in 2020, up by 1.5% year-on-year. Services Network Network Services6. Qingdao Port Port Network Network Port In 2020, Qingdao Port recorded a container throughput of 22.01Services million TEUs, an APEC Services increase of 4.7% year-on-year against the trend, and Portsurpassed Port of Busan to APEC become the sixth-largest container port in the world. During the pandemic, QingdaoServices Port Port increasedServices 14 new foreign trade container routes. In addition, Qingdao Port is Portcommitted to building a sea-rail intermodal transportAPEC network. It has openedPort the sea- APEC rail intermodal transport trains leading to more than 30 cities across China, with sea- Network rail intermodal transport containers reaching 1.65 million TEUs.APEC Meanwhile, Qingdao APEC Port fully used its geographical advantages to continuously explore the Japanese and Network Korean markets. By strengtheningNetwork cooperation with mines and Japanese and Korean Services traders, its iron ore throughput for international transshipment increased by 87% Network year-on-year. With the construction of the NetworkShandong Free Trade Zone and ShanghaiServices Port CooperationServices Organization Demonstration Zone, the signing of the RCEP agreement Network andPort the introduction of new low-sulfur regulations by IMO in 2020, QingdaoPort Port APEC worked with internationalServices and domestic traders. It pioneered the domestic bonded Services crude oil blending business in China. In 2020, its ship bunkeringAPEC business volume APEC exceeded 3 millionPort tons, an increase of 85% year-on-year. Services Port Port 7. PortAPEC of Busan APEC Network Network In 2020, Port of Busan, which has long been the largest international transshipmentAPEC Network port in Northeast Asia, was surpassed by Qingdao Port for the first time due to Networkweak consumption and stagnantServices production caused by the pandemic. Its container Services throughput declined by 0.8% year-on-year to 21.81 million TEUs.Network However, Port of Busan did not halt the development of an intelligent logistics system. The Busan Services Port Port Services Port Authority designated the intelligent automated logistics system as a regional Port Network technologyAPEC project in 2020, involving logistics centers at ports such as container APEC Port terminals and port hinterlands, and import andServices export logistics systems and routes of urban hinterlands home and abroad.Port In 2020, Busan Port Authority also expandedAPEC Services its logistics research office, intelligent port research office, and green environment APEC Networkheadquarters through internal restructuring, strengthening the R&D in the technologies Port for the fourth industrial revolutionAPEC and environmental protection. NetworkAt the OCEANOMY Forum 2020 held in Busan, the Korean port industry proposed to build the Port of APEC Services Busan into an ultra-high-speed intelligent port that applies the core technologies of Network the fourthNetwork industrial revolution. Meanwhile, the "10 New Projects for the Port" was Port proposed to develop the Port of Busan into a digitalServices transshipment center leading the global port logistics industry. Port Network Services APEC Services8. Tianjin Port Port APEC Services Port In 2020, the production efficiency of Tianjin Port was continuously improved since its container terminal realized the large-scale application of automatedPort RTG, autonomous APEC APEC electric containerNetwork trucks, unmanned intelligent unlocking stations, and unmanned APEC Network Services 75 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port container quay cranes. APECMeanwhile, the port tapped the market potentialServices and continued its efforts in the construction of high-quality routes. It has successively opened nine Network new container liner routes, including Tianjin—Ho Chi MinhPort and Tianjin—Viet Nam— APEC East NetworkMalaysia, and carried out comprehensive strategic cooperation with coastal ports and major shipping companies, openingAPEC the "Two Ports and One Shipping Services Line" high-quality routes leading to Xiamen and Qinzhou. In addition, the Chifeng—Network Network Tianjin container trains realized "direct loading upon cargo arrival" for cargo exports Port Servicesto Europe, and a batch of sea-rail intermodal transport trains including Changchun— Network Port Tianjin realized normal operation,Network which further promoted the containerServices throughput APEC Services growth of Tianjin Port against the general downward trend. In 2020, Tianjin Port recorded a container throughput of 18.35 million TEUs, anPort increase of 6.1% year-on-Services Port APEC year. ItsServices sea-rail intermodal transport throughput exceeded 800,000 TEUs, increasing by more than 40% year-on-year and hitting aAPEC record high. Port Port APEC Network 9. Port of Hong Kong APEC APEC Network In June 2020, the Port ofNetwork Hong Kong saw its single-month container throughput rebound after dropping 28 months in a row. However, the port operation was still Services severely disrupted by the pandemic. PortNetwork of Hong Kong registered a containerServices Port Network throughputServices of 17.96 million TEUs in the year, a decrease of 1.9% year-on-year. During Network the pandemic, the Port of Hong Kong was committed to developing refrigeratedPort containerPort transport and providingServices unimpeded refrigerated container handling services. APEC Services As other ports were shut down or their refrigeration equipment was in short supply, APEC the Hong Kong PortSeaport Alliance (HKSPA) provided refrigeratedAPEC storage capacity Services Port promptly, and worked with shipping companies to transfer refrigerated cargo to the Port of Hong Kong to avoid delays in freight shipment. Meanwhile, the customs Port APEC departmentAPEC concentrated on speeding up customsNetwork clearance and realized multimodal Network transport with the mainland to further increase the throughput of refrigerated cargoes.APEC In 2020, Port of Hong Kong officially implemented the electronic customs clearance Network Networksystem so that shippers can pick up the goods immediately after unloading and realize Services transshipment within 15 minutes.Services Meanwhile, the port also added barge routes to the wholesale marketsPort in South China and East China, so that theNetwork cargoes can reach Services Port Services these markets within 17 hours. Port Network APEC Port 10. PortAPEC of Kelang Services APEC Services In 2020, the Port of Kelang accomplishedPort a container throughput of 13.24 million APEC NetworkTEUs, a drop of 2.5% year-on-year. Due to the bad weather in the monsoon season Port during the pandemic, the APECPort of Kelang suffered from decreased operation efficiency and serious congestion. The delayed ships from the ports of China,Network Hong Kong (China), and Singapore arrived at Port of Kelang almost simultaneously. As a result, these APEC Network Services ships had to stay at the port for two to three days. Moreover, due to Chinese ports' Port strong demandNetwork for shipping space, some shippingServices companies no longer called at Port of Kelang, resulting in a further shortage of shipping space for export containers. InNetwork terms of green port construction, Port ofPort Kelang passed the 2020 Asia-Pacific Green Services APEC ServicesPort Certification, intending to become a major hub seaport of Malaysia by maintaining Port a balance between internationalAPEC trade and the marine ecosystem. Meanwhile, Port Port of Kelang continued to enhance cooperation between its north portServices and west port to jointly realize the sustainable development of the port. Port APEC APEC Network APEC Network 76 Services 2020 APEC Port Development Report www.apecpsn.org 76 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port 3.3 Business PerformanceAPEC of Port EnterprisesServices Network 3.3.1 Business performance of global terminal operatorsPort APEC Network In 2020, the COVID-19 pandemic sweptAPEC across the globe, and the overall Services vitality of the global economy and trade declined. To resist risks, most globalNetwork Port Network Servicesterminal operators promoted diversified development strategies. The COVID-19 pandemic outbreaks allowedNetwork global terminal operators to witness the fragility Network Port of the fragmented logistics resources. Their investment willingnessServices is gradually APEC Services shifting to the integration of logistics supply chains. InvestmentPort continues to flow to APEC seaborneServices shipping services, inland warehousing, logistics, and other upstream Servicesand Port downstream sectors of ports. Full-process integrated logistics services arePort gradually Portbecoming the shared target of more global terminalAPEC operators. APEC Network According to Drewry, a maritime research consultancy basedAPEC in the United Kingdom, Network APEC the global terminal operatorsNetwork controlled about 62% of terminal capacity in 2019, which ran flat with that in 2018. Drewry projected that the capacity expansion rate of Services global terminal operators would remain at 1.7% in the next five years, slightly lower Network Network Services Port than the globalServices average growth rate of 2.1%. Under the influence of the pandemic, Network thePort production environment of major global ports further deteriorated.Port Global APEC terminal operators furtherServices increased cost management and monitoring and adopted Services more stringent and prudent investment strategies. Therefore,APEC it was expected that Services Port APEC in 2020, Drewry Portmight further lower its expectations for the capacity expansion of global terminal operators. Port APEC Network APEC Network Table 3-7 Trend of Changes in Productivity and Market Shares of APEC Global Container Terminals Network Network Services Average Services Annual Year 2019 2020 2021 2022 2023Network2024 Services Port Port Growth Network Services Rate Port APEC Port GlobalAPEC Productivity 722 738 755Services771 780 784 1.7% Terminal Market Operators 62.2% 61.7%Port61.3% 61.2% 61.0% 61.0% — APEC Services APEC Share Network Other Productivity 202 208 214 220 225 226 2.3% Port Privately- Market APEC owned 17.4% 17.4% 17.4% 17.4% 17.6%Network17.6% — Operators Share APEC Services Network State-NetworkProductivity 225 238 249 254 259 260 2.9% owned Market Services Port 19.4% 19.9% 20.2% 20.2% 20.2% 20.2% — Operators Share Port Network Services APEC Services Productivity 12 13 14 15 16 16 7.0% Port Others Market APEC1.0% 1.1% 1.1% 1.2% 1.2% 1.3% — Port Share Services Total Capacity APEC 1161 1197 1232 1260 Port1280 1287 2.1 APEC (millionNetwork TEUs) APEC Network Services 77 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port Source: Drewry, Global TerminalAPEC Operator Report Services Network 1. COSCO Shipping Ports' business growth fell Port APEC Network In 2020, affected by the global COVID-19APEC pandemic, especially the repeated Services outbreaks outside China, the total throughput of COSCO Shipping Ports was Networkthe Network Servicessame as the previous year. Its total container throughput reached 123.83 million Port TEUs, and its equity throughputNetwork fell by 3.1% year-on-year to 38.46 million TEUs. The Network Port performance of COSCO Shipping Ports was also affected by theServices pandemic, with the APEC Services company's annual operating income falling by 2.6% year-on-yearPort to USD 1 billion. APEC Excluding the proceeds from the terminal sale, the company's net profit increasedServices by Port 1.4% year-on-yearServices to USD 279 million, and its gross profit decreased by 14.7% year- on-year to USD 230 million. APEC Port Port APEC Network (million TEU) APEC APEC 140 Network 40% Network Services 120 35% Network 30%Services Port Network 100 Services Network Port25% Port80 APEC Services Services 20% 60 APEC Services Port APEC Port 15% 40 Port APEC 10% APEC 20 Network Network 5%APEC Network 0 0% Network 2015 2016Services2017 2018 2019 2020 Services Total Throughput (left axis) YoY Growth (rightNetwork axis) Services Port Port Network Services Source: COSCO SHIPPING Ports Ltd Port APEC APEC Port Figure 3-18 Total Container ThroughputsServices and Growth Rates of COSCO Shipping PortPorts in 2015-2020 APEC Services APEC NetworkFrom the perspective of operational strategy, COSCO Shipping Ports focused on Port densifying the route networkAPEC of invested terminals through cooperationNetwork with the shipping companies under the COSCO Shipping Group to ensure port handling APEC Services capacity in 2020. For example, it newly launched the Yangpu—Hong Kong— Papua Network Port New Guinea—NorthNetwork Australia CAP Route, Jinzhou—HainanServices (Yangpu) route and others, and further expanded the land rail intermodal transport business to enhanceNetwork the land service capabilities. In addition,Port following the exploration of blockchain Services APEC Servicestechnology by APM Terminals and PSA International, COSCO Shipping Ports has Port Port also strengthened its explorationAPEC of new technologies and blockchain.Services For example, COSCO Shipping Ports worked with Tianjin Port, Qingdao Port, and Guangzhou APEC Port to provide the paperless import cargo delivery servicePort based on blockchain APEC technologyNetwork and took the opportunity of digital transformation to facilitate the cargo APEC Network 78 Services 2020 APEC Port Development Report www.apecpsn.org 78 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port movement and enhanceAPEC customer stickiness. Services Network 2. China Merchants Port's business developed steadilyPort APEC Network Owing to the container volume increaseAPEC from the newly acquired terminals and Services the opening of new routes at domestic ports, China Merchants Port posted soundNetwork Port Network Servicesbusiness performance of its terminals, with a total container throughput of 120 million TEUs, up by 7.9%Network year-on-year, and an equity throughput of 46.64 million Network Port TEUs, up by 11.9% year-on-year. Services APEC Services ( ) million TEU Port Services Port APEC 140 Services 16% APEC Port Port120 APEC Network APEC 12% APEC 100 Network Network Services 80 8% Network Network Services Port 60 Services Network Port Port4% APEC Services 40 Services Port APEC Services Port APEC 20 0% 2015 2016 2017 2018 2019 2020 Port APECContainer Throughput (left axis)NetworkYoY Growth (right axis) APEC Network APEC Source: China Merchants Port Holdings Co. Ltd Network Network Services Figure 3-19 Total ContainerServices Throughputs of China Merchants Group in 2015-2020 Port Network Services Port In terms of profitability, as port throughput in the second half of 2020 gradually Network Services picked up, China Merchants Port recorded an annual operating income of HKD 8.95 Port APEC Port billion,APEC an increase of 0.5% year-on-year. DueServices to the non-recurring disposal income of HKD 4.2 billion in 2019, its profitPort attributable to equity holders decreased APECby Services APEC Network38.4% year-on-year to HKD 5.151 billion. Port In 2020, China MerchantsAPEC Port continued to improve its globalNetwork layout, maintained the stable operation of existing projects, and introduced Fujian Provincial APEC Services Communication Transportation Group Co., Ltd as its strategic partner in the Network Sri LankaNetwork Hambantota Port Project to optimizeServices its asset portfolio and corporate Port governance structure. It also used resource advantages of different shareholders Networkat home and abroad to realize the collaborativePort efficiency improvement of the Port of Services APEC ServicesHambantota. China Merchants Port actively promoted the digital strategy and signed Port strategic agreements with APECAlibaba and Ant Financial Services Group to jointly build Port an intelligent port platform, integrate industrial resources and financialServices technology advantages, and build the first blockchain-based digital portPort collaboration network in APEC APEC the world.Network APEC Network Services 79 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port 3. DP World enjoyed soundAPEC business performance Services Network In 2020, DP World Port Group's maritime and logisticsPort businesses were severely APEC challenged.Network However, the group kept strengthening its global network layout, actively integrated acquired companies toAPEC promote synergy, put costs under control Services to enhance profitability, and managed expenditures to maintain a smooth cash flow.Network Port Network ServicesMeanwhile, it also accelerated business expansion and diversified investment to enhance the group's competitivenessNetwork in the industry. The group maintained stable Network Port business performance overall, and its container throughput ranServices flat with that in the APEC previous year. Services Port Services Port APEC Services (million TEU） APEC Port Port75 12% APEC Network APEC 10% Network APEC 70 Network 8% Services 65 Network Network 6% Services Port Services Network Port4% Port60 APEC Services Services APEC 2% Services Port APEC 55 Port 0% Port APEC 50APEC Network -2% Network 2014 2015 2016 2017 2018 2019 2020 APEC Container Throughput (left axis) YoY Growth (right axis) Network Network Services Source: DP world Services Port Network Services Port Services Figure 3-20 Total Container Throughputs of DP World in 2014-2020 Port Network APEC Port In termsAPEC of profitability, DP World benefited fromServices the acquisition of the pan-European logistics platform P&O Ferries, the marinePort logistics operator Topaz Energy & Marine,APEC Services APEC and Canadian terminal Fraser Surrey Docks and the TIS Container Terminal in the NetworkPort of Yuzhny, Ukraine, as well as the revenue from new customers. As a result, Port the operating revenue of APECDP World Port Group in 2020 increasedNetwork by 11.0% year-on- year to USD 8.53 billion. The group's EBITDA was USD 3.32 billion, an increase of APEC Services 0.4% year-on-year, and its full-year EBITDA margin fell by 4.1% to 38.9%. Network Network Services Port In 2020, DP World continued to expand its supply chain services and successivelyNetwork acquired Canada's largest multi-purposePort seaport terminal Fraser Surrey, TIS Services APEC ServicesContainer Terminal of Yuzhnyy Port, Korea's largest freight forwarding company Port Unico Logistics, and India'sAPEC largest private ship operator Shreyas Shipping. In terms Port of digital construction, DP World acquired the digital platform SeaRates.Services It jointly developed a blockchain-based digital container logistics platformPort TradeLens with AP APEC APEC Moller-MaerskNetwork and IBM, aiming to strengthen the digital supply chain and realize the APEC Network 80 Services 2020 APEC Port Development Report www.apecpsn.org 80 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port vision of intelligent trade.APEC In terms of port investment and construction,Services DP World signed an agreement with the Republic of Senegal on investing USD 837 million Network in the development of Ndayane Port and spent USDPort 114 million in expanding the APEC berthsNetwork at the Port of Caucedo. APEC Network Services 4. APM Terminals' business volume declined Port Network Services In 2020, the global containerNetwork business of APM Terminals experienced an extensive Network Port decline. Except the narrow positive growth of container throughputServices in Asia, the APEC Services company posted negative growth in all other regions. Specifically,Port the North America region was affected by the pandemic, and the Port of Los Angeles in the UnitedServices Port APEC Services States handled only 447 moves of containers in the worst week of PortMarch. The PortAsian region benefited from China's earlyAPEC resumption of work and production and APEC Network the surging anti-epidemic supplies exported from Asia to Europe and the Americas APEC in the second half of the year. This ensured the positive growthAPEC of APM Terminals' Network container business in Asia.Network In addition, APM Terminals' single-container revenue Services recorded a favorable figure once again against the overall decline of container volume, which to a certain extent reflectedNetwork its sound cost control. Services Port Network Services Network Table 3-8 Container Throughputs of APM Terminals by Region in 2020Port Port Services APEC Services (Unit: Million Moves) APEC Port APEC Services Port Region 2020 2019 YoY Growth Port APECNorth America 2.8 Network3.0 -8.7% APEC Network Latin America 2.3 2.4 -2.1% APEC Europe, Russia and Baltics 2.4 2.5 -3.8% Network Network Asia 2.0 2.0 1.1% Services Services Africa and Middle East 1.9 2.0 Network-2.2% Services Port Port Services Total 11.5 11.9 -3.6% Port Network APEC APEC Port Source: A.P. Moller Terminal Services Port APEC Services Generally speaking, compared with the acquisition of new terminals, APM Terminals APEC Networkcurrently prefers the expansion and upgrading of terminal facilities. In 2020, APM Port Terminals acquired only oneAPEC terminal—the container terminal of Networkthe Aarhus Logistics Center in Denmark, but it also made a lot of moves in terminal expansion. For APEC Services example, it spent 7 billion rupees to expand its Pipavav terminal in India, formulated Network an expansionNetwork plan for Port of Poti in Georgia, andServices co-developed a container terminal Port at Port of Abidjan in Côte d'Ivoire with the terminal operator Bolloré. In addition,Network APM Terminals also paid great attentionPort to the smart upgrading of the port. In 2020, Services APEC Servicesit launched smart projects in succession, such as a standardized container intelligent Port tracking system and a truckAPEC digital appointment system (API) to help further elevate Port the terminal operating efficiency. Services Port APEC APEC Network APEC Network Services 81 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port 5. ICTSI's business volumeAPEC grew slightly Services Network In 2020, against the unfavorable economic and tradePort environment, the port APEC productionNetwork of International Container Terminals Services, Inc. (ICTSI) was greatly affected, and its container terminal businessAPEC only recorded a minor increase of 0.2% Services throughout the year. Despite the sharp decline in its terminal business growth, ICTSINetwork Port Network Serviceshas secured a 2% year-on-year growth rate in port business revenue, which reached USD 1.51 billion, throughNetwork strict cost control and diversified product portfolios. Network Port (1,000 TEU) Services APEC Services 12,000 Port 12% APEC Services Port 10,000 Services 10% Port APEC Port 8,000 8% APEC Network APEC APEC 6,000 Network 6% Network Services 4,000 Network 4% Network 2,000 Services 2%Services Port Port Network Port0 0% APEC Services 2015 2016Services2017 2018 2019 2020 Port APEC Services Port APEC Equity Throughput (left axis) YoY Growth (right axis) Source: ICTSI Port APEC APEC Network Network Figure 3-21 Container Throughputs of ICTSI in 2015-2020 APEC Network NetworkIn 2020, ICTSI continuedServices to implement cost-cutting measures, promote terminal Services expansion and upgrade, and diversify its investment portfolio toNetwork resist risks caused by the pandemic. OnPort the one hand, ICTSI further optimized its capital structure while Services Port Services ensuring cost savings and obtained USD 300 million of capital securities and USD Port Network 400 millionAPEC of bonds to enhance its balance-sheet strength. ICTSI raised USD 100 APEC Port million through the sale of treasury stocks to Servicesprovide funds for its acquisitions. On the other hand, ICTSI signed an investmentPort contract with Ecuador to upgrade theAPEC Services APEC services of terminal infrastructure and further promote the development of the Port of NetworkGuayaquil. ICTSI also signed a contract with Cameroon Kribi Port to obtain franchise Port rights of operating multi-purposeAPEC terminals of Kribi Port. Network APEC Network Services 6. PSA International's growth rate dropped Port Network Services In 2020, affected by the COVID-19 pandemic, PSA International Port Group recordedNetwork a total container throughput of 86.6 millionPort TEUs in the year, an increase of 1.7% Services APEC Servicesyear-on-year, and the growth rate further declined. The group's annual operating Port income was SGD 4.18 billion,APEC with a profit margin of 39.5%, which also recorded a Port further decline from that in 2019. Under the pandemic, the operatingServices costs of port enterprises rose, narrowing the profit margin. Port APEC APEC Network APEC Network 82 Services 2020 APEC Port Development Report www.apecpsn.org 82 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services APEC Port (million TEU) Services Network 90 Port 12% APEC 85 Network 10% 80 APEC 8% Services Network Network Services75 6% Port 70 Network 4% Network Port 65 Services2% APEC Services 60 Port 0%Services Port APEC 55 Services -2% Port50 APEC Port-4% APEC 2015 2016 2017 2018 2019 2020 Network Total Throughput (left axis) YoY Growth (right axis) APEC APEC Network Source: PSA Network Services Network Figure 3-22 Container ThroughputsNetwork of PSA International in 2015-2020 Services Port Services Network InPort 2020, PSA International focused on improving the supply chain efficiencyPort and APEC Services launched digital initiativesServices to improve data transparency and visibility in the supply chain. It also strengthenedPort risk monitoring and cost managementAPEC to improve Services Port APEC profitability. PSA Antwerp launched a global supply chain visibility platform (CALISTA®P!NG+), which allows users to receive detailed data on the status of their Port APEC containersAPEC in the terminal operation process.Network This has saved the time of cargo pickup Network and greatly streamlined the administrative procedures related to imports. Meanwhile,APEC PSA International was also committed to improving its terminal infrastructure and Network Networkelevating the efficiency ofServices production operations. In 2020, the group's Port of Halifax Services deep-water berth expansion project was completed and put intoNetwork full operation, with new Super Post-PanamaxPort (SPPX) terminal cranes installed. Services Port Services Network 7. Hutchison Ports posted weak business performance Port APEC Port APEC Services Compared with other terminal operators,Port Hutchison Ports posted the weakestAPEC Services APEC performance. Its global terminal network layout was the most fragmented. With its Networkwidespread network in Europe and the United States, the global outbreaks of the Port pandemic also subjected APECthe Hutchison Ports with a global networkNetwork to a heavier blow than other terminal operators. In addition, Hutchison Ports has been eliminating its APEC Services terminal assets in recent years, reflecting the overall attitude of Hutchison Whampoa Network Limited Networktowards terminals. In 2020, the annualServices container throughput of Hutchison Port Ports dropped by 3% year-on-year to 83.7 million TEUs. Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network Services 83 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services APEC Port (1,000 TEU) Services Network 87,000 Port 6% APEC 86,000 Network 4% 85,000 APEC Services Network Network Services84,000 2% Port 83,000 Network Network Port 82,000 Services0% APEC Services 81,000 Port -2%Services Port APEC 80,000Services Port79,000 APEC Port-4% 2015 2016 2017 2018 2019 2020 APEC Network APEC APEC Total ThroughputNetwork (left axis) YoY Growth (right axis) Network Services Source: Hutchison Ports Industrial Co. Ltd. Network Network Services Port Figure Services3-23 Container Throughputs of Hutchison Ports and Related Service Network Port Sectors in 2015-2020 Port APEC Services Services In terms of profitability,Port Hutchison Ports sold a 20% stake inAPEC the Shanghai Mingdong Services Port APEC Container Terminals, which led to a decrease in the contribution of its Shanghai business. In addition, the low warehousing revenue in Mexico led to a decline in Port APEC operatingAPEC income. Overall, the operating Networkincome of the group's port and related Network service sectors in 2020 dropped by 7% year-on-year to HKD 32.87 billion, andAPEC its EBITDA fell by 19% year-on-year to HKD 10.91 billion. Network Network Services Services YoY Growth in Gross 6.0% Network Services 5.0% Port Port 2017 Network Services 4.0% Port APEC Port 3.0%APEC Services 2.0% 2019 APEC 1.0% Port Services APEC 0.0% 2018 Network 32.0% 33.0% 34.0% 35.0% 36.0% 37.0% 38.0% 39.0% Port -1.0% APEC -2.0% Network 2020 Ports and related 2016 APEC -3.0% services Network Services -4.0% -5.0% Network Services Port Network Source: Hutchison Ports Industrial Co. Ltd. Port Services APEC Services Port Figure 3-24 ThroughputAPEC and Profit Margin Variations of Hutchison Ports and Port Related Service Sectors in 2016-2020 Services Port APEC APEC In recentNetwork years, Hutchison Ports has adopted the strategy of "logistics expansion, APEC Network 84 Services 2020 APEC Port Development Report www.apecpsn.org 84 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port prudent investment andAPEC equipment upgrading". In 2020, HutchisonServices Ports Netherlands acquired a 100% stake in APM Terminal of Rotterdam and signed an agreement Network with the Egyptian Navy on investing approximately USDPort 730 million in developing APEC and operatingNetwork a new container terminal in Aboukir, Egypt. Meanwhile, Hutchison Ports was also committed to expanding logisticsAPEC services. It signed the "LetterNetwork of Services Intent for the Huizhou Port GLP International Logistics Center Project" with Huizhou Port Network ServicesPort Industry Co., Ltd to develop the most advanced logistics warehousing and Network distribution center in the QuanwanNetwork Port Area. In terms of intelligent port construction, Port COSCO-HIT Terminals (Hong Kong) Limited launched the RTGCServices remote control and APEC Services operating system. In addition, Hutchison Ports is workingPort with other marine carriersServices Port APEC and terminalServices operators to build the Global Shipping Business Network (GSBN), the first blockchain consortium in the shippingAPEC industry, to streamline Portthe business Portoperations of the entire supply chain and enhance the collaboration in the industry. APEC Network APEC APEC 3.3.2 Business performance of other major port enterprises in the Asia-Pacific Network region Network Services (1) Major port enterprises in China Network Services Port Network Services Network Shanghai International Port (Group) Co Ltd Port Port Services APEC Services Confronted with the pandemic in 2020, Shanghai International Port Group was under increased downside pressure. The Group actively expandedAPEC the market and Services Port APEC Port posted a 5.2% decrease in cargo throughput and a 0.4% slight increase in container Port APEC throughputAPEC year-on-year. Network Network （million TEU） APEC 45 10% Network Network Services Services 40 Port Network 8% Services Port Network Services 35 6% Port APEC Port APEC Services 30 Port 4%APEC Services APEC Network Port 25 APEC Network2% APEC Network Services 20 0% Network Port 2014 2015 2016 2017 Services2018 2019 2020 Port Network Services APEC Container Throughput (left axis) YoY Growth (right axis) ServicesSource: Shanghai International Port (Group) Co Ltd Port Port APEC Services Figure 3-25 Container Throughputs and Growth Rates ofPort Shanghai International APEC APEC Network Port Group in 2014-2020 APEC Network Services 85 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port In 2020, Shanghai InternationalAPEC Port Group continued to deepenServices cooperation with key liner companies, opened the Yangtze River route, expanded the inland Network shipping market, and further improved the port’s Portcollection, distribution, and APEC transportationNetwork system. Meanwhile, the Group signed the Cooperation Agreement on Comprehensive Development of XiaoyangshanAPEC Port Area with Zhejiang ProvincialNetwork Services Seaport Investment & Operation Group Co. Ltd. It continued to promote in-depth Port Network Servicesintegration with Jiangsu Port Group and Anhui Provincial Port & Shipping Group Co. Network Ltd. In terms of digital andNetwork intelligent port construction, Shanghai International Port Port Group signed a strategic cooperation agreement with Ant FinancialServices Services Group APEC Services on launching the Yangtze River Port and Shipping BlockchainPort Integrated ServiceServices Port APEC PlatformServices to improve the port collaboration efficiency and digital financial services. APEC Port Port Ningbo Zhoushan Port Company Limited APEC Network APEC In 2020, Ningbo Zhoushan Port Company Limited fully implementedAPEC the special Network action of "cost reductionNetwork and efficiency improvement", took measures such as Services enhancing the market expansion and contending for the source of goods to Network minimize the impact of the pandemic on portNetwork production and operation. Its containerServices Port transportationServices and production businesses achieved steady growth. In 2020, the Network companyPort recorded a container throughput of 31.72 million TEUs, an increasePort of 4.3% APEC Services year-on-year, and a cargoServices throughput of 920 million tons, a decrease of 5.1% year- APEC on-year. Port APEC Services Port 16% Port 14%APEC Network APEC Network APEC 12% Network Network Services Services 10% Port Network Services Port Services 8% Port Network Port 6%APEC Services APEC APEC 4% Port Services APEC Network Port 2% APEC Network APEC Services 0% Network Network2014 2015 2016 2017 Services2018 2019 2020 Port Source: Ningbo Zhoushan Port Company Ltd. Port Network Services APEC Figure 3-26 Container Throughput Growth Rates of Ningbo Zhoushan Port Company Services Limited in 2014-2020 Port Port APEC Services Ningbo Zhoushan Port Group Co., Ltd actively expanded port services in the APEC northern and southern directions to the container sourcePort markets in northern APEC Network APEC Network 86 Services 2020 APEC Port Development Report www.apecpsn.org 86 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port Zhejiang, southeasternAPEC Zhejiang, and some regions of FujianServices and Jiangxi. This move promoted the continuous rebound of domestic trade container business and Network achieved a steady rise in container throughput of multiplePort domestic feeder lines. APEC As a Networkresult, Ningbo Zhoushan Port posted a year-on-year increase of more than 10% in domestic trade container throughputAPEC for the year. Meanwhile, the companyNetwork Services continued to optimize its cargo collection, distribution, and transportation network. Port Network ServicesIt strengthened cooperation with shipping companies to open COSCO Shipping Network and APM Terminals "twoNetwork runs a day" demonstration routes in Nanchang. Finally, it Port achieved a breakthrough of 1 million TEUs of sea-rail intermodalServices transport volume, a APEC Services rise of 24.2% year-on-year Port Services Port APEC Services Port(2) Major port enterprises in Malaysia APEC Port APEC Network Malaysia MMC Group pursues diversified development and runs business in four APEC major sectors, namely port & logistics, energy & utilities, engineering,APEC and industrial Network development. In 2020, MMCNetwork Group recorded operating revenue of MYR 3.23 billion Services in the port and logistics sectors, an increase of 1.6% year-on-year. Benefiting from Network the rising business volumes of the Port ofNetwork Tanjung Pelepas and Kelang Northport,Services Port coupled withServices the reduction in operating expenses of this sector, the Group's pre- Network taxPort profit rose by 33.6% year-on-year to MYR 600 million. Specifically,Port the Port of APEC Services Tanjung Pelepas registeredServices a year-on-year increase of 8.0% in container throughput to 9.8 million TEUs. APEC Services Port APEC Port In 2020, MMC Group continued to optimize the utilization of assets and resources Port APEC in theAPEC port and logistics sector, implementedNetwork strict cost control, and continuously Network strengthened port infrastructure to meet customers' growing demand. As a result,APEC the operating revenue and profit of this sector achieved steady growth. The Port Network Networkof Tanjung Palapas and theServices Port of Johor successively introduced ship-to-shore Services (STS) cranes to provide a faster turnaround cycle for ships, therebyNetwork improving the service efficiencyPort of their container terminals. Meanwhile, Penang Port launched the Services Port Services upgrade and expansion project of Swettenham Pier Cruise Terminal (SPCT). Upon Port Network completingAPEC the expansion project, the terminal will be able to accommodate multiple APEC Port oasis-class cruise ships. Services Port APEC Services APEC Network(3) Major port enterprises in the United States Port Ports America is one of APECthe leading port enterprises in the UnitedNetwork States. In 2019, Ports America recorded a total container throughput of 8.3 million TEUs, a decrease APEC Services of 0.9% year-on-year, and an equity throughput of 3.5 million TEUs, a rise of 1.4% Network year-on-year.Network Services Port Network In 2020, Ports America continued toPort enhance the construction of its terminal Services APEC Servicesinfrastructure to improve operational efficiency. At the Port of New Orleans, Ports Port America invested USD 66.5APEC million in port infrastructure and equipment upgrading Port to ensure that it can meet customers' freight needs more efficiently.Services The Port of Chesapeake in the United States invested more thanPort USD 110 million in the APEC APEC upgrade Networkand expansion of its marine terminal, and planned to invest an additional APEC Network Services 87 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port USD 56 million in upgradingAPEC the terminal facilities and equipmentServices to support the sustainable development of terminals at the Port of Baltimore and West Gilt Seaport. Network In addition, the port will also invest in new container handlingPort equipment, including APEC 15 hybridNetwork electric rubber-tired gantry cranes, to further improve the port's operational efficiency. APEC Services Network Network Services3.4 Review of Multimodal Transport Development of Ports Port Network Network Port Multimodal transport can greatly improve transportation efficiencyServices and reduce the APEC Services cost of integrated transportation services in the entire process.Port According to related APEC studies, sea-rail intermodal transport can increase transportation efficiency byServices 30%, Port reduce Servicescargo damage by 10%, lower transportation costs by 20%, reduce road Portcongestion by more than 50%, and save APECenergy and reduce emissionsPort by more APEC Network than one-third. In 2020, as the COVID-19 pandemic spread across the globe, the transportation industry encountered strong obstacles that greatlyAPEC affected the traffic Network APEC of the sea, land, and air Networktransportation corridors. Many ports in the Asia-Pacific region actively promoted the construction of multimodal transport infrastructure to Services improve the flexibility and efficiency of Networkmultimodal transport networks. Services Port Network Services Network 3.4.1 Multimodal transport development of ports in North America economiesPort Port Services APEC Services North America has the densest railway network globally, which provides strong infrastructure support for the development of sea-rail intermodalAPEC transport. Affected Services Port APEC Port by the pandemic, North America's import and export trade was weakened. The port Port containerAPEC throughput declined accordingly, which directly impacted its rail and truck freight volumes. According to the intermodalNetwork transport market statistics released APEC Network APEC by the Intermodal Association of North America (IANA), the intermodal transport Network Networkvolume of North America showed a V-shaped trend in 2020. In the first half of the Services year, due to the rapid spreadServices of the pandemic, the U.S. import and export trade fell into a downturn, andPort the multimodal transport volume also continuedNetwork to decline. In Services Port the fourth quarter, driven by the strong recovery of import demand, coupled with the Network Services shortage of truck freight capacity, the rail freight volume showed a strong rebound, Port APEC Port but it APECstill failed to offset the 7.5% cumulativeServices decline in the first eight months. As a result, the multimodal transport volumePort of North America decreased by 2.0% year-APEC Services on-year to 17.79 million containers and trailers throughout the year. Specifically, the APEC Networkinternational container shipping volume fell by 6.2%, while the domestic container Port shipping volume increasedAPEC by 4.5%. Network APEC Services Network Network Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network 88 Services 2020 APEC Port Development Report www.apecpsn.org 88 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port （Unit:1,000 containers andAPEC trailers） Services Network 20,000 Port 8% APEC 18,000 Network 6% 16,000 APEC Network Services 14,000 4% Network 12,000 Port Services 2% Network 10,000 Network Services Port 0% APEC Services 8,000 Port APEC 6,000Services -2%Services Port 4,000 APEC Port-4% Port2,000 APEC Network 0 APEC -6% APEC 2014 2015 Network2016 2017 2018 2019 2020 Network Trailers Domestic container International container Total YoY Growth Services Source: IANA Network Services Port Network Services Figure 3-27 Multimodal Transport Volumes and Year-on-year Growth RatesPort in the Network Port North America Region in 2014-2020 APEC Services Services Multimodal transport of ports in the United States APEC Services Port APEC Port In 2020, the multimodal transport volume in the United States further declined under Port APEC the influenceAPEC of the COVID-19 pandemic. TheNetwork U.S. railway network has always been Network an important part of the U.S. transportation system and economy. Major U.S. railwayAPEC companies transport more than 30 million TEUs of multimodal transport containers Network Networkevery year. The revenue from multimodal transport accounts for about one-quarter Services of the total railway revenueServices in the United States. According to data released by the Association of AmericanPort Railroads (AAR), the U.S. multimodalNetwork transport volume in Services Port 2020 reached 13.67 million carloads (including containers and trailers), declining by Network Services 1.8% year-on-year. Port APEC Port APEC Services (1) Port of New York-New Jersey APEC Services Port APEC NetworkPort of New York-New Jersey is an important shipping hub globally and a Port transportation hub in theAPEC United States. As an important hub in the advanced multimodal transport network of North America, Port of New York-NewNetwork Jersey boasts a high-speed railway network that is connected with inland railways and can meet APEC Network Services the needs for freight transport to the northeastern, mid-western, and eastern parts Port of Canada.Network In 2020, the Port of New York-NewServices Jersey was driven by the increasing import demand due to the pandemic, and port congestion was not serious. ThisNetwork ensured a container throughput growth Portrate of 1.5% in the year. The railway passage Services APEC Servicesalso played a significant role. The intermodal transport volume of the port railway Port increased by 6.2% year-on-yearAPEC to 705,900 TEUs. The railway cargo collection, Port distribution, and transportation business of the Port of New York-NewServices Jersey is mainly operated by CSX and Norfolk Southern Railway Company.Port In 2020, CSX's Syracuse APEC APEC DeWitt ModernNetwork Railway Yard Project was completed and put into operation after more APEC Network Services 89 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port than two years of construction.APEC While helping cargo owners reduceServices logistics costs, the project has also greatly improved the cargo collection, distribution, and transportation Network efficiency of Port of New York-New Jersey. Port APEC Network (2) Port of Los Angeles and Port of LongAPEC Beach Services Network Network The large-scale outbreaks in the United States caused retailers to stock up in large Port Servicesquantities in the second half of 2020, resulting in a concentrated influx of cargoes into Network Port the Port of Los Angeles andNetwork the Port of Long Beach, and the two Servicesmajor ports suffered APEC serious congestion. The surging cargoes and the limited capacity of the infrastructure Services caused the average utilization of terminals and depotsPort to stay above 80%. ManyServices Port APEC containersServices were stored in the depots, and the passage from the quayside to the container railway stations and depots wasAPEC also occupied. As a result,Port the service Portlevels of railway facilities were greatly compromised. As a result, the railway efficiency APEC Network for cargo collection, distribution and transportation slumped, resulting in a sharp drop APEC in the container volume for intermodal transport in the AlamedaAPEC Corridor connecting Network the two ports with the hinterland.Network In 2020, the total container throughput of the ports of Los Angeles and Long Beach increased by 2%, but the container volume for Services intermodal transport in the Alameda CorridorNetwork fell by 5.91% year-on-year to 4.73 million Network TEUs. Services Services Port Port Network PortPort production efficiency and competitiveness remained the focus of ports' APEC Services future development. In 2020,Services the U.S. Department of Transportation’s Maritime APEC Administration launchedPort the port infrastructure developmentAPEC plan to provide a total Services Port of USD 280 million grant to 15 coastal ports in the United States, including the Port of Los Angeles and the Port of Long Beach. Specifically, the Port of Los Angeles Port APEC receivedAPEC USD 18.185 million to expand andNetwork modernize its multimodal railway yard Network at the Phoenix Container Terminal. This project will add 11,500 feet of railway tracksAPEC and increase the railway transportation capacity of the terminal by 10%. The Port of Network NetworkLong Beach received USD 14.5 million for the construction and replacement of railway Services tracks at the port, to improveServices railway operation efficiency and increase the capacity of the Y-shaped railwayPort hub on the terminal islands of California. Network Services Port Services Port Network APEC Port APEC Services Port APEC Services APEC Network Port APEC Network APEC Services Network Network Port Services Port Network Services APEC Services Port Port Source: Yardeni Research APEC Services APEC Figure 3-28 Container Volumes and Sea-rail Intermodal TransportPort Volumes of Port APEC of LosNetwork Angeles and Port of Long Beach in the United States in 1989-2020 APEC Network 90 Services 2020 APEC Port Development Report www.apecpsn.org 90 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port Multimodal transportAPEC of ports in Canada Services Network Up to now, Canada has a railway network of 42,865Port kilometers, which plays an APEC importantNetwork role in the multimodal transport system. Canada's railway network is connected to ports at one end and the entireAPEC North American inland railway network Services at the other end, transporting cargoes worth more than USD 320 billion every year.Network Port Network ServicesCanada has three major transport corridors, namely the East Coast Transport Corridor, the West CoastNetwork Transport Corridor, and the North-South Transport Network Port Corridor. Specifically, the West Coast Transport Corridor is centeredServices on the Port APEC Services of Vancouver, primarily handling the domestic tradePort goods and cargo traded between Canada and the Asia-Pacific region. The domestic railways are generallyServices Port APEC Services dominated by Canadian National Railway (CNAPEC Rail) and Canadian PacificPort Railway Port(CP Rail), and most of the goods transported are exported to the United States and APEC Network overseas. According to statistics from the Railway Association of Canada (RAC), APEC the multimodal transport volume generated in Canada in 2019APEC totaled 1.927 million Network carloads, a positive growthNetwork rate of 2.6%. Services （Unit:1,000 containers/trailers） Network Services Port Network Services Network 2,000 Port60.0% Port1,800 APEC Services 50.0% Services 1,600 APEC Port 40.0% Services Port APEC 1,400 1,200 30.0% Port 1,000APEC Network APEC Network 20.0% 800 APEC Network 600 10.0% Network 400 Services Services 0.0% 200 Port Network Services Port 0 -10.0% Network Services 2013 2014 2015 2016 2017 2018 2019 Port APEC APEC Port Total sea-rail way intermodal transport volumeServices YoY growth Port APEC Services APEC NetworkSource: RAC Port Figure 3-29 MultimodalAPEC Transport Volumes in Canada inNetwork 2013-2019 APEC Services (3) Port of Vancouver Network Network Services Port The Port of Vancouver is the largest and busiest port in Canada. Thanks to itsNetwork superior geographical location and completePort facilities, the port has become one Services APEC Servicesof the most important gateways in the Asia Pacific Gateway and Corridor Initiative Port (APGCI). The incoming cargoesAPEC of the Port of Vancouver are transported to the mid- Port western region of the United States primarily through the railwayServices network of two major railway companies in Canada, that is, CN Rail and CPPort Rail. In 2020, although APEC APEC the pandemicNetwork dealt a heavy blow to the port logistics chain, the Port of Vancouver APEC Network Services 91 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port still performed well, withAPEC a total cargo throughput of 145 millionServices tons and a container Network throughput of 3.48 million TEUs, an increase of 2.4% year-on-yePort ar. APEC The PortNetwork of Vancouver is currently committed to improving the multimodal transport capacity and expanding the existing terminalsAPEC and related facilities. In 2020, Services Vancouver Port Authority signed a memorandum of understanding with the municipalNetwork Port Network Servicesgovernment of Burnaby on investing USD 145 million in building a new four-lane overpass on the BNSF NetworkRailway near Holdom. The Holdom Overpass is part of Network Port the Burnaby Railway Corridor Improvement Project. The projectServices aims to improve APEC Services the flow of trains entering and leaving the north terminalPort of Port of Vancouver, ensure that the Port of Vancouver can meet the growing trade demand in Canada,Services Port APEC Services resolve bottlenecks in the supply chain, andAPEC address the impact of tradePort on local Portcommunities. In addition, Vancouver Port Authority has completed the construction APEC Network of a truck turnaround facility at the Deltaport Container Terminal. This new facility APEC will ease traffic congestion around the port, reduce truck APECidling, and improve safety, Network thereby elevating the flexibilityNetwork and efficiency of the multimodal transport network. Services Network (4) Port of Prince Rupert Network Services Port Services Network ThePort Port of Prince Rupert, located to the north of the Port of Vancouver,Port is also an APEC important gateway in theServices Asia-Pacific region. With a perfect geographical location, Services it enables the shortest land-sea connection from Asia to APECChicago, Toronto, and Services Port APEC Memphis, being Porta port closest to the Asia-Pacific region on the west coast of the United States and also the deepest natural deep-water port in North America. Port APEC The APECFairview Container Terminal of the PortNetwork of Prince Rupert is the first container Network terminal in North America that runs the multimodal transport (sea-rail) business.APEC Its container business can alleviate the congestion of the U.S. west coast ports Network Networkand provide good transportationServices routes for the Asia-Pacific market. The Port of Services Prince Rupert has efficient railway corridors, which allows cargoesNetwork to be directly loaded onto trainsPort after ships call at the port and quickly delivered to all parts of Services Port Services North America through the double-layer railway transportation network of Canadian Port Network NationalAPEC Railway (CN Rail). As a result, the cargo evacuation rate of sea-rail APEC Port intermodal transport exceeded 80%. In 2020,Services under the influence of the COVID-19 pandemic, the Port of Prince Rupert Portrecorded a total container throughput of 1.14APEC Services APEC million TEUs, a decrease of 5.7% year-on-year. To improve the efficiency of railway Networktraffic at the terminal, the Port of Prince Rupert is currently vigorously carrying Port out construction, includingAPEC constructing a new dual-line bridgeNetwork across the Zanardi Rapids and increasing the railway capacity between the bridge and Ridley Island to APEC Network Services connect to the port. Network Services Port 3.4.2 Multimodal transport development of ports in China Port Network Services APEC ServicesUnder the combined effects of a series of favorable policies, accelerated Port construction of hubs and APECcorridors, and innovation of key logistics technologies, Port China's multimodal transport has entered a golden period of development.Services In recent years, China's multimodal transport infrastructure hasPort been comprehensively APEC APEC strengthened,Network ports' container collection, distribution, and transportation capacity APEC Network 92 Services 2020 APEC Port Development Report www.apecpsn.org 92 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port has been constantly improved,APEC and the construction and expansionServices of port railway have been further accelerated. As a result, the average growth rate of rail-water Network intermodal transport containers during 2015-2019 reachedPort 27.6%. According to the APEC BulletinNetwork statistics on Multimodal Transport Throughput of Container Terminals at China's Hub Ports, the multimodal transportAPEC throughput of container terminalsNetwork at Services China's hub ports in 2020 totaled 2.97 million TEUs, a significant increase of 25.1% Network Servicesyear-on-year. Port Network Network Port Under the influence of the global COVID-19 outbreaks in 2020,Services port congestion APEC Services became prominent in maritime shipping. This has resultedPort in short supply of empty containers and spaces, soaring seaborne shipping rates, and the cargo transportServices Port APEC Services duration and timeliness cannot be guaranteed.APEC In this context, China-EuropePort trains Portbecame an important supplement to the maritime trade passage between China and APEC Network Europe. Besides, China's policy guidance and improving sea-rail intermodal transport APEC facilities also brought about opportunities for the sea-railAPEC intermodal transport Network development from the supplyNetwork and demand perspectives. In 2020, the China-Europe Services trains gave full play to the unique advantages of international rail transport and Network became a green channel for transportingNetwork pandemic prevention materials. 12,406Services Port trains wereServices operated throughout the year, an increase of 50% year-on-year, being Network thePort first time to break through the "10,000 trains" mark. Port APEC Services Services Table 3-9 Sea-rail Intermodal Transport of Container TerminalsAPEC at Major Hub Ports Services APEC Port in China in 2020 Port Port APEC Sea-rail Intermodal APEC Terminal Company Network Transport Volume in Network 2020 (1,000 TEUs)APEC Network NetworkContainer Terminal CompanyServices of Jinzhou Port Company Limited 67.7 Services Yingkou Container Terminals Co., Ltd. Network154.8 Yingkou NewPort Century Container Terminal Co., Ltd. 154.8 Services Port Network Services Yingkou Port Authority Group Co., Ltd. 1012.4 Port APEC APEC Port Rizhao Port Container Development Co.,Services Ltd. 67.8 APEC Services Sichuan Luzhou Port AffairsPort Co., Ltd. 29.4 APEC Network Ningbo Beilun First Container Terminal Co., Ltd. 443.7 Port Ningbo Beilun ThirdAPEC Container Terminal Co., Ltd. Network168.8 Ningbo Zhoushan Port Company Limited Beilun Second Container APEC 58.0 Network Services Terminal Company NingboNetwork Meishan-Island International Container Terminal Co., Ltd. 132.0 Port Services Ningbo Port Company Limited ZhenhaiPort Port Branch 1.0 Network Services APEC ServicesFujian Jiangyin International Container Terminal (FJCT) 33.4 Port Port Guangzhou ContainerAPEC Terminal Co., Ltd. Services4.9 Yantian International Container Terminals Limited Port 213.7 APEC APEC BeibuNetwork Gulf Port Fangcheng Port Terminal Company Limited 95.3 APEC Network Services 93 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services APEC Port Guangxi Qinzhou International Container Terminal Co., Ltd. Services73.2 Network Beibu Gulf-PSA International Container Terminal Co., Ltd. Port(BPCT) 55.8 APEC ZhanjiangNetwork Port International Container Terminal Co., Ltd. 30.3 APEC Services Source: Container terminal multimodal throughput for China's main ports, and ContainerizationNetwork Network Port Services Ningbo Zhoushan Port Network Port Network Services APEC Services In recent years, the sea-rail intermodal transport infrastructure of Ningbo Zhoushan Port has been continuously improved, and its sea-rail Portintermodal transport volumeServices Port APEC has increasedServices rapidly. In 2020, the sea-rail intermodal transport volume by Ningbo Zhoushan Port exceeded 1 million TEUs forAPEC the first time, a rise of 24.2%Port year-on- Portyear. To further improve the cargo collection, distribution, and transportation network APEC Network system and develop the multimodal transport business, Ningbo Zhoushan Port newly APEC opened up 16 sea-rail intermodal transport service outlets includingAPEC Anqing and Hai'an Network in 2020, and opened two Networksea-rail intermodal transport trains to Hai'an and Wuhu, Services with its sea-rail intermodal transport trains totaling 19. In the first half of the year, Chuanshan Port Railway Station was successfullyNetwork put into operation, opening up theServices Port Network "last kilometer"Services for sea-rail intermodal transport of the Chuanshan Port Area Container Network Terminal — the world's second-largest single container terminal — so thatPort Ningbo ZhoushanPort Port has three Servicesport areas directly connected to the railway. The complete APEC Services logistics network provides strong transport support for the development of Ningbo APEC Zhoushan Port. UpPort to now, the train running frequency of ChuanshanAPEC Port Railway Services Port Station has reached "three runs a day", with a monthly handling volume of 13,000 TEUs. Port APEC APEC Network Network Guangxi Beibu Gulf Port APEC Network NetworkThanks to the steady progress in constructing the new western land-sea corridor, the Services sea-rail intermodal transportServices business of Beibu Gulf Port in Guangxi still exhibited good momentum Portof development despite the pandemic in 2020.Network The Beibu Gulf Services Port Port recorded a container throughput of 5.05 million TEUs for the year, a rise of Network Services 32.3% year-on-year, and a sea-rail intermodal transport volume of 282,000 TEUs, an Port APEC Port increaseAPEC of 75% year-on-year. In 2020, the BeibuServices Gulf Port opened sea-rail intermodal transport trains to Hezhou and Yulin, opening up the logistics channel for sea-railAPEC Services intermodal transport in eastern Guangxi.Port This has greatly improved the efficiency of APEC Networkcargo transportation, and fundamentally resolved the bottleneck in the "last kilometer" Port of sea-rail intermodal transport.APEC The Qinzhou Port Area realized data interconnectivity and further improved the efficiency of sea-rail intermodal transportNetwork by innovating the sea-rail intermodal transport service mode of the new western land-sea corridor APEC Network Services and promoting the construction of the Intelligent Beibu Gulf Port Project as a "single window"Network for international trade. Services Port Network Tianjin Port Port Services APEC Services Port In 2020, the sea-rail intermodalAPEC transport volume of Tianjin Port exceeded 800,000 Port TEUs, increasing by more than 40% year-on-year and setting aServices record high. To provide new impetus for the coordinated development inPort the Beijing-Tianjin-Hebei APEC APEC region, TianjinNetwork Port opened a new train from Tianjin to Urumqi for container assembly APEC Network 94 Services 2020 APEC Port Development Report www.apecpsn.org 94 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port on the Sino-Europe freightAPEC route, realizing the reverse groupedServices container transport by trains from Tianjin to Urumqi. Meanwhile, Tianjin Port Group signed cooperation Network agreements with local governments, railway companies,Port and logistics enterprises to APEC furtherNetwork enhance the organizing capability of sea-rail intermodal transport, laying a solid foundation for the growth of sea-railAPEC intermodal transport business. Moreover, Services Tianjin Port closely tracked the market demands, conducted strategic cooperation withNetwork Network enterprises in its hinterlands, implemented the "EPC logistics service" and "one policy Port Servicesfor one enterprise" initiatives to customize the "point-to-point" whole-process logistics Network Port solutions for hinterland enterprises.Network It also built a smooth, efficient,Services and cost-effective APEC guarantee system for the vigorous development of sea-rail intermodal transport. Services Port Services Port APEC 3.5 ReviewServices of Port Infrastructure Construction APEC Port PortSince most economies have almost completed a new round of terminal construction, APEC Network the port production capacity can generally meet or even slightly exceed the current APEC freight demand. Therefore, the port infrastructure constructionAPEC in the Asia-Pacific Network region has remained relativelyNetwork stable in recent years. The number of new port Services construction projects also reduced in 2020 compared to previous years. Under the Network influence of the pandemic, some port constructionNetwork projects have been postponedServices to Port even severalServices years later. Coupled with the impact of the pandemic on the economy, Network portPort construction funds will experience a shortfall in the next few years, andPort the port APEC Services construction cycle may beServices extended. Port APEC Services Port APEC In 2020, most of the demands for port construction and expansion in the Asia- Pacific region aimed to improve handling efficiency, cut economic costs, and Port APEC pursueAPEC information-based development. Region-specific,Network affected by the global Network COVID-19 pandemic, the international trade demands of Asian ports decreased,APEC and port investment and construction slowed down. South Asia container ports, Network Networkoccupying a special locationServices on the trunk lines between Europe and Asia, continued Services the construction initiatives. Ports in the Americas postponed or shelved their construction projects in the first half of the year due to the pandemicNetwork and invested Services Port Port Services more in terminal projects in the second half of 2020. Port Network APEC APEC Port 3.5.1 Container terminal construction Services Port APEC Services APEC Network1. East Asia showed increasing zeal for building automated container terminals Port In the tide of port transformationAPEC and upgrading, automation andNetwork intelligence have become the main development trends of ports. Various economies witnessed APEC Services faster automation progress of their ports. Clouded by the global pandemic in 2020, Network Port automatedNetwork terminals which feature less human Servicesparticipation have attracted attention. Government departments and port companies have constantly strengthenedNetwork feasibility assessment for terminal automationPort transformation and construction, and Services APEC Servicesport automation technologies were also applied in East Asia one after another. Port APEC Port Specifically, China's Qingdao Port took the lead in launching theServices pilot project of "air rail" for cargo collection, distribution, and transportation,Port which can achieve an APEC APEC annual transportationNetwork capacity of 1.5 million TEUs in conjunction with the Qingdao APEC Network Services 95 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port automated terminal. TheAPEC system directly lifts containers fromServices the terminal and quickly completes the transshipment through the air rail, of which the construction Network cost is at least 80% lower than that of a traditional railway.Port In addition, the system APEC has goneNetwork through the "5G + automation" upgrade of equipment and software to achieve a higher degree of intelligenceAPEC together with the Qingdao automatedNetwork Services terminal. Meanwhile, Xiamen Port planned to build a 200,000-ton-class automated Port Network Servicescontainer berth. The project will use remotely operated intelligent bridge cranes, with Network all the gantry cranes in theNetwork depot being automated rail cranes and container trucks Port using the unmanned driving technology to achieve automatic driveServices as commanded APEC Services and fixed-point container handling. The automated terminalPort is designed to provideServices a Port APEC throughputServices capacity of about 910,000 TEUs a year. APEC Port Port2. Southeast Asia re-launched port construction projects APEC Network APEC As a hub of international shipping and trade, SoutheastAPEC Asia enjoys a unique Network location advantage. It wasNetwork also more affected by measures such as port supervision Services and pandemic prevention and quarantine during the outbreaks. However, as the Network pandemic situation was put under control Networkgradually in Asia in the second half of theServices Port year and Servicesthe compensatory trade rose, which boosted shipping service renewals, Network portPort construction projects in Southeast Asia quickly picked up in the secondPort half of APEC Services the year. Vying for more ServicesEurasian route resources, Singapore, Malaysia, Indonesia, Thailand, and other regions exhibited increasing enthusiasmAPEC for port construction Services APEC again. Port Port Port APEC In 2020,APEC in addition to Tuas Mega Port PhaseNetwork II in Singapore and Port of Tanjung Network Pelepas and Port of Kelang in Malaysia which were carrying out phased construction,APEC Indonesia also accelerated the construction of Port of Tanjung Priok and Port of Network NetworkPatimban to vie for the statusServices of Southeast Asia's transshipment center. Specifically, Services the Port of Patimban Phase I Project focused on increasing theNetwork operating capacity of a container terminalPort that was completed in 2020 by 3.75 million TEUs. Meanwhile, Services Port Services the Malaysian government also supported the Port of Sabah to develop a new Port Network terminalAPEC in Sepangar Bay. The construction project will include land reclamation, APEC Port transportation equipment upgrading, and extensionServices of the terminal shoreline. After completion, the annual throughput ofPort the port will increase to 1.25 million TEUs.APEC In Services APEC addition, the Myanmar government also vigorously promoted the construction of Networkport facilities, and the project funds primarily came from the investment of China Port and Japan, among otherAPEC economies. In 2020, the Japan InternationalNetwork Cooperation Agency funded 6.03 billion yen in Myanmar to build a modern container port in APEC Network Services Mandalay. After completion, the Port of Mandalay will have container handling machinery,Network depot warehouses, and other facilities.Services Port Network 3. The United States continued to upgradePort its port facilities Services APEC Services Port In the first half of 2020, theAPEC COVID-19 pandemic got rampant across the economy Port and severely curbed its economic development. In this context,Services the U.S. ports suffered a shortage of labor, which coincided with thePort concentrated arrival of APEC APEC cargoes, Networkresulting in serious ship congestion on the west coast of the United States. APEC Network 96 Services 2020 APEC Port Development Report www.apecpsn.org 96 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port In the second half of APECthe year, as the government took interventionServices measures, the originally congested trade demand was gradually recovered. As a result, port Network cargo volume rose rapidly, and port production capacityPort ran slightly short. In this APEC environment,Network the U.S. government restarted the port upgrading projects before the outbreaks. The U.S. Department of TransportationAPEC planned to invest an additionalNetwork Services USD 1 billion yuan in infrastructure construction to improve the port supply chain. Port Network ServicesSpecifically, the Port of Philadelphia invested USD 200 million in increasing the Network container handling capacityNetwork by 400,000 TEUs to bring the port's total container Port handling capacity to more than 1 million TEUs, in addition to furtherServices enhancing the APEC Services freight transport service to and from the Midwest region.Port In addition, the PortServices of Port APEC Boston willServices expand a container berth with a water depth exceeding 14 meters and add three cranes and one refrigerated containerAPEC storage area to the originalPort Conley PortContainer Terminal. The Port of Wilmington in the eastern U.S. also plans to expand APEC Network its container terminal to accommodate ships of up to 360 metersAPEC long, with handling APEC capacity exceeding 1.2 million TEUs and the storage capacity of its refrigerated Network containers expanded threefold.Network After the expansion of the terminal, the Port of Services Wilmington will usher in the era of accommodating large ships. Network Network Services Port In addition,Services the U.S. Department of Transportation also approved a new port Network infrastructurePort development plan in the second half of 2020, allocatingPort more than APEC Services USD 280 million to improveServices coastal port infrastructure, covering 15 coastal ports in APEC the United States.Port This plan is conducive to the U.S. economyAPEC and can improve the Services Port capacity and efficiency of its transportation and supply chain networks. Port APECTable 3-10 Port Construction inNetwork the United States in 2020 APEC Network APEC Grant Network Port Construction Overview Network amount Services Improve port drainage and recycling systems, reorganize Services 43.93 million Miami Port container yards, and build state-of-the-artNetwork fumigation and PortUSD Services Port cold chain treatment facilities. Network Services Demolition and reconstruction of the easternmost berth Port 34.6 million Savannah Port of Savannah port, and increase the depth of the berth to APEC USD APEC Port accommodate a largeServices container ship of 14,000 TEU. Develop a 1,000-foot-long green space into a wharf forAPEC Services 21.84 million Port Houston Port the Gulf Wharf; install crane rails to improve the operating APEC USD Network capacity of the crane on the newly developed wharf. Port APECSupport the construction of oil and cement shipping terminals. The terminal is a key componentNetwork of the port's 20 million Alaska Port modernization plan and will support the transportation APEC USD Network Services of refined oil and cement from bulk carriers to onshore Network pipelines and storageServices facilities. Port The construction of an underwater retaining wall and Charleston 19.99 million the deepening of the three berths at the Wandowwelch Network Port USD Wharf allowedPort the South Carolina facility to handle larger Services APEC Services container ships. Port APECThe multimodal railway station expansion and Port Los Angeles 18.19 million modernization project for the Phoenix ContainerServices Terminal Port USD will add 11,500 feet of railway track and increase the APEC railway transportation capacity ofPort the terminal by 10%. APEC Network APEC Network Services 97 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services APECThe Avery Point terminal was refurbished in the first Port Corpus Christi 17.60 million Services phase to increase the terminal’s oil product transshipment Port USD Network capacity. Port 16 million Rebuild and upgrade the No. 1 facility at the Midwest APEC Toledo Port NetworkUSD Wharf and develop liquid transfer facilities. Milwaukee 15.89 million APEC Services Developed into a agricultural product export facility. Network Network Port USD Port ServicesGulfport 15.76 million Improve the roads in and out of the port, these roads serve Harbor USD Networkall freight and military goods. Network Construct and replace port railroad Servicestracks, improve rail Port Long Beach 14.50 million operation efficiency, and increase the capacity of the APEC Port USD Services Y-shaped rail hub on the terminalPort island of California. APEC Services Port CanaveralServices 14.10 million Repair and improve its multiple cargo berths to improve PortPort USD the level of modernAPEC operations. Port Southern Port 13.41 million Enhance multimodal transport capabilities and improve the APEC Network of Louisiana USD operational efficiency of Globalplex public ports. Repair the two main terminalsAPEC of the port to promote 11 million Network APEC Cleveland Port regional exports and improve port operations and safety USD Network activities. The railway service warehouse was built and the damaged Services Duluth 10.50 million wharf walls totalingNetwork more than 1,700 feet in multiple berths Network Superior Port USD Services Port Services in the port were repaired. Network Port Port APEC 4. Canada followed suit Servicesto improve port operational capabilities Services APEC Services Port APEC With the restartPort of the U.S. port expansion projects, Canada followed suit and actively promoted the construction of port facilities. On the east coast of Canada in Port APEC particular,APEC the port facilities have enjoyed Networksignificant rapid improvement to expand Network trade with the European region and respond to the surging freight volume duringAPEC the pandemic. Specifically, the Port of Halifax was expanded to meet the berthing Network Networkoperations of large ships ofServices above 14,000 TEUs. In addition, it planned to build not Services only the second container terminal but also another container operationNetwork area on the other side of the originalPort terminal. Meanwhile, the Canadian government provided 55 Services Port Services million Canadian dollars to the Montreal Port Authority for the latter to start the new Port Network terminalAPEC construction. The new terminal will include two berths and one container APEC Port handling area. It is estimated that the containerServices terminal can handle 1.15 million TEUs per year. Port APEC Services APEC NetworkIn addition, the Port of Vancouver in southwestern Canada was also undergoing Port expansion, primarily at theAPEC Centerm Container Terminal and theNetwork Vanterm Container Terminal. The project will increase the storage capacity by approximately 200,000 APEC Services TEUs. The Port of Prince Rupert's ongoing renovation plan is expected to be Network Port completedNetwork in 2021, when its port capacity willServices be increased to 1.6 million TEUs. It is worth noting that western ports such as Port of Vancouver and Port of PrinceNetwork Rupert are trying to compete for AsianPort routes from the Seattle-Tacoma Seaport in Services APEC Servicesthe United States through increased production capacity to expand their geographic Port Port advantages. APEC Services Port APEC APEC Network APEC Network 98 Services 2020 APEC Port Development Report www.apecpsn.org 98 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port 3.5.2 LNG terminal constructionAPEC Services Network As the global economies pay increasing attention to Portenvironmental protection and APEC sustainableNetwork development, many Asia-Pacific economies have introduced relevant policies and augmented capital investmentAPEC to promote the application of LNG Services energy. In 2020, the official implementation of Low Sulphur Regulation worldwideNetwork Port Network Servicesbrought opportunities for further promotion of LNG and other clean energy. As a result, the construction Networkand use of LNG terminals and LNG-powered ships may Network Port become the vane for developing the port and shipping industry inServices the future. APEC Services Port APEC 1. ChinaServices steadily advanced its LNG terminal construction Services Port Port PortChina's natural gas market has entered a goldenAPEC period of rapid development, with APEC Network annual natural gas consumption increasing year by year. LNG accounts for an APEC increasing market share, and natural gas-related policies APECare introduced one after Network another. LNG receiving stations,Network which progressed slowly previously, have also seen Services rapid development. Private capital gradually tapped to this field and the numbers Network of LNG receiving stations newly built andNetwork expanded increased sharply. GuanghuiServices Port Qidong LNGServices Terminal, Shanghai LNG Terminal Expansion Project, PetroChina Network TangshanPort LNG Terminal, Zhejiang Ningbo LNG Terminal Expansion ProjectPort were APEC all put into operation in Services2020. The newly-built LNG receiving stations that were Services originally planned to be put into operation in 2020, such APECas Chaozhou Huafeng Services Port APEC Zhongtian LNG StoragePort and Distribution Station, Zhongtian Jiangyin LNG Receiving Station and Zhejiang Jiaxing LNG Storage and Distribution Station for Emergency Port ManagementAPEC and Peak Regulation, will be completedNetwork and put into operation in 2021. APEC Network APEC Meanwhile, LNG fuel will become the main source of energy demand increment Network Networkfrom this year on. Under the guidance of the government, ports in China are actively Services pushing forward LNG terminalServices construction. In June 2020, China's first offshore international LNGPort bunkering center settled in Yantian Port,Network Shenzhen. Yantian Services Port Port hence becomes one of the pioneers in the construction of LNG bunkering Network Services centers in the world. According to the planning, the project is expected to achieve Port APEC Port a bunkeringAPEC capacity of 230,000 tons/year andServices an output value of RMB 1.2 billion/ year. In the long run, with the expansionPort of the project and the investment in LNGAPEC Services APEC bunkering ships, it is expected to increase the bunkering capacity to 2 million tons/ Networkyear and the output value to RMB 10 billion/year. In addition, China's "Yangtze River Port Gasification" project wasAPEC implemented in 2020. With this project,Network LNG handling and refueling stations will be set up along the Yangtze River to promote the oil-to- APEC Services gas transformation of ship engine fuels and build a green shipping channel on the Network YangtzeNetwork River. Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network Services 99 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port Table 3-11 LNG ReceivingAPEC Stations under Construction Servicesin China in 2020 Network Port Receiving Processing Production APEC Under Construction Scale StationNetwork Name Capacity Time APEC Network Services Guanghui Qidong LNG terminal phase I will have two 50,000 Qidong LNG m3 storage tanks, phase II will have one 160,000 3 million Network 2020 Port Servicesreceiving m3 storage tank, and phase III will add one tons/year Network Port station 160,000 m3Network storage tank. Services APEC The Shanghai Yangshan Port LNG receiving Services Shanghai station has built three LNG storage tanksPort with a Yangshan Port single tank capacity of 165,000 cubic meters. No. 3 million Services APEC 2020 Port LNG receivingServices 4 and No.5 tanks have been raised, and the tank tons/year station capacity has been expandedAPEC to 200,000 cubic Port Port meters. APEC Network The first phase mainly includes four 200,000 cubicAPEC APEC meter LNG storage tanks and one 800 to 266,000 Network cubic meterNetwork LNG ship docking berth. The second Tangshan phase mainly includes eight 200,000 cubic meter 12 million LNG receiving LNG storage tanks and one 100 to 266,000 cubic 2024 tons/year Services station meter LNG ship docking andNetwork docking berth. In Network Servicesthe third stage, eight 200,000 cubic meter LNG Services Port storage tanks and related supporting facilities will Network Port be built. Port In the secondServices phase of Zhejiang LNG receiving APEC Zhejiang Services station project, three 160,000 cubic meter full Ningbo LNG 6 million capacity LNG storage tanks and correspondingAPEC 2021 Services APEC receiving Port tons/year gasification and transportation process facilities Port station were added on the basis of the first phase project. Port APEC The existing 50,000-ton LPG berth will be APEC Huafeng Network transformed into a 147,000 cubic meter LNG Network Zhongtian berth, taking into account the berthing of the APEC LNG 3 million Network existing 50,000-ton LPG vessels. The second 2021 Storage and tons/year phase of the project has started preparation, and Network Distribution about 2 billionServices yuan will be invested to build new Services Station gasPort storage tanks and supporting facilities. Network Services Port Construction of two 80,000 cubic meters of LNG Network Services Jiangyin LNG storage tanks and supporting construction of high- 2 million 2021 Port storageAPEC station pressure and sub-high-pressure gasification, LNG tons/year Port storage, transportation, transit andServices other facilities. APEC APEC Zhejiang Port Services APEC Jiaxing LNG The terminal project will construct a Emergency 30,000-tonnage LNG unloading berth, a Network 1 million Port Peak Shifting 5,000-tonnage LNG loading berth, a working 2021 APEC tons/year Storage and vessel berth and corresponding supporting Network Transportation facilities. APEC Services Station Network NetworkIn the first phase of the project, a special Port dock capable of receiving and Servicesunloading LNG vessels of 30,000 to 266,000 cubic meters will Guangdong Network be constructed, and threePort LNG storage tanks Services Jieyang LNG 3.5 million and supporting process equipment will be 2023 APEC receiving tons/year Services constructed, as well as auxiliary utility facilities. A Port station 20×104m3LNGAPEC storage tank will be constructed in Services Port the second phase, and supporting facilities will be reserved for the second phase. Port APEC APEC Network APEC Network 100 Services 2020 APEC Port Development Report www.apecpsn.org 100Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port 2. LNG terminal constructionAPEC in the United States in a jam Services Network Due to the financial distress and the pandemic, ninePort LNG terminal projects in the APEC UnitedNetwork States were delayed due to financial difficulties and pandemic risk prevention, including the third-phase expansion of theAPEC Corpus Christi LNG terminal in Texas, Services which was postponed until after 2022, and the Driftwood LNG export projectNetwork Port Network Servicesplanned by the Louisiana state, which was postponed to 2021. Sempra Energy has completed the LNG Networksupply transaction, postponing its Port Arthur LNG export Network Port project in Texas to 2021. The construction of the Venture GlobalServices LNG's 10-mtpa APEC Services Calcasieu Pass LNG terminal in Louisiana is ongoing Portto upgrade the LNG storage tank capacity. The Golden Pass LNG terminal may increase the authorized exportServices Port APEC Services capacity of the LNG terminal under constructionAPEC in Texas from 15.6 tons/yearPort to 18.1 Porttons/year. The COVID-19 pandemic didn't delay the project, which is expected to be APEC Network completed as planned in 2024. APEC APEC Network The new U.S. production Networkreport shows that 14 LNG receiving station construction Services projects have obtained the license authorized by the Federal government in Network accordance with the "Clean Air Act". However,Network these licenses will not be validServices Port forever, soServices the construction has to be advanced within the time limit permitted by the Network law.Port If the construction of these projects is postponed, they would facePort the risk of license expiration. Services APEC Services APEC APEC 3. LNG terminalPort construction in Southeast Asia progressed quickly Services Port Port The APECrapid economic growth of Southeast AsianNetwork economies has stimulated the huge APEC Network demand for new energy. Given the massive increase in energy demand, SoutheastAPEC Asian economies have launched a series of LNG terminal construction initiatives. In Network Network2020, both Viet Nam and the Philippines accelerated the construction of receiving Services stations to ease the pressureServices on the local power supply. In September 2020, the planned LNG floatingPort storage and regasification facilities projectNetwork in Batangas, Services Port Philippines, was officially launched. The project was jointly undertaken by Tokyo Network Services Gas and a power generation company (First Gen) under the Lopez Group. The two Port APEC Port companiesAPEC will jointly build, operate, and maintainServices temporary offshore LNG receiving terminals, including renovating an existingPort terminal into a multi-purpose one andAPEC Services APEC building an affiliated onshore natural gas receiving facility. The project plans to Networkintroduce LNG to the Philippines in the second half of 2022. Port APEC Network SAMSUNG C&T signed a contract with the Tiwai Wharf in Viet Nam to build 180,000 APEC Services cubic meters of liquefied natural gas tanks, regasification facilities and berth Network Port facilitiesNetwork at the wharf. The project is scheduledServices to be completed in October 2022. Starting from 2021, Viet Nam is facing a serious power shortage as the constructionNetwork of various power plants lags far behindPort the growing demand for electricity. The Services APEC ServicesViet Nam Energy Research Institute is drafting a master plan for electric power Port development, including 22APEC new LNG power plant projects. In October 2020, the Hai Port Phong City of Viet Nam formally approved the ExxonMobil LNG powerServices generation integrated project. The project includes the power generationPort power enhancement APEC APEC of the powerNetwork plant, the construction of an LNG storage warehouse, and a storage APEC Network Services 101Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port capacity of 6 million tonsAPEC of LNG per year. The project is expectedServices to be officially put Network into operation in 2026. Port APEC 3.6 ReviewNetwork of Smart, Green, and Safe Port Development APEC Services The intelligent and green development of ports has long been regarded as Networkan Network Servicesimportant means to enhance ports' core competitiveness. However, in 2020, as Port the COVID-19 pandemicNetwork swept the world, many Asia-Pacific ports repeatedly Network Port experienced congestion, highlighting the importance of port applicationServices of intelligent APEC Services systems and further enhancing terminal operators' Portawareness and desire for APEC developing intelligent ports. Meanwhile, as the Low Sulphur Regulation comes Servicesinto Port effect, theServices Asia-Pacific region is paying increasing attention to the development of Portgreen ports. APEC Port APEC Network 3.6.1 Smart port development APEC APEC Network Network 1. Intelligent port development Services Network Network The COVID-19Services pandemic has stimulated the demand of ports for intelligent systems.Services Port In the Asia-Pacific region, many ports have taken measures to acceleratePort their Network transitionPort to smart ports. Korea's Port of Busan and Singapore's Jurong Port APEC Services cooperated with telecommunicationsServices companies to apply 5G and "Internet of Things" APEC technologies, aimingPort to speed up data exchange betweenAPEC ports and terminals. Services Port Real-time sharing of credible data can accelerate business processes, ensure early Port detectionAPEC of potential bottlenecks, and solve the problem before the port congestion APEC Network occurs. Based on 5G technology, the twoNetwork ports carried out the research and application of intelligent technologies such as remote control, intelligent identificationAPEC Network and positioning technology of large port machines, and promoted the application Network Services and large-scale use of 5G+Services gantry crane remote control, 5G+ bridge crane intelligent tallying, and unmanned container trucks. Network Services Port Port Network Services Although automated terminals represent a future trend of ports, they are often Port APEC Port suitableAPEC for newly built terminals. In reality, manyServices old terminals already have port equipment, which adds great difficulties to massive infrastructure renovation.APEC Services Therefore, automation renovation is notPort flexible enough, while Artificial Intelligence APEC Network(AI) allows partial upgrade without overall renovation. For example, Mawan Smart Port Port is China's first automatedAPEC port upgraded from a traditionalNetwork terminal in 2020. The port uses 5G technology to realize AR panoramic monitoring, unmanned driving APEC Services and real-time network connection of UAVs, adopts Beidou high-precision positioning Network technologyNetwork for real-time monitoring of ships and equipment in the port, and uses Port AI for real-time warning analysis of trailer drivers'Services safe driving behavior, to ensure intelligent and efficient handling operations.Port In addition, Tianjin Port Group signedNetwork Services APEC Servicesa strategic cooperation agreement with Huawei Technologies Co., Ltd., worked Port with the Huawei team to APEClaunch multiple projects. It put forward the concept of Port "port intelligent agent" for the first time to transform the port intoServices an autonomously operated intelligent agent without human intervention and Portenable the port to operate APEC APEC in the mostNetwork optimized, reasonable, and scientific way. APEC Network 102 Services 2020 APEC Port Development Report www.apecpsn.org 102Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port Table 3-12 5G TechnologyAPEC Application Progress at ChineseServices Ports in 2020 Network Port APEC PortNetwork 5G Technology Application Progress In March 2018, Ningbo Zhoushan Port built the China's first 5G port base station; in April 2019, it realizedAPEC 5G+ gantry crane remote control, gantry Ningbo Network Services crane high-definition video return and other innovative application tests; in Zhoushan Network the first half of 2020, Meishan port area realized 5G+ gantry crane remote Port Services control scale and successfully tested 5G+ unmanned truck application. Network In August 2020,Network Tianjin Port completed the commercialServices use of port yard Port bridges and low-latency 5G network remote control services, and realized Tianjin APEC Services the operation of the 5G port business performancePort evaluation and APEC monitoring system for the first time in the industry. Services Port ServicesIn 2020, Guangzhou Port has landed the China's first 5G + smart tally Guangzhou Port project. APEC Port In 2020, Yangshan Port has realized the quasi-commercial operation of 5G APEC self-driving heavy trucks, and Yangshan Port has carried out the first batch Network Shanghai APEC APEC of feasibility verifications for the remote control of 5G smart port tire-type Network gantry cranes.Network Services Jiangyin In April 2020, Jiangyin Port built the first 5G port in Jiangsu Province. In February 2019, Qingdao NetworkPort Automation Terminal completed theServices Network application test of 5G communication technology in all scenarios of Port QingdaoServices Network container terminal production operations; in 2020, Qingdao Port Portcooperated Port with ShandongServices Telecom to create a "5G + Smart Port". APEC Services In May 2020, Xiamen Ocean Shipping Container Terminal successfully Xiamen used new technologies such as 5G-NR air interfaceAPEC and MEC mobile edge APEC computingPort to build China's first 5G full-service smart port. Services Port Port APEC 2. DigitalAPEC port development Network Network Digital technology has become an important revolutionary force for the upgradingAPEC Network Networkof the port industry. On the one hand, "port + digitalization" improves the efficiency Services of the supply chain. On Servicesthe other hand, the open and shared digital platform facilitates informationPort communication between the port and Networkall parties. With the Services Port rapid development of digital information technologies, Asia-Pacific ports constantly Network Services upgraded and improved their information platforms in 2020 to improve terminal Port APEC Port productionAPEC capacity and port logistics efficiency.Services Specifically, the "E-Logistics Yantian" one-stop integrated port informationPort service platform of Yantian PortAPEC Services District of Shenzhen Port was launched. Users can make inquiries on the platform APEC Networkconcerning containers, ships, and trailers, make electronic payments, check on Port the port inspection and clearanceAPEC progress, and submit pre-declarationNetwork of trailers entering the port. As a result, the platform can improve logistics efficiency and APEC Services reduce costs. Network Network Services Port In the traditional import and export container logistics processes, businessNetwork transactions between ship enterprises,Port freight forwarders, fleets, drivers, depots, Services APEC Servicesterminals, etc., require paper documents and manual processing, which have Port disadvantages such as lowAPEC transportation efficiency and high cost. Currently, with Port the deep integration of various new technologies, such as blockchain,Services big data, and cloud computing, the port industry has accelerated the digitalPort port transformation. APEC APEC As a result,Network paperless port documents have been popularized and port logistics APEC Network Services 103Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port efficiency has been greatlyAPEC improved. For example, in June Services2020, Qingdao Port and COSCO Container Lines Co Ltd jointly launched a digital, contactless import Network pickup solution based on blockchain technology. By thePort end of the current month, APEC COSCONetwork Container Lines Co Ltd has completed the imported cargo release of nearly 500 containers at Qingdao Port through APECthe blockchain paperless imported cargoNetwork Services release model. On average, nearly 24 hours of pickup time per container is saved Port Network Servicesfor the customer. The paperless documentation of Xiamen Port can save more than Network 10 hours of operation timeNetwork for each import and export container pickup operation, Port saving about RMB 200 million of cost every year. Services APEC Services Port APEC 3.6.2 GreenServices port development Services Port Port Port1. Progress Report on GPAS 2020 APEC APEC Network APEC To promote the green and sustainable development of Asia-PacificAPEC ports, the APEC Network Port Services Network (APSN)Network has developed a green port awarding system that Services adapts to the diversity of economic and social development levels in the Asia-Pacific Network region, namely the Green Port Award SystemNetwork (GPAS), under the framework of theServices Port Asia-PacificServices Economic Cooperation (APEC). This move will further strengthen the Network ports'Port environmental protection awareness, upgrade their sustainable developmentPort APEC strategies, promote greenServices cooperation, and share green port development practices Services in the Asia-Pacific region. Winning the "APSN Green Port" APECtitle highlights the port's Services Port APEC great emphasis onPort fulfilling its social responsibilities, and will significantly enhance the social image of the port. Port APEC Network APEC Network As reviewed by the GPAS Expert Committee and approved by the APSN Council,APEC 8 ports from six economies of the Asia-Pacific region have been awarded the APSN Network NetworkGreen Port 2020, and they are (in alphabetical order): Services Services • Kai Tak CruisePort Terminal, Hong Kong, China; Network Services Port Services • Port Klang (PKA, Northport & Westports), Malaysia; Port Network • PortAPEC of Hualien, Taiwan International Ports Corp., Ltd., Chinese Taipei; APEC Port • Port of Singapore, Maritime and Port AuthorityServices of Singapore, Singapore; APEC Services • Qingdao Port Dongjiakou Ore TerminalPort Co., Ltd, China; APEC Network • Tan Cang - Cai Mep International Terminal, Viet Nam; Port • Tianjin Port AllianceAPEC International Container Terminal Co., LNetworktd., China; and • Zhangjiagang Port Group Gangsheng Bulk Terminal, China. APEC Services Network 2. GreenNetwork development measures of Asia-PacificServices ports Port Network Various port enterprises and port authoritiesPort in the Asia-Pacific region continued Services APEC Servicesto promote green and sustainable development of ports and shipping industry Port and advance low-carbon greenAPEC ports with zero emissions, resource recycling, and Port ecological balance. Specifically, China is committed to optimizingServices the green port rating system. Based on the Action Plan for Deeply AdvancingPort the Construction APEC APEC of GreenNetwork Ports (2018-2022), China re-issued the Guideline for Green Port Rating APEC Network 104 Services 2020 APEC Port Development Report www.apecpsn.org 104Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port System in May 2020. APECIn addition, cruise terminals were addedServices to the rating range that originally covered specialized container terminals, dry bulks terminals, and Network liquid bulks terminals. Meanwhile, the evaluation indexesPort and scoring methods were APEC revisedNetwork to highlight the application of new energy such as on-shore power supply and LNG and pollution treatment measuresAPEC such as ship pollutant receipt andNetwork Services disposal and oil & gas recovery. Besides, port operators' construction of green ports Port Network Serviceswas evaluated in terms of structural adjustment, technology application, operation Network Port elevation, and managementNetwork improvement. Services APEC Services Port of Singapore carried on the Maritime SingaporePort Green Initiative. In terms of green port development, the Port of Singapore usually adopts economicServices Port APEC Services subsidies and tax exemptions to promoteAPEC the development of relatedPort upstream Portand downstream enterprises and help reduce environmental pollution caused by APEC Network ports, ships, and related activities. The Maritime and Port Authority of Singapore APEC (MPA) has funded the Maritime Singapore Green InitiativeAPEC (MSGI, valid until 2024) Network to further promote the decarbonizationNetwork of the shipping industry. With the initiative's Services support, Jurong Port has been building a solar-based smart grid and LNG refueling Network facilities. In the future, various green technologiesNetwork such as electric port operationServices Port ships, shipServices oil spill detection, and monitoring systems will continue to develop. In Network addition,Port the Port of Singapore actively promotes LNG bunkering services.Port The APEC Services Maritime and Port AuthorityServices of Singapore (MPA) has jointly formulated bunkering standards and proceduresPort with the industry to enable LNGAPEC bunkering operations Services Port APEC from trucks to ships. It also actively supports the Singapore Maritime Institute (SMI) to launch the Biofuel Compatibility Study for Singapore Harbour Craft, which aims to Port studyAPEC the environmental, technical, and economicNetwork feasibility of biofuels. APEC Network APEC North America expanded the green port and shipping certification system. The Network Network"Green Port and Shipping ServicesMember Certification" in the United States is a green port Services evaluation system launched by the Green Port and Shipping Association established by shipping companies, ports, and terminal operators related toNetwork the Saint Lawrence Services Port Port Services River shipping. More than 130 member units of the Green Port and Shipping Port Network AssociationAPEC have applied for or received the Green Port and Shipping Member APEC Port Certification. The various performance indexesServices in the green port certification system lead port enterprises to move towardsPort a higher level of green transformation. ForAPEC Services APEC Networkexample, the Port of Long Beach shifted its focus from solely air pollution control Port to a sustainable developmentAPEC system including pollution prevention, technological innovation, and community integration. It formulated policiesNetwork to guide green actions in environmental management related to wildlife, water environment, soil APEC Services Network environment,Network and sediment environment. Under the guidance of the policy, 95% of Port ships entering and leaving the Port of Long BeachServices voluntarily slow down to reduce air pollution. Port Network Services APEC Services3.6.3 Safe port development Port Port APEC Services The port is a water-land intermodal transport facility. Port production is a joint APEC operation of multiple types of work and multiple processes.Port It is characterized by APEC multiple operationNetwork points, long operation lines, scattered operation activities, and APEC Network Services 105Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port high susceptibility to APECnatural factors. As a result, the port industryServices has greater potential safety hazards than other industries. Therefore, port safety management Network cannot be ignored. Port APEC Network 1. Beirut explosion sounded the alarm ofAPEC port security Services Network Port Network ServicesThe Beirut explosion in 2020 sounded the alarm of port security. China is very vigilant about port security.Network After the Beirut explosions, it immediately rolled out Network Port special security rectifications in key areas such as ports, terminals,Services logistics APEC Services warehouses, and chemical parks and carried out inspectionPort and supervision of more than 22,000 major hazards. It also issued the Notice on Further StrengtheningServices Port APEC Services the Safety Management of Dangerous Goods during Port Operations,Port which puts Portforward strict requirements and prohibitionsAPEC on the safety management of dangerous APEC Network goods during port operations. Since the 9/11 attacks, the United States has attached APEC great importance to the security of its homeland and ports. PortsAPEC in the United States Network all have corresponding safetyNetwork centers and relevant regulations in place to limit the Services amount of dangerous goods stockpiled at ports. In 2020, the Federal Emergency Network Management Agency (FEMA) of the U.S.Network Department of Homeland SecurityServices Port launched Servicesthe Port Security Grant Program (PSGP) to further improve port maritime Network securityPort risk management, providing 30 U.S. port authorities with USD 100Port million in funding to further improveServices and consolidate port security. APEC Services APEC APEC 2. Asia-Pacific Portports constantly strengthened cybersecurity Services Port Port In theAPEC wave of intelligent and digital developmentNetwork of ports, the risk of cyber-attacks APEC Network on ports is also increasing day by day. The World Economic Forum listed cyber-APEC attacks on transportation infrastructure as the world's fifth-greatest risk in 2020. Network NetworkAccording to statistics of Israeli cybersecurity experts, the number of cyberattacks Services on the OT system of the Servicesmaritime sector increased nine-fold since the NotPetya virus caused a lossPort of USD 300 million to the Maersk Group.Network Singapore launched Services Port the Singapore Maritime Cyber Security Operation Center as early as 2018 to avoid Network Services the major disturbances caused by cyberattacks to port operations and service Port APEC Port provision.APEC In 2020, the Port of Los Angeles, Servicesthe busiest port in the United States, further increased its emphasis on cybersecurityPort and signed a three-year cooperationAPEC Services APEC agreement with IBM worth USD 6.8 million on jointly designing and operating a Networkport cybersecurity center to detect and prevent malicious cybersecurity incidents Port that may affect the efficiencyAPEC of import and export in the future.Network Ports of Shandong, Jiangsu, and Xiamen in China also carried out cybersecurity training to raise their APEC Services employees' awareness of cyber port security. Network Network Services Port 3.7 Impacts of COVID-19 Pandemic on Ports and Ports'Network Countermeasures Port Services APEC Services Port Port 3.7.1 Impacts of COVID-19APEC pandemic on Asia-Pacific ports Services The third wave of global outbreaks is gaining momentumPort after the widespread APEC APEC outbreakNetwork of the COVID-19 pandemic in various economies worldwide since APEC Network 106 Services 2020 APEC Port Development Report www.apecpsn.org 106Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port March 2020 and the emergenceAPEC of mutated viruses due to theServices fast relaxation of pandemic control in some economies at the end of 2020. However, unlike the first Network wave that spread indiscriminately around the world andPort the second wave that was APEC concentratedNetwork in North America, Europe, and the Middle East, although the third wave was also concentrated in Latin America,APEC the Middle East, and Southeast Asia,Network Services it has been put under control at an accelerated pace as the Biden administration Port Network Servicesmakes every efforts to fight the pandemic. Therefore, it is expected that the third Network wave of the pandemic mayNetwork disrupt the pace of global economic recovery but will not Port change the overall trend of economic recovery. Services APEC Services Port Services Port APEC Services APEC Port Port APEC Network APEC APEC Network Network Services Network Network Services Port Services Network Port Port APEC Services Services APEC Services Port APEC Port Note: The number of confirmed COVID-19 cases in Australia is less than in other regions, so it Port APEC is notAPEC shown in the figure. Network Network Data source: Kaiyuan Securities Research Institute APEC Network Figure 3-30 Daily Increase of Confirmed Cases in Major Regions of the World from Network ServicesMarch 2020 to April 2021 Services Network Services Port The COVID-19 pandemicPort affects port production from two aspects, that is, Network Services reducing import and export demands and reducing port production efficiency. Port First, APECport is a gateway for the import and export of goods and port operation is APEC Port driven by the import and export volumes of relatedServices industries in the hinterland and the demands for steel, coal and otherPort bulk materials from domestic infrastructureAPEC Services APEC Networkprojects and industries. The plant shutdown and residents quarantine after the Port outbreak led to a significantAPEC drop in these demands, and the demand for port handling operation also decreased accordingly. Second, as a regionalNetwork gateway, the APEC Services port has a high risk of spreading the pandemic. Thus, ports generally implement Network strict controlNetwork such as prohibiting ships from berthing and strengthening inspection Port and quarantine of goods. In addition, the COVID-19Services pandemic caused a part of the labor force to stay at home or give up workPort due to fear of contracting the disease. AsNetwork Services APEC Servicesa result, port productivity was reduced, and the port's performance was undermined. Port Port The COVID-19 pandemicAPEC had a great impact on the productionServices of Asia-Pacific ports in the early stage of its outbreak. Suppose we select major economies in APEC the Asia-Pacific region and compare their daily new infectionsPort with the cargo and APEC Network APEC Network Services 107Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port container throughputs APECof major ports in the economy. In that case,Services we can find that the pandemic situation has a high correlation with port production performance, Network highlighting the following characteristics: (1) StrictPort prevention and control APEC measuresNetwork are often adopted at the beginning of the outbreak. As a result, domestic production was halted, consumer demandAPEC dropped sharply, and cargo handling andNetwork Services transportation operations were greatly restricted. During this period, port throughput Port Network Serviceshad a sharp decline. (2) When the pandemic situation got controlled, normalized Network prevention and control measuresNetwork can sustain the normal port operations. Besides, as Port the number of daily new infections decreased, the throughput growthServices decline would APEC Services stop or even pick up slowly or quickly. (3) When the domesticPort pandemic situationServices Port APEC improvedServices significantly, and production and consumption gradually resumed normal operations, that is, when the number of dailyAPEC new infections dropped Portsignificantly, Portcargo throughput, especially container throughput, might show retaliatory growth, APEC asthroughput, presented especially by the container September throughput, trend mightin Korea. show retaliatory(4) When growth, the pandemic as presented situation by the Network September trend in Korea. (4) When the pandemic situation recurred,APEC as the prevention and APEC recurred, as the prevention and control mechanism had matured, port throughput Network hadcontrol a weak mechanism correlation had matured, withNetwork the port pandemic throughput situation. had a weak At this correlation time, port with throughput the pandemic was Services moresituation. sensitive At this time,to domestic port throughput economic was more stimulus sensitive policies. to domestic For economic example, stimulus although policies. the Network pandemicFor example, continued although to the deteriorate pandemic continued in the second toNetwork deteriorate half of in 2020 the second in the half United of 2020 States, in th Serviceseits Port importsUnitedStates, continuedServices its impor to surgets continued due to to multiple surge due rounds to multiple of active rounds domestic of active domesticfiscal stimulus fiscal Network policies.Portstimulus policies. (5) The (5) container The container throughput throughput growthgrowth had had a higher a higher correlation correlation with thePort pandemic with the pandemicsituation. This situation. is because This cargoes, isServices because consumables cargoes, used consumables by residents, other used durable by residents, goods, and other raw APEC Services materials produced by enterprises are shipped in containers. As a result, the pandemic primarily durable goods, and raw materials produced by enterprises areAPEC shipped in containers. dampened residents'Port consumption willingness, and major bulks throughputs often recover ed Services Port APEC As a result, the pandemic primarily dampened residents' consumption willingness, quickly from the pandemic. and major bulks throughputs often recovered quickly from the pandemic. Port APEC Network APEC Network APEC Network Network Services Services Port Network Services Port Services Port Network APEC Port APEC Services Port APEC Services APEC Network Port APEC Network APEC Services Network Network Port Services Port Network Services APEC Services Port Port Figure 3-31 Port Production ofAPEC Major Economies in the Asia-Pacific Region vs. the COVID-19Services Pandemic Figure 3-31 Port Production of Major Economies in the Asia-Pacific Region vs. the APEC COVID-19 PandemicDevelopment DevelopmentPort APEC Network 3.7.2 Countermeasures of Asia-PacificAPEC ports against the pandemic Network 108 Services1. Gradually improving ports' epidemic control procedures to prevent the spread of the pandemic 108 2020 APEC Port Development Report www.apecpsn.org Network Services Port As the port is an important gateway for an economy to receive foreign supplies, imported cargoes (especially cold-chain goods) and seafarers may become COVID-19 carriers.Port Therefore, the World APEC Health OrganizationServices (WHO) issued the Manual for the Management of Public Health Incidents on Ships in 2016 that provides complete guidelines for theAPEC pandemic prevention and control of ships Serv andPort ports and prepared the detailed Precautions for Ship Management of COVID-19 Patients or Port APEC Network97 APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port 3.7.2 CountermeasuresAPEC of Asia-Pacific ports against the pandemicServices Network 1. Gradually improving ports' epidemic control Portprocedures to prevent the APEC spreadNetwork of the pandemic APEC Services As the port is an important gateway for an economy to receive foreign supplies,Network Port Network Servicesimported cargoes (especially cold-chain goods) and seafarers may become COVID-19 carriers. Therefore,Network the World Health Organization (WHO) issued the Network Port Manual for the Management of Public Health Incidents on ServicesShips in 2016 that APEC Services provides complete guidelines for the pandemic preventionPort and control of ships and ports and prepared the detailed Precautions for Ship Management of COVID-19Services Port APEC Services Patients or Pandemic (Interim Guidance) at the early stage of the outbreakPort in 2020. PortOn such a basis, various international conventionsAPEC and organizations in the port and APEC Network shipping sector also successively issued guidelines for the prevention and control of APEC the COVID-19 pandemic, formulating specific prevention proceduresAPEC for ships calling Network at ports during the pandemicNetwork and providing strong theoretical support. Services Network Network Services Port Services Network Port Port APEC Services Services APEC Port APEC Services Port Port APEC Network APEC Network APEC Network Network Services Services Port Network Services Port Services Port Network APEC Port APEC Services Port APEC Services APEC Network Port APEC Network APEC Services Network Network Port Services Port Network Services APEC ServicesSource: World Health Organization Handbook on Management of Public Health Incidents on Port Port Ships APEC Services Figure 3-32 WHO Procedures for Prevention and Control Portof Public Health Incidents APEC APEC Network at Ports APEC Network Services 109Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port Under the guidelines forAPEC pandemic prevention and control, majorServices economies in the Asia-Pacific region have formulated detailed rules for ports and ships, implemented Network and verified these rules in practice, and gradually establishedPort relatively complete APEC epidemicNetwork prevention and control systems and procedures that help ports adopt normalized and precise epidemic preventionAPEC and control measures and resume theirNetwork Services production activities. For example, China has successively issued five editions of Port Network Servicesthe Guidelines for COVID-19 Pandemic Prevention and Control of Ports and Their Network Frontline Workers, whichNetwork optimized and diversified the connotation and methods of Port epidemic prevention and control at ports and provided strong supportServices for counter- APEC Services trend growth of cargo throughput at Chinese ports. Port Services Port APEC Services 2. Expanding the application of digital APECtechnologies to reduce impactPort of the Portpandemic APEC Network APEC Most ports in the Asia-Pacific region adopted strict preventionAPEC and control measures Network in response to the COVID-19Network pandemic. Specifically, some physical isolation Services measures have broken the original business model of the port, and port authorities Network had to re-examine their working procedures.Network As a result, they expanded theServices Port applicationServices of digital technologies to restructure the port's working patterns. The Network applicationPort of digital technology is primarily promoted from two aspects. PortFirst, ports APEC Services of major economies in theServices Asia-Pacific region follow the digital development trend of the whole industryPort amid the pandemic to accelerate digitalAPEC technology application Services Port APEC in ports. For example, some ports in Thailand promoted the "Internet of Things + Technology" such as electronic payment, mobile terminals and mobile apps, and Port APEC MalaysiaAPEC strengthened the construction of Networkdigital port infrastructure. Second, ports Network use digital technologies to formulate specific solutions in response to the changesAPEC in the workflows caused by the COVID-19 pandemic, such as asking port workers to Network Networkwear detection bracelets toServices avoid close contact among workers. Services Network In addition, ports withPort a higher digital level, such as the Port of Singapore, continued Services Port Services to accelerate the establishment of a digital governance system with domestic Port Network publicAPEC health and other departments during the pandemic, and explored setting up APEC Port a legal regulatory framework and governanceServices system for port digitalization. They also strived to promote digital meansPort to strengthen cooperation with ports in theAPEC Services APEC region. For example, the Singapore Customs promoted the bilateral single-window Networkinterconnection plan of Australia, China, Indonesia, and the Netherlands, expanded Port its own digital strengths toAPEC cross-departmental and cross-regionalNetwork digital governance. The port's digital co-governance solution has provided a model for all peers in the APEC Network Services world. Port Network Services 3. Reducing charges and providing subsidies to help enterprise tide overNetwork difficulties Port Services APEC Services Port Under the pandemic, port APECand shipping enterprises face tremendous pressure due Port to the substantial decline in business volume and serious problemsServices such as the backlog of cargoes and terminal congestion. To promote thePort resumption of work and APEC APEC productionNetwork in the logistics industry and the industrial chain, many economies in the APEC Network 110 Services 2020 APEC Port Development Report www.apecpsn.org 110Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port Asia-Pacific region haveAPEC introduced policies or provided correspondingServices subsidies to help port and shipping companies tide over difficulties. Some of them also reduced Network charges to alleviate the burden on cargo owners. Port APEC Network There are two main kinds of charge reductionAPEC and subsidy policies for ports in Services Asia-Pacific economies. One is government policy. For example, the Busan PortNetwork Port Network ServicesAuthority invested a huge fund of KRW18.7 billion in helping the port and shipping industry tide over businessNetwork difficulties due to the COVID-19 pandemic and offered Network Port rewards for operation and subsidies for loss to port and shippingServices companies. The APEC Services Chinese government launched a phased charge reductionPort policy, reducing or exempting various government-priced charges such as port construction charges,Services Port APEC Services cargo port charges and port facility securityAPEC charges to varying degrees.Port The other Portkind of subsidy policies was offered by port enterprises or local port authorities APEC Network that voluntarily surrendered part of the profits and gave customers certain benefits APEC to stabilize and attract freight source and customers. ForAPEC example, Chinese port Network enterprises took the initiativeNetwork to reduce storage charges and charge for tugging Services services based on strictly implementing the government regulation of reducing Network the government-set operating fees andNetwork lowering the lump-sum charge for portServices Port operations.Services Port enterprises in Shanghai, Shandong, Tianjin, and Xiamen all Network extendedPort the free storage period of container cargoes and reduced storagePort fees to APEC Services relieve the burdens on cargoServices owners. The Maritime and Port Authority of Singapore APEC (MPA) launched Porta support package worth USD 27 million to providAPECe targeted support Services Port for seafarers and maritime companies and maintain normal operations of the port. Port 4. SomeAPEC ports relaxed crew change policiesNetwork to address challenge s APEC Network APEC In 2020, global ports were plagued by the pandemic and crew change became Network Networka global problem. AlthoughServices the IMO issued and updated the Recommended Services Protocol Framework to Ensure the Safe Change and Travel ofNetwork Seafarers during the COVID-19 Pandemic,Port various economies still imposed restrictions on crew change Services Port Services considering their own circumstances since the protocol framework is not mandatory. Port Network For example,APEC some ports in the Asia-Pacific region, such as Australia, still did not APEC Port allow crew change. In addition, the tighteningServices control of the global air passenger transportation network and the superpositionPort of epidemic prevention policiesAPEC in Services APEC various economies increased the cost of crew change, which also caused a large Networknumber of seafarers to be stranded at sea and unable to disembark. Port APEC Network Facing the dilemma of crew change, Asia-Pacific economies such as China, APEC Network Services Singapore, and the Philippines actively relaxed their crew change policies, Port which playedNetwork an important role in ensuring theServices resumption of work and production in the global shipping industry. Specifically, China's Shanghai Port is the firstNetwork international port that publicly releasedPort regulations on crew change during Services APEC Servicesthe epidemic prevention and control period. Shanghai Port issued the Health Port Port Management RequirementsAPEC for Ship Crew from Key Countries Coming/ReturningServices to Shanghai at the initial stage of the outbreaks, clearly stipulating the epidemic APEC control requirements and shift procedures for seafarers fromPort overseas ships coming APEC to Shanghai.Network Subsequently, as the domestic outbreak was put under control, China APEC Network Services 111Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port successively relaxed APECthe crew change policy for foreign seafarersServices at ten ports including Dalian, Tianjin, Qingdao, Shanghai, and Ningbo ports in October 2020, Network realizing the normal operation of crew change. Singapore'sPort crew change policy is APEC obviouslyNetwork tentative and changeable. Based on the Singapore Crew Change Guide (SCCG) jointly formulated by the MPA andAPEC other organizations, the conditions Networkfor Services applying for crew change were constantly revised according to the changes of Port Network Servicespandemic situation. The crew change policy was repeatedly relaxed and tightened. Network Nonetheless, as one of theNetwork first economies to relax crew change policy, Singapore Port achieved fruitful results in this regard, facilitating shift changes Servicesinvolving more than APEC Services 3,500 ships and more than 60,000 seafarers of differentPort nationalities throughoutServices Port APEC the year.Services The Philippines was struggling against the pandemic and competing with India and Sri Lanka for a global crew changeAPEC center status. During the Portrapid spread Portof the pandemic in July 2020, the Philippine government issued the Joint Circular on APEC Network Green Channel for Crew Change, opened up various links APECfrom the port, quarantine APEC department, immigration bureau, to aviation department, established a one-stop Network mechanism for seafarers'Network physical examination and formalities, and successively Services opened six crew change hubs including Port of Manila, Port of Capinpin, Subic Bay Network Port and Port of Batangas, allowing free cross-borderNetwork movement and shift changeServices of Port all seafarersServices on cargo ships. Network Port Port ServicesSeafarers entering APEC Services Shanghai port APEC Port APEC Services Port Shipping enterprises/agents submit applications to customs, border inspection Port APEC and maritime departmentsNetwork in advance APEC Network APEC From overseas key countries to From overseas non-key countries Network Shanghai port to Shanghai port Network Services Services Less than 14 days after departure 14 days after itsNetwork departure from a from a key country key country Services Port Port Without isolation Network Services The port operator shall collect and verify Port APECthe relevant information and report it to APEC Port the local health department Services Port APEC Services No fixed residence Have a fixed residence APEC Network in Shanghai in Shanghai Port APEC The shipping company Network will send the crew directly Home quarantine APEC Services to the quarantine place Network Network Port The shipping enterprise/agent will report Services the final disposition of the seamen to the Network customs and the border inspection Port Services APEC Services Need to isolate Port Port APEC Services Figure 3-33 the Health Management Requirements Portfor Ship Crew from Key APEC APEC NetworkEconomies Coming/Returning to Shanghai APEC Network 112 Services 2020 APEC Port Development Report www.apecpsn.org 112Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port 3.7.3 Anti-pandemic suggestionsAPEC for Asia-Pacific ports Services Network 1. Actively adapting to changes in the Asia-PacificPort economic and trade APEC environmentNetwork in the post-pandemic era APEC Services In recent years, the rapid development of the global economy and trade has slowedNetwork Port Network Servicesdown significantly, the anti-globalization trend continued to rise, geopolitical tensions intensified, trade disputesNetwork were frequent, and other factors have become acute. Network Port The interruption of multiple industrial chain links has caused theServices global industrial APEC Services chain to move toward regionalized and polycentric directionsPort during the pandemic. It is possible to form an Asia-Pacific industrial chain cluster with China, Japan,Services and Port APEC Services Korea as the core, an American industrial chain cluster with the UnitedPort States- PortMexico as the core, and a Nordic industrialAPEC cluster with Germany, France, the APEC Network United Kingdom, and Italy as the core. The three major clusters realize the division APEC of roles across the entire industry chain in their respectiveAPEC clusters. The Regional Network Comprehensive EconomicNetwork Partnership (RCEP) will profoundly impact the economic Services and trade development of Asia-Pacific economies. The member states have pledged Network to achieve "zero tariffs" for more than 90%Network of cargo trade in the next ten years.Services By Port then, the Servicestotal shipping capacity of the Asia-Pacific region will further increase. Network Port Port APEC Against this background, Servicesthe positioning of ports in Asia-Pacific economies around Services the world will change. Ports will no longer pursue a largeAPEC size to accommodate Services Port APEC large ships sailingPort on oceangoing routes. The importance of satisfying domestic and regional transportation needs will increase. Specifically, during the pandemic, China Port APEC proposedAPEC a new development pattern of "focusingNetwork on the internal circulation and Network realizing mutual promotion of internal and external circulations". In this new pattern,APEC the port supply system will be adjusted accordingly, including improving the internal Network Networkcirculation port infrastructure,Services optimizing the cargo collection, distribution, and Services transportation system, expanding and extending port service functions,Network and creating a hub network systemPort of inland rivers, riverside ports, and coastal ports. Services Port Services Port Network 2. FurtherAPEC improving ports' emergency response mechanisms to major APEC Port emergencies Services Port APEC Services APEC In the early stage of the outbreaks, most economies in the Asia-Pacific region Networkimplemented compulsory lock-down measures due to a lack of understanding of Port the pandemic and insufficientAPEC experience in pandemic preventionNetwork and control. Such measures produced good control effects but exerted a huge adverse impact on port APEC Services production. With the continuous adjustments during the pandemic, the International Network Port AssociationNetwork of Ports and Harbor and port Servicesauthorities of various economies formulated relatively well-grounded guidelines for epidemic prevention of ports andNetwork ships and developed relatively mature Portepidemic prevention and control mechanisms Services APEC Servicesin practice. These guidelines and mechanisms have improved the collaborative Port governance capabilities betweenAPEC ports and port authorities and greatly promoted the Port development of the port health security system. Services Port APEC APEC However,Network major emergencies confronting port production include public health APEC Network Services 113Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port incidents and other typesAPEC of incidents such as natural disasters,Services accidents, and social security incidents. Emergency plans have been prepared for some of these Network incidents, but they might be theories only or failed to Portbe updated in time, rendering APEC it difficultNetwork to put them into practice. Impacted by the COVID-19 pandemic, various economies in the Asia-Pacific region shouldAPEC continuously strengthen the researchNetwork Services on emergency response mechanisms based on the existing theories, and strengthen Port Network Servicesjoint emergency drills with port authorities, to further improve the effectiveness of Network emergency plans, respondNetwork to various incidents that may occur at any time in the Port future, continue to give full play to the role of ports as a gatewayServices for cargo import APEC Services and export, and ensure the security of material supply forPort economies. Services Port APEC Services Port3. Enhancing automation renovation to improveAPEC the safety coefficientPort of ports APEC Network Since the COVID-19 pandemic is spread mainly through direct or indirect contact APEC between people, besides reducing personnel contact andAPEC controlling crowded Network places, automation and semi-automationNetwork technologies are the most effective way to Services block the transmission while reducing the labor intensity of dock workers. In 2020, Network automated terminals indeed showed strongNetwork resilience amid the pandemic. China'sServices Port YangshanServices Phase IV Automated Terminal and Qingdao Port Automated Container Network TerminalPort both performed well. In addition, with the gradual developmentPort and large- APEC Services scale application of 5G Servicescommunication technology, it is easier to popularize the semi-automated Portcranes and visual remote operation technologies,APEC and technologies Services Port APEC such as the Internet of Things also make precise positioning and immediate handling of goods possible. In 2020, traditional terminals showed growing enthusiasm for Port APEC automationAPEC renovation. Ports such as Port Networkof Montreal in Canada, and Tianjin Port Network and Dalian Port in China all invested in automation renovation of terminals, andAPEC the terminal automation technology also developed rapidly. Network Network Services Services Therefore, building fully automated terminals or carrying outNetwork full-automation and semi-automation renovationPort of traditional terminals will become an effective solution Services Port Services to improve ports' resilience to various major emergencies. After the pandemic is Port Network over, APECAsia-Pacific economies may support the automation of port facilities and APEC Port equipment through low-interest loans and corporateServices incentives and at least realize the renovation of some key ports to constructPort underlying transportation channels APECfor Services APEC Networkthe import and export of domestic goods. Port 4. Proactively respondingAPEC to The Neptune Declaration toNetwork address the crew change APEC Services Network Port As the thirdNetwork wave of the COVID-19 pandemic continuesServices to spread, the crew change policies of various economies are also repeatedly changed. There are still strictNetwork restrictions on crew change, and the problemPort is continuously worsening. Therefore, Services APEC Servicesmany shipping companies have signed The Neptune Declaration on Seafarer Port Wellbeing and Crew ChangeAPEC at the World Economic Forum held on January 25, Port 2021. The Neptune Declaration declared four main actions that provideServices guarantee at the fundamental, institutional, collaborative and traffic levels,Port aiming to address the APEC APEC crew changeNetwork problem by establishing a more resilient supply chain. APEC Network 114 Services 2020 APEC Port Development Report www.apecpsn.org 114Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port The Neptune DeclarationAPEC is a brave attempt. Asia-PacificServices economies should actively respond to the call of the Neptune Declaration, unite stakeholders in the Network shipping industry, various partners in the industry chainPort and governments of various APEC economiesNetwork to jointly resolve the crew change crisis, and help the global port and shipping industry achieve a rapid recoveryAPEC in the post-pandemic period. Services Network Network Services3.8 Review of International Port Organization Development Port Network Network Port In 2020, under the impact of the pandemic, health security at portsServices had become the APEC Services focus of port development around the world. Many internationalPort port organizations APEC have launched initiatives and activities to help ports tide over the difficulties.Services Port Meanwhile,Services the Low Sulphur Regulation issued by the IMO came into effect in Portthis challenging year. The energy-savingAPEC and emission-reduction movementPort of APEC Network the shipping industry entered a new stage of development, and the environmental problems of the port attracted great attention as well. The APECsustainable development Network APEC of ports is still one of the keyNetwork focuses of international port organizations such as the International Association of Ports and Harbors (IAPH) and the European Sea Ports Services Organization (ESPO). Network Services Port Network Services Network 1. The International Association of Ports and Harbour (IAPH) Port Port Services APEC Services The International Association of Ports and Harbors (IAPH) is currently the world's largest non-profit NGO for ports. With enhancing global portAPEC ties and promoting Services Port APEC Port port industry collaboration as its vision, the IAPH aims to help solve common Port problemsAPEC of global ports and improve port service capabilities. The IAPH represents approximately 180 ports in nearly 90 economiesNetwork and 140 port-related departments. APEC Network APEC Its member ports jointly handle more than 60% of the marine trade and nearly 80% Network Networkof container volume in the world. Services Services In 2020, the impactPort of the COVID-19 pandemic on ports becameNetwork the focus of Services Port the IAPH. The IAPH not only launched the COVID-19 Online Information Portal Network Services that regularly releases information about port operation status, port regulations Port APEC Port and restrictions,APEC operation guidelines, recommendationsServices to the government, and economic impact under the pandemic, but also set up a special working groupAPEC Services composed of professionals from the Portports of Antwerp, Busan, Felixstowe, London, APEC NetworkLos Angeles, and Rotterdam, as well as internationally renowned experts in port Port economics. They providedAPEC relevant guidance for port operatorsNetwork and helped them cope with the impact of the pandemic. APEC Services Network In addition,Network climate change is still a long-term focus of the IAPH. In April 2020, the Port IAPH released the first edition of the World PortServices Sustainable Development Report. The report pointed out that handlingPort the relationship between ports and urbanNetwork Services APEC Servicescommunities is the primary agenda for port development, and climate, energy and Port infrastructure resilience areAPEC of equal importance. In October, the IAPH joined the Port International Maritime Organization (IMO)'s Norway Green Voyage Services2050 Project as a strategic partner, aiming to further support various economiesPort to make ports cleaner APEC APEC and moreNetwork environmentally friendly by developing additional utilities. In the future, APEC Network Services 115Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 3 Network Services Port Network Services Port Network APEC Services Port the IAPH and Green VoyageAPEC 2050 will jointly study effective incentivesServices for ports to reduce greenhouse gas emissions and explore how ports can help achieve the initial Network strategic goal of the IMO on reducing greenhouse gas Portemissions from ships. APEC Network 2. European Sea Ports Organisation APEC Services Network Port Network ServicesThe European Sea Ports Organisation (ESPO) is a port organization within the European Union, which Networkcoordinates the interests of ports in the form of a council, Network Port participates in the formulation of EU shipping policies, protectsServices the port status APEC Services of EU member states and all EU economies, and offersPort technical advice and financial support for specific port projects. In 2020, the ESPO released its Servicesfifth Port APEC Services annual environmental report in a webinar. The ESPO Environmental PortReport 2020 Portincluded more than 60 types of environmentalAPEC performance benchmarks, analyzed APEC Network the environmental performance of EU ports in 2020, announced the environmental APEC priorities for ports, and also provided data related to greenAPEC shipping services, Network including supply of clean energyNetwork such as on-shore power supply and LNG, etc. Services Network Among the latest port environmental prioritiesNetwork announced by the ESPO, air qualityServices Port was alwaysServices listed as a top priority. Air quality has become a key factor for the Network sustainablePort development of ports, and air quality management is directlyPort related to APEC the issuance of the port Servicesoperation license. Climate change and energy efficiency Services followed closely and climate change moved up by one placeAPEC on the priority list, Services Port APEC becoming the secondPort top priority of ports in 2020. Currently, 70% of European ports consider climate change when developing new infrastructure projects. 65% of Port APEC EuropeanAPEC ports have taken measures to enhanceNetwork the climate resilience of existing Network infrastructure. In terms of green shipping services, the ESPO EnvironmentalAPEC Report 2020 shows that as of 2020, 58% of ports have provided on-shore power Network Networksupply (OPS) for ships callingServices at the ports. Among these ports, 46% provide high- Services voltage power suitable for ocean-going ships. 40% of ports planNetwork to provide OPS in the next two years.Port In addition, one-third of ports provide LNG bunkering services. Services Port Services Meanwhile, 57% of ports set different environmental charges for ships that exceed Port Network regulatoryAPEC limits. Exhaust emissions, garbage, and climate change are important APEC Port evaluation indexes for providing discounts. Services Port APEC Services APEC Network Port APEC Network APEC Services Network Network Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network 116 Services 2020 APEC Port Development Report www.apecpsn.org 116Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port APEC Services Network Port APEC Network APEC Services Network Port Network Services Network Port Network Services APEC Services Port Services Port APEC Services APEC Port Port APEC Network APEC APEC Network Network Services Network Figure 3-34 Top 10 Environmental PrioritiesNetwork for European Ports in 2020 Services Port Services Network 3.Port American Association of Port Authorities Port APEC Services Services The American Association of Port Authorities (AAPA) representsAPEC more than 130 Services Port APEC public port authoritiesPort in the United States, Canada, the Caribbean, and Latin America. Through a series of policies and initiatives, it helps ports improve services, Port APEC ensureAPEC long-term port development, and enhanceNetwork port contribution to communities Network and socio-economics. In 2020, the AAPA focused on the impact of the pandemicAPEC on ports, port infrastructure investment and construction, port security, and other Network Networkaspects. Services Services In 2020, the port Portand shipping industry of the United StatesNetwork was hit hard by the Services Port COVID-19 pandemic. Although port operations have recovered in the second half Network Services of the year, most ports still face great difficulties in funds. In this context, the AAPA Port APEC Port activelyAPEC joined with other maritime transportServices entities to call on the government to provide USD 3.5 billion of pandemicPort relief funds for the US maritime transportAPEC Services APEC industry to alleviate the impact of the pandemic on the port and shipping industry. NetworkMeanwhile, the AAPA appealed to a grant of USD 1.5 billion by U.S. Congress Port to cover the additional APECcosts incurred by the port due to theNetwork control measures taken during the pandemic. Moreover, the AAPA also made every effort to call APEC Services on government departments to expand infrastructure investment. Port-related Network Port infrastructureNetwork investment has always been a keyServices focus of the AAPA. In the Report on Funding Requirements for Rail Transport and Port Multimodal Transport, the AAPANetwork noted that the investment demand of U.S.Port ports in multimodal transport and railway Services APEC Servicesconstruction would exceed USD 20 billion in the next ten years, so the support from Port Port the economy government willAPEC be particularly important. Services Port APEC APEC Network APEC Network Services 117Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 4 Network Services ChapterNetwork 4 Review and Comment on Major Shipping Port and Port Events in the Asia-PacificServices Region in 2020 Port Network APEC Services Port 4.1 Review and CommentAPEC on 9 Major ShippingServices Events in Asia- Network Pacific Region in 2020 Port APEC 1. RegionalNetwork Comprehensive Economic Partnership (RCEP) boosted the shipping industry APEC Services Network Port Network ServicesIn November 2020, a total of 15 Asia-Pacific economies composed of 10 ASEAN Network member states, China, Japan,Network Korea, Australia, and New Zealand formally signed Port the Regional Comprehensive Economic Partnership (RCEP) Agreement.Services The RCEP APEC Services negotiation is the largest and most important free tradePort agreement negotiationServices in Port APEC the Asia-PacificServices region. The RCEP will cover almost half of the world's population, contribute one-third of the world's trade volume,APEC and establish a free tradePort zone with Portthe largest population, the most diverse membership and the greatest vitality in the APEC Network world. Boosted by the successful signing of the RCEP Agreement,APEC the port, shipping, APEC foreign trade, and other sectors showed strong growth, promoting regional economic Network integration. The strong exportNetwork is expected to continue. Services Network The RCEP Agreement will support the long-termNetwork demand of the shipping industry.Services Port Tariff reductionServices can effectively promote trade development in the Asia-Pacific region, Network andPort the freight volume on inter-regional routes will further increase. However,Port the APEC Services supply chain structure ofServices the shipping industry in the Asia-Pacific region is unable to support the increasingPort freight volumes on shipping routes.APEC So Asia-Pacific Services Port APEC economies will fully use digital technologies such as big data, cloud computing, and intelligent technologies to strengthen the management of the transport supply chain, Port APEC conductAPEC comprehensive and in-depth studiesNetwork on the new development pattern, and Network improve efficiency and service levels to adapt to future changes in the shippingAPEC industry. Network Network Services Services 2. Slump in crude oil price fueled a boom in the tanker market Port Network Services Port Services In 2020, the international crude oil prices showed great fluctuations. At the beginning Port Network of theAPEC year, since Russia did not agree to cut oil production at the conference of the APEC Port OPEC+ Alliance in March, Saudi Arabia andServices other oil-producing countries waged an oil-price war, drastically reducingPort the price of crude oil. Meanwhile, factoryAPEC Services APEC production halt, shipping routes suspension, and a drastic reduction in transportation Networkdemand led to a sharp drop in oil demand. The oversupply in the market made Port international crude oil pricesAPEC drop all the way. The slump in Networkoil prices prompted China and other economies that consume large amounts of crude oil to expand APEC Network Services their import scale. As a result, crude oil inventories rapidly increased, and the Port negativeNetwork pressure on crude oil prices increased.Services The crude oil prices fell to an all- time low. After OPEC reached a new agreement on oil output cuts in May, oil pricesNetwork rebounded from the trough in a short Portperiod of time and continued to fluctuate at Services APEC Servicesaround USD 40; until November, the global pandemic was basically under control, Port Port resulting in optimistic expectationsAPEC for the global economic recovery,Services demand-side recovery and continuous rise of crude oil prices. APEC Port APEC The slumpNetwork in crude oil prices primarily had a short-term impact on the shipping APEC Network 118 Services 2020 APEC Port Development Report www.apecpsn.org 118Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port industry. First, the rushAPEC for oil reserves driven by low oil prices Servicesgreatly increased the demand for Very Large Crude Carrier (VLCC). Since March 10, the VLCC freight rate Network has experienced a violent rise. VLCC-TCE soared nearlyPort ten times from the previous APEC USD Network28,200/day to USD 264,100/day, a record high, greatly mitigating the loss of crude oil tanker owners at the beginningAPEC of the year. Second, high oil prices andNetwork Services high price differences positively impact the development of LNG-related markets. Port Network ServicesUnder the current low oil prices, crude oil and its derivative products may replace Network the demand for LNG to aNetwork certain extent, which naturally exerted some influence on Port the LNG-powered ship manufacturers and LNG carriers in the LNGServices industry chain. APEC Services However, the slump in oil prices in 2020 would not causePort industrial transformationServices Port APEC in the longServices run. Oil prices and tanker freight rates returned to normal after OPEC+ Alliance reached the production cut agreementAPEC and the global economyPort gradually Portrecovered. Moreover, green development and environmental protection will be an APEC Network important theme for the development of the entire shippingAPEC industry and even the APEC social economy for a long time to come. The LNG-related market remains optimistic Network in the long run. Network Services Network 3. Five major shipping companies in KoreaNetwork established "K-Alliance" Services Port Services Network InPort December 2020, under the support of the Korean government, fivePort Korean APEC Services shipping companies, namelyServices HMM, Sinokor, SM Line, Pan Ocean, and Heung-A Line, establishedPort the "K-Alliance", which aims at enhancingAPEC the competitiveness Services Port APEC of Southeast Asian routes that hold huge growth potential, establishing strategic partnerships with foreign shipping companies in the Asian region when necessary, Port APEC and APECbuilding partnerships with global shippingNetwork alliances such as The Alliance to Network lead the Asian market. The total shipping capacity of these five companies onAPEC the Korea—Southeast Asia routes is 480,000 TEUs, accounting for nearly 50% of the Network Networktotal shipping capacity ofServices Korea—Southeast Asia routes. In the future, another Services six shipping companies in Korea may join K-Alliance one afterNetwork another, and other international shippingPort companies may also be allowed to join the alliance. Services Port Services Port Network K-AllianceAPEC is the first shipping alliance composed of domestic shipping companies APEC Port in Korea after the Korea Shipping PartnershipServices (KSP) established in 2017 failed to make any achievements. It is an importantPort initiative to promote Korea's Five-YearAPEC Services APEC Plan to Revitalize Shipping Industry (2018—2022), symbolizing that the Korean Networkshipping industry has gradually recovered from the bankruptcy of Hanjin Shipping Port and is determined to competeAPEC for more market share. In addition,Network as the function of shipping alliance shifted from driving market share growth to ensuring the survival APEC Network Services of enterprises, other new regional shipping alliances may emerge in the near future when theNetwork shipping industry still face many uncertaintiesServices in the post-pandemic era. Port Network 4. Freight rates of trans-Pacific routesPort hit a record high Services APEC Services Port Since the second half of APEC2020, the freight rate of the China-US West route has Port continued to rise due to the shrinking shipping capacity and Servicesincreasing trade demand. According to Freightos Baltic Daily Index, thePort freight rate reached a APEC APEC historical Networkhigh of USD 3,875/FEU in mid-September. It then fluctuated slightly within APEC Network Services 119Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 4 Network Services Port Network Services Port Network APEC Services Port a few dollars around thisAPEC point, showing static spot freight rates.Services The imbalance between supply and demand caused the soaring freight rates of trans-Pacific Network routes in 2020. China started resumption of work andPort production on a large scale APEC after Networkeffective pandemic control in the second quarter. The U.S. import demand for overseas epidemic prevention supplies andAPEC related daily necessities also pickedNetwork Services up sharply. As a result, the recovery of Sino-U.S. trade exceeded expectations. Port Network ServicesHowever, the container liner companies mothballed a lot of capacity to cope with Network the expected bleak marketNetwork in the future due to the global spread of the pandemic Port and Sino-U.S. trade tensions in the first half of the year. With theServices rapid recovery of APEC Services shipping demand, the speed of capacity release cannotPort catch up with the speedServices Port APEC of demandServices recovery, leading to the rapid increase in freight rates. Moreover, the imbalance of east-west trade, shortage of emptyAPEC containers, congestionPort of ports on Portthe west coast of the United States, and the behavior of liner companies driving up APEC Network freight rates are also important reasons for the rise in freight rates. APEC APEC Network 5. COVID-19 pandemic dealtNetwork a heavy blow to the global cruise industry Services Network In 2020, the COVID-19 pandemic forcedNetwork the cruise market to shut down. At theServices Port beginningServices of the outbreak, many people on the Diamond Princess cruise ship were Network infected,Port and then passengers aboard were put under a 14-day quarantinePort on the APEC Services ship at the Port of Yokohama,Services Japan. After that, many cruise ships such as "Grand Princess" and "RoyalPort Princess" have also been suspendedAPEC due to the pandemic Services Port APEC outbreak on board. Subsequently, global cruise orders were canceled on a large scale during the peak season of global cruise booking. Under the influence of panic, Port APEC majorAPEC cruise operators such as Carnival, RoyalNetwork Caribbean, and Norwegian Cruise Network Line Holdings Ltd saw their share prices plunge, rescued themselves by selling theirAPEC core assets and spinning off key brands, and even declared bankruptcy. The cruise Network Networkindustry has fallen into theServices freezing point. The cruise industry is a high-risk industry Services with a relatively simple revenue model. Suspension means that cruise companies face huge cost consumption while losing their main businessNetwork income. Meanwhile, Services Port Port Services the loss will also be spread to cruise ports and related supporting enterprises in Port Network downstreamAPEC of the cruise industry chain, resulting in the overall sluggishness of the APEC Port cruise industry chain. Services Port APEC Services APEC The impact of the COVID-19 pandemic on the cruise industry will last for years, Networkbut the industry pattern will not undergo disruptive changes. First, as the global Port pandemic continued to spreadAPEC in the second half of 2020, mostNetwork cruise companies have canceled the resumption plan until the first half of 2021, and the recovery on APEC Network Services the demand side is still at a far distant date. Second, the pandemic will undermine Port the publicNetwork confidence in cruise ship safety, leadingServices to an increase in the rejection rate of cruise ships. However, during the more than one year of suspension, the cruiseNetwork industry has established a whole set ofPort epidemic prevention and control measures, Services APEC Servicesso public confidence will gradually rise over time. Finally, the global cruise industry Port Port will undergo certain changes,APEC and the capital structure and fleet Servicesstructure of cruise companies will be further optimized, but the industry pattern dominated by the four APEC international cruise giants will not be shuffled. Port APEC Network APEC Network 120 Services 2020 APEC Port Development Report www.apecpsn.org 120Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port 6. IMO 2020 Low SulphurAPEC Regulation officially took effect Services Network The IMO 2020 Low Sulphur Regulation, which is AnnexPort VI Regulations for the APEC PreventionNetwork of Air Pollution from Ships of the International Convention for the Prevention of Pollution from Ships, was amendedAPEC and promulgated in October 2016 Services and put into effect on January 1, 2020. It is stipulated in the regulation that sulfurNetwork Port Network Servicescontent in ship fuel shall not exceed 0.5% m/m worldwide. After the Low Sulphur Regulation came into effectNetwork in 2020, all ships should use the Very Low Sulfur Fuel Network Port Oil (VLSFO) with a sulfur content of 0.5% or Marine Gas Oil (MGO)Services with a sulfur APEC Services content of 0.1% instead of High Sulfur Fuel Oil (HSFO) withPort a sulfur content of 3.5%, APEC while shipsServices equipped with desulfurizing towers can continue to use cheap HSFO.Services Port Port PortThe IMO 2020 Low Sulphur Regulation APECaims to control diesel exhaust sulfide APEC Network emissions by limiting the sulfur content of ship fuel, thereby reducing air and ocean APEC pollution. However, it has a huge impact on the shipping industry.APEC Shipowners chose Network different ways to reduce operatingNetwork costs. Among them, the desulfurizing tower is still Services the mainstream solution in the short term. The price gap between VLSFO and HSFO Network was much narrower than expected, and theNetwork benefits of installing desulfurizing towersServices Port were reducedServices due to the impact of the COVID-19 pandemic and the slump in crude Network oilPort prices in March 2020. However, after the pandemic is put under control,Port the price APEC Services gap between VLSFO andServices HSFO will continue to expand, and the desulfurizing tower market may prosper again. APEC Services Port APEC Port 7. CMA-CGM suffered from cyber-attacks and blackmail Port APEC Network APEC Network On September 28, 2020, CMA-CGM suffered an attack from ransomware. AsAPEC a result, its official website was not accessible, and many of its global websites also Network Networkfell into paralysis and failed to operate normally. In addition, there were many Services cases of cyber-attacks on Servicesshipping logistics companies in 2020. For example, both French logistics companyPort Gefco and the Mediterranean ShippingNetwork Company (MSC) Services Port suffered from cyber-attacks, resulting in interruption of their web services. Even the Network Services International Maritime Organization (IMO) IT system suffered from cyber-attacks in Port APEC Port early APECOctober, causing its web service to be Servicesunavailable for a short period of time and affecting both its public websitePort and internal system. The shipping logisticsAPEC Services APEC Networkindustry is becoming a key target of cyberattacks. Port In the recent decade, automation,APEC integration, and digitalizationNetwork have been the development trends of ships. In particular, the COVID-19 pandemic may accelerate APEC Services the digital development of the port and shipping industry. However, the digitalization Network Port processNetwork is accompanied by the frequent occurrenceServices of cyberattack incidents. For this reason, the European Network Information Security Agency (ENISA), the UnitedNetwork States Coast Guard (USCG), and the PortBaltic and International Maritime Conference Services APEC Services(BIMCO) have successively issued cybersecurity guidelines and suggested shipping Port logistics companies developAPEC emergency plans that include external consultants Port for unexpected needs. On this basis, IMO has included cybersecurityServices in the IMO Planned Maintenance System (PMS) and Security ManagementPort System (SMS) in APEC APEC the face ofNetwork increasingly severe cybersecurity issues and required member states to APEC Network Services 121Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 4 Network Services Port Network Services Port Network APEC Services Port ensure that cyber risk isAPEC incorporated in the security managementServices system before the first annual compliance document review from January 1, 2021, onwards. This move Network will raise the importance that the entire industry attachesPort to cybersecurity. APEC Network 8. Digital Container Shipping Alliance (DCSA)APEC issued six industry standards Services Network Port Network ServicesThe Digital Container Shipping Alliance (DCSA) is a neutral non-profit organization composed of nine shippingNetwork giants. The DCSA issued six industry standards in 2020, Network Port including Data and Interface Standards issued in January thatServices help realize freight APEC Services tracking across carriers, Ship Cyber Security GuidelinesPort released in March that aims to help the global shipping industry cope with cyber risks, Intelligent ContainerServices Port APEC Services Information Exchange Standards released in June that ensures the interoperabilityPort Portof intelligent containers on different devices,APEC Operating Ship Schedule Standards APEC Network issued in July that helps shipping companies sharing ships realize the sharing of APEC schedule information, and Digital Standards for Cargo BookingAPEC and Bills of Lading Network Issuance and IoT StandardNetwork for Remote Refrigerated Container Monitoring on Ships Services released in December. Network Network Services Port The six industryServices standards of the DCSA are of great significance since they were Network issuedPort under the digital transformation of the shipping industry. InPort 2020, the APEC COVID-19 pandemic fullyServices amplified the urgent demand of the shipping industry Services for digitalization, but the digital standard system of the shippingAPEC industry has not Services Port APEC yet matured. If Portthe shipping industry allows the savage development of digital transformation, it may lead to the emergence of a digital divide in the future. For Port APEC example,APEC two major platforms, namely TradelensNetwork and Global Shipping Business Network Network (GSBN), have been established since the shipping blockchain technologyAPEC began to develop in 2016. Currently, it is in a critical period for the establishment of Network Networkshipping blockchain technologyServices standards. Therefore, the six industry standards of Services DCSA will help the container shipping industry accelerate theNetwork digital development and avoid the potentialPort digital divide in the future or will lead the shipping industry to Services Port Services accelerate its efforts in formulating digital standards. Port Network APEC APEC Port 9. Successful delivery of JACQUES SAADEServices ship marked the beginning of a ship fuel diversity era Port APEC Services APEC NetworkIn September 2020, the world's first 23,000-TEU dual-fuel powered container ship Port JACQUES SAADE manufacturedAPEC by Hudong-Zhonghua Shipyard,Network a subsidiary of China State Shipbuilding Corporation, for CMA CGM Group was successfully APEC Services delivered at the Shanghai Changxing Island Shipbuilding Base. Subsequently, Network the sameNetwork series of container ships CMA CGMServices Champs Elysees, CMA CGM Royal Port Palace, and CMA CGM Louvre were delivered successively. Port Network Services APEC ServicesGlobal economies are paying more and more attention to environmental protection Port and sustainable development,APEC and the scale of the environmental industry is growing Port day by day. Various economies have introduced relevant policiesServices and increased capital investment. Since the implementation of the Low SulphurPort Regulation by the APEC APEC IMO at theNetwork beginning of the year, the shipping industry has officially entered a low- APEC Network 122 Services 2020 APEC Port Development Report www.apecpsn.org 122Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port sulfur and low-carbonAPEC era. The demand for ordinary fuel oilServices has declined, while LNG as a clean and efficient ship fuel holds even brighter prospects. The further Network promotion of clean energy such as LNG brings greatPort opportunities. 2020 was the APEC year Networkwhen the Low Sulphur Regulation came into effect, and also the first year after the IMO set the greenhouse gas emissionAPEC goals by 2050. LNG-powered shipsNetwork Services are becoming an important choice for many new ships. Meanwhile, the application Port Network Servicestechnologies of new fuels such as biofuels and methanol are also developing rapidly. Network Port The era of diversified shipNetwork fuels has come. Services APEC Services Port APEC 4.2 Review and Comment on 10 Major Port Events in Asia-Services Port PacificServices Region in 2020 Port APEC Port 1. Congestion of Asia-Pacific ports getting worse APEC Network APEC APEC In the early stage of the Networkoutbreak in 2020, economies in the Asia-Pacific region Network generally adopted strict prevention and control measures such as city lockdown, port Services lockdown, and restricting residents' activities.Network Employees engaged in port-related industries such as terminal operations, warehousing, customs, and freight forwardingServices Port Network Services mostly worked from home. Besides, as land freight routes were blocked,Port terminal Network operationsPort slowed down, Servicesand many containers were stranded at the port. In April or APEC Services so, ports in Asia-Pacific economies, including the Philippines and Bangladesh, fell into chaos and congestion. In the second half of the year, asAPEC prevention and control Services Port APEC Port measures were moderately relaxed, the recovery freight demands surged, leading Port to theAPEC ports' failure to meet the cargo handling demands in terms of capacity, and a large number of ships waited at anchorages,Network and many containers were stranded APEC Network APEC in the depots, resulting in congestion. In particular, both the severity and duration Network Networkof congestion at the Port of Los Angeles and the Port of Long Beach on the west Services coast of the United StatesServices exceeded the level of the same period last year. The heavy congestion Portof container ships produced a chain effect Networkon the entire container Services Port industry. The freight rates of container ships rose sharply, and many ships were Network Services waiting for a berth. Data shows that the congestion of major ports and land traffic on Port APEC Port the westAPEC coast of the United States will continueServices until the peak season of summer in 2021. APEC Services Port APEC Network2. Efforts of port charges reduction and tax cuts intensified amid the pandemic Port APEC Network Under the impact of the COVID-19 pandemic, the global logistics supply chain has APEC Services long been in a dilemma of insufficient supply, with frequent occurrences of cargo Network strandedNetwork at the port and terminal congestion.Services The operation and management Port of enterprises are under great pressure. To promote the resumption of work andNetwork production in the logistics industry andPort the industrial chain, many economies in the Services APEC ServicesAsia-Pacific region have introduced policies or provided corresponding subsidies to Port help port and shipping companiesAPEC tide over difficulties. Some of them also reduced Port charges to alleviate the burden on cargo owners. Services Port APEC APEC In March Network2020, the Ministry of Transport of the People's Republic of China issued APEC Network Services 123Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 4 Network Services Port Network Services Port Network APEC Services Port the Notice on the PhasedAPEC Reduction of Port Charges and OtherServices Matters, reducing government-priced cargo port charges and port facility security charges by 20% Network respectively, and abolishing the mandatory emergencyPort response services and APEC chargesNetwork of non-tanker cargo ships. In April 2020, the MPA of Singapore launched a support package worth USD 27 million, providingAPEC 50% and 30% discounts on portNetwork Services charges for passenger and cargo ships that call at the port for less than five days, Port Network Servicesrespectively. The Busan Port Authority invested a huge fund of KRW18.7 billion Network in helping the port and shippingNetwork industry tide over business difficulties due to the Port COVID-19 pandemic and offered rewards for operation and subsidiesServices for loss to port APEC Services and shipping companies. Port Services Port APEC Services Port3. Chinese ports ushered in deepened integrationAPEC Port APEC Network The resource integration among ports in the Asia-Pacific region has been APEC continuously deepened to avoid excessive competition betweenAPEC adjacent ports, Network improve overall competitiveness,Network and jointly cope with uncertainties in future Services development. In recent years, China's coastal ports have successively promoted Network the integration of port resources at the provincialNetwork level. The provinces of Jiangsu,Services Port Liaoning,Services Shandong, and Anhui established provincial port groups and continued Network toPort deepen integration. In January 2020, Jiangxi Port Group Co., Ltd. wasPort founded, APEC Services marking that the provincialServices port group entered the practical operation stage. In May, Shandong Port Land-Sea International Logistics GroupAPEC Co., Ltd. was formally Services Port APEC established, marking that the logistics businesses that originally belonged to various ports in Shandong have been integrated into a whole. In August, Xiamen Port Port APEC GroupAPEC was incorporated into Fujian Port Group,Network marking that the integration of port Network resources in Fujian Province entered the stage of practical operation. In addition,APEC the cross-province port resource cooperation was also constantly strengthened. In Network Network2020, Shanghai InternationalServices Port Group (SIPG) held the fifth meeting of the Third Services Board of Directors. The meeting deliberated and approved the Proposal on SIPG's Participation in the Subscription of Non-public Offering SharesNetwork of Ningbo Zhoushan Services Port Port Services Port Company Limited, subscribing for 5% shares of Ningbo Zhoushan Port. The Port Network SIPG APECbecame the second-largest shareholder of Ningbo Zhoushan Port. The two APEC Port major port groups' cross-shareholding further promotedServices the integration of port groups in the Yangtze River Delta region. Port APEC Services APEC Network4. The Philippines ports gradually became a "Crew Change Center" Port APEC Network In 2020, under the impact of the COVID-19 pandemic, the crew change on the APEC Services sea became extremely difficult, and crew change policies in various regions were Network Port generallyNetwork tightened. Since the Philippine seafarersServices account for the largest proportion in the international seafarers market, the Philippine government attached greatNetwork importance to seafarers. During the Portrapid spread of the pandemic in July 2020, Services APEC Servicesthe Philippine government issued the Joint Circular on Green Channel for Crew Port Port Change, opened up variousAPEC links from the port, quarantine department,Services immigration bureau, to aviation department, established a one-stop mechanism for seafarers' APEC physical examination and formalities, and successively Portopened six crew change APEC hubs includingNetwork Port of Manila, Port of Capinpin, Subic Bay Port and Port of APEC Network 124 Services 2020 APEC Port Development Report www.apecpsn.org 124Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port Batangas, allowing freeAPEC cross-border movement and shift changeServices of all seafarers on cargo ships. In 2020, the Philippines completed a total of 112,000 crew changes, Network highlighting its status as the "crew change center". Port APEC Network The huge economic benefit brought by seafarersAPEC is the core driving force for the Services Philippines to relax its crew change policy. As one of the world's largest providersNetwork Port Network Servicesof international seafarers, the Philippines has about 300,000 to 400,000 seafarers who can create revenue Networkof USD 4—5 billion every year, accounting for as much as Network Port 10% of its GDP. However, the relaxation of crew change policyServices also brought great APEC Services pressure on epidemic prevention and control of the economy.Port Since the Philippines relaxed its crew change policy in July, the confirmed COVID-19 cases haveServices Port APEC Services witnessed rapid growth, posing a huge test APECfor epidemic prevention and Portcontrol. Port APEC Network 5. Korea released a ten-year port development plan APEC APEC Network Ports play an important roleNetwork in regional economic development, and the integrated Services development of ports and cities is the general trend in the future. In December Network 2020, the Korean Ministry of Ocean andNetwork Fisheries issued the Third Basic PortServices Port RedevelopmentServices Plan (2021—2030), which planned to invest more than USD 6 billion Network toPort rebuild ports across the economy. The plan aims to better integratePort ports into APEC cities and create thrivingServices tourism, cultural and commercial industries to revitalize Services ports and surrounding areas. The plan will implement a APECtotal of 19 projects in Services Port APEC three categoriesPort in the next ten years. The first category of projects supports the development of the shipping industry; the second category of projects enhances Port APEC the centralAPEC functions of port cities; and theNetwork third category of projects promotes the Network tourism and cultural development of port cities. Projects currently underway includeAPEC the redevelopment of Busan Northport and Incheon Inner Port and the construction Network Networkof a large-scale LNG storage facility at Port of Kwangyang in 2021. Services Services 6. Smart ports enteredPort the 5G era Network Services Port Network Services In 2020, the pandemic further stimulated the demand for 5G applications in ports Port APEC Port while APECcausing troubles to the supply chain. ManyServices ports in the Asia-Pacific region successively launched the 5G mode Portto improve the cargo transshipment efficiencyAPEC Services APEC in the port area. In 2020, China Xiamen Ocean Gate Container Terminal Co., Ltd. Networksuccessfully used new technologies such as 5G-NR Air Interface and Mobile Edge Port Computing (MEC) to buildAPEC the first 5G smart port covering all Networkbusiness scenarios in China. Guangzhou Port applied the first 5G + intelligent tallying project in China. APEC Services Shanghai Port realized the quasi-commercialization of 5G unmanned heavy trucks. Network Ningbo NetworkZhoushan Port realized the large-scaleServices application of "5G + gantry crane" Port remote control. Port Network Services APEC ServicesCurrently, global ports face rising labor costs, high labor intensity, harsh working Port environment, and manpowerAPEC shortage. Reducing costs and increasing benefits Port through automation renovation have become the common aspirationsServices of global ports. The 5G technology characterized by low latency, high bandwidth,Port high reliability, APEC APEC and largeNetwork capacity, combined with the port private network solution based on 5G Virtual Campus Network and end-to-end applicationAPEC components, provide a brand Network Services 125Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Chapter 4 Network Services Port Network Services Port Network APEC Services Port new solution for the portsAPEC to address the communication of automationServices equipment. The popularization of 5G technology is bound to inject strong impetus into the Network construction of smart ports. Port APEC Network 7. China unveiled the Plan for ConstructionAPEC of Hainan Free Trade Port Services Network Port Network ServicesIn June 2020, China issued the Overall Plan for the Construction of Hainan Free Trade Port, proposing toNetwork initially establish a free trade port policy system focusing Network Port on trade and investment liberalization and facilitation by 2025, furtherServices optimize and APEC Services improve the opening-up policy and related institutionalPort arrangements to promote the construction of a high-level free trade port by 2035 and build a high-level Servicesfree Port APEC Services trade port with a strong international influence by the middle of the 21stPort century. In Portaddition, China announced the plan of draftingAPEC the Hainan Free Trade Port Law as APEC Network supporting laws and regulations for constructing the Hainan Free Trade Port. APEC APEC Network Unlike industrial free tradeNetwork ports such as the Port of Hamburg and the Port of Services Rotterdam, and the Port of Singapore and the Port of Hong Kong that adopt the port- Network industry-city joint development model, HainanNetwork Free Trade Port represents a newServices Port type of freeServices trade island that adopts the new comprehensive and high-level "port Network +Port industry + island + network + system" free trade zone model. It promotesPort a high APEC degree of trade and investmentServices liberalization and facilitation through institutional Services innovation to build a modern industrial system. With the gradualAPEC release of Hainan's Services Port APEC policy benefits, HainanPort is bound to become a new highland for port and shipping investment. Port APEC APEC Network Network 8. Southeast Asian economies racing to build deep-water ports APEC Network NetworkAs the world economic landscape continues to change in recent years, Southeast Services Asia has begun to acceptServices some industries transferred from China, Japan, and Korea. Port developmentPort also benefited a lot from that. To Networkmeet the increasing Services Port trade demand, Southeast Asian economies have begun to expand investment Network Services and construction of port facilities. In March 2020, Bangladesh and Japan signed a Port APEC Port cooperationAPEC agreement on jointly building a newServices deep-water port, namely the Port of Matarbari, at the Bay of Bengal. ThePort project is scheduled to be completed andAPEC Services APEC put into operation in 2025. Although Bangladesh already has two major ports, Port Networkof Chittagong and Port of Mongla, the water depths of the two ports cannot meet Port the berthing demand of APEClarge ships. Therefore, the constructionNetwork of a deep-water port is a rigid demand for Bangladesh and a key project for promoting economic APEC Services development. Network Network Services Port In addition, Indonesia is also accelerating the construction of deep-water ports.Network In November 2020, Indonesia completedPort the Phase I project of Patimban Deep- Services APEC Serviceswater Port and started the pilot run. Patimban Port is only 140 kilometers away from Port Jakarta. It is one of the keyAPEC infrastructure projects of the Indonesian government. Port This project aims to ease the pressure on the Port of Tanjung Priok,Services Indonesia's largest cargo port, and increase Indonesia's port competitivenessPort in Southeast Asia. APEC APEC The terminalNetwork capacity is expected to reach 7.5 million TEUs after the whole project APEC Network 126 Services 2020 APEC Port Development Report www.apecpsn.org 126Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Port Network Services Port Network APEC Services Port is completed and put intoAPEC operation. Services Network 9. Strikes had a severe impact on many ports Port APEC Network Strikes have long been a headache of portAPEC operators. In 2020, the pandemic made Services port strikes even worse. In July 2020, the dockworkers at the Port of Montreal,Network Port Network ServicesCanada, launched a strike that lasted for a month. Due to the strike waged by dockworkers, Port of MontrealNetwork fell into paralysis. As a result, arriving ships could only Network Port transship the goods to other ports, and the cargo quantity of otherServices ports exceeded APEC Services their normal level, resulting in an imbalance in inland Portlogistics and transportation. Similarly, the Port of Botany in Australia was affected by the large-scale strikeServices Port APEC Services organized by the Maritime Union of Australia (MUA), resulting in continuousPort chaos in Portits container supply chain and delays in the APECentire cargo supply chain. APEC Network APEC Large-scale strikes are generally the result of multiple factors,APEC including wages and Network benefits, excessive workload,Network and port security. Strikes not only cause port paralysis Services and congestion, reduce port efficiency and competitiveness, but also create a chain Network reaction in the port and shipping logistics Networkchain and exert serious impacts on globalServices Port shippers, Servicessupply chain, economy, and enterprises. Therefore, preventing and settling Network strikesPort is a key part of port operations. Port APEC Services Services 10. Terminal operators strengthened logistics chain controlAPEC Services Port APEC Port Under the pandemic test, global terminal operators have increasingly discovered Port that APECapart from the horizontal integration of resources in the industry, what's more important is to connect up logistics resources.Network From ship enterprises, ports, logistics APEC Network APEC collection and distribution systems, inland warehouses to cargo owners, the whole Network Networkintegrated logistics system is more important in the event of emergencies and Services for enhancing customer serviceServices capabilities and customer loyalty. In 2020, DP World announcedPort its plan to acquire a 60% stake in Unico Logistics,Network a company Services Port specializing in multimodal transport with its headquarters in Korea, demonstrating Network Services its strategic ambitions in the logistics supply chain. Unico Logistics is one of the Port APEC Port largestAPEC freight forwarders in Korea and the mainServices user of the Asia-Europe Railway. The acquisition may further consolidatePort and expand DP World's market in Korea andAPEC Services APEC Networksurrounding areas. Port APEC Network APEC Services Network Network Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network Services 127Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC

Network Services Port Network APEC Services Port Network APEC Network Services Network Port Reference Services Port Network APEC Services Port [1] UNCTAD Statistics.APEC http://unctadstat.unctad.org,2020. Services Network [2] BP Global.Statistical Review of World Energy. http://www.bpPort .com APEC [3] AlphalinerNetwork Monthly Monitor 20120 12. [4] Clarksons.Seaborne Trade Monitor[R].2021APEC Services [5] Shanghai Shipping Exchange. http://www.chineseshipping.com.cn/. Network Network Port Services[6] Drewry. Maritime Research-container Forecaster 4Q (2020)[R]. 2020. Network Port [7] Drewry. Maritime Research-containerNetwork Forecaster 3Q (2020)[R]Services. 2020. APEC Services [8] Drewry. Maritime Research-Dry Bulk Forecaster 4Q (2020)[R].Port 2020. [9] Drewry. Maritime Research-Dry Bulk Forecaster 3Q (2020)[R]. 2020. Services Port APEC Services Port[10] Drewry. Global Container Terminal OperatorsAPEC Annual Review and ForecastPort APEC 2020[R].2020 Network [11] Mysteel Data. https://data.mysteel.com/ APEC APEC Network [12] Maritime and Port AuthorityNetwork of Singapore.https://www.mpa.g ov.sg/web/portal/ Services home,2020 [13] Alameda Corridor Transportation Authority.Network http://www.acta .org/ Services Port Network Services [14] Internatio Port Authority of NY&NJ. http://www.panynj.gov/port/ Port Network [15]Port Port Authority of Long Beach. http://www.polb.com/ APEC Services Services APEC [16] United StatesPort Department of Transportation. https://www.maAPECritime.dot.gov/ Services Port [17] Ship&Bunker. https://www.shipandbunker.com/ Port [18] APECInternational Association of Ports and Harbors. https://www.iaphworldports.org/ [19] European Sea Ports Organisation. https://www.espo.be/Network APEC Network APEC [20] American Association of Port Authorities.http://www.aapa-ports.org/ Network Network[21] JOC. Port News. https://www.joc.com/Services Services [22] Association of American Railroads. https://www.aar.org/ Port Network Services Port Services [23] Port News. https://en.portnews.ru/ Port Network APEC Port APEC Services Port APEC Services APEC Network Port APEC Network APEC Services Network Network Port Services Port Network Services APEC Services Port Port APEC Services Port APEC APEC Network APEC Network 128Services 128 Network Port Services Port APEC Services Port APEC Serv Port APEC Network APEC Services Network Port APEC Services Port APEC