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Home , APM Terminals, CP Ships, Port

Page 1

Port – Key to Competitiveness

Soren S. Jakobsen, Vice President APM Terminals South- & Central America Page 2

Part of the global A.P. Moller - Group

Algeciras Page 3

A.P. Moller – Maersk Group Profile

• International company listed on Danish Stock Exchange

• 110,000 employees in over 125 countries

• Total market capitalisation of USD 37.8 billion

• Business activities in

• Container shipping (, )

• Container terminal operations (APM Terminals)

• Tankers, offshore and other shipping

• Exploration and production of oil and gas

• Retail (Northern Europe)

• and other industries Page 4

APM Terminals in 2006

• Operating more than 40 terminals

• 11 terminals currently expanding

• 13 projects under implementation

• More than 500 gantry cranes

• 37 kilometers quay

• Serving more than 60 shipping lines

• More than 18,000 employees

• Headquarters: The Hague,

• Regional offices:

• : City

• North America: Charlotte, USA

• Greater : Beijing, China

• Asia & Oceania:

• : Cape Town,

• West and Central Asia: Muscat, Oman Page 5

APM Terminals Global Portfolio

Rotterdam Aarhus Antwerp Wilhelmshaven Zeebrugge Tacoma Genoa Port Elizabeth Newark Constantza Tianjin(2) Oakland Algeciras (2) Portsmouth (2) Baltimore Gioia Tauro Los Angeles (2) Savannah Charleston Tangier Cagliari Kobe Houston Jacksonville Port Qasim Yangshan Aqaba Pipavav Xiamen Mobile Yantian Kaohsiung Kingston Mumbai Apapa Salalah (2) Onne Douala Colombo Tanjung Pelepas Tema

June 2006 Itajai

Terminals in operation Buenos Aires

ProjectsTerminals under indevelopment operation

Projects under implementation Page 6

Sound Historical Growth

APM Terminals throughput / TEU million 30.0 24.1 25.0 20.6 20.0 16.8 14.6 15.0 10.1 11.4 10.0 5.0 0.0 2000 2001 2002 2003 2004 2005

• Throughput based on equity Page 7 The global industry is a high growth business with an expected 8.5% compounded annual growth rate (CAGR) from 2005-2010.

600

500 2010: 599 mill. . 400

300 TEU mill TEU 200

100 1991: 97 mill. 0 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 Page 8 Bottlenecks emerge in key parts of the world, and global utilization increases to 89% in 2010 (from 80% in 2005) unless further capacity beyond known projects is added

Market Size & Growth Global Utilisation Levels

Fragmented, Asia 800 100% emerging 15.0% TEU million Utilization % markets 90% 600 12.0% 80% 9.0% Est’d 400 markets 70% 6.0% Market Growth 200 60% 3.0%

0.0% 0 50% 42.4% 15.5% 42.2% 2003 2005 2007 2009 Market Size Asia: China, South Asia, South Emerging: Africa, Central/, East Europe, Middle East Established: North America, Europe, Oceania, Japan, Korea Page 9

Latin America - Developments

• Market year 2000: 20.0 MIO. TEU • Market year 2005: 26.8 MIO. TEU (6.6% of global trade)

• Growth 2000-2005: 7.0 % per year • Growth 2005-2010: 9.6 % per year

• Market year 2010: 42.4 MIO. TEU

• Increase 2000-2005: 1.7 MIO. TEU per year • Increase 2005-2010: 3.1 MIO. TEU per year

• Estimated utilization: 80% in 2005 • Estimated utilization: 96% in 2010 Page 10

Is This Really True?

• Quotes From DynaLiners 16th June 2006:

“According to Chilean carrier CCNI, the vessels of all lines operating from the to West of South America ports (in Colombia, Ecuador, Peru and Chile) are currently chock-full. Volumes increased by 39% to reach 382,000 TEU in 2005, whereas some 460,000 TEU are expected for the current year. Consequently, carriers are trying to get rates up..”

“Hapag-Lloyd’s CP will add a third (1,100 TEU) to its relay service connecting Manzanillo (Mexico west coast) with ports on the west coast of Central and South America, to which Buenaventura (Colombia) is added. Frequency: now every 10 days, instead of fortnightly” Page 11

Latin American Port Development

• With few exceptions investment in additional capacity and new ports/terminals are lacking seriously behind.

• Serious congestion is already the order of the day in many ports in Latin America – and more ports will become congested in the coming years.

• Congestion and lack of capacity – including to handle the larger ships – adds cost for importers and exporters. Additional cost and increased cost in ports can easily double the effective transport cost compared to other areas with effective transport infrastructure.

• This hampers trade by lowering competitiveness for exports, add cost for imported products and reduce growth and employment. Page 12

Development New Capacity Cannot Wait! • Governments and port authorities play a key role in accelerating new developments.

• Privatize existing and new developments – private companies are ready, willing and able to develop capacity.

• Facilitate a quick and competitive process by making the process simple and clean.

• Help with licenses, labor issues etc.

• Invest in supporting infrastructure, etc.

• Do you not try to make every port and terminal a center. Transshipment is non captive, highly competitive and adds little value. Page 13

Thank You For Your Attention

Charleston, USA