PORT MODERNIZATION PLAN PORT OF BUENOS AIRES TEUs 2017

Rosario More than 60% of ’s containerized Zárate TEU 66.616 cargo TEU 119.993

More than 80% of Argentina’s containerized cargo together with Exolgan Buenos Aires TEU 888,019

3rd most important port in Bahía Blanca TEU 27,843 Exolgan 3 of the major port operators worldwide TEU 554.458 TRP-DUBAI PORTS WORLD Madryn T4 - APM TERMINALS BACTSSA- HUTCHISON TEU 30,963

Strategic Location

TEUs Movement 1st port in South America Ushuaia Buenos Aires with Landlord system TEU 53,262 TEU 888,019 HISTORY OF THE PORT OF BUENOS AIRES

Huergo’s lay out lasted 114 years

78 years without significant works

1904 1919 1940 1993 1994 1997 2000 2020 2030

3 was added to 1 and The new 2 to form TRP New terminal Dock F is operation The design of the built start Puerto Buenos Aires The 6 terminals is set were tendered and 3 operators awarded Terminal 6 broke The construction of New operator start the 5 docks of the port 6 operators 4 operators is completed Terminals 1 and 2 are joined 1 operator

5 operators

CHANGING THE WORLD TREND PROGRESS MADE BY THIS ADMINISTRATION IN 3 YEARS: INFRASTRUCTURE

Filling and breakwater of the new terminal

Closing and Filling of Wharf F

New railway access

Paseo del Bajo (exclusive highway for trucks)

Only gateway access to the port

Waiting and control area

Dredging, adaptation, maintenance, North wharf and canal

Integrated beacon with AIS system PROGRESS MADE BY THIS ADMINISTRATION IN 3 YEARS: SIMPLIFICATION

Digitalized Banking operations with Port of Buenos Aires APP customers and suppliers. PCS: Port community system Company´s regularization and updated TAD: Digital remote procedures balance sheets´ approved by the General

Audit Office (AGN) ERP: Internal management system of the General Ports Administration Digitization of administrative processes (AGP) Vessels´online turns VUCE: single window for foreign Website for claims trade PROGRESS MADE BY THIS ADMINISTRATION USD/CONTAINER IN 3 YEARS: COST REDUCTION EXPO

ARGENTINA -61% cost per EXPO container (198 USD/cont in 2018 vs 509 USD/cont in 2015) 198 USD

Removal of Removal of compulsory Argentine Setting out of charge for HC Expo(-160) Protected Transport (TAP) (up to - customs 25%) clearance Removal of port Reduction supporting area of towing fee (-27 %) BRAZIL Reduction of Green Award Certification Seal removal sweeping and (up to -10%) cleaning (-66 %) 230 USD -17% cost per IMPO container (834 USD/cont in 2018 vs 999 USD/cont in 2015) Seal removal Removal of compulsory Argentine Setting out of Protected Transport (TAP) (up to - customs 25%) clearance Reduction of Reduction of port Reduction 250 USD sweeping and supporting area (-40%) of towing fee (-27%) cleaning (-66 %) Green Award Certification (up to -10%) WHAT HAPPENED IN THE REGION?

+52%

1.7 1.9 2.0 1.6 2.0 2.2 1.9 2.1 1.7 1.7 1.7 1.8 ARGENTINA 1.2 1.0 0.8 1.0 1.3 1.4

Average annual 2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 2017 rate: 2% +291% 8.9 9.3 9.2 8.8 9.3 7.0 6.8 7.9 8.2 BRAZIL 4.8 5.5 6.2 6.6 6.1 2.4 2.6 3.2 3.9 Average annual 2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 2017 rate: 8% +227%

0.9 0.8 0.8 0.8 0.9 0.9 0.5 0.6 0.7 0.6 0.7 0.8 URUGUAY 0.3 0.3 0.3 0.3 0.4 0.5

Average 2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 2017 annual rate: 7% EVOLUTION (million TEUs) EVOLUTION OF FREIGHT INDUSTRY

Global trend: larger ships with greater capacity

300 10,000 TEUs

333X49X15.2 250 Post PANAMAX CAP SAN Ship

200

3,000/3,400 TEUs

150 B/PANAMAX Ship 250X32X12.5

100 6,000/8,000 TEUs

300X43X14.5 50 Post PANAMAX plus Ship

4,000/5,000 TEUs

0 285X40X13 2011 2012 2013 2014 2015 2016 Post PANAMAX Ship

EVOLUTION OF SHIP LENGTH IN THE PORT OF BUENOS AIRES INFRASTRUCTURE REQUIRED TO SERVE SHIPS

ROM 2.0-11 Recommendations: “Recommendations for the design and execution Design Ship: of works of berthing and mooring” New Panamax: 366 m length (Lmax)

Increased wharf productivity with equal investment

It allows dredging to 14 meters.

STS cranes Depth of gravity walls current design: 10.05 meters;

It limits the optimization of equipment.

WHAT TO DO?

Displaced wharf for at least two berth sites, either in the new terminal or in the head of breakwaters filling docks. TRENDS

MARITIME TRANSPORT OUTLOOK

Greater water depth

Partnerships among shipping Mega ships Longer wharf Horizontal integration companies (Fleet concentration) Maritime Increased small square capacity industry Greater participation of shipping Vertical integration companies in terminal operations WHAT TO DO?

• Displaced wharf Major peaks require more Breakeven point of the biggest • Reduce the number of operators infrastructure business. It concentrates the • Exclusive wharf for cruises market. • Exploit concomitant developments to finance works.

Larger ships Trend: Exclusive terminal

Cruise Increased touristic activity in the Potential source of funding industry city and Atlantic coast.

Increase in the number of Better port-city integration passengers CITY PROJECTS WITH IMPACT ON THE PORT

PASEO DEL BAJO

Paseo del Bajo outline

Dike 0 project (it favors Colonia Express increasing quantitatively and qualitatively the passenger service)

Connection bridges (it prevents any port operations on the southern dock)

Isla Demarchi urbanization (relocating an area of 600,000 m2 of logistical and operational areas)

Solar projects Santa María (encourage the creation of public space on the edge of the river)

Catalinas Norte (the affectation of the terrain prevented the railway operation and freight train entrance to the Buenos Aires port from the south) Outer port (projects in this area promote and justify the port - city uses on the breakwaters 1.2 and part of 3) Paseo del Bajo exit (it is the only access for heavy vehicles to the Buenos Aires port, turning the area into a strong logistics hub) Villa 31 urban planning (limit of Paseo del Bajo)

Young district (promoting connection of Paseo Areneras with Costanera Norte through the coast) MAIN POINTS: PORT/CITY PLANNING

Port/City

Freight operation

Land access node PORT OF BUENOS AIRES MODERNIZATION PLAN

Unification of deadlines on May 2020 TERM: 35 + 15 YEARS Single operator Responsible for operating the entire infrastructure

Flexible lay out Adapting investments to support the growth, productivity and competitiveness of the port

Stage I Stage II Stage III Initial stage Wharf 900 m Wharf 1200 m Wharf 1500 m

Internal terminal Internal terminal + External terminal Internal terminal + External terminal External terminal 1.4 M TEU (*) 2.7 M TEU (*) 3.3 M TEU (*) 3.1 M TEU (*)

2020 2030 TRIGGER TRIGGER (*) maximum capacity PORT OF BUENOS AIRES 1910 M USD MODERNIZATION PLAN TOTAL INVESTMENT

ESTIMATED PRIVATE ESTIMATED PUBLIC INVESTMENT INVESTMENT 1370 M USD. 540 M USD.

FIRST 10 YEARS 760 M USD FIRST 10 YEARS 300 M USD COMPULSORY INVESTMENT COMPULSORY INVESTMENT

• Wharf • Superstructure Cranes and equipment • Infrastructure works • Civil works Fillings, breakwaters and Paving, offices, buildings dredging FEES FOR BASIC SERVICES TO FREIGHT

FCL up to 20 feet FCL greater than 20 feet

Unloaded Unloaded 500 USD 600 USD

Loaded Loaded 200 USD 240 USD WHERESee WEhow we STARTED could 2015 2015 match these two images in the best way possible WHAT WE ARE DOING 2018 WHERE WE ARE HEADING TO RENDER INITIAL STAGE: 2020 PUBLIC INVESTMENT 2016 - 2019 + 70 M USD

PASEO DEL BAJO

SINGLE CUSTOMS RENEWED PORT AREA WAITING AREA STAGE 1: 2030 ESTIMATED PUBLIC INVESTMENT MAXIMUM TERM TO BEGIN OPERATIONS 300 M USD

ESTIMATED PRIVATE INVESTMENT 760 M USD

6 CRANES LINED UP

DOCK OF 900 M 45 hectares STAGE 2: 2035 ESTIMATED PUBLIC INVESTMENT 120 M USD

ESTIMATED PRIVATE INVESTMENT 210 M USD

BASED ON TRIGGER 9 CRANES LINED UP

DOCK OF 1,200 M 56 hectares STAGE 3: 2040 ESTIMATED PUBLIC INVESTMENT 120 M USD

ESTIMATED PRIVATE INVESTMENT 400 M USD

BASED ON TRIGGER 12 CRANES LINED UP

DOCK OF 1,500 M 80 hectares NEXT STEPS

2018 2019

OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG

Tender document

Administrative procedures

Road show

Presentation and publicity

Data room

Tender

Ad Tender Opening Award Publication BENEFITS OF THE NEW PORT OF BUENOS AIRES

The level of operations is increased Safe and sustainable port

Logistics costs are reduced More and improved technology Transparent fees Organized transport with a single access Larger cargo ships have access A port with road and railway access Freight operation independent from cruise operation Internal port terminals (Section 37 of the General Specifications Document) COMPETITIVENESS AND EFFICIENCY FOR THE COUNTRY’S GROWTH WHARF F 2018 REPAVING OF DOCK F EDISON AVENUE PORT WAITING AREA RENDER 2040

ROAD ACCESS SINGLE CUSTOMS AREA ONLY PASEO ACCESS ARENERAS TO PORT

PASEO DEL BAJO 6TH BREAKWATER NORTH FILLING 2018