Breakbulk China 2017 Preview

PREVIEW SHIPPERS PANEL PREVIEW RO-RO Q&A WITH WWL’S RIDER LIU EXCLUSIVE!

DECISION MAKER: CONTAINER SHIP VS. MPV with FLUOR’s Miroslav Jakab EVENT ESSENTIALS » Exhibitors » Agenda » Floor Plan

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FREE 5 MARKETING TOOLS FOR EXHIBITORS

EVERYTHING YOU NEED TO KNOW ABOUT

ASIA’S LARGEST EVENT FOR THE PROJECT CARGO AND BREAKBULK INDUSTRY

BREAKBULK CHINA 2017

13-16 MARCH, SHANGHAI WORLD EXPO EXHIBITION & CONVENTION CENTER

Sinomarine Ltd., the shipping management platform of Sinotrans & CSC Holding Co. Ltd., participated in Breakbulk China 2016 as an exhibitor for the first time. We benefited quite a lot from the exhibition. From the presentation “Working Together for China’s Belt & Road Initiative,” we learned about regional and global maritime outlooks from different carriers’ perspectives.

We also developed many new business relationships with companies from overseas. Furthermore, we believe we enhanced our brand image, and we felt honored to win the only golden prize awarded during Breakbulk China 2016.

We think that China’s “Belt and Road”-oriented strategic planning creates an improved ability for us to respond to personalized customer demands, in particular the ability to use new technology and equipment. It expands the market space for general cargo ship transport and enhances our potential service level and ability.

“To be superior and stronger” is the strategic philosophy of the Sinotrans & CSC Group, and Sinomarine has followed this precept in assessing business situations, researching and in particular in making decisions regarding general cargo ship construction. At present, we operate in Africa, the Middle East, Southeast Asia and other routes, and have achieved good results.

At the same time, we think that those in the general cargo ship market need to

rely on their own development and to strengthen their external cooperation and communication. The Breakbulk exhibition is a good platform for this.

Enterprises in the same industry can exchange opinions and also have opportunities to cooperate with owners.

We expect general cargo ship transportation to further develop, providing an more important role to worldwide and regional economies.

We believe that Breakbulk China 2017 will bring us more beneficial surprises.

ABOUT SINOMARINE Sinomarine’s business includes transportation of dry bulk, oil, ro-ro, container, breakbulk, and related matching businesses in the shipping industry. It is the only shipping company in China that can complete the whole course of service, integrated with ocean, coastal and Yangtze River transportation. To date, with more than 150 million tonnes annual transport capacity, owning and controlling more than 12 million DWT, the company ranks in the top two among all the shipping companies in China.

Sinomarine endeavors to develop into a “Professional Leading, Efficient Operation, Customer Trust” shipping enterprise. Taking the business philosophy of ‘Professional, Concentration, Cooperation and Win-win,’ Sinomarine is devoted to creating a bright future with all parts of the social public.

WHAT’S INSIDE

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Dear industry colleagues, I hope your preparations for Breakbulk China 2017 are going well.

Breakbulk China has been steadily growing in the past five years along with the breakbulk industry. However, the market is experiencing a very tough time at present, so Breakbulk’s event mission to provide business promotion, industry networking and market intelligence is even more important. We look forward to seeing our returning exhibitors, sponsors and supporters and welcoming all new participants to the event.

Our team is working hard to ensure Breakbulk China is the largest and most important gathering in Asia where shippers have the opportunity to meet and develop relationships with the leading specialized carriers, forwarders, ports, terminals and packers who have the expertise and resources to handle oversized cargoes.

We will launch the Breakbulk Hosted Buyers Program, which will give you the direct connections with logistics procurement professionals onsite that often takes place behind the scenes. The program offers a strong return on investment compared to other events. The details are being work worked out and I look forward to sharing them with you.

We are so proud of our program team and their first-class agenda. This is the information that can inform and improve your decisions and planning throughout the year.

Our team works together to give you the most successful experience at Breakbulk China. We have launched the new online exhibitor manual through an interactive portal. This gives our exhibitors a new tool to prepare for our event, adding that additional level of customer service for your planning needs.

Breakbulk has launched a new registration channel and payment option at Breakbulk China 2017 via the popular smartphone app, WeChat. WeChat is one of the largest messaging apps in China with more than 700 million active users

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04 E XPERIENCE BREAKBULK CHINA 2016 Photo & Video Gallery

12 D ECISION MAKER

CONTAINER SHIP VS. MPV with FLUOR’s Miroslav Jakab

17 E XHIBITOR ADVANTAGE:

NEW TOOLS FOR EXHIBITORS + FREE MARKETING

14 A SK AN EXPERT

CONFERENCE SESSION PREVIEWS 08 Shippers Panel 10 Ro-Ro Rises to the Challenge 11 Tackling Cross-border Issues

15 SKILL BUILDERS

EVENT ESSENTIALS 08 Workshops & Conference Agenda 16 Floor Plan 18 Exhibitor Checklist

TRUMP EFFECT ON TRADE LANES with TOLL GLOBAL FORWARDING’s Mac Sullivan for shippers & forwarders

monthly. WeChat registration is designed to make the registration process simple, quick and convenient. We hope this registration solution will help to enhance your registration experience!

As our event grows, so do our offerings, and we look forward to working with you over the next few months. We hope that this event will be a rewarding experience for all of our exhibitors and visitors.

I look forward to seeing you in Shanghai!

Sincerely,

CONTACTS CHINA EVENT DIRECTOR

Gary Tang

+852 2132-9698

gary.tang@ite-asia.com CHINA SALES

Wendy Tao

+86 21 61806789 ext. 871 wendy.tao@ite-asia.com

SOUTHEAST ASIA SALES

Colin Ho

+603 7842 9863 ext. 8186 colin.ho@ite-ap.com

EUROPE & MIDDLE EAST SALES

Mark Rimmer

+44 20 7596 5260

mrimmer@breakbulk.com

Gary Tang, Event Director Breakbulk China

RUSSIA & CIS SALES

Vladislav Pisklov

+7 (495) 935 73 50 ext. 4142 vladislav@breakbulk.com ADVERTISING

Robert Janusauskas +353 87 414 3737

robert@breakbulk.com MARKETING

Leslie Meredith +1 801 201 5971

lmeredith@breakbulk.com CONTENT

Janet Nodar

+1 251 473 2742

jnodar@breakbulk.com VIP SHIPPER CLUB

AMERICAS SALES

Mark Jakobsen

+1 281 416 4672

mark.jakobsen @ite-exhibitions.com

Christian Blair Thompson +44 207 596 5078 cthompson@breakbulk.com

www.breakbulk.com/china BREAKBULK CHINA PREVIEW CH3

EVENT GALLERY

MAKING

CARGO CONNECTIONS AT BREAKBULK CHINA

Moving project cargo and breakbulk goods involves complex logistics, months and even years of planning and multimillion-dollar contracts. It’s a complicated job and in this tight economy, finding new business is a top priority. We can help.

From 13-16 March 2017, Breakbulk China, Asia’s largest exhibition and conference for the project cargo and breakbulk industry, will bring together 6,000 industry professionals, 200 exhibitors and more than 300 shippers.

Now in its sixth year, Breakbulk China is the most efficient way to meet the business connections you need for a successful year.

CH4 BREAKBULK CHINA PREVIEW www.breakbulk.com/china

ISSUE 6 / 2016

www.breakbulk.com/china BREAKBULK CHINA PREVIEW CH5

WORKSHOPS & CONFERENCE AGENDA MONDAY, 13 MARCH 2017 08:30 – 17:00

WORKSHOP

PPG CERTIFICATE IN PROJECT FORWARDING DAY 1

[Presented in English]

ISO accredited, this two-day workshop is for project forwarders seeking to fast-track skills and knowledge.

» Rodger Hall, F​ ounder of SUN COMMUNICATIONS » Kevin Stephens, ​Founder of 3PL heavy-lift network PROJECT PROFESSIONALS GROUP

TUESDAY, 14 MARCH 2017 08:30 – 17:00

WORKSHOP

PPG CERTIFICATE IN PROJECT FORWARDING DAY 2

[Presented in English]

» Rodger Hall, F​ ounder of SUN COMMUNICATIONS » Kevin Stephens, ​Founder of 3PL heavy-lift network PROJECT PROFESSIONALS GROUP

08:30 – 17:00

WORKSHOP

PROJECT FREIGHT MANAGEMENT: THE SHIPPERS’ PERSPECTIVE

[Presented in Chinese]

For EPCs, cargo owners and project forwarders, this one-day course will cover the keys to managing major projects.

10:30 – 11:20

KEYNOTE

CHINA SHIPPING OUTLOOK

[Presented in English with simultaneous Chinese translation]

A knowledgeable executive from an important Sinotrans subsidiary will discuss the regional and global maritime outlook from a Chinese carrier’s perspective.

» Zhou Bin, General Manager, SHANGHAI CHANGHANG SHIPPING CO., LTD.

10:30 – 12:00

MICRO-SEMINAR

INCOTERMS – BEST USAGE

[Presented in Chinese]

The International Chamber of Commerce issued INCO terms so that buyers and sellers can clearly understand the responsibilities and risks of transactions. Our experienced speakers will provide the background and functions of the INCOterms describing the best practices in real terms.

11:30 – 12:30

CONFERENCE SESSION

SHIPPERS PANEL: CARGO OWNER PERSPECTIVES ON IMPROVING LOGISTICS EFFICIENCY

[Presented in Chinese with simultaneous English translation]

Although cargo owners and freight forwarders are equally keen to maximize efficiencies, their views of the best strategies for efficient planning, communicating and cargo handling can clash. In this discussion, cargo owners offer their perspectives on efficient logistics operations, barriers to efficiency, and what they want forwarders to understand.

ODERATOR: Stephen Liu, Sales Director, » M YOUNGER NICHE LOGISTICS

» Oscar Li, Project Manager, FLUOR CHINA LOGISTICS

» Morgan Meng, Deputy Project Manager, POWER CHINA HUBEI

09:00 – 16:00

» Wang Yao, Supply Chain Director, TITAN WIND ENERGY » Frank Zhang, Senior Shipping Coordinator, TECHNIP CHINA

ELECTRIC ENGINEERING CORPORATION (HEEC)

WORKSHOP

BREAKBULK EDUCATION DAY

[Presented in English]

For university students and those new to the industry, this workshop will feature presenters from FLUOR, BIMCO, TOLL GLOBAL FORWARDING, AAL, PORT OF DUQM and CJ SMART CARGO.

» Elizabeth Wetzel, Education Manager, BREAKBULK EVENTS & MEDIA

WEDNESDAY, 15 MARCH 2017 10:15 – 10:30

OPENING REMARKS

[Presented in English with simultaneous Chinese translation]

» Janet Nodar, Content Director, BREAKBULK EVENTS & MEDIA

CH6 BREAKBULK CHINA PREVIEW www.breakbulk.com/china

14:00 – 14:50

CONFERENCE SESSION

CASE STUDY: GETTING AHEAD OF THE GRAIN LOADER GAME

[Presented in English with simultaneous Chinese translation]

Grain giant Viterra is ready to load post-Panamax vessels at the Port of Vancouver thanks to a 2016 project that included transporting a 250-tonne, 60 meters’ long shiploader from China to Canada. It took a year to plan the multi-voyage project, which also included a dock conveyor and a transfer tower. AAL and partners will detail the specifics of this complex cargo move.

» Dona Asciak Fletcher, CEO, CONVOY LOGISTICS PROVIDERS LTD.

» Felix Schoeller, General Manager – Pacific Service, AAL » Jack Zhou, Planning Manager, AAL

ISSUE 6 / 2016

EVENT PREVIEW

15:00 – 15:50

CONFERENCE SESSION

WEIGHING THE OPTIONS: ALTERNATIVES FOR HEAVY CARGO OCEAN TRANSPORT

10:30 – 12:00

MICRO-SEMINAR

PACKING AND LASHING: PROCESS TO COMPLETION

[Presented in English with simultaneous Chinese translation]

[Presented in Chinese]

Alternatives to traditional project cargo and ro-ro carriers have emerged as manufacturers design heavy industrial products for container shipping and cargo owners attempt to cut costs in these lean times. What are the pros and cons of these alternatives, and how is the traditional project cargo sector responding?

Packing and lashing involves pallets and strapping, but what else?

Experienced industry executives describe the process from start to finish, with particular attention to regulations unique to China.

» MODERATOR: Miroslav Jakab, China Logistics Manager/Global Container Negotiation Manager, FLUOR

» M ichael Juhler, Global Head of Special Cargo, MAERSK LINE » Jum Gyu Kim, Managing Director, SUPER RACK SHIPPING » O skar Orstadius, Head of Breakbulk Sales, Global Commercial, HÖEGH AUTOLINERS

» T homas Wang, Deputy Branch Manager, Shanghai Division, COSCO PROJECT LOGISTICS

» D avid Lloreda Calero, Commercial Manager, Shanghai Office, BBC CHARTERING

15:50 – 16:00

CLOSING REMARKS

[Presented in English with simultaneous Chinese translation]

» Janet Nodar, Content Director, BREAKBULK EVENTS & MEDIA 16:00 – 18:00

NETWORKING

COCKTAIL RECEPTION

» C heng Li, Shanghai Branch Manager, MUND + BRUNS MARINE AND CARGO CONSULTING (SHANGHAI) CO., LTD.

11:30 – 12:30

CONFERENCE SESSION

CROSS-BORDER COMPLIANCE AND IMPORT-EXPORT CHALLENGES

[Presented in Chinese with simultaneous English translation]

Complex tax regimes, foreign trade zones, and import-export regulations for China and border countries are increasingly complex and time-consuming, but inter-Asia trade is growing, particularly through China’s Belt and Road initiative, and understanding is crucial. How can breakbulk professionals address and streamline these elements?

ODERATOR: David Xu, General Manager, SINO PROJECTS » M CO., LTD.

» Henry Hu, General Manager, Eastern China, NEW CHAIN LOGISTICS CO. LTD.

eorge Qin, Sales Director, CCLG CHINA » G » S odgerel Baatarkhuu, CEO, TRANSGATE

On the exhibition floor for shippers, exhibitors and delegates.

14:00 – 14:50

THURSDAY, 16 MARCH 2017

[Presented in English with simultaneous Chinese translation]

10:15 – 10:30

WELCOMING REMARKS

[Presented in English with simultaneous Chinese translation]

» Janet Nodar, Content Director, BREAKBULK EVENTS & MEDIA 10:30 – 11:20

CONFERENCE SESSION

RO-RO RISES TO THE CHALLENGE OF THE WORLD’S LARGEST MARKET

China’s import and export ro-ro business is changing to meet demand for mining and construction equipment, government initiatives designed to encourage inland city automaking, rising exports to Africa, and ro-ro port terminal modernization projects. How are carriers, logistics companies and ports adapting to serve this dynamic and huge market?

» MODERATOR: Christine Huang, Transportation Procurement

Supervisor, Global Supply Network Division, CATERPILLAR

KEYNOTE

GREATER CHINA ECONOMIC AND TRADE OUTLOOK

[Presented in Chinese with simultaneous English translation]

What can breakbulk and project cargo executives and decision makers expect from rapidly evolving trade and business relationships amongst China, Hong Kong and broader Asian and global markets? This is a time of tremendous change for the world’s trade regimes, and China’s responses will have global effects on Hong Kong and the rest of the world. The Principal Economist for Hong Kong’s Trade Development Council will share his insights with Breakbulk’s audience.

lex Huang, General Manager, CHINA ELECTRIC POWER » A OVERSIZED EQUIPMENT TRANSPORTATION

» X i Jialin, SHANGHAI HAITONG RO-RO TERMINAL » R ider Liu, Commercial Director and Head of Beijing Office, WALLENIUS WILHELMSEN LOGISTICS

» B ob Tang, Country Sales Manager, HÖEGH AUTOLINERS LTD. – CHINA

14:50 – 15:00

CLOSING REMARKS

[Presented in English with simultaneous Chinese translation]

» Janet Nodar, Content Director, BREAKBULK EVENTS & MEDIA

» Billy Wong, Principal Economist (Greater China), HONG KONG TRADE DEVELOPMENT COUNCIL

www.breakbulk.com/china BREAKBULK CHINA PREVIEW CH7

‘WE’RE ALL IN THIS

TOGETHER’

In the project and breakbulk transport logistics world, cargo owners call the shots and the transport supply chain responds. Participants along the supply chain want to know: 1. what they think and 2. what they want from vendors. For that reason, Shipper Panels have become a mainstay of Breakbulk’s global programming.

The common theme among shippers and a message to those they do business with – it’s that “we’re all in this together.”

At Breakbulk China last spring, executive panelists emphasized the value of logistics partnerships with

Chinese Shippers Value Logistics Provider Partnerships

freight forwarders and logistics service providers.

“We don’t communicate only when a problem happens,” said Liangli Ma, Asia Logistics Manager, Air Liquide Global E&C Solutions Hangzhou Co. Ltd. “Since we are a team, we know about each other’s procedures, products and processes. Exchange of information is very important from the early stages to execution so there are no problems.”

“We shouldn’t think of them as suppliers,” said Ronny Zhang, Logistics Head for Fluor China. “We are a team with a common goal: the execution of a project.

We mutually support each other.”

CH8 BREAKBULK CHINA PREVIEW www.breakbulk.com/china

As partners, it’s important for forwarders and logistics providers to be part of the process “as early as possible,” said Zhilv Zhang, Project Logistics Manager/Senior Logistician, Shanghai Electric Power Generation Group. “The partners’ expertise is key in transportation management, discussions of cargoes and sizes, vehicles and equipment involved, including heavy-lifts, route planning, safety and contingencies.”

The theme of partnership reverberated around the globe in 2016 from Shanghai to Abu Dhabi. We’ll take a closer look at the the shipper and logistic partnership at this year’s panel in Shanghai. BB ISSUE 6 / 2016

EVENT PREVIEW

CONFERENCE SESSION

» Wednesday, 15 March, 11:30 – 12:30

2017 SHIPPERS PANEL

The Cargo Owner’s Perspective: Improving Logistics Efficiency

Shippers Panel at Breakbulk China 2016: (from left)

The 2017 Breakbulk China Shippers Panel will tackle the enduring question of how to improve logistics efficiency, a pressing need in light of the economic slowdown and today’s tightening business environment. As China’s economy has matured and coastal manufacturing regions have become saturated and more expensive, many manufacturers have shifted inland. However, infrastructure and transportation networks there are far less efficient than along the coast.

China’s efficiency challenges are also exacerbated by outdated technology and the need to find, train and retain staff.

In Shanghai, VIP shippers Shou Bin, Logistics Department Manager with Morimatsu China Group; Morgan Meng, Deputy Director of Logistics, Sunshine Kaidi New Energy; James Jiang, Logistics Specialist, Outotec Oyj; and Frank Zhang, Senior Shipping Coordinator, Technip China (speakers

subject to change); represent a range of Chinese cargo owners, each with their own logistics concerns.

Morimatsu, a Japanese company, manufactures modules, pressure vessels, reactors, agitators and other types of large industrial equipment used widely in the oil and gas industry, petrochemicals, manufacturing and other industrial processes. Technip specializes in offshore and onshore oil and gas structures and subsea energy development. Outotec Oyj, a Finnish company, manufactures processing equipment, including all types of cooling towers, for the extraction industry. Sunshine Kaidi constructs power plants and is involved in refining, large-scale project engineering and various power generation projects. Company headquarters are in Wuhan, in central China, at the intersection of the middle reaches of the Han and Yangtze rivers. BB

Moderator: Tyler Johnson, Marketing General Manager, Shipparts.com Ronny Zhang, Logistics Lead, Fluor China Zhilv Zhang, Project Logistics Manager/Senior Logistician, Shanghai Electric Power Generation Group

»M ODERATOR:

Stephen Liu, Sales Director YOUNGER NICHE LOGISTICS

Liang Li Ma, Asia Logistics Manager, Air Liquide Global E&C Solutions Hangzhou Co., Ltd.

PANELISTS » Shao Bin, Logistics Department

Manager, MORIMATSU (CHINA) GROUP

M

» organ Meng, Deputy Project Manager, POWER CHINA HUBEI ELECTRIC ENGINEERING CORPORATION (HEEC)

» F rank Zhang, Senior Shipping Coordinator, TECHNIP CHINA CORPORATION (HEEC)

CREDIT: MORIMATSU (CHINA) GROUP www.breakbulk.com/china BREAKBULK CHINA PREVIEW CH9

Q+ A EVENT PREVIEW

RELATED CONFERENCE SESSION Thursday, 16 March, 14:00 – 14:50

RO-RO RISES TO THE CHALLENGE OF THE WORLD’S LARGEST MARKET » MODERATOR: Christine Huang, Transportation Procurement Supervisor, Global Supply Network Division, CATERPILLAR

with Rider Liu, WWL

What does China’s ro-ro market look like at the moment?

We saw a big increase in both import and export volumes until around 2013 when import volumes stabilized.

However, for truck and car exports China is facing more competition from Japanese and Korean cars, and some countries have changed their duty and tax policies and have an increasing requirement for factory localization. Export volumes are going down.

Which areas are growth areas for the future?

Chinese-made buses are a growing opportunity. Overseas are accepting our brands more and more, so we see an increase. For the other machinery such as construction, we see the global market to be very challenging. The volume is still not good yet.

You mentioned that there are only a few Chinese ports that have permission from the government to import vehicles and handle ro-ro cargo.

Which ports are good for ro-ro?

In the last four years, the Chinese government has been issuing licenses for the import of cars to some of the new ports like Qingdao, Ningbo and Zhangjiagang. Some of the new ports are building new ro-ro terminals.

However, we see challenges for ro-ro carriers because as you know ro-ro

lex Huang, General Manager, QINGDAO CHINA ELECTRIC » A POWER INTERNATIONAL LOGISTICS

» Xi Jialin, SHANGHAI HAITONG RO-RO TERMINAL » R ider Liu, Commercial Director and Head of Beijing Office, WALLENIUS WILHELMSEN LOGISTICS

» B ob Tang, County Sales Manager, HÖEGH AUTOLINERS

shipping is not difficult. It’s roll-on, roll-off; we don’t need much more equipment. We need skillful drivers, which we have. We see these ports trying to engage the carriers to come into those ports, but this is challenging for the carriers because it means inducement calls, which involve a cost.

The new terminals like Qingdao, like Ningbo, I think these are quite good.

Even Tianjin and Dalian are continually improving.

But for the ro-ro carrier it’s not only shipping the cars: We also do some of the breakbulk cargoes. So some ports also invest for the tugmaster to have the experience to load what we call trailer cargo. So far, most of the breakbulk cargo is shipped from the Haitong terminal in Shanghai where the volume is quite good and the service is good.

How do you see the ro-ro market in China changing over the next five years, especially for WWL? For WWL, I think we have done a good job. We expanded not only our ocean deep sea service but also our

full service activity from factory to dealer. We’ve diversified our services to include technical services, warehousing, land transportation and terminal services. We can bundle more cars together and offer one-stop service. We see the demand increasing for this type of service.

We see local Chinese companies are growing very fast. In the last five years, they have learned how to do the vehicle logistics from import to the dealer.

They are growing very fast. For WWL, we see a very good future. For exports, we have our sister company named Eukor, along with an American roll-on roll-off carrier. We will work together to be the one of biggest ro-ro carriers in the world. We will operate more efficiently and cost-effectively and provide our customers more service globally for the total group tonnage.

So that merger is coming soon?

The company is still working on the solutions. As our CEO announced, it is scheduled to be completed in the first quarter of next year. BB

CREDIT: WALLENIUS WILHELMSEN LOGISTICS

CH10 BREAKBULK CHINA PREVIEW www.breakbulk.com/china

ISSUE 6 / 2016

TACKLING CROSS-BORDER ISSUES WHAT IS OBOR?

CREDIT: HONG CUI, CSL-VASTWIN

Complex tax regimes, foreign trade zones, and import-export regulations for China and border countries are increasingly complex and timeconsuming, but inter-Asia trade is growing, particularly through China’s One Belt One Road initiative, and understanding is crucial. How can breakbulk professionals address and streamline these elements? Expert help is crucial, whether in-house or from an outside professional.

China’s value-added-tax (VAT) regime was overhauled almost completely between 2012 and 2016, replacing a former business tax in most cases.

Not understanding the new VAT structure, according to a recent publication from Dezan Shira, a tax consultancy with Chinese expertise, can result in fines, blacklisting, or simply paying far more tax than necessary. The VAT system can benefit companies working in cross-border businesses, while those unfamiliar with VAT regimes may be at a disadvantage.

RELATED CONFERENCE SESSION Thursday, 16 March, 11:30 – 12:30

CROSS-BORDER COMPLIANCE AND IMPORT-EXPORT CHALLENGES » Henry Hu, NEW CHAIN LOGISTICS – SHANGHAI

» George Qin, Sales Director, CCLG CHINA

» David Xu, General Manager, SINO PROJECTS CO., LTD.

The Chinese government has been encouraging investments in the Shanghai foreign trade zone using measures such as allowing private projects in the FTZ to raise yuandesignated capital, according to news reports. These moves are designed to stem outflows of Chinese currency.

The Silk Road Chamber of International Commerce, established in 2015, is a non-governmental organization intended to promote business participation in the Silk Road. The organization is building an e-commerce platform that should, when complete, enable cross-border e-commerce and RMB online payments and settlements to members, along with an ability to match projects and investors.

China, obviously not a liberal democracy, does not share in the populist, anti-globalization sentiment gaining strength in the west and made evident in the passage of Brexit in the U.K. and the election of Donald Trump in the U.S. China is working to strengthen its Asia-region economic partnerships, its internal consumer base, and broader, interlinked relationships via the OBOR strategy.

However, China’s near neighbors are manufacturing exporters themselves, and unlikely to replace China’s larger, more distant markets. Interestingly, after months of slumping, recent economic reports suggest an upturn in China’s manufacturing sector. Whether this points to greater internal demand within China or a pickup in export demand remains to be seen. BB

China has organized an Asian development initiative called One Belt One Road (OBOR) that targets what Beijing officials call the “belt” countries of central Asia and “road” countries of Southeast Asia. OBOR covers both land- and sea-based trade.

OBOR – a major shot in the arm for breakbulk companies serving dozens of countries in Asia and Africa – has reportedly powered a nearly 54 percent increase in Chinese outbound investment in recent months.

New deals signed by Chinese companies in 61 countries during January-September were worth a combined US$74.5 billion and accounted for more than half of all foreign engineering contracts, the ministry said.

OBOR is also credited with spearheading the building of economic trade zones in 36 countries. These zones have attracted a variety of Chinese company investments, including manufacturing plants. Through September, the ministry said, Chinese companies had poured nearly US$18 billion into businesses in 56 trade zones in OBOR countries, creating 163,000 local jobs.

Yet there’s still huge potential for future business through Belt and Road, according to Noel Quinn, CEO for the global commercial banking division at London-based HSBC. Referring to a recent poll of HSBC’s business customers, Quinn said, “As many as three in five are unaware of the potential opportunities.”

www.breakbulk.com/china BREAKBULK CHINA PREVIEW CH11

EVENT PREVIEW

CONTAINER SHIP VS MPV

CARRIERS IN THE BALANCE:

We asked Miroslav Jakab, Manager of Global Container Negotiations for FLUOR, five key questions about his criteria for selecting a carrier to ship project cargo in light of this very tough climate where decisions are critical – for everyone.

RELATED CONFERENCE SESSION Wednesday, 15 March 2017, 15:00 – 15:50

WEIGHING THE OPTIONS: ALTERNATIVES FOR HEAVY CARGO OCEAN TRANSPORT » MODERATOR: Miroslav Jakab,

China Logistics Manager/Global Container Negotiation Manager, FLUOR

» Michael Juhler, Global Head of

Special Cargo, MAERSK LINE » Jum Gyu Kim, Managing Director, SUPER RACK SHIPPING » Oskar Orstadius, Global Segment Account Manager, Breakbulk and Project Cargo, HÖEGH AUTOLINERS

1

Obviously in this market, every carrier is hungry for cargo. Why are container carriers able to edge into this market?

Fluor manages an annual spend of US$16 billion in equipment, materials or services, so it is critical for us to be able to ensure equipment and materials arrive to project sites in a timely and cost-effective manner. We consider all options when making transport decisions to find the solution that is best for the logistics and infrastructure of that project.

Over the last several years, we have seen the project transport market, which was traditionally dominated by multipurpose carriers, develop. One of the main factors is the entrance of container carriers into the project cargo segment. The market development over

CH12 BREAKBULK CHINA PREVIEW www.breakbulk.com/china

the past two years has emphasized this trend, with the demand for regular sailing with high frequency, economy of scales and global coverage.

As a result, the modern container vessels, usually able to carry up to 500 tons of cargo, have become serious competitors to multipurpose vessels because they can offer frequent sailings, fast transit times and reasonable transport costs.

However, multipurpose carriers still provide advantages, especially as good port infrastructure is needed for container vessels. In addition, you have to consider the lot size and with it connected the stowage plan and port time requirements.

However, options are not limited to multipurpose and container carriers, as roll-on/roll-off carriers are also entering the project cargo market. We continue to see developments in this segment as providers adjust their operation models.

Container carriers typically have fixed liner routes while MPVs and heavy-lift carriers are typically tramp carriers. Does a tramp carrier have an advantage in the project market?

2

Many consider HL carriers as carriers suitable of carrying cargo over 500 tons, so currently this is not in the container carrier’s scope. In addition, multipurpose carriers are not purely tramp carriers, as many have established regular liner or semi-liner service.

Multipurpose carriers have several advantages, including their flexibility to accommodate multiple types of ports, ability to accommodate substantial amounts of heavy cargo and flexibility during shipping.

For cargo owners, it is important to have a variety of carriers, such as multipurpose, roll-on/roll-off and container carriers that complement each other, so that we can make the best selection to support project needs.

ISSUE 6 / 2016

3

Do you see EPC engineers adapting project pieces so they can be transported in containers?

Our engineering and modularization teams work closely with logistics teams to optimize modular parameters for the maximum efficiency.

State-of-the-art engineering solutions cannot be delivered without collaboration from specialized logistics teams.

Transport is not only about the costs – our purpose is to have the right cargo, in the right place, at the right time. If we miss one of those elements, then we are being inefficient with our resources.

Each project is different and poses its own challenges regarding the proper logistics; there is no “one size fits all” approach. For example, if there are shallow draft limitations, container carriers might not be the solution in that instance, but it may still be part of the overall project logistics plans.

We also adapt cargo parameters to consider technical capabilities.

We’ve already seen consolidation and collapse in the carrier segment. Do you think this will continue?

4

We are in the midst of a wave of consolidation in the container, multipurpose and heavy-lift carrier segments.

The aim is to create a self-sustainable logistics model, where parties can be profitable, but deliver a level of capital efficiency that supports our project execution.

Automation and electronic data exchange are bringing new aspects into the business model and hopefully can assist in creation of well balanced system in between two undesirable extremes – over-fragmented on one side and super monopolized on the other one.

In general, how would you characterize the project cargo market in China?

5

As one of the world’s fastest-growing economies, Chinese projects and customers have been significant for our company’s growth. China is a very important market for Fluor; we have had the opportunity to complete more than 350 projects across 20 provinces and municipalities.

In recent years, the Chinese project market has not only concentrated on China but, in line with “One Belt, One Road” policy, rapidly expanded worldwide.

Our belief in the long-term growth and the importance of China and the Asia-Pacific region is underscored by our joint venture with COOEC, COOEC-Fluor Heavy Industries Co., Ltd., that was announced in 2015.

Through this joint venture, we own, operate and manage the Zhuhai Fabrication Yard, which is one of the world’s largest fabrication yards. The yard’s central, ocean-front location shortens shipping times to global markets. It is easily accessible to the region’s major cost-competitive suppliers and vendors, creating additional cost savings for our clients.

Through this yard, we cannot only serve clients in Asia-Pacific, but around the world, creating numerous project cargo opportunities. BB

Zhuhai Fabrication Yard Fast Facts » Located on the South China Sea » Over 2 million square meters in size » C an accommodate the fabrication of modules weighing more than 50,000 tonnes » C urrent capacity is 150,000 tonnes per year, with a planned capacity of up to 400,000 tonnes by 2019

CREDIT: ZHUHAI FABRICATION YARD / FLUOR

WORKSHOPS

Are changes ahead for China’s trade lanes because of the perceived trend toward isolationism under the presidency of Donald Trump?”

ASK AN EXPERT

Mac Sullivan, Trade Lane Manager GREC – Transpacific TOLL GLOBAL FORWARDING Mac Sullivan is currently the Greater China Trade Lane Manager (Transpacific) for Toll Global Forwarding. His primary focus is to lead and drive the overall budgeted volume and gross profit on one of Toll’s most important bilateral trade lanes: China-U.S. Mac works closely with Greater China and USA product and commercial teams.

Based on Trump’s policy rhetoric post-election, it is my personal opinion that he will very much lean towards whatever is the popular opinion in the U.S. at the moment, which makes this a hard question to answer.

While I believe some Americans perceive China as threatening American jobs, the facts don’t support this argument. Chinese investment and imports into the U.S. have had more positive aspects than negative, such as increased jobs and access to cheap goods.

Also, let’s not forget that China is America’s third-largest export trade partner. According to Seabury, U.S. to China trade is up 6%, while it was down 2% on Trans-Pacific eastbound from January to September during the pre-election period this year. I doubt Trump the businessman would want to

mess with this U.S.-advantaged trend supporting its GDP. U.S. multinationals and farmers have a lot at stake if he were to incite a trade war with China.

You know, while Trump has threatened a 45% tariff on Chinese goods, I personally don’t believe that he will even implement the 15% increase that he is allotted as president in the first 150 days. Breakbulk and project cargo on the TP trade lane have bigger problems to worry about, such as the slumping commodity markets, unclear direction of the global markets and the instability of the shipping industry.

In summary, if TPP does get nixed

by Trump, and the U.S. public gets access to more information about the potential price hikes, they will face the fact that the jobs that were lost to China in the past two decades aren’t coming back. BB

Mac is an American and has been in Shanghai, China since 2010.

He is one of six instructors for Breakbulk China’s Education Day and will provide an overview of land transportation. Here we ask him a question that has been on our minds since Donald Trump was elected president of the United States.

RELATED WORKSHOP Tuesday, 14 March, 09:00 – 16:00

EDUCATION DAY For information email Elizabeth Wetzel, Education Manager, at ewetzel@breakbulk.com CH14 BREAKBULK CHINA PREVIEW www.breakbulk.com/china

ISSUE 6 / 2016

SKILL BUILDERS FOR SHIPPERS & FORWARDERS

One-day Workshop in Project Freight Management » Tuesday, 14 March, 08:00 – 17:30

PROJECT FREIGHT MANAGEMENT – THE SHIPPERS’ PERSPECTIVE » O scar Li,

Project Manager, FLUOR CHINA LOGISTICS

All-inclusive pass covers the workshop, evening cocktail reception on Wednesday, 15 March, and the exhibition and conference on 15-16 March.

PRICING US$700 through 16 January US$750 through 12 March

USE CODE BBCH25 AND RECEIVE 25% DISCOUNT AT REGISTRATION (ONLINE ONLY)

This one-day intermediate level course is for those EPCs, cargo owners and project forwarders who strive to better understand the responsibilities and requirements in project freight management. From the proposal preparation to frame agreements, and from the project planning of the FEED, to the PEP – project execution plan and the application of BCM – best cost management, as well as calculation of TIC – total installed cost, this course will cover these steps and more in the process of successful project freight management.

If you are looking to learn about project planning, project and shipping strategy, and network with shippers, forwarders and service providers, then this is a good choice for you.

PPG Certificate in Project Forwarding » Monday-Tuesday, 13-14 March, 08:30 – 17:00

The PPG Certificate in Project Forwarding Workshop is ISO accredited and has been designed for project forwarders seeking to fast track skills and knowledge, or to refresh their approach on how to achieve success. » Kevin Stephens, » Rodger Hall, founder of 3PL heavylift network

founder of

SUN COMMUNICATIONS

PROJECT PROFESSIONALS GROUP

REGISTER www.wwproject.net/education

The instructor-led training includes applied exercises and case studies. The non-technical course has been held at venues around the world and has received excellent feedback.

This training is offered to industry professionals and “rising stars” who wish to take the opportunity to register for a project cargo training course especially designed to fast track skills that otherwise could take many years to acquire.

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FLOOR PLAN

CH16 BREAKBULK CHINA PREVIEW www.breakbulk.com/china

Check-in to Breakbulk China to schedule meetings, promote your 13-16 MARCH 2017 company and get instant 13-16 MARCH 2017: Educational Workshops access to all event 13-16 MARCH 2017: Exhibition & Executive Presentions details and updates.

Shanghai World Expo Exhibition & Convention Centre(SWEECC) Hall-3 Shanghai, China

ISSUE 6 / 2016

THE BREAKBULK EXHIBITOR ADVANTAGE New to Breakbulk? Great! We can’t wait to show you why exhibiting at Breakbulk China is a smart choice.

THANK YOU TO OUR SPONSORS

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Exhibit Planning Made Easy

Breakbulk has selected Milton for stand-building services.

Milton has an excellent online ordering system, which will streamline the process of exhibit planning for you. However, if you still prefer person-to-person assistance, Milton has that as well. Of course, the Breakbulk team is always available to help as well.

5 FREE Marketing Tools

1

As an exhibitor you will receive five complimentary VIP customer guest invitations to use with the clients that are most important to you. (These passes are in addition to your exhibitor allotment.) This is a great way to show your appreciation for your best customers and build a relationship with prospects.

2 3 4

Email signature banner customized with your stand number that you can easily add to your emails to promote your company’s presence at Breakbulk China 2017. Need an ad for your website? Just let us know.

Submit your company video to be played during the event on the big screen HDTVs located throughout the hall.

All entries in the upcoming Dusk to Dawn Photo & Video Contest will be on display at the event. Entries may be submitted starting on 4 January 2017. Show us your most challenging after-hours transports! Exhibitors who enter the contest will have the opportunity to be filmed in our 2-Minute Challenge series — a $1500 value.

5

Submit your press releases (up to three per exhibitor) to our online media center where they will be posted to breakbulk.com.

www.breakbulk.com/china BREAKBULK CHINA PREVIEW CH17

EXHIBITOR

COMPANY

CHECKLIST Use this handy guide to keep track of Breakbulk China exhibitors you don’t want to miss at the show.

COMPANY

STAND

3T Cameroun A-ship AAL AARAS Shipping Agencies ACC Logistics ADP Shipping Ahlers AICL Projects Allied Shipping FZE Aqua Dragon International Logistics BBC Chartering Bestbox Export Packing Limited BigLift Shipping Broekman Logistics C-NKKK C. Steinweg Capebulk Central Oceans Hong Kong Limited Chapman Freeborn China Pacific Maritime China Shipping Vastwin Chipolbrok CH18 BREAKBULK CHINA PREVIEW www.breakbulk.com/china

911 6 304 1807 1805 628 314 912 106 814 604 322 708 212 18 918 915 808 214 620 520 508

Chuji Logistics Chun An Shipping CIMC CJ Smart Cargo CMA CGM CMEC Comtrans International Co., Ltd. Cosco Xiamen CTS International Logistics Eastern Car Liner (ECL) Eastern Shipping SRL Eukor Car Carriers Expeditors Express Global Logistics Fawaz Ali AlShammari Est for Transportation Fednav International FILOG Flogis International Gearbulk Global Project Logistics Network (GPLN) Goldhofer Aktiengesellschaft Grieg Star Shipping Hanssy Shipping Hareket Heavy Lifting & Project Transportation Höegh Autoliners Holmatro Hong Fa Shipping Hong Glory Shipping Huihai Logistics Ilya Shipping Ltd.

STAND 426 404 528 910 318 422 622 320 820 1007 208 1808 1818 1809 425 324 316 908 1104 530 906 812 116 406 1016 804 720 8 913

ISSUE 6 / 2016

EVENT ESSENTIALS

COMPANY Intermarine IPL JC Logistics Group Lift and Shift LS Cargo Logistics Luhai Shipping Maersk Line Martin Bencher Max Shipping Maxx Arabia MOL Project & Heavy Cargo Msharib Shipping & Logistics MUR Shipping Nansha Terminal Nepa Shipping Agency Hong Kong New Legend Group Ningbo Meixi Ro-ro Terminal Nirint Shipping BV Nordana NYK Bulk & Projects Carriers Ltd. Ocean Truck Logistics Group Pak Shaheen Group Polytra Port of Antwerp Port of Caofeidian Port of Duqm Port of Houston Authority Port of Portland Qingdao Sinotraffic Supply Chain Co., Ltd. Qingdao Yuedasite Rigging Co., Ltd. Red Hook Terminals Reserved Rickmers-Linie Sarjak Container Lines Sclashing Shanghai

STAND 614 1004 526 1014 725 1806 420 522 408 1010 416 113 1813 624 216 220 326 714 724 616 424 9 709 608 108 1815 806 112 323 1115 1819 612 504 308

COMPANY Seahawks Seaports of Niedersachsen GmbH Sewota Lifting and Lashing Kunshan Col, Ltd. Shanghai Flowlink Supply Chain Management Shanghai Greenroad Intl Logistics Shanghai Portstar Rigging Co. Shanghai Shineway Shenyang Woka Large Cargo Transportation ShipNEXT Siem Car Carriers Sinoeastern Sinotrans & CSC Holdings Co. Space WanShan Spliethoff Star Shipping Swire Shipping Taishen Webbing Tianjin Chaungyuan Shijia Tianjin Lingang Port Group Tii Group Topsheen Shipping Group Translink Wallenius Wilhelmsen Logistics Wan Bong Chartering Weco Project Weili Logistics Winkey Shipping World Wide Shipagencies Association (WWSA) XLProjects Yantai Golden Ocean Shipping YN Logistics

STAND 1018 822 124 224 618 104 1015 816 1017 524 1817 305 222 708 3 904 710 210 206 726 916 110 704 716 724 115 712 315 102 1811 109

1006 www.breakbulk.com/china BREAKBULK CHINA PREVIEW CH19