Volume27 by indonesialogisticsonline ilojournal

FREE EXHIBITION & CONFERENCE

INTERMODAL ASIA 24-26 MARCH 2015 Shanghai World Expo Exhibition & Convention Center

ASIA’S CONTAINER SHIPPING EVENT BRINGING ASIA’S CONTAINER SHIPPING & LOGISTICS INDUSTRY TOGETHER

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To find out more information, contact Sophie Ahmed on sophie.ahmed@informa.com or tel: + 44 (0) 207 017 5112 Follow us on

Primary event sponsor

www.intermodal-asia.com/adilo

Explore Oman’s Latest Supply Chain & Logistics Development

Dear Industry Professionals, Al Nimr Conferences & The Ministry of Transport & Communications, Sultanate of Oman is pleased to announce the 2nd GCC Supply Chain & Logistics Conference which will take place from 13th – 16th of April 2015 at the Al Bustan Palace, A Ritz-Carlton Hotel, Muscat, Oman. The 2nd GCCSCL Conference is one of the important events of its kind, bringing together senior executives from major industries within the region and international. Leading industry experts and a list of luminaries who will share their thoughts and practical ideas on how to drive logistics and supply chain operations forward. The conference will also highlight emerging opportunities in Oman’s world-class ports, airports and free zones and its important role in the Gulf region and Indian Ocean rim in terms of trade ﬂow.

To know more about the GCCSCL 2015 conference , please feel free to contact us at +968 24 700 656 or email: sales@alnimrexpo.com

Be the first to take advantage of our Early Bird Offer and Group Discounts! Media Partner * Limited offer only

www.alnimrexpo.com/gccscl

Organized by

10-63

“REPORT . The 8th Philippine Ports and Shipping 2015 “

CONTENTS

MAIN TOPIC

72 68

70 Intermodal Asia 2015 Shippers panel returns to Intermodal Asia 2015 in Shanghai

Working With Challenging Situations & How Effective Planning Can Work For You

ADVANCED HEAVY LIFTING AND TRANSPORTATION: An In-depth Analysis of Technicality, Maintenance and Safety

GCC SUPPLY CHAIN & LOGISTICS CONFERENCE 2015 - Sultanate of Oman

The Tenth International Rail Business Forum 1520 Strategic Partnership 3 - 5 june 2015-Russia,Sochi

Note’s From Publisher Dear readers, Welcome to the twenty-seven EDITION. We never forget to always thank you to the Lord of His protection to you and us. Yess, it is not adult yet but in its journey ilo JOURNAL Magazine will always try to be more mature with update and useful informations for readers. Main topic of this february 2015 is

“REPORT .The 8th Philippine Ports and Shipping 2015 “ We invite you to see our others interesting topics such as Logistics, Ports & Terminals, Sea Transport, Air Transport, Railways,and etc. We expect that these informations will helpful and meet your requirement. We are always try to give you the best informations, trustworthy and fastest. You are welcome to visit our website www.indonesialogisticsonline.com every time for updating news. Your suggestion and criticism are appreciated.

Happy Reading Sincerely EDITOR

Wednesday 6 and Thursday 7 May 2015 InterContinental Doha The City, Qatar Hosted By

INGRID - MANAGING DIRECTOR SAUT SIMANJUNTAK ,SH - EDITOR in CHIEF GUNTUR OKATAVI - EDITOR NANDA PRASTYA,S.KOM - IT - PROGRAMMING RONY RIDWAN ,S.KOM - IT SYAMSUL WALI - DESIGN GRAFIS RISMAN BATARA- DATA ENTRY LISKA DONNA RUKAN - FINANCE ARIEF RAHMAN & ARDI JAMALAUDDIN - PHOTOGRAFER DHARMAWANGSA SON ,S.KOM- CONTRIBUTOR JAKARTA ROMY ISKANDAR, - CONTRIBUTOR MEDAN Dg.LIRA - CIRCULATION RONY RIDWAN ,S.KOM- MARKETING CONTRIBUTOR : TEAM RESEARCH & ANALISH ADVISORY SARIATI SILELE INGRID

• Technical Site Visit • 60 International Exhibition Stands • 30 International Conference Speakers • 400 International Decision Makers Special Offer: Conference Delegate Registration for Shipping Lines; Port Authorities And Terminal Operating Companies at only GBP595! Save GBP400! • FREE Conference Delegate Registration for Shippers/Beneficial Cargo Owners (BCOs) • HIGHLIGHTED TOPICS

• • • • • • •

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Public-Private Partnership (PPP) opportunities in the EMEA region Investment opportunities in ports development and terminal operations in the Middle East/GCC Emerging Trends in Maritime Transport and The Impact on Ports Development Construction issues with regards to ports development in the Middle East region - legal perspective A carrierÊs perspective – how can infrastructure challenges in the Middle East be overcome?

For more Information or to Register

Tel. + 60 87 426 022

Fax. + 60 87 426 223

• • • • • •

Infrastructure advantages and challenges in the Middle East and the impacts on ports development Innovative Technology and Cutting Edge Solutions for Middle East Ports and Terminal Efficient solutions for bulk handling in the Arabic Gulf Effective Management of Port and Terminal Operations in the Middle East How technologies/services can help medium size port operators manage terminals effectively? North Adriatic serving Middle East Markets – trends and prospects

Email: enquiries@transportevents.com

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COVER.BY.transportevents.com

AHU-58121.AH.01.01 Daftar Perseroan Nomor AHU-0098503.AH.01.09. Tahun 2012 Tanggal 14 November 2012.

Qatar's Ports Sector - Past, present and future prospects

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The Future of Regional Maritime and Trade Development in the Middle East: 2015 and Beyond

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International Conference on

Geology

Geology 2015 Florida, USA June 22-23, 2015

“Recent Advancements in Geology and Geosciences” OMICS International is delighted to invite you to attend the International Conference on Geology which is to be held on June 22-23, 2015 at Florida, USA. Geology 2015 will place a platform for the interaction between experts around the world, and aims to accelerate the major disciplines and scientific discoveries in the field of Geology. The central goal of this conference is to advance and accelerate scientific research and discoveries in the fields of Geology and Geoscience. It will bring university professors; research Scientists and Students, eminent persons of different geological association and societies to disseminate the findings of geological research. The theme of the conference is “Recent Advancements in Geology and Geosciences” Which covers a broad range of vitally key sessions. Organizing Committee Members Filippos Vallianatos University College London Greece

Wael Abdel Kawy Cairo University Egypt

Mukesh Singh Boori National Oceanic and Atmospheric Administration USA

Bill X. Hu Florida State University USA

Haiying Gao University of Massachusetts USA

Mohamed Bahnassy Alexandria University Egypt

Major Scientific Sessions • Geology and Mineral Resources • Geophysics and Geochemistry • Marine Geology • Engineering Geology • Volcanology • Geohazards and Management

• Sedimentology and Costal Process • Geologic Processes • Exploration Geology • Palaeontology and Paleobiology • Structural Geology and Tectonics

Market Analysis Industries associated to Geology are mining industries, Oil and gas industries, Coal industries and so on. Also many companies are there in USA and in the globe which deals with Geological products. As per the National Geological and Geophysical Data Preservation Program, Survey for funding opportunities is done among different states of USA. From this survey report the total funding amount is $625,993.29. As Geology is mostly academic related, so there are a huge no of Academicians in USA as well as in the whole globe. Around 450 in Florida, 4500 in USA and more than 6000 Physicians, Researchers and Academicians are working on the fields of Geology. For more information on market analysis of Geology: http://conferenceseries.com/geology-geoscience-geochemistry.php

Supporting Journals • Journal of Geology & Geosciences • Journal of Geophysics & Remote Sensing • Geoinformatics & Geostatistics: An Overview Website: www.geology.conferenceseries.com

Venue Address Hyatt Regency Orlando International Airport Orlando Florida USA Email: geology@conferenceseries.net, geology@conferenceseries.com Ph: +1-650-268-9744, Fax: +1-650-618-1414

REPORT .The 8th Philippine Ports and Shipping 2015

Philippine Ports and Shipping continues to be the biggest biennial Container Ports and Terminal

Operations Exhibition and Conference in the Brunei, Indonesia, Malaysia and Philippines (BIMP EAGA) region - now in its 8th successful year! The 8th Philippine Ports and Shipping 2015 Exhibition and Conference will take place at the luxurious 5 star The Peninsula Manila Hotel, Manila, The Philippines on Thursday 12 and Friday 13 February 2015. This event is proud to be hosted by The Philippine Ports Authority. A two days Conference Programme will feature 30 world-class conference speakers addressing topical issues and challenges on global transportation and logistics attended by a gathering of 400 senior executive harbour masters, harbour engineers, port engineers, maintenance supervisors and procurement decision makers together with the regionâ&#x20AC;&#x2122;s leading shippers, cargo owners, importers / exporters, shipping lines, freight forwarders, logistics companies, ports, terminal operating companies, railway operators, port equipment and services suppliers from the BIMP EAGA region. There will be the commercial opportunity for 60 exhibitors and sponsors to network directly with the delegates at this major biennial international maritime transport Exhibition and Conference trade event for the BIMP EAGA region. Reserve your first choice of exhibition stand from the Exhibition Floorplan and register a conference delegation while there is still limited availability! We look forward to your participation at the biggest biennial Container Ports and Terminal Operations Exhibition and Conference in the BIMP EAGA region taking place in The Philippines on Thursday 12 and Friday 13 February 2015 - now in its 8th successful year!

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

The 8th Philippine Ports and Shipping 2015 . REPORT Richard Barclay, Chief Executive Officer, Manila North Harbour Port Inc., The Philippines

8th Philippine Ports and Shipping 2015

DEVELOPING MANILAâ&#x20AC;&#x2122;S MARITIME TRANSPORT GATEWAY Presented By: Manila North Harbour Port, Inc.

LEGEND: 1. Retrofitting Works and Installation of Crane Rails (MSW/Pier 16)

Media Partner

REPORT .The 8th Philippine Ports and Shipping 2015

LEGEND: 1. Retrofitting Works and Installation of Crane Rails (MSW/Pier 16) 2. Container Yard

1 2

LEGEND: 1. Retrofitting Works and Installation of Crane Rails (MSW/Pier 16) 2. Container Yard 3. Power Center

1 2

Power house building

Generator Sets

LEGEND: 1. Retrofitting Works and Installation of Crane Rails (MSW/Pier 16) 2. Container Yard 3. Power Center 4. Reefer Plugs

1 2

Transformers

Switchgear

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

The 8th Philippine Ports and Shipping 2015 . REPORT

LEGEND: 1. Retrofitting Works and Installation of Crane Rails (MSW/Pier 16) 2. Container Yard 3. Power Center 4. Reefer Plugs 5. Weighbridges

1 4

LEGEND: 1. Retrofitting Works and Installation of Crane Rails (MSW/Pier 16) 2. Container Yard 3. Power Center 4. Reefer Plugs 5. Weighbridges 6. Operations Center & Truck Parking 1 4

LEGEND: 1. Retrofitting Works and 7. Installation of Crane Rails (MSW/Pier 16) 2. Container Yard 3. Power Center 4. Reefer Plugs 5. Weighbridges 6. Operations Center & Truck Parking

Entry & Exit Gates

1 4

5 7

LEGEND: 1. Retrofitting Works and 7. Installation of Crane Rails 8. (MSW/Pier 16) 2. Container Yard 3. Power Center 4. Reefer Plugs 5. Weighbridges 6. Operations Center & Truck Parking

3 7

Entry & Exit Gates Pier 10-South Side Bulkhead and Rehabilitation of Pavement

1 8

5 7

3 7

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

REPORT .The 8th Philippine Ports and Shipping 2015

LEGEND: 1. Retrofitting Works and 7. Installation of Crane Rails 8. (MSW/Pier 16) 2. Container Yard 3. Power Center 9. 4. Reefer Plugs 5. Weighbridges 6. Operations Center & Truck Parking

Entry & Exit Gates Pier 10-South Side Bulkhead and Rehabilitation of Pavement Consolidated Passenger Terminal Complex

1 8

LEGEND: 1. Retrofitting Works and Installation of Crane Rails (MSW/Pier 16) 2. Container Yard 3. Power Center 4. Reefer Plugs 5. Weighbridges 6. Operations Center & Truck Parking

7. 8.

Entry & Exit Gates Pier 10-South Side Bulkhead and Rehabilitation of Pavement 9. Consolidated Passenger Terminal Complex 10. Pier 4 Bulkhead and Rehabilitation of Pavement

LEGEND: 1. Retrofitting Works and Installation of Crane Rails (MSW/Pier 16) 2. Container Yard 3. Power Center 4. Reefer Plugs 5. Weighbridges 6. Operations Center & Truck Parking

7. 8.

Entry & Exit Gates Pier 10-South Side Bulkhead and Rehabilitation of Pavement 9. Consolidated Passenger Terminal Complex 10. Pier 4 Bulkhead and Rehabilitation of Pavement

11. Ropax Terminal & Triangle Area development

5 7

3 7

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

The 8th Philippine Ports and Shipping 2015 . REPORT

LEGEND: 1. Retrofitting Works and Installation of Crane Rails (MSW/Pier 16) 2. Container Yard 3. Power Center 4. Reefer Plugs 5. Weighbridges 6. Operations Center & Truck Parking

7. 8.

Entry & Exit Gates Pier 10-South Side Bulkhead and Rehabilitation of Pavement 9. Consolidated Passenger Terminal Complex 10. Pier 4 Bulkhead and Rehabilitation of Pavement

11. Ropax Terminal & Triangle Area development 12. New Hiring hall

6 12

LEGEND: 1. Retrofitting Works and Installation of Crane Rails (MSW/Pier 16) 2. Container Yard 3. Power Center 4. Reefer Plugs 5. Weighbridges 6. Operations Center & Truck Parking

7. 8.

Entry & Exit Gates Pier 10-South Side Bulkhead and Rehabilitation of Pavement 9. Consolidated Passenger Terminal Complex 10. Pier 4 Bulkhead and Rehabilitation of Pavement

Perspective of the New Hiring Hall

11. Ropax Terminal & Triangle Area development 12. New Hiring hall 13. New Bahay Silungan

1 8

6 13

LEGEND: 1. Retrofitting Works and Installation of Crane Rails (MSW/Pier 16) 2. Container Yard 3. Power Center 4. Reefer Plugs 5. Weighbridges 6. Operations Center & Truck Parking

7. 8.

Entry & Exit Gates Pier 10-South Side Bulkhead and Rehabilitation of Pavement 9. Consolidated Passenger Terminal Complex 10. Pier 4 Bulkhead and Rehabilitation of Pavement

Perspective of the New Bahay Silungan

LEGEND: 1. Retrofitting Works and Installation of Crane Rails (MSW/Pier 16) 2. Container Yard 3. Power Center 4. Reefer Plugs 5. Weighbridges 6. Operations Center & Truck Parking

11. Ropax Terminal & Triangle Area development 12. New Hiring hall 13. New Bahay Silungan 14. Front Wharf Pier 16-14 & Reclamation of Slip 15

6 13

5 7

Entry & Exit Gates Pier 10-South Side Bulkhead and Rehabilitation of Pavement 9. Consolidated Passenger Terminal Complex 10. Pier 4 Bulkhead and Rehabilitation of Pavement

11. Ropax Terminal & Triangle Area development 12. New Hiring hall 13. New Bahay Silungan 14. Front Wharf Pier 16-14 & Reclamation of Slip 15

7. 8.

3 7

6 13

5 7

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

3 7

REPORT .The 8th Philippine Ports and Shipping 2015 Measure

Range (Min~Max) Average

Measure

Range (Min~Max) Average

Measure

Majority Others

Berth Staytime

Ship Exchange (IB+OB)

Berth Productivity (moves/hr)

LOLO - SS

38.7 hrs to 94.5 hrs

94 boxes to 450 boxes

1.2 bmph to 10.7 bmph

63.2 hrs

303 boxes

6.4 bmph

Berth Staytime

Ship Exchange (IB+OB)

Berth Productivity (moves/hr)

RORO

24.5 hrs to 72.0 hrs

193 boxes to 410 boxes

6.1 bmph to 9.2 bmph

48.9 hrs

289 boxes

7.2 bmph

Berth Staytime

Ship Exchange (IB+OB)

Berth Productivity (moves/hr)

LOLO - QC

16.5 hrs to 44.1 hrs

181 boxes to 480 boxes

10 bmph to 15 bmph

18 hrs to 24 hrs

750 boxes

35 bmph to 40 bmph

NLEX

Proposed NLEX-SLEX

Skyway Stage 3 SMC-CITRA

Skyway Stage 3 SMC-CITRA Skyway Stage 1

SUMMARY • Manila will continue to be the maritime transport gateway for the Philippines • Continue to work with the various government sectors to expedite road infrastructure projects, establishment of inland clearance depots and explore the potential for reviving rail connections to the port and truck management systems • Encourage government to expedite modernization of outports so as to complement productivity levels of Manila

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

The 8th Philippine Ports and Shipping 2015 . REPORT Roberto V. Garcia, Chairman and Administrator, Subic Bay Metropolitan Authority, The Philippines

How Subic can help alleviate port congestion in Manila

Presented by:

Roberto V. Garcia

02.13.2015

Chairman and Administrator Subic Bay Metropolitan Authority 2

The Road Congestion Situation

The Port Congestion Situation

 The 450,000 TEUs destined for or originating from the Central and

 Batangas/Manila: 95% utilization

Northern Luzon that presently pass thru Manila are adding to the road congestion problem.

 25 ships in Manila Bay waiting to discharge cargo  Increased cost of goods due to extra charges and delays

 Road projects to ease traffic will take 2 - 3 years to complete by which

time the number of vehicles will also increase.

The Subic Bay Freeport Manufacturing and Logistics Hub for ASEAN

 Strategic location

 The first and largest free port zone in the Philippines

 ISPS compliant port

 1,310 local & foreign investors

 Natural deep harbor

Major Road Networks

The Subic Bay Freeport Zone

Key Advantages

 More than US$ 9 Billion cumulative investment

 Capable of handling all types of sea

 Over 93,000 workforce

vessels

 World-class and reliable infrastructure

 Home of the biggest shipbuilding facility in the Philippines

 Skilled and service-oriented workforce

 With an international airport and ISPS-compliant seaport  Total area of 67,452 hectares  Modern and fast access roads NORTH LUZON EXPRESSWAY (NLEX)

NCT 1 & 2 ACCESS ROAD

SUBIC-CLARK-TARLAC EXPRESSWAY (SCTEX)

A 84-Km., 4 to 8-lane access toll expressway from Metro Manila to Central Luzon provinces and one the most modern infrastructure projects undertaken in the country over the past ten years.

A 3.6-Km. access road, connecting New Container Terminals 1 and 2 to the Freeport’s Argonaut Highway all the way to the Tipo Expressway, Subic’s nearest entry-exit point to and from Manila

A modern four-lane, 94-km. highway from Clark to Subic up to Tarlac, linking three growth centers in the area: Subic Bay Freeport Zone, Clark Freeport Zone and Tarlac Industrial Park..

New Container Terminal 1 & 2

TARLAC-PANGASINAN-LA UNION EXPRESSWAY

Terminal Area: 26.32 hectares Total Handling Capacity: 600,000 TEUs a year Berth • Length of quay: 560 meters • Number of berth positions: 4 • Controlling depth: 13 meters Container Yard • Storage areas: 11.14 hectares • Reefer stations: 84 units at 440 volts

SBMA’s Initial Initiatives

Gates • Truck lanes: 6 • Weigh bridge: 2 (60-ton capacity) • Truck Holding Area: 0.7 hectares

TARLAC-PANGASINAN-LA UNION EXPRESSWAY (TPLEX)  An 88.5-km. four-lane expressway serving

as the extension of North Luzon Expressway (NLEX) and SCTEX from Tarlac to Rosario, La Union S

• Constructed in 2008 • Financed by JICA Loan for 7 Billion Pesos • 25 yrs .amortization for 250 Million Pesos

Subic Bay Maritime Conference and Exhibit (23-24 August 2012)

Chairman

Roberto

Garcia

welcomed more than 500 delegates who attended

the

Subic

Bay

Maritime

Conference and Exhibit at the Subic Bay Exhibition and Convention Center. The conference brought together the key players

the

shipping

The Maritime Technical Working Group is composed of stakeholders – Port Authorities, Port Operators, Shipping Lines, Shipping Agents, Brokers, and Consignees – who meet regularly to discuss pressing concerns and business conditions, and to carry out plans and recommendations to increase utilization of Subic’s New Container Terminals.

“We’d like to get the shipping lines to call and get the key shippers to ship to and from Subic.” SBMA

industry

—

shippers from Clark, Subic, and Central

Active Participation in SCAD

Creation of the Maritime Technical Working Group

Subic Clark Alliance for Development (SCAD) Government Organization

SCAD was created to meet the need

for

rationalize

single

body

resources

to and

harmonize strategies that would

Luzon, as well as shipping lines, brokers,

ensure an integrated approach to

forwarders, and other stakeholders.

the development of the SubicClark corridor in Luzon.

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

REPORT .The 8th Philippine Ports and Shipping 2015 MOA on BOC-SBMA-SBITC One-Stop-Shop

Partial Success in 2013 (7% Utilization)  Info gathering and coordination for “NYK Shipping Line to

establish a Subic Singapore Route

 Diversion of grain shipments from Manila to Subic  Expanded iron ore transshipment operations of VALE project  Exportation of HLD Pipes using New Container Terminals 1 and 2  Full implementation of increased admission fees for second-hand

trucks and heavy equipment

 Enactment of domestic tariff for local shipping lines/companies

that ship from Subic to other domestic ports.

 MOA between SBMA and BOC for the land  MOA between SBITC and BOC for the building construction S

EO 172 Cabinet Cluster / IRR Formulation

E.O. 172, declaring the Port of Batangas and the Subic Port as extensions of Manila (MICT/South

SBMA’s Present Strategic Initiatives to Alleviate Port Congestion

Harbor) during congestion and other emergency cases. Subic Port Team is proactive

working with the Philippine Ports Authority for the drafting of the IRR.

Storage of BOC seized Containers ARRIVAL DATE

No. of Contrainers

VESSEL NAME

20'

40'

TEUs

45'

MV West Ocean

Yokohama Tires Phils Inc.

21-Aug-14

MV West Ocean

Empty Containers

28-Aug-14

MV Asterix

301

368

1,154

Booking Services Ms. Edeliza S. Santos Mobile No.: +63917.849.2625 Ms. Raquel C. Serrano Mobile No.: +63917.306.5143 Mr. Malcohm P. de Leon Mobile No.: +63917.906.3804

BOC seized containers

1,276

SBMA to help alleviate the congestion of the Manila Port.

Manila - Subic VESSEL

ETA MNL

ETD MNL

Date

Time

Date

Time

West Ocean 3

Tuesday

1200H

Tuesday

2300H

West Ocean 3

Friday

1200H

Friday

2300H

Subic Manila

Operational Concerns Mr. Bennedict S. Navalta (Gen. Mgr.) Mobile No.: +63917.543.7941 +63998.556.6533 Mr. Roger M. Teberio (Optns. Mgr.) Mobile No.: +63917.893.6437 +63918.908.4628

NCT1 and 2 were offered by

Consignee

Hotline Nos. +632.511.0408/09 +632.511.7302

Subic Super Shuttle

14-Aug-14

Total

Date

Time

Date

Time

West Ocean 3 Wednesday 1000H Wednesday

2300H

West Ocean 3

2300H

• •

Saturday

1000H

Saturday

13 August 2014: Arrival of maiden voyage at Subic Port with 18 containers 21 August 2014: Second voyage with 86 containers (all empties)

SBMA Reduced Port Fees to Attract Shipping Lines/Shippers

Three (3)-hectare Clark Container Depot

SHIPPING CHARGES Regular Rate vis-à-vis Discounted Rate

“…mandates the use of the Freeport property near the airport as storage house of empty containers shipped from Subic to Metro Manila, Southern, Central and Northern Luzon or vice versa.”

Regular Rate (US$)

VESSEL CHARGES

Arthur Tugade CDC President

Discounted Rate (in US$)

Subic

Batangas

First 6 mos.

Next 6 mos.

1. Harbor Fee (per GRT)

0.0460

0.0810

0.0080

0.0410

2. Berthing Fee (per GRT per day)

0.0345

0.0390

0.0040

0.0200

CDC Pres/CEO Arthur Tugade (2nd left) shakes hand with CargoHaus Inc. chairman Alberto Lina (2nd right) after the signing of the lease agreement that will put up the first container yard at the eco-zone held at the CDC Boardroom, Clark Freeport Zone, on 15 August 2014.

Subic Port discounted rate:  83% lower than the regular rate for Harbor Fee; and  88% lower than the regular rate for Berthing Fee.

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

The 8th Philippine Ports and Shipping 2015 . REPORT Central / Northern Luzon Shipping Summit (29 September 2014)

Briefing of the Association of International Shipping Lines

“Out of the 3 million containers handled yearly by Manila ports, 15% or 450,000 TEUs originate or are shipped to Central and Northern Luzon . . . It therefore does not make any sense at all why these 450,000 (TEUs) should clog up the streets of Metro Manila when Subic Port is already willing and able to accept that volume”

SBMA Chairman Roberto V. Garcia during his presentation at the Northern Luzon Shipping Summit in Fontana Clark, Pampanga.

AISL members are more than willing to use the Subic Port with the IRR of EO 172.

Presentation at the Chamber of Customs Brokers Inc. (27 November 2014) The Chamber applauded the ONE-DAY ACCREDITATION PROCESS and the ONE STOP SHOP business solutions of the Subic Bay Port

On 11-23 November 2014, a total of 83 delegates from eight member ports met in Subic Bay: the Port of Koichi (Japan); Port of Colombo (Sri Lanka), Mokpo Newport (South Korea), Port of Tanjung Perak (Indonesia), Port of Qingdao (China), Port of Subic and Port of Cebu (Philippines), and Port of Dangjin (South Korea).

SBMA Chairman Roberto V. Garcia during his presentation at the Chamber of Customs Brokers Inc.. S

Temporary One-Stop-Shop

Requirement for Provisional Accreditation

 To be operational this March 2015,

pending the construction of the OneStop-Shop Building

a 4-mbps fiber optic connectivity (SBMA-BOC-SBITC)

 With

ONE DAY ACCREDITATION PROCESS! For FULL ACCREDITATION, an additional clearance from SBMA Ecology Department is required. S

The Subic Container Status Today

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

REPORT .The 8th Philippine Ports and Shipping 2015 Wan Hai Line’s Taiwan-Philippine-Service Northbound Leg (TPSN) Weekly Service Call

Actual Container Traffic 2014 vs. 2013 (TEU) FY 2014 January February March April May June July August September October November December Total

NCT 2,560 3,446 3,443 3,361 4,238 2,729 6,145 8,770 5,826 6,207 14,040 10,455 71,218

Others 231 229 366 263 359 379 392 204 823 1,949 450 314 5,959

Total 2,791 3,675 3,809 3,624 4,597 3,108 6,537 8,974 6,649 8,156 14,490 10,769 77,177

16,000 14,000 12,000 10,000 8,000 Others

6,000

NCT

4,000 2,000 0

FY 2013 January February March April May June July August September October November December Total

NCT

Others

Total

2,734 2,162 2,855 2,796 3,358 2,718

169 191 266 315 324 250

3,136 2,552 3,051 3,254 2,835 2,828 34,278

219 265 378 399 297 118 3,191

2,903 2,353 3,121 3,111 3,682 2,968 3,355 2,817 3,429 3,653 3,132 2,946 37,469

4,000 3,500 3,000 2,500 2,000 Others

1,500

NCT

1,000 500 0

 53% Utilization

 106% Increase in Total Volume S

Weekly Rotation: Kaohsiung -> Manila -> Subic -> Kaohsiung

APL Line’s MNX – Manila Express and the New CS3 Service

Additional Shipping Lines (Aside from APL and Wan-Hai)

APL Line’s MNX – Manila Express Weekly Rotation: Kaohsiung -> Subic -> Manila -> Kaohsiung

SITC’s MV Sicilia, with 1,800-TEU capacity, made her maiden voyage to the Port of Subic Bay on 17 October 2014.

CS3 Port Rotation: Lianyungang - Chiwan - Hong Kong - Kaohsiung - Subic Bay - Cagayan - Kaohsiung - Busan – Lianyungang

The Port of Subic Bay is now connected to Japan and China with Intra-Asia carrier SITC that services Hakata-Shanghai-Xiamen-Manila-Subic-XiamenShanghai-Busan-Hakata.

Highlights: Direct service linking Taiwan, China, and Korea with Subic Bay and Cagayan (Tagoloan - Mindanao Container Terminal) S

32 S

More shipping lines coming . . .

Additional Shipping Lines (Aside from APL and Wan-Hai) NYK’s MV Jakarta Tower, with 2,300 TEU capacity, made her maiden voyage to the Port of Subic Bay on 23 November 2014. The first service in the Philippines to make a direct call from Japan to Subic Bay.

Southbound Service: Osaka – Yokkaichi – Shimizu – Tokyo – Yokohama – Kobe – Kaohsiung – Subic – Manila – Ho Chi Minh – Singapore.

Subic is now connected to the world! S

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

The 8th Philippine Ports and Shipping 2015 . REPORT It is cheaper and more convenient to ship thru the Port of Subic Bay

Long-term Plans for Port of Subic Bay

Source: Juken Sangyo (PHIL.) Corporation (Member of the Subic Bay Maritime Technical Working Group)

Expansion of the New Container Terminal

Road widening of the existing Tipo Road

NCT 3 and 4 for an additional annual capacity of 600,000 TUEs

38 S

The Subic Proposition

Long-term PhP3.9 Billion Bypass Road Project

 No need for Central/Northern

Luzon 450,000 TEUs to clog traffic in Manila.

 Subic is ready, willing, and able

to help spur the country’s economic development by alleviating the Manila congestion problem.

THE NEW ROAD FROM SCTEX TO SUBIC BAY INTERNATIONAL AIRPORT AND SEAPORT TERMINAL IS IMPORTANT TO ACCOMMODATE THE GROWTH OF CARGOES COMING IN AND OUT OF THE PORTS.

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

REPORT .The 8th Philippine Ports and Shipping 2015 Sean Perez, Vice President – Commercial & Marketing, Asian Terminals Inc., The Philippines

Our Business

Supporting Industries. Connecting Economies.

ATI offers comprehensive and competitive port services for containerized, noncontainerized, bulk & break bulk, and passengers – a synergy of services which comes second to none in the Philippine port industry. Backed by three decades of experience and expertise

Supporting Growth: Sustaining Terminal Efficiencies at Manila South Harbor and the Batangas Port

Philippine Stock Exchange-listed firm since 1996

Sean Perez, Vice President – ATI February 13, 2015 | Friday | Manila Peninsula Hotel

Part of the port network of DP World, the 4th biggest terminal operator worldwide

Our

Locations

Manila South Harbor

Diverse workforce of 1,400+ people, with local and global experience

Compliant to Global Standards on Operations, Safety, Environment & Security

Challenges of 2014 Truck-ban induced Supply-Chain Breakdown

Sta. Mesa Container Yard

Inland Clearance Depot Calamba, Laguna

Restricted road access for trucks adversely affected the natural flow of cargoes in and out of the major Manila ports

Batangas Port

Increased container inventory resulted to slower yard production, higher vessel dwell time, undue stress on port resources

Domino Effect: BREAKDOWN in Road Logistics Cycle trickled down the entire SUPPLY-CHAIN.

South Cotabato Integrated Port

Supporting Industries. Connecting Economies.

ACCOMPLISHMENT

Discussion Outline

Optimized Terminal Footprint

Addressing the Challenges | Preparing for the Future

ACCOMPLISHMENT

TECHNOLOGY

• Mitigating the challenges of 2014 • Enhanced traffic flow at MSH • Batangas Port option

• Traffic light system for port users • Online payment options • Vehicle Booking System

Truck turnaround crawled to a minimal, affected normal delivery of supplies and aggravated traffic along roads

Manila South Harbor

INVESTMENTS

Volume handled in 2014:

889,528 TEUs

• Equipment acquisition • Facilities expansion • Social investment

Empty evacuation in 2014:

391,000 TEUs Laden Stacking Area Empty Stacking Areas

MSH FAST FACTS: Assigned Piers: No. of Berths: Draft: Yard Space: Quay Cranes: Rubber-Tired Gantries: Truck Holding Area Annual Throughput Capacity:

ACCOMPLISHMENT

>1.25M TEUs

ACCOMPLISHMENT

Best Alternative Port Option for Calabarzon

Multiple gate access for trucks based on transaction

Bare Truck or Empty Return

23 (mid-2015) 250 truck slots

Batangas Container Terminal

Enhanced Traffic Flow

Laden Truck or Export Bound

3, 5 and 9 5 12m 34 hectares 9

• >300,000 TEUs annually • 12 has. of original terminal space + 6 has. extended yard • 7,152 TEUs (4-high) at any given day • Expansion plans in the pipeline

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

The 8th Philippine Ports and Shipping 2015 . REPORT ACCOMPLISHMENT

ACCOMPLISHMENT

2010-13: Start-up Years for BCT

2014: Turn-around Year for BCT

Sporadic port activities; Utilization barely 5-10%

Robust port activities; Utilization now at 65%

ACCOMPLISHMENT

Historical Volume Growth

Growing List of Customers

Unprecedented Year-on-Year volume surge

From 60 in 2013 to 900 to date

20,000

98,000 TEUs (2014) vs. 11,000 TEUs (2013)

18,000

762%

16,000 14,000

Y-o-Y

12,000 10,000 8,000 6,000

Jan. 2015 volume +12,000 TEUs up 1,200% vs Jan 2014

4,000 2,000 -

Mar

Apr

May

Jun

2013

466

579

575

1,016

686

1,140

738

1,180

847

917

1,498

1,756

2014

930

Jan

1,270

Feb

2,568

1,501

3,820

5,728

8,544

Jul

11,222

Aug

12,732

Sep

19,552

Oct

16,343

Nov

14,101

Dec

TECHNOLOGY

Traffic Light System

ATI e-Payment System

Online/Real-time Monitoring System for Truckers

Pay port fees anytime, anywhere 27/4

Why queue in line, when you can pay online?

OPEN WARNING CLOSED

• • • •

Shipping line’s empty allocation is still open; ready to accommodate empties Nearly 10 slots remaining in a shipping line’s empty allocation

Convenient Safe and Secure Direct Bank-to-ATI transactions Cashless payments

Talk to our Marketing Team to enrol in ATI’s WebTrack

Shipping line’s empty allocation is full. Empty containers will no longer be accepted.

INVESTMENT

TECHNOLOGY

Vehicle Booking System

Equipment Acquisition

Ushering a hassle-free future for port users

• Sophisticated IT vehicle booking and appointment system for truckers delivering or collecting containers at the port • Works like airline booking systems for optimal airport efficiency and traffic management • Controlled 24-hour access to the ports without causing heavy traffic in Metro Manila • Experience: Turnaround time for trucks at DP World Southampton (UK) is less than 30 min. • Keys to Success: - Industry support (system adoption) - Government support (No truck ban)

Future-proofing ports to cope with growth

•

Sustaining ATI’s highest capex in history of over Php2.0 billion annually

•

Additional new Quay Crane deployed at Pier 3 (2014)

•

Additional 4 Rubber Tired Gantry Cranes (2015), increasing fleet to 23

•

Additional 6 Side Loaders (2015), increasing fleet by 50%

•

Additional 18 Internal Transfer Vehicles (2014-15)

•

Investments are aligned with ATI’s commitment with PPA (South Harbor Development Plan)

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

REPORT .The 8th Philippine Ports and Shipping 2015

IMPACT: + 30% Empties + 15.5% Laden + 80% for THA

Facilities Expansion

Long-term vision for South Harbor

ACCOMPLISHED DEVELOPMENTS Pier 3 Back-up Area +1,600 TEUs (Empty) Blocks SFG & SFF +1,500TEUs (Laden) Block 177 +1,080TEUs (Empty) Block CND +1,020 TEUs (Laden) Additional THA +100 trucks

ONGOING DEVELOPMENTS Blocks 143-146 +3,840 TEUs Additional THA +250 trucks

SOCIAL INVESTMENT

Prognosis

Corporate Responsibility ATI Cares. ATI Shares. ATI Dares.

Empowering tomorrow’s leaders by investing on today’s youth. ATI supports 181 college and high school scholars to date. Securing the future of abandoned children by helping build the new foster home of Cribs Foundation.

1) Truck ban does not solve road congestion. Government should focus on developing road infrastructure (Port Connector Roads) and support the Vehicle Booking System.

Responding to humanitarian exigencies and times of calamity.

2) Manila Ports will continue to serve the main economic center, which is Metro Manila and nearby environs – the center of the consumer population of the Philippines.

Protecting La Mesa, the source of Metro Manila’s water.

3) Sufficient capacity at Manila Ports to handle volume. There must be discipline to avoid abuse of ports as a storage facility. 4) The Batangas and Subic option works. Stakeholders should continue working together to optimize these alternate gateways. Building homes for ‘Yolanda’ survivors in Tanauan, Leyte -- the hardest hit municipality in eastern Visayas.

Atty. Annabel Pulvera-Page, Head of Legal & Corporate Development, Oriental Port and Allied Services Corporation (OPASCOR), The Philippines Oriental Port and Allied Services Corporation

“The Obstacles of your Past can become the

Gateways that lead to New Beginnings”. Ralph Blum

Port Congestion: The Cebu Port Experience ATTY. ANNABEL G. PULVERA-PAGE 1

OPASCOR Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

The 8th Philippine Ports and Shipping 2015 . REPORT “Difficulties Vanish when Faced Boldly” Isaac Asimov

OPASCOR

ISO 9001:2008 Certified

Oriental Port and Allied Services Corporation

    

The CIP is strategically situated in the center of the Philippine archipelago. Cebu Port is a major trading center since 900 A.D., before the Spanish era, trading with China, Indonesia, Malaysia, and India. July 30, 1886 under Spanish colonial rule, the Port of Cebu was declared open to world trade. Port of Cebu continued its significance as a major Philippine Seaport during the American colonial era. The CIP is a container terminal covering a total area of 12 hectares.

OPASCOR

. OPASCOR

ISO 9001:2008 Certified

Oriental Port and Allied Services Corporation

 CIP

Total Area

 Bureau

of Customs

Oriental Port and Allied Services Corporation

16,284 sqm

 Examination Area

•

Actual CIP Area Used for DOMESTIC Operation

16,284 sqm

•

Actual CIP Berth Length Used

178 meters

for Domestic Operations

TOTAL Actual CIP Yard Area (Sqm)

OPASCOR

120,000 sqm

OPASCOR

Oriental Port and Allied Services Corporation

• Total Area Used for Foreign Cargoes

120,000 sqm

 One Stop Shop Documentation Center  Seized Cargo Area

ISO 9001:2008 Certified

Oriental Port and Allied Services Corporation

84,969 sqm

• Berth Length Used for Foreign Cargoes 512 meters • OPASCOR Bulk Handling Facility

8,900 sqm

• Port Apron

16,896 sqm

• Stacking Area & Road ways

59,173 sqm

ISO 9001:2008 Certified

Import Containers

5,411

Export Containers (including empties)

2,296

TOTAL

7,707

Actual Stacking of Containers as of March 31, 2014 and as of October 31, 2014 is 6 high for Export and 4 high for Import.

OPASCOR

ISO 9001:2008 Certified

Oriental Port and Allied Services Corporation

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

REPORT .The 8th Philippine Ports and Shipping 2015 Historical Volume (in TEUâ&#x20AC;&#x2122;s) (Foreign Direct) Import

2004

61,972

41%

61,934

41%

10,641

17,704

28,345

18%

152,251

100%

2005

61,264

42%

60,631

42%

7,440

15,202

22,642

16%

144,537

100%

2006

71,686

43%

61,709

37%

11,170

21,199

32,369

20%

165,764

100%

2007

78,443

43%

65,248

35%

13,270

27,418

40,688

22%

184,379

100%

2008

75,755

44%

58,424

34%

4,590

31,665

36,255

22%

170,434

100%

2009

88,612

48%

46,104

25%

2,828

47,806

50,634

27%

185,350

100%

2010

98,105

47%

56,269

27%

1,070

54,108

55,178

26%

209,552

100%

2011

102,450

47%

55,334

25%

1,328

58,989

60,317

28%

218,101

100%

51,458

21%

1,109

73,630

74,739

31%

240,822

100%

52,908

21%

1,961

74,227

76,188

31%

247,371

100%

42,609

19%

599

71,295

71,894

32%

12 225,559

100%

2012 2013 2014

Export

Empties Export

Year

O114,625 P A S C 48% OR Oriental Port and Allied Services Corporation 118,275 48%

ISO 9001:2008 Certified

111,056

49%

Import

Total

Year

Import

2014

111,056

599

71,295

71,894

32%

225,559

100%

OPASCOR Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified

45'

Total

TEU

YARD YARD CAPACITY UTILIZATION TEU %

20'

40'

528 856 1,064 2,448

421 481 203 1,105

1 5 2 8

950 1,342 1,269 3,561

1,372 29% 1,829 39% 1,475 32% 4,676 100%

164 554 718

251 262 513

0 26 26

415 842 1,257

666 37% 1,137 63% 1,803 100%

2,296

79%

3,166 1,618

4,818

6,479

7,707

84%

5,411

86%

IMPORT 0 - 6 days 7 - 30 days above 60 days Total EXPORT FCL Empty Total

TOTAL

OPASCOR

ISO 9001:2008 Certified

20'

40'

1,098 969 1,094 3,161

704 463 222 1,389

45' 2 4 6 12

Total 1,804 1,436 1,322 4,562

TEU

2,511 42% 1,904 32% 1,552 26% 5,966 100%

98 29 127

109 68 177

0 0 0

207 97 304

316 66% 165 34% 481 100%

3,288 1,566

4,866

6,447

YARD YARD CAPACITY UTILIZATION TEU %

5,411

110%

2,296

21%

7,707

84%

Oriental Port and Allied Services Corporation

OPASCOR

Oriental Port and Allied Services Corporation

19%

Total

ISO 9001:2008 Certified

42,609

Export

Oriental Port and Allied Services Corporation

TOTAL

49%

Total

Import

OPASCOR

IMPORT 0 - 6 days 7 - 30 days above 60 days Total EXPORT FCL Empty Total

Empties

Export

ISO 9001:2008 Certified 18

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

The 8th Philippine Ports and Shipping 2015 . REPORT

OPASCOR

Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified



ISO 9001:2008 Certified

The Blocks in CIP that are assigned for IMPORT  Alpha 2 to 6 and Bravo 2 to 5  Part of Alpha 1 and Part of Bravo1



The Blocks in CIP that are assigned for EXPORT  Part of Bravo1 and Alpha1 and  the entire ISPS Admin Zone

OPASCOR

ISO 9001:2008 Certified

Oriental Port and Allied Services Corporation



Limited Berthing Length



Limited Berthing Draught



Simultaneous arrival of vessels(Bunching of Vessels)

    

OPASCOR Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified

 

Limited Yard Space Allocation of CIP yard for domestic use Limited Back up Yard Increase in Volume High Container Dwell Time (Overstaying Containers) Truck Ban Bunching of Trucks/Lack of Trucks Holding Area Road Repairs Port Repairs

OPASCOR Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified



Limited Berthing Length

OPASCOR Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified

OPASCOR Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015



Limited Berthing Draught ( 4.5 meters draft from bollard 1 to 5 )

OPASCOR

Bunching of Vessels (simultaneous arrival of vessels)

OPASCOR

Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified

Limited Yard Space

Allocation of CIP Yard for Domestic Use

OPASCOR

ISO 9001:2008 Certified

Oriental Port and Allied Services Corporation

Increase in Volume

Limited Back up Yard

OPASCOR

Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified

Overstaying Containers /High Container Dwell Time (As of November 6, 2014) Year 2013 (Jan – Dec Average)

- 8 days

Year 2014 (Jan – Oct Average)

- 14 days

Overstaying Containers (As of November 6, 2014) Age

Vol. – TEU

0 – 6 days

1,848

Yard Capacity

Yard Utilization

38%

7 – 30 days

1,512

32%

Above 30 days

1,448

30%

62%

5,411

89%

4,808

OPASCOR

Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified

Bunching of Trucks

Truck Ban

Time Bracket

Those trucks that are cleared and still inside the CIP are prevented from going out given the TRUCK BAN policy. Truck Ban Time

15% (91 trucks)

1PM – 6PM

75% (269 trucks)

32% (193 trucks)

After 6 PM

6% (21 trucks)

52% (320 trucks)

Ave No. of Trucks – Daily

358 (37%)

604 (63%)

OPASCOR Oriental Port and Allied Services Corporation

Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified

ISO 9001:2008 Certified 37

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

Receiving (Export)

19% (68 trucks)

6am – 8am and 5pm – 7pm

OPASCOR

Withdrawal (Import)

8AM – 1PM

These include the empties and laden export containers

These empties are shuttled after 6:00 PM 38



Effects of Road Repairs

On Going Rehabilitation of Apron Pavement

(ongoing repairs on both sides of S. Osmeña Blvd., Cebu City)

OPASCOR

Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified

OPASCOR

Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified

OPASCOR created a Port Congestion Relief Team to study and Implement immediate but temporary measures to ease Cebu International Port yard congestion.



Leasing of outside container yards, basically for: › Empty Containers › Truck Holding area

   

OPASCOR

Acquisition of Additional Equipage Overnight Hustling of Cargoes Deployment of Additional Guards for Traffic Control Improved Coordination with Bureau of Customs and Cebu Port Authority OPASCOR

Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified

Palliative solutions include but not limited to: 



Transfer of Long Over Staying Cargoes to One Designated Area. Leased the following areas for Empty Containers:

 

Increase the Stacking of Containers from 4 to 6 high Continuing Procurement by OPASCOR of additional High Stacking Capacity Equipment.

› Baclig St. Port Area - 1.2 hectares › Lot across SM City - 2.4 hectares 

Scheduling of Receiving of Empty Repo Containers OPASCOR

OPASCOR

Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified

The configuration of the new port should incorporate the following:    

OPASCOR

OPASCOR 47

Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified

International Standards on Draught Requirement Expandability / Growth Flexibility Connectivity Proximity to Stakeholders

ISO 9001:2008 Certified 48

REPORT .The 8th Philippine Ports and Shipping 2015    

Appropriate Equipment Business Friendly Policies, Regulations and Environment Environmental Sustainability Positive Social Impact

Optimum Quality in Port Services, Always!

OPASCOR

Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified

Oriental Port and Allied Services Corporation

ISO 9001:2008 Certified

Roberto R. Locsin, General Manager, Subic Bay International Terminal Corporation (SBITC), The Philippines International Container Terminal Services Inc. (ICTSI)

International Container Terminal Services Inc. (ICTSI)

Profile

Experience and Expertise • Philippine-based operator, manager, developer of international container terminals • Incorporated in 1987 to participate in the privatization bid of the Manila International Container Terminal • Active in the acquisition, development, management, operation of container ports & terminals worldwide • Listed in the Philippine Stock Exchange. Began domestic, international expansion in 1994.

Asia

Philippines

ICTSI global operations

Operations

Manila International Container Terminal New Container Terminals 1 & 2

Manila Subic Batangas

Bauan Terminal Sasa Wharf Makar Wharf Mindanao Container Terminal Hijo International Port

29 terminals 21 countries

Manila International Container Terminal

Manila, Philippines

Manila, Philippines Infrastructure and Support Facilities

Background

• The Manila International Container Terminal (MICT) is one of three terminals in the Port of Manila, the core of the Philippine port system • The MICT is located between the North & the South Harbors, protruding westward into the Manila Bay at the mouth of the Pasig River, the city’s major waterway. • 25+25 years concession in 1988

Terminal Area

Berth Length

75.4 hectares Manila

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

1.700 meters

Container Yard

Depth Along Side Berth

33.097 meters

12-13 meters

Annual Capacity

Number of Berthing Position

2.8 million TEUs

Equipment 13 Quay Cranes

45 RTGs

112 Prime Movers

12 Stackers

Misamis Oriental Tagum City Davao General Santos City

The 8th Philippine Ports and Shipping 2015 . REPORT ASIA

New Container Terminals 1-2

Subic Bay Free Port, Philippines

Background

â&#x20AC;˘ The NCT-1 & 2 are located within the Subic Bay Freeport Zone in Olongapo City, northwest of Manila â&#x20AC;˘ With excellent road and air linkages, it is an alternative to the Port of Manila & gateway to northern Philippines

Infrastructure and Support Facilities Terminal Area

Berth Length of Quay

26.32 hectares Subic

500 meters

Container Yard

Depth Along Side Berth

5.57 meters

13 meters

Truck Holding area

Number of Berthing Position

0.7 hectares Equipment 4 Quay Cranes

1&2

6 Reach Stackers 3 Empty Handlers

9 Prime Movers

5 Forklift

New Container Terminals 1-2

Subic Bay Free Port, Philippines

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

REPORT .The 8th Philippine Ports and Shipping 2015 New Container Terminals 1-2

New Container Terminals 1-2

Subic Bay Free Port, Philippines

Herman Pals, Sr. Project Manager & Technical Director, Royal HaskoningDHV, Singapore

Port Development and Masterplanning

Contents of Presentation

Company Profile Royal HaskoningDHV

Introduction to Royal HaskoningDHV



Part 1:

Port Development in Philippines

 

Part 2:

Integrated Port Master Planning Approach

Global consultancy, engineering and project management service provider, established in 1881 Top 10 of independently owned, non-listed companies More than 7,000 experienced and diverse team members dedicated to their profession

8th Philippine Ports and Shipping 12-13 February 2015 Herman Pals – Project Manager and Technical Director Royal HaskoningDHV Singapore

M&W Presentation

A global player   

Page 2

M&W Presentation

Page 3

Royal HaskoningDHV in South East Asia

Our organisation 

Consultants Architects & Engineers



Over 700 professionals in the region Perfect balance and combination of local professionals and international quality

Hanoi Yangon Manilla

Bangkok Pnom Penh

Ho Chi Minh

Kuala Lumpur Singapore



Over 100 offices worldwide

M&W Presentation

Jakarta

Page 4

M&W Presentation

Page 5

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

M&W Presentation

Page 6

The 8th Philippine Ports and Shipping 2015 . REPORT RHDHV Maritime & Waterways

RHDHV Maritime & Waterways

Active in all Maritime Sectors

Involvement in all aspects of port development projects

      

M&W Presentation

Page 7

Container Terminals Roll-on Roll-off Liquid and Dry Bulk LNG Terminals Shipyards and Dockyards Naval Basis Cruise Terminals and Marinas

M&W Presentation

Contents of Presentation

      

Page 8

M&W Presentation

Port Development in Philippines 

Introduction to Royal HaskoningDHV



Part 1:

Port Development in Philippines

Part 2:

Integrated Port Master Planning Approach



Identification (Port) Master Planning Feasibility Assessments Structural and M&E Design Construction Supervision Project Management Consultant Maintenance/Repairs/Upgrades

After the economic uncertainties in 2008-2009, the economy of the Philippines is experiencing fairly good recovery. Outlook for the Philippines remains strong; growth rates may be slightly lower in the coming years, similar with other economies in the region. Container demand will also further grow in line with the economic development and ongoing containerisation of cargo

Page 9

Port Development in Philippines 

Philippines are mainly served by feeder traffic and Intra-Asia traffic. In general, consignment sizes for direct services are too small at this moment.



Because of this, vessel sizes remain fairly small and there is less pressure to increase the water depth and have major port upgrades to allow larger vessels to call in the short term (compared to the trend of upscaling the vessels and ports as can be seen in other parts of the world).

  

 M&W Presentation

Page 10

M&W Presentation

Port Development in Philippines 

Philippines are mainly served by feeder traffic and Intra-Asia traffic. In general, consignment sizes for direct services are too small at this moment.



Hinterland connections are congested. Focus on good traffic management is important to serve the hinterland and to reduce the costs of importing and exporting cargo.



Long waiting times at certain ports, dwell time issues and out of balance full import and empty export of containers.



“Archipelagic Character” of the country requires strong focus and dependency on sea transport and ports, both for domestic and international commerce. Challenges faced are very comparable with Indonesia in South East Asia.

M&W Presentation

Page 13



Page 12

Port Development in Philippines

Philippines

Port Development in Philippines

M&W Presentation

Port Development in Philippines

M&W Presentation

Philippines

Page 11

Container demand growth is strong both in Manila and outside Total Philippines port volume in 2013: 6.15m TEU Terminals in Greater Capital Region (GCR) handles 3.65m TEU equivalent to 59.4% of total demand The share of the GCR of total Philippines volumes has been decreasing Strong in-balance between full imports and full exports

Indonesia

Page 14

Indonesia

M&W Presentation

Page 15

Port Development in Indonesia

Indonesia

Page 16

M&W Presentation

Page 17

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

REPORT .The 8th Philippine Ports and Shipping 2015 Port Development in Philippines

Port Development in Indonesia 

Based on the Masterplans, various projects have been initiated (Tanjung Priok (NK), Surabaya, Sorong, Makassar, Kuala Tanjung, Tanjung Carat, Bojonegara, etc, etc)

 Main ports and main regions of Luzon, Visayas and Mindanao under continuous development

Luzon Region

 Slow move out of Manila to Subic and Batangas

Subic Batangas

 Hub-and-spoke system for larger ships with cargoes from smaller production centers by truck and small RoRo

Visayas Region

Cagayan de Oro; PHIVIDEC Mindanao Region Davao M&W Presentation

Page 18

Port Development in Philippines 

Various projects have been ongoing and are being planned to a certain extend, but still frustrations remain in terms of road connectivity, legislation and procedures, conflict of interest and perhaps a lack of an integrated approach …..

M&W Presentation

Page 20

Port Development in Philippines 

M&W Presentation

Page 19

Port Development in Philippines 



A first basis is formed by the Arangkada Philippines Forum, administered by the joint foreign chambers of the Philippines, with recommendations (and regular updates) for improvements, reforms and changes on Infrastructure, Logistics, Mining, Tourism, Governance, etc.

M&W Presentation

Page 21

Port Development in Philippines

Typical recommendations from Arangkada Philippines Forum (latest update 2014) on port development…..



Further develop the National Capital Region (NCR) and Central Luzon Master Plan Shift international container shipment from Manila to Batangas and Subic Identification and further development of the Hub-and-Spoke system with major ports for larger ships and connecting/supporting infrastructure And in general, the need for an integral/intermodal transport study

A lot of pieces of the puzzle are there and have been discussed extensively:  Congested ports in Manila and restrictions to further develop  Congested roads and other problems with hinterland connections  To a certain extend: depth issues and limitations in ports  Too slow movement out of Manila, frustrations about high road transportation costs  But what about waiting time, dwell time, etc?  A hub-and-spoke system exists, but does it function in an optimum way?  Identification of market: consumption centres and production areas  Certain legislation could be improved, perhaps change in constitutional settings?  Where are the weakest links in the system?



So clearly development of the ports need to go hand-in-hand with many other developments and changes. An integrated approach is needed, which need to be set in an Integrated / Intermodal Masterplan

   

M&W Presentation

Page 22

M&W Presentation

Port Development in Philippines

Port Development in Philippines 



Focusing on the hub-and-spoke system and more specific, on the international and domestic sea transport system, port projects are needed, whether new or upgrades  how to further develop a port once identified?  what is the ‘best’ location for this port?  what is the real market/demand/production?  who will finance the port development and infrastructure?  how to make it a profitable and competitive port?  and last but not least: how to attract investors and customers for the port?

Page 23

Need for integrated Port Master Planning Approach for the development of each port

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015 M&W Presentation

Page 25

The 8th Philippine Ports and Shipping 2015 . REPORT Contents of Presentation Introduction to Royal HaskoningDHV Part 1:

Port Development in Philippines

Part 2:

Integrated Port Master Planning Approach

M&W Presentation

Page 26

Few examples of RHDHV Port Masterplan projects in the SEA region

Port Master Planning Approach – main steps

Vietnam- Nhon Hoi deep seaport

Vietnam- Bai Goc Seaport

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

• • • • •

Review of Existing Situation Market Assessment Port User Requirements Location Study Conceptual Port Design Preliminary Design of Key items Environmental and Social Impact Assessment Implementation Cost Estimate and Financial Analysis Institutional Setting and Business Models Strategic Action Plan / Bankable Document

M&W Presentation

• • • • •

Market Assessment Port Planning Preliminary Design Financial Analysis Strategic Action Plan

• • • •

• Project implementation • Construction Supervision

Technical Feasibility study Port Planning Preliminary Design Cost Estimate

M&W Presentation

Page 27

Indonesia – North Kalibaru

• • • •

Malaysia- Pengerang Oil & Gas Complex Malaysia- Kuantan Port • • • •

Market Study Review Port Planning Preliminary Design Financial Analysis

Technical Feasibility Port Layout Options study Preliminary Designs Financial Analysis

Vietnam – Nam Du transhipment terminal • • • •

Market Assessment Port Planning Preliminary Design Financial Analysis

Page 29

Few examples of RHDHV Port Masterplan projects in the SEA region

Few examples of RHDHV Port Masterplan projects in the SEA region Indonesia – Kuala Tanjung

Market Assessment Port Planning Preliminary Design Financial Analysis Economic Feasibility

Indonesia – Marunda Center • Port Planning • Preliminary and Detailed Design • Construction Supervision

Philippines – …………..

Thailand – Laem Chabang • • • • •

Market Study Technical Feasibility study Port Planning Preliminary Design Financial Analysis

• Hopefully many more to further development Philippines!

Myanmar- Superaxis Westport

Indonesia – Surabaya

Indonesia – Lampung, Java • • • •

• • • • •

Market Assessment Port Planning and Design Financial Analysis Economic feasibility

M&W Presentation

Page 28

Market Assessment Port Planning Preliminary Design Financial Analysis Economic Feasibility

• • • • •

Market Study Technical Feasibility study Port Planning Preliminary Design Financial Analysis

M&W Presentation

Philippines – Manila Bay Masterplan • Full integrated masterplan • Preliminary Design • Implementation Plan

Page 30

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

REPORT .The 8th Philippine Ports and Shipping 2015 Terry O’Connor, Chief Executive Officer, Darwin Port Corporation, Australia Darwin Port Corporation

Terry O’CONNOR Chief Executive Officer

Northern Australia and BIMP-EGA Steaming Time Darwin to :

BIMP –EAGA and Australia

Brunei

5.5 Days

Jakarta

4.5 Days

Singapore

5.5 Days

Manila

5 Days

Sydney

8 Days

Melbourne

9.5 Days

Northern Australia Development

DPC is a Government Business Division of the Northern Territory Government

Green Paper on Developing Northern Australia Infrastructure • Productive new infrastructure • Better use of existing infrastructure • Better planning and understanding of infrastructure opportunities and benefits

Land • Diverse and longer pastoral leases • Flexible leases for Indigenous landholders • Efficient native title processes • More accessible information

Water • New infrastructure to support industries and communities • Comprehensive water resource assessments • Best practice planning and management • Water markets

Business, Trade and Investment • Deregulation agenda for the north • Workforce availability and skills that meet business needs • New markets and greater trade links • Innovative business-friendly policies

Education, Research and Innovation • Building capabilities and skills • Partnerships with world leading institutions • More international students • Effective engagement with international development in the region

Governance • Collaboration across governments • Effective engagement with, and presence in, northern Australia • Efficient service delivery • Capable and sustainable local institutions

Livestock exports to BIMP-EAGA

2009/10 - 2013/14 = 1.5M Cattle

Principal Trades

Livestock Exports DPC’s Top Livestock Customers 2013/14: Indonesia

1st

Vietnam

2nd

Malaysia

3rd

Philippines

4th

Brunei

5th

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

The 8th Philippine Ports and Shipping 2015 . REPORT DPC - Historical growth

Challenges or Opportunities?

5,000,000

Infrastructure

Outward

Free Trade Agreements

4,000,000

Congestion

3,000,000

Inward

2,000,000

1,000,000

00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14

Room to Grow

Tourism - Cruise Ships

Fort Hill Wharf

Marine Supply Base

Australia’s Central Railway Corridor Future Rail Links

Kununurra Mt Isa

DPC is a Government Business Division of the Northern Territory Government

Northern Australia Gas Hub

DPC is a Government Business Division of the Northern Territory Government

PORT of DARWIN - Australia’s northern gateway of choice

Thank you

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

REPORT .The 8th Philippine Ports and Shipping 2015 Jason Chiang, Director, Drewry, Singapore 2

Drewry Maritime Advisors | An overview of SEA port development and outlook

Presentation agenda

An overview of SEA port developments and outlook Consolidating Asia’s booming growth

• Recent port development trends

• Volume outlook for SEA ports

• Development and investment outlook for SEA ports

• Conclusion

1. RECENT PORT DEVELOPMENT TRENDS

Copyright notice This Report is for the sole use of the purchaser and is not to be copied or distributed outside of the client organisation

12th February 2015 © Drewry 2015

Recent port development trends

Lower oil prices: “Rising tide floats all boats”

• Bulk charters are realizing savings as the charterers operate on spot bunker.

140 120 Oil price per barrel (US$)

Drewry Maritime Advisors | An overview of SEA port development and outlook

100 80

• Liner companies would take longer to realize savings from lower bunker fees due to hedging of fuel costs

60 40

Jul-14

• Terminal operators could see lower operating fuel costs if fuel is not subsidized.

Jan-15

Nov-14

Sep-14

May-14

Jul-13

Jan-14

Mar-14

Nov-13

Sep-13

May-13

Jul-12

Jan-13

Mar-13

Nov-12

Sep-12

Jul-11

Jan-12

Mar-12

Nov-11

Sep-11

May-12

Jan-11

Mar-11

May-11

• Oil price has dropped from US$105 in Jul 2014 per barrel to US$47 in Jan 2015.

Drewry Maritime Advisors | An overview of SEA port development and outlook

Recent port development trends

Rising interest rates: “Money isn’t getting any cheaper”

Drewry Maritime Advisors | An overview of SEA port development and outlook

Rising interest rates: “Money isn’t getting any cheaper”

US Federal funds effective rate (%)

• Impact on current terminal operations would be increased interest payments on existing loans => Refinancing

5 4 3

• Port valuations multiples could be reduced as financing costs increase.

2000-01 2000-05 2000-09 2001-01 2001-05 2001-09 2002-01 2002-05 2002-09 2003-01 2003-05 2003-09 2004-01 2004-05 2004-09 2005-01 2005-05 2005-09 2006-01 2006-05 2006-09 2007-01 2007-05 2007-09 2008-01 2008-05 2008-09 2009-01 2009-05 2009-09 2010-01 2010-05 2010-09 2011-01 2011-05 2011-09 2012-01 2012-05 2012-09 2013-01 2013-05 2013-09 2014-01 2014-05 2014-09

• US Federal effective tax rates at 0.09%, planned interest rates increases in 2015.

Drewry Maritime Advisors | An overview of SEA port development and outlook

Recent port development trends

Container mix is a key revenue driver “Not all containers are the same”

Tariff per container type Economic growth

Containerization

Gateway laden

Container cargo

General cargo Trade imbalance

Gateway emtpy

Empty container

International transhipment laden

Ship sizes

International transhipment empty

Transhipment Domestic transhipment

Drewry Maritime Advisors | An overview of SEA port development and outlook

Recent port development trends

Shipping alliances “My customers have become The Customer”

MOL 4% APL 4% Hapag‐Llo yd 6% OOCL 4% NYK UASC 4% 2%

Maersk 18%

CKYH Alliance 16%

MSC 18%

CSCL 5%

CMACGM 9%

HHI:0.099 (fragmented)

Independe nt 7%

New World Alliance 12% Grand Alliance 13%

P3 (denied) 45%

EBITDA margins varies widely for Asian ports. Gateway ports, while handling less volumes, tend to have higher margins. CKYHE Alliance 23%

2M 36%

100.0% Singapore

80.0%

China Shipping/ UASC 7%

HHI:0.271 (concentrated)

G6 Alliance 25%

Westports

Busan Ocean Three 16%

HHI:0.270 (concentrated)

% transhipment

Evergreen Hanjin Yang Ming5% 7% K-Line 3% 3% Cosco 6% Hyundai 3%

Drewry Maritime Advisors | An overview of SEA port development and outlook

Recent port development trends

-10%

60.0%

Hong Kong Kaohsiung

40.0%

20.0%

0.0%

-20.0%

Tokyo Laem Chabang

Sihanoukville 10% 20%

30%

JNPT Karachi 40%

Jakarta 50%

60%

70%

80%

EBITDA margin (%)

• The largest ports in Asia are the transhipment hubs. Their EBITDA margins varies widely • The gateway hubs in emerging regions tend to achieve higher EBITDA margins

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

The 8th Philippine Ports and Shipping 2015 . REPORT Drewry Maritime Advisors | An overview of SEA port development and outlook

Drewry Maritime Advisors | An overview of SEA port development and outlook

Volume outlook for SEA ports

Asia ports accounts for 57% of total world port container volume. SEA ports account for 13.6% market share. South Asia 5%

South East Asia 24%

Container CAGR 1979 North East Asia 71%

364 MTEU

1979-2000 South Asia

Northeast Asia

Southeast Asia

VOLUME OUTLOOK FOR SEA PORTS

2000-2013

18.4%

9.8%

12.2%

10.5%

16.2%

7.4%

400

Throughput (MTEU)

350 © Drewry 2015

South Asia

Drewry Maritime Advisors | An overview of SEA port development and outlook

Volume outlook for SEA ports

300 250 200 150 100 50 0

South East Asia

SEA ports container volume are projected to grow from 95 MTEU in 2014 to 136 MTEU in 2020, a CAGR of 6.1%. Growth is projected to be strongest for emerging countries.

North East Asia

South East Asia

South Asia

160.0 CAGR 2014-2020 17 © Drewry 2015

Drewry Maritime Advisors | An overview of SEA port development and outlook

Brunei

+9.5%

Cambodia

+5.5%

Myanmar

+7.9%

Singapore

+2.0%

Philippines

+5.0%

Volume outlook for Asian ports

Drewry has reviewed the historical development of container handling tariff in major ports. Tariffs trends very closely with capacity utilization.

100.0

60.0

40.0

20.0

0.0

2014

2015

2016

2017

2018

2019

Malaysia

+5.0%

Thailand

+5.6%

Vietnam

+5.6%

Indonesia

+7.3%

Capacity utilization

Revenue per TEU (US$)

80.0

Busan, South Korea historical revenue per TEU, ‘01-’13

Tariff

Government policy

2020

Market concentration

100.0%

70 60

80.0%

60.0%

40 30

40.0%

20.0%

10 0

Shipping line equity stake in terminal

120.0%

0.0%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Revenue per teu (US$)

Utilization (%)

Capacity utilization & HHI (%)

+6.5%

HHI

Australian ports, revenue per TEU, ‘01-’13

Revenue per TEU (US$)

Volume forecast (MTEU)

120.0

Regional transhipment

190

90.0%

185

80.0% 70.0%

180

60.0%

175

50.0%

170

40.0% 30.0%

165

20.0%

160 155

10.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Revenue per teu (AU$)

Utilization (%)

Capacity utilization & HHI (%)

140.0

0.0%

HHI

Drewry Maritime Advisors | An overview of SEA port development and outlook

19 © Drewry 2015

Drewry Maritime Advisors | An overview of SEA port development and outlook

Asian ports investment criteria

Criteria for investment - Evaluating Asian Ports: Access, Volume, Margins, Price

Investment access • Does the country welcome foreign port ownership • Are there investment opportunities?

•

• •

Myanmar

• • •

•

Transaction price • Pricing can be inferred from listed companies Thailand

• • •

Vietnam

• •

Singapore

• •

Access

Volume

Margin

Thailand

Cambodia

Drewry Maritime Advisors | An overview of SEA port development and outlook

Philippines

State owned enterprises Captive volumes High margins with limited competition

Cambodia Myanmar

Foreign investment encouraged Volume growth steady Margins pressured due to overcapacity

PSA base of operations More than 80% is transhipment. Margins healthy due to keen cost management

Country

Foreign investment encouraged in LCB Political stability may give volume a much needed boost. Margins under pressure due to overcapacity

• •

POOR

South East Asia Ports

HPH present Foreign investment could lead to container volume growth Limited competition

FAIR

Strong gross profit margins • Tariff levels • Sufficient operating margins

• •

GOOD

Container volume • Strong growth or captive volume • Competitive landscape • Gateway or transhipment

3. DEVELOPMENT AND INVESTMENT OUTLOOK FOR SEA PORTS

Drewry Maritime Advisors | An overview of SEA port development and outlook

5 year outlook

•

Malaysia

Limited opportunities, Westport IPO Captive volumes Healthy margins

• •

Philippines

ICTSI base of operations. DPW present Steady volume growth, mainly in Manila Low cost environment, gateway pricing

Vietnam Malaysia

Singapore

CONCLUSION

Indonesia

Drewry Maritime Advisors | An overview of SEA port development and outlook

Conclusion • • •

Indonesia

Kalibaru, Cilamaya concessions Strong growth Healthy margins

Lower oil prices and rising interest rates are key drivers for port valuations in the short term. Political stability will be key to port development (Indonesia, India, Thailand)

Asia region economies growing independently of traditional Europe and USA economies. Domestic and Intra-Asia trade are the new cornerstones for Asia trade

Opportunities for investing in Asian ports are limited but comes with the assurance of captive volumes. Margins remain a concern. Careful due diligence required.

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015 © Drewry 2015

REPORT .The 8th Philippine Ports and Shipping 2015 Dr. Jonathan Beard, Vice President – Global Lead Port and Logistics, ICF International, Hong Kong Evaluating Port PPPs

Various PPP port models Affects risk and reward

–

13th

Public sector risk

Manila

11th

February 2015

 Demand – healthy demand growth is beneficial, but does not guarantee success

Public Service Port

High

8th Philippine Ports and Shipping 2015

Lessons Learned - Some Key Issues and Challenges

 Key issues to bear in mind for public and private sectors: – Cargo mix and revenue type

Tool Port

– ‘Freedom to price’ and revenue risk

Landlord Port

– Greenfield vs brownfield: supply side challenges and the resilience of older, inner city terminals

Private Port

Evaluating port investment PPP opportunities in the Philippines and South East Asia – Key Issues & Risks

– Ensuring competition without fragmentation

Low Private Sector Risk

Low

Private Sector Participation

Dr Jonathan Beard (ICF International)

Works & Services Contract

Operations & Maintenance Contract

Concession Agreement

– Bidding re-runs / programme delay – Environmental risks, including climate change

Full Privatization

icfi.com |

– Government ability to deliver supporting infrastructure

High

 Annex: Philippine PPP environment 2

icfi.com |

Demand Side Conditions

12,000 USD Billion



 European Trade still dominates; however, due to larger macroeconomic challenges in the recent times, the trade has been stagnating

Region-wise Merchandise Trade with World

14,000

Aging of China will slow growth unless productivity picks up China’s employed workforce (million)

 Asia emerging as the key region and with a 10 year growth CAGR of ~14% is likely to overtake Europe in the near future

10,000 8,000 6,000 4,000 2,000 -

Drivers of Growth Population

Population Age Composition

Asia Largely Buoyant – Large and Growing

16,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Africa

Asia

Europe

Middle East

North America

South and Central America

 Latin America, Africa and Middle East trades have been growing at a CAGR of ~15%, ~16% and ~17% respectively (2002-12). However, their combined share was only 16% in the overall 2012 world merchandise trade



Source:

Source: WTO Statistics

icfi.com |

Global Demographics; ICF GHK based on Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, World Population Prospects (2008 Edition) and the Department of Statistics, Ministry of Interior, Republic of China.

icfi.com |

Remember - healthy demand growth is beneficial, but does not guarantee success

SE Asia – generally skewed towards younger population

Cargo Segment Affects Nature of Competition and Revenue per Lift Absence / presence of tariff control a further consideration 

Overlapping but different drivers affect competition for Import/Export (I/E) and International Transhipment



I/E is the prime market: highest revenue per lift and provides a “fixed” incentive for carriers to call – Indonesia, Vietnam, Thailand, Philippines are well positioned



International transhipment provides a useful top-up competition takes place over greater distance, but potential for Thailand & Indonesia (Java, but not Batam) is limited due to diversion



Domestic & feeders may be other segments – typically lower revenue per lift, but still impact terminal capacity



Buoyant I/E demand and limited supply of capacity (i.e. limited competition) is a sweet spot for investors



Freedom to price is preferred, but surplus capacity will put downward pressure on tariffs



Tariff control poses additional regulatory risk, but transparent system with clear scope for adjustment mitigates some of the risk

Revenue / TEU

TS – Double the Volume but not Double the Revenue ICTSI versus PSA as a Proxy for “OD Versus Transhipment” Yield per TEU (USD)

USD/TEU 140 120

PSA ICTSI

100 80 60 40 20 0

2004

2005

2006

2007

2008

2009

2010

2011

Source: ICF; ICTSI; UBS

icfi.com |

ICF - Selected Clients  Greenfield vs brownfield: supply

HCMC Ports

Saigon New Port (Tan Cang)

Saigon Port

South Vietnam – Oversupplied Cai Mep

side challenges and the resilience of older, inner city terminals

VICT

 Ensuring competition without fragmentation

Saigon New Port (Cat Lai)

Capacity overhang likely to persist until ~2020

 Many terminals, but few operating at adequate utilisation  Phasing out of city centre terminals would help re-balance – HPH & PSA no container services – TICT & APMT only terminals with regular services but operating with very low handling rates – TCCT & TCIT actually two phases of same terminal, but after opening of TICT (terminal of several liners), services previously calling TCCT all shifted to TCIT

SITV

Ben Nghe

SP-PSA

SPCT

Cai Mep – Thi Vai Ports

Long An Port (proposed)

Mind the gap

Saigon New Port

CMIT

 Competition between operators? Yes!....  …but fragmented development with little opportunity to phase  Large capacity overhang & “chase to bottom on prices”  Landside infrastructure has icfi.com lagged |

Japan ODA

Vung Tau Ports

Gemalink* SP-SSA

China Merchants*

Notes: * not proceeding / on hold Source:9ICF

− 7th terminal, ODA completed 2013 but unable to secure any lines for now − Vinalines + NYK initially chosen to operate the terminal but declined to participate due to severe over supply….ended up with state backed SNP Source: ICF, Alphaliner

icfi.com |

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

The 8th Philippine Ports and Shipping 2015 . REPORT

Competitivenes: you’re only as good as the weakest link …and terminal operators do not control all the supply chain links

Ability of Government to deliver supporting infrastructure

GOVERNMENT PARTNERSHIP LOCAL OPERATIONS AT PORT ‘CUSTOMER FOCUS’

REGIONAL OPERATIONS NEAR PORT ‘PUBLIC-PRIVATE PARTNERSHIP’ ‘SEAMLESS CARGO MOVEMENT’

Yard

Quay

Infrastructure

Support facilities

• River-road centre • Rail-road centre, etc.

• Bank, Insurance, Legal • Freight forwarders, etc.

• Logistics parks

• Customs

Maritime

• Navigation channels • Piloting / towage • Ship repair, etc.

NATIONAL •

Road

•

Inland shipping

•

shortsea feeder

•

International trans-shipment

•

(Pipelines)

OPERATIONS AWAY FROM PORT ‘SECURING THE HINTERLAND’

Source: ICF

icfi.com |

Source: ICF

icfi.com |

Thailand Container Ports

Laem Chabang Container Terminals

Superior offering at the newer Laem Chabang, but Bangkok terminals resilient to competition

Concessions at Basin I and II – plenty of competition

Bangkok:

Bangkok

Laem Chabang



4 operational terminals;



2012 total capacity ~1.4 Mn TEU



2012 throughput 1.4 Mn TEU

Laem Chabang: 

Songkhla

7 operational terminals (through 8 concessions);



2012 total capacity ~7.4 Mn TEUs,



2012 throughput 5.9 Mn TEU

Terminals

Operator

Start Year + Concession

Berth in Basin

Berth Length (m)

Draft (m)

Capacity (Mn TEUs)

Thai Laem Chabang Terminal Co., Ltd.

Hutchison Port Holdings (HPH)

1996 (+30)

400

0.4

Hutchison Laem Chabang Terminal Co., Ltd.

Hutchison Port Holdings (HPH)

2004 (+30)

A3, C1, C2,

1,950

14-16

2.8

LCB Container Terminal 1 Co., Ltd.

LCB1 Group

1991 (+27)

300

0.6

Evergreen Container Terminal (Thailand) Co., Ltd.

Evergreen Group

1993 (+27)

300

0.6

Eastern Sea Laem Chabang Terminal Co., Ltd.

PSA + Marubeni + Kamigumi

1996 (+27)

300

0.6

TIPS Co., Ltd.

MOL + NYK Line + Ngow Hock Group

1994 (+27)

300

0.6

Laem Chabang. International Terminal Co., Ltd.

DP World + STC Logistics + P. Thailand Machinery + NOL

1996 (+30) 2004 (+30)

B5 & C3

900

14-16

2012 throughput

Hutchison Laem Chabang Terminal Co., Ltd.*

2012 Capacity

Hutchison Port Holdings (HPH)

(2004, +30)

icfi.com |

Thailand Two Port Strategy

River Port in the heart of Bangkok city managed by Port Authority of Thailand (PAT) Draft Restriction Feeder Ship destination Capacity was capped at 1.6 million TEU [From 2007 presentation] “Limited room to grow, reduction is imminent”….reduced but only to 1.4 million TEU and cargo remains “sticky” – reality has not matched the 2007 future assumption



Archipelago of >17,500 islands – maritime sector is key



Export demand from resource sector – closely linked to emerging economies



Middle class consumption – increasingly significant



Cost competitive for manufacturing versus China and less risky than cheapest locations (e.g. Bangladesh)

Annual minimum wage (USD), 1H14

Downside risks and challenges:

Total cost of labor (minimum wage plus social welfare contribution)(USD)



Laem Chabang

–

Green field development in 1990 Privatized and managed by independent operators Deep draft Main line destination, but diversion from main tradelanes PAT sets tariff ceilings which have to be followed by all terminals. Last tariff revision undertaken by PAT in 2004 (and no change in last 22 years ) 16.6 Mn TEU originally scheduled for 2011. Has been delayed, but some stakeholders keen to push forward…..where will the demand come from?

–

China slowdown and depressed demand for commodities

–

Removal of subsidies whilst controlling inflation: falling oil prices a major assistance

–

How broad based is economic growth? Overly dependent on China resource play? ASEAN ADB

OECD

IMF

ADB

OECD

IMF

2013

5.7

5.6

6.2

6.6

5.9

6.3

2014

5.6

5.9

6.5

2015

5.6

5.9

6.6

2016

5.9

6.7

5.9

6.9

Source:

ADB, OECD, WB documents

Annual Minimum Wage and Total Labor Cost (USD) of Selected Asian countries in 1H14*

INDONESIA

Real GDP Growth

2017

icfi.com |

3.4

Continued mid-range economic growth, middle class consumption increasingly important

Bangkok

– – – – –

Indonesia Port Market – Demand Outlook

Expansion delayed, but tariffs flat and old Bangkok terminals remain



1,700

icfi.com |

– – – – –

D1, D2 & D3

Source: Laem Chabang Port; HPH; ICF Notes: *yet to be developed

Source: ICF



1.8 7.4

*Social welfare contribution comprises pensions, housing fund

contributions, as well as medical, injury, maternity, and unemployment insurance. Data source: China Briefing

icfi.com |

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

REPORT .The 8th Philippine Ports and Shipping 2015 Regulatory constraints & opportunities

Summary - A Tale of Three PPP Markets

Key Issues for Priok, Indonesia



Java looks promising, provided supply binge is avoided… & concession terms are viable

Restrictions on international & / or domestic handling by different ports / terminals – may significantly affect volume and revenue in critical early years of new concessions

I/E Demand

Java

S. Vietnam

Thailand

 Large & buoyant

X Substantial Over-supply

X Over-supply

Concession terms for New Priok, especially committed & up-front payments to IPC from concessionaires to help fund the extensive capex programme: operational costs + quarterly lease costs could total US$55-65/TEU….plus additional “concession” costs for upfront payment and gross revenue share.

Supply-demand

 Likely constrained over short / medium term



Tariff adjustment mechanism in Priok generally transparent and has delivered upward (and downward) adjustments (unlike Laem Chabang). New Priok ‘freedom to price’ ? Shipping Law of 2008 – Role of IPCs versus the New Port Authorities: theory vs practice – Only Indonesian flag vessels with Indonesian crews can carry domestic trade. Impact on competition and domestic freight rates?

() Yes, but “co-located” with New Priok – less of a “jump” for shippers, agents, carriers, etc.

X Yet to be closed & remains competitive. New terminals a “jump” for shippers, agents, etc.

X Yet to be closed & remains competitive.



Old, city centre terminals that remain competitive Supporting infrastructure

() Being upgraded, but challenging for both AND new terminals

X Delays on landside and dredging

() Generally good

X Limited

() Some

() Priok - regulated, but transparent New Priok – freedom?

() Freedom to price (but oversupply has depressed rates )

() Regulated, but limited transparency & no increase +20yrs

(X) Limited short-term potential diversion from trade lanes, but regional possibilities

 Close to trade lanes

X Limited potential diversion from trade lanes



Options for operators to phase expansion

Control of supply – Java: Speed at which new capacity is developed (e.g. additional phases at New Priok, Cilamaya, Tanjung Perak, etc.) – Control of existing capacity – Is W Java another South Vietnam?....or Bangkok / Laem Chabang? i.e. over-build, over-hang from older, established terminals and depressed rates…probably not

icfi.com |

Tariffs

International Transhipment 17

icfi.com |

Bidding re-runs / programme delay

Environmental Concerns

Increasing project risks related to environmental impacts & climate change

Pushes up project risk and damaging to economic development

 India, Mumbai – JNPT 4th container terminal (4.8 Mn TEUs). – First bidding cancelled due to lack of participation – 2nd round (began in 2009), winning PSA-ABG consortium backed out in 2012, after offering 50% revenue share – 2nd round mired in legal controversies. APMT excluded - won earlier GTI bid hence not permitted to bid. Successfully challenged in court, but then backtracked & decided not to bid. – 3rd round: Neither PSA nor APMT excluded from the bidding process, to the chagrin of some industry stakeholders. – Feb 2014, awarded to PSA…again…at 35.79% revenue share

 Philippines, Subic Bay: 1996 offered 25 yr lease, bid evaluation on two main criteria: investment plan and royalty payments. – 3 bids, offering royalty payments of US$20.50/TEU (HPH), 15.08/TEU (Royal Port Services), and 57.80/TEU (ICTSI, but with a smaller development plan) - a defensive bid intended to keep HPH out of the Philippines and protect tariffs at Manila? (see also HPH defensive bids in Hong Kong) – Awarded to HPH, challenged and then re-bid in1997 – Further delays and challenges not resolved until 2001, new plan and bids, concession finally awarded to ICTSI 2007. – Despite 10% utilisation (32,000 TEU at 1st berth) 2nd berth also awarded to ICTSI 2011 (no other bidders). Meanwhile traffic at congested Manila rose sharply to 3.7m TEU in 2012 icfi.com |

 Overlapping areas of concern: – “Green port” / “Green supply chains”: broaden focus from biodiversity / ecological, etc. from impact of new developments to additional concerns around air pollutants and Greenhouse Gas Emissions (GHG)….will become an issue in emerging markets – Climate change: impacts over life cycle of port assets? Long time horizons. Planning, implementation, concessions run 20-30 years+ (e.g. New Priok IPC II 70-yr concession, London Gateway even longer). Direct impacts for project finance Potential financial impact

What’s at risk? • • • •

• •

Performance of fixed assets Supply chain integrity Availability and demand for resources (e.g. water, energy) Demand for goods and services

• • • •

Non-financial impacts

Reduced asset value Unplanned CAPEX, increased OPEX Reduced efficiencies Reduced availability of insurance Inability to meet projected financial returns Need for innovation

Climate change also has the potential to affect achievement of non-financial objectives, especially on development, community, and environmental issues

icfi.com |

Wrap - Port PPPs

Thank You – Any Questions?

Considerable potential but public sector has to play its part

Regional Contacts

 Transparent (and simple) selection procedure

Jonathan Beard, Hong Kong +852.2868.6980 jonathan.beard@icfi.com

 Clear and committed timelines for phase in (and phase out) of new capacity…including option to develop adequate economies of scale (note impact of mega vessels / alliances at major ports)

David Hathaway, Beijing +86.10.6562.8300 david.hathaway@icfi.com

Ports, Logistics & Transport Services

 Regulation via competition is preferred, but may not be possible in early stages  Be wary of defensive plays by incumbents  Deliver supporting infrastructure

Anil Gubrele, Mumbai +91.98.19918055 anil.gubrele@icfi.com Jolke Helbing, Amsterdam +31.35.8872.181 jolke.helbing@icfi.com Augusto Mello, Rio de Janeiro +55.2121.172550 augusto.mello@icfi.com

 Fair and clear allocation of risk and reward between both ‘Ps’ ...and be clear on policy objectives  Establish a track record

ICF Transportation Projects

icfi.com |

Philippines PPP Institutional Environment

ICF - Selected Clients

History and Development

 Historically, spending on infrastructure in the Philippines has been low; circa 3% versus 5% for other SE Asian nations.  The Aquino administration has identified PPP as a key mechanism for increasing investment in infrastructure and achieving inclusive growth  The legal framework for PPP is based on the Build-Operate Transfer Law (1990). This was the first law in Asia that institutionalised private sector participation in infrastructure and development projects.

Tiger Global Management, LLC

icfi.com |

 BOT Law subsequently amended (1994), and later laws and regulations have been further refined and the legal and regulatory framework developed.

 2011, an ADB Study found the Philippines to have strongest enabling environment for PPPs out of the ASEAN countries due to a strong legal and institutional framework and well structured bidding process. Weaknesses observed within the PPP system included the investment climate, and financial facilities.

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015 icfi.com

The 8th Philippine Ports and Shipping 2015 . REPORT Philippines PPP Programme

Philippines PPP Institutional Environment

Current Status

Current Structure



National Economic and Development Authority (NEDA) is an independent cabinet level agency responsible for economic development and planning. NEDA is responsible for overseeing the implementation of PPP in Philippines.



PPP Centre has established a pipeline of PPPs through the PDMF



Projects in the pipeline must be: – At a defined stage of project readiness/preparation. They must have: • Completed their initial business case,

The PPP Centre is a Government agency established to coordinate and monitor the PPP Program. It is attached to NEDA, and was created from the previous BOT Center in 2010.

• Be included in a list of priority projects by the implementing agencies, and

PPP Centre

The PPP Centre manages the Project Development and Monitoring Facility (PDMF) – a revolving fund established to provide advisory and technical services for project preparation, development and capacity building so as to enable the creation and management of a robust PPP pipeline. The PDMF has been financed by the Philippine and Australian Governments. –



NEDA

• Have Feasibility Studies or other initial preparation ongoing.

– Responsiveness to sector needs – Highly implementable (bankable with no major issues)

Project Development & Monitoring Facility



There are 59 projects currently within the pipeline: Stage

ICF is one of 22 international and local firms prequalified to provide assistance under the PDMF

Number

Contract Awarded Bidding Stage

PPP Projects

Government contributions (such as funds for resettlement, Governmentapportioned construction costs etc) are funded from a Strategic Support Fund which is allocated to implementing agencies involved in PPP as part of their annual budgets.

Project Preparation

353

639

TBD

Transaction Adviser Procurement Under Conceptualisation 25

130

NEDA Approval

icfi.com |

Value (PHP Bn) 9

icfi.com |

Philippines PPP Programme Port Opportunities



Of the 59 projects in the PPP Centre’s pipeline, 4 are related to ports or terminal infrastructure: – Davao Sasa Port Modernization Project – Currently at issuance of ITPB stage – Manila Bay-Pasig River – Laguna Lake Ferry SystemProject – Business Case Preparation currently underway – Central Spine RORO Project – Procurement of Transaction Advisor imminent – Ferry Passenger Terminal Buildings Development – Under conceptualization Freeport Area of Bataan (FAB) Barging Facility/Port Project – Under conceptualization



The Davao Sasa Port Modernization Project will be implemented jointly by the Department of Transport and Communications (DOTC) and the Philippines Ports Authority (PPA) in conjunction with the PPP Centre. – It aims to develop the existing port into a modern, international container terminal, with new apron, linear quay, expanded back-up area, container yards, warehouses, ship-to-shore cranes and rubber-tyred gantry. – Expected project cost is PHP19bn (USD422m) – Concession to be structured under a Build-Transfer-Operate (BTO) model with a 35-40 year concession period. – Invitation to Bid to be issued.

icfi.com |

Melissa Pizana-Cruz, National Coordinator and Advisor for CSR and Management Systems, German Federal Enterprise for International Co-operation (GIZ) GmbH, The Philippines Sustainable Port Development

ASEAN PORTS: Sustainability through Corporate Social Responsibility Melissa Cruz Regional (ASEAN) Advisor for CSR and Management Systems

Sustainable Port Development

Deutsche Gesellschaft für Internationale Zusammenarbeit German International Cooperation Owned by the Federal Republic of Germany

Sustainable Port Development

Facts 130 countries employees 17,000 & 40 years in the PH Figures

Operates like a private sector entity Supports the objectives of the German Government Climate Change

Sustainable Port Development

Our actions are guided by social responsibility, ecological balance, economic performance, political participation.

Sustainable Port Development

Cities, Environment, and Transport in the ASEAN Region

Peace & Security

Rural Development

Environment

Sustainable Port Development

Transport and Climate Change

• Improving the conditions for increasing energy efficiency and the reduction of greenhouse gas emissions for the land transport sector in ASEAN, by means of strategies and action plans

Clean Air for Small Cities

• Clean Air Plans in smaller and medium-sized cities are under implementation

Sustainable Port Development

• Selected ports have improved the quality and efficiency of their Safety, Health and Environmental management

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

REPORT .The 8th Philippine Ports and Shipping 2015 Sustainable Port Development

Sustainable Port Development

Project Organisation of SPD Project Partner Executing Agency Steering Committee Project Office Project Period

Sustainable Port Development

ProjectTeam

ASEAN Secretariat APA Secretariat ASEAN Secretariat, APA, GIZ

Project Objective Selected ports have improved the quality and efficiency of their Safety, Health and Environmental (SHE) management

Port Authority of Thailand (PAT) Bangkok Phase I : 2009 – 2012 Phase II : 2013 – 2015

Overall project impact: The quality of life and welfare of port workers and nearby communities has improved

Financed by the Federal Ministry for Economic Cooperation and Development 7

Sustainable Port Development

12 Partner

Yangon Port Phnom Penh Bangkok

Sihanoukville

Laem Chabang

Iloilo

Saigon Port Saigon New Port

Ports

Project Highlights

Traffic management for ports

Cagayan de Oro

Sabah Ports Johor Port

Sustainable Port Development

Port waste management

Training and capacity building for ports

Port Safety Health and Environmental Management Systems (PSHEMS)

What is Corporate Social Responsibility?

Emission inventories

Tanjung Priok

Sustainable Port Development

Is it coastal cleanups?

Sustainable Port Development

Is it planting trees?

Sustainable Port Development

“Greenwashing”

Art by Dennis Wunsch

Sustainable Port Development

7 Core Subjects ISO 26000

Overview of Corporate Social Responsibility and ISO 26000 Social Responsibility is the responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behaviour that: • Contributes to sustainable development, including health and welfare of society; • Takes into account the expectations of stakeholders; • Is in compliance with applicable law and consistent with international norms of behaviour; and • Is integrated throughout the organization and is practised in its relationships. ISO (2010). Guidance on Social Responsibility - ISO 26000:2010. Switzerland: ISO copyright office

Sustainable Port Development

Organizational Governance • Has the port identified its stakeholders, both those it is responsible to, and those it is responsible for? • Is the port transparent regarding the known and likely impacts of its decisions and activities on its stakeholders, society, the economy and the environment? • Does the port actively promote ethical behavior by identifying and stating its core values and principles?

Sustainable Port Development

Community Involvement

Environment

• Does the port maintain transparent relationships with local government officials and political representatives, free from bribery or improper influence? • Does the port promote and support education at all levels, and engage in actions to improve the quality of and access to education, promote local knowledge and help eradicate illiteracy? • take into account the promotion of community development in planning social investment projects

• •

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

• • • • •

Life cycle approach Environmental impact assessment Cleaner production and ecoefficiency A product-service system approach Use of environmentally sound technologies and practices Sustainable procurement Learning and awareness raising

• • • •

•

Pollution prevention Sustainable Resource Use Climate Change Adaptation Protection of the environment, biodiversity, and restoration of natural habitats Climate Change Mitigation

The 8th Philippine Ports and Shipping 2015 . REPORT Sustainable Port Development

Labour Practices

Fair Operating Practices

• • • • •

Employment and employment relationships Health and Safety at Work Conditions of work and social protection Social Dialogue Human Development and Training in the Workplace

Sustainable Port Development

7 Core Subjects ISO 26000

• • • •

Human risk situations Avoidance of complicity Resolving grievances (worker’s unions) Discrimination and vulnerable groups (e.g. Women in maritime) • Civil and political rights • Economic, social and cultural rights

Sustainable Port Development

Objectives of the Study

1. Research the existing strengths of CSR in the ports of Malaysia and Cambodia

2. Identify areas of mutual learning between the Malaysian and Cambodian ports in the area of CSR.

Sustainable Port Development

The top management in Cambodian ports have made it clear that they are well aware of their social responsibilities to their community

Sustainable Port Development Cambodian ports are also particularly open to assisting in combatting HIV/AIDS and other diseases through their cooperation in the GIZ study on “Assessing the Needs for a Combined Tuberculosis and HIV Prevention and Information Campaign”

Consumer Issues

Anti-corruption Respect for property rights Responsible Political Involvement Fair Competition Promoting social responsibility in the value chain

Sustainable Port Development

Human Rights

Highlights of CSR Strengths for Cambodia

Sustainable Port Development

•

“MISSION: Serving the policy of the Royal Government in the development of national economy and poverty alleviation is our major obligation“ – PAS

•

“PPAP plays a significant role in social development by providing more than 400 direct jobs and thousands of indirect jobs to Cambodians” - PPAP

Sustainable Port Development

Global partnerships are also strongly supported in Cambodian ports

• Fair marketing, factual and unbiased information and fair contractual practices • Protecting consumer’s health and safety • Consumer service, support, and complaint and dispute resolution

Sustainable Port Development

Study: CSR Strengths in Malaysian and Cambodian Ports

Sustainable Port Development

Objectives of the Study 3. Identify areas of recommendation where gaps exist between the CSR practices identified and the Guideline for Social Responsibility of the ISO.

Sustainable Port Development

Labour practices and Human Rights

Sustainable Port Development The social responsibility practices of the Cambodian ports contribute to many of the Millennium Development Goals (MDG) of the United Nations

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

REPORT .The 8th Philippine Ports and Shipping 2015 Sustainable Port Development

Sustainable Port Development

Establishing mission, vision and core values that includes a commitment to people and sustainable development

Highlights of CSR Strengths for Malaysia

Sustainable Port Development

Community involvement and education

Sustainable Port Development

Malaysian ports place significant importance on environmental conservation and awareness among its staff and surrounding community

Sustainable Port Development

Sustainable Port Development Anti-corruption practices in place e.g. Whistleblower Policy

Sustainable Port Development

Recommendation # 1: Conduct a Stakeholder Analysis

KEEP SATISFIED

ENGAGE CLOSELY AND INFLUENCE ACTIVELY

MONITOR (MINIMUM EFFORT REQUIRED)

KEEP INFORMED

Sustainable Port Development

Low

Power

High

Recommendations

Emphasis on Safety, Health and Environment is significant

Recommendation # 2: Set CSR Priorities: Little Influence

Little Impact

Areas where the Port has little sustainability impact and little influence.

Large Impact Areas where the Port has little influence but the impacts are significant.

Areas where the Port has large influence but can generate only a small impact.

PRIORITY ONLY IF IMPACTS GENERATE SOME SORT OF ADDED VALUE Areas where the Port has both a large influence and a large impact.

PRIORITY ONLY IF INFLUENCE GENERATES SOME SORT OF ADDED VALUE

PRIORITY AREAS â&#x20AC;&#x201C; MAKE THESE AREAS PART OF CSR POLICY AND ACT ON THEM

NO PRIORITY Large Influence

Low

Sustainable Port Development Recommendation #4: Creation of Strategies, Objectives and Targets towards Social Responsibility

Sustainable Port Development

Recommendation # 3: Establishment of Socially Responsible Policies

Sustainable Port Development

Interest

High

The 8th Philippine Ports and Shipping 2015 . REPORT Mark Millar, Managing Partner, M Power Associates, Hong Kong Mark Millar MBA, FCILT, FCIM, FHKLA, GAICD, SCOR-P

Special Offer for Manila Delegates

Managing Partner, M Power Associates

20% discount

valid until 28 February 2015

8th Philippine Ports and Shipping 2015

“Developing Efficient & Effective Logistics Networks in ASEAN”

Pre-order online using discount code TEMMNL www.koganpage.com/globalsupplychain

Manila, February 2015

Mark Millar, MBA, FCILT mark@markmillar.com 1

Informed is Empowered © mark@markmillar.com

Developing Efficient & Effective Logistics Networks in ASEAN

Why?

What?

How?

2015-02

Informed is Empowered © mark@markmillar.com

Mark Millar provides value for clients with independent, external and informed perspectives on their supply chain strategies in Asia. Acknowledged as an engaging and energetic presenter that consistently delivers a knowledgeable, professional and memorable impact, Mark has completed over 350 speaking engagements at corporate events, client functions and industry conferences across 23 countries. Recognised as a leading industry expert, Mark leverages over 30 years of global business experience to deliver practical knowledge and educated insights that help companies navigate the complex landscapes in Asia, develop new business opportunities, improve the efficiency of their supply chain ecosystems and make better informed business decisions. Author of “Global Supply Chain Ecosystems” from Kogan Page, Mark is a Visiting Lecturer at Hong Kong Polytechnic University. He is recognised as one of the “China Supply Chain Top 20” and listed in the USA 2014 “Top Pros-to-Know in Supply Chain”. 2015-02

Mark@MarkMillar.com Informed is Empowered © mark@markmillar.com

Logistics Networks: empower and enable Supply Chain Ecosystems

WHY? Develop Efficient & Effective Logistics Networks in ASEAN

Every Business, everywhere, uses Logistics . . .

The Business of Logistics . . . .

Logistics Networks: beyond the Port Supply Chain is as strong as the weakest link

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Logistics Networks: - Create Jobs across the Spectrum

Logistics Networks: - Attract Extended Economic Activities

GOVERNMENT PARTNERSHIP LOCAL OPERATIONS AT PORT ‘CUSTOMER FOCUS’

REGIONAL OPERATIONS NEAR PORT ‘PUBLIC-PRIVATE PARTNERSHIP’ ‘SEAMLESS CARGO MOVEMENT’

Yard

Quay

Infrastructure

Support facilities

• Logistics parks • River-road centre • Rail-road centre, etc.

• Customs • Bank, Insurance, Legal • Freight forwarders, etc.

Maritime

• Navigation channels • Piloting / towage • Ship repair, etc.

NATIONAL •

Road

•

Inland shipping

•

shortsea feeder

•

International trans-shipment

•

(Pipelines)

Postponement, Late Customization

OPERATIONS AWAY FROM PORT ‘SECURING THE HINTERLAND’

Production & Asembly

Port Terminal Operators do not control all the links Source: ICF

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Logistics Networks: Serve increasing cross border trade flows (21)

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Source: Yossi Sheffi, MIT

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WHAT? Develop Efficient & Effective Logistics Networks in ASEAN

(16)

(12)

(10) FTAAP (21) Source: Asia Briefing

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Overcoming Supply Chain Barriers to Trade Definition: Lack of Infrastructure, institutions, policies and services facilitating the free flow of goods over borders

Informed is Empowered © mark@markmillar.com

Source: WEF 2014

Enabling Trade Index: ASEAN ASEAN Rank

Economy (total 138)

Global Rank

Score Market Border Infra1-7 Access Admin structure

Operating Environment

Singapore

5.9

Malaysia

4.8

Thailand

4.2

Indonesia

4.2

Philippines

4.1

Vietnam

4.0

Cambodia

3.7

108

101

Laos

3.6

114

115

Myanmar

121

3.2

117

136

134

Philippines ETI Progress: 2010 92, 2012 72, 2014 64 Source: WEF 2013

Informed is Empowered © mark@markmillar.com

Source: 2014 Enabling Trade Index, WEF

Informed is Empowered © mark@markmillar.com

REPORT .The 8th Philippine Ports and Shipping 2015

HOW? Develop Efficient & Effective Logistics Networks in ASEAN

Logistics Networks: critical enablers that empower supply chain ecosystems 1

Logistics Networks: Infrastructure & Connectivity - Asia Road Networks

Infrastructure

Hinterland Connectivity

Regulatory

Informed is Empowered © mark@markmillar.com

AEC 2015 Maritime ASEAN RO-RO Network

Talent

Informed is Empowered © mark@markmillar.com

Integrated Logistics Hubs eg HKIA unique, on-airport Logistics Hub

Brunei, Indonesia, Malaysia, Philippines - East ASEAN Growth Area

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Enabling Trade Index 2014 PH improved to 64 in 2014 (92 in 2010)

Regional Distribution Centre (RDC) and Logistics Hub 30,000 sq m HK Airport – 2 mins HK Port – 20 mins China SZ – 40 mins

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Source: Asia Foundation

Efficient Logistics Practices can drive 20-40% more trade – three approaches Reduce

Reform

Admin Burdens

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Supply Chain - is as strong as it’s Weakest Link

Informed is Empowered © mark@markmillar.com

Supply Chain Ecosystems: - Complex, Interconnected, Vulnerable

Focus

Customs, Security

Infrastructure

“High paperwork requirements post challenges that push complexity in logistics procedures; Administration can often be the most time consuming element in the life of a shipment" CEO of DHL Global Forwarding 32

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moved beyond Linear concept of a Chain . . . 34

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Profound Interdependencies 35

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2015-02

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The 8th Philippine Ports and Shipping 2015 . REPORT Balan Velan, Managing Director, Scorpio Engineering Pvt Ltd, India

Manila, Feb 12-13 2015

CONTAINERZATION OF DRY BULK INCREASES PORT PROFITABILITY B Velan Managing Director

Common Dry Bulk Materials that can be handled in linered containers • • • • • • • • • • • • • • •

Alumina Abs resin Barley Wheat Cattle feed Cement Clay Coal Coffee beans Feldspar Rock phosphate Groundnuts Milk powder Polyester chips/pp/pe/nylon Pigments

• • • • • • • • • • • • • • • •

Flour Pvc resin Salt Seeds Sugar Soya beans Soda ash Tea Leaf Urea Detergents PTA Corn Lentils Peas Starch Chemicals

Positioning of the containerliner

Chemicals ABS Resin Aluminium Powder Aluminium Resin Fertilisers (certain) Glass Beads Nylon Polyer Chip Polyester Granules Polyethylene Granules Polycarbonate Granules Polypropylene Granules PVC Granules PTA Soda Ash Catalysts (certain) PE Resin PP Resin PS Resin PVC Resin Pigments Zinc Powder Detergents

Foodstuffs Barley Cattle Feed Cocoa Coffee Beans Corn Fishmeal Flour Ground Nuts Lentils Milk Powder Mixed Grain Feed Nuts Peas Rice Salt Seeds Soya Beans Starch (certain) Sugar Tea Leaf Wheat

Minerals Anhydrite Binder Bentonite Clay Gypsum Silica Talcum Powder Tri-poly Phosphate Vanadium Slag Aluminium Fluoride Bleaching Earth Zeolite

SAMPLE STATISTICS • Cement Production in 2104 in the Philippines – 21 million tonnes • Assuming 90% is packed in 50kg bags, total no of bags: – 370 million

• Sugar Production, CY 13-14 1 million tonnes – No of bags of 50kg : 20 million

NO OF BAGS PER YEAR: say 400 million NO OF BAGS PER DAY: 1 Million IF CONTAINERS REPLACE BAGS, NO OF CONTAINERS(at 25T per container) : 800000/yr

REPORT .The 8th Philippine Ports and Shipping 2015 FILLING OF CONTAINER Silo outle t

1. BE LT THR OWER Granules

Silo outle t

2. AU GER Powder

Silo outlet Telescope pipe

3. PN EUMAT IC CONV YEI NG

Hig h pressure blower or compressor

Ro tary valve

Filter unit NICO R IN TERNATIONAL 1121-1

Filling by gravity

20ft container

Bucket elevator Feed hopper

Hydr tilting platform

Pneumatic filling

Discharging of the liner

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

Mechanical Filling with densification

The 8th Philippine Ports and Shipping 2015 . REPORT

SUMMARY and CONCLUSION CONTAINERS CAN BE EFFECTIVELY DEPLOYED FOR THE MOVEMENT AND HANDLING OF DRY BULK MATERIALS. THIS ADDS TO EXISTING CONTAINER POPULATION AND INCREASED CONTAINER UTILISATION FOR PORTS AND SHIPPING LINES THE CONCEPT REQUIRES SILOS AT BOTH SUPPLIER AND RECEIVER ENDS AND SOME CAPITAL EQUIPMENT AT BOTH ENDS. THE OVERALL ECONOMICS PROVE THAT IT IS CHEAPER TO HANDLE DRY BULK IN CONTAINERS THAN IN BAGS OR IN BULK ESPECIALLY FOR DOMESTIC LOGISTICS IN ANY COUNTRY.

Daniel C Ventanilla, General Manager, NYK Line (Philippines), NYK Fil-Japan Shipping Corporation, The Phillippines 8TH PHILIPPINE PORTS AND SHIPPING 2015 Opportunities for Shipping Lines in the Philippines

366m

36 Basketball Courts

324m

The Peninsula Manila Makati City, Philippines 12 February 2015

NYK Helios Container Ship 14,000 TEU capacity introduced 2013

DANIEL VENTANILLA NYK LINE PHILIPPINES NYK FILJAPAN SHIPPING CORPORATION TRANSNATIONAL DIVERSIFIED GROUP (TDG)

2014 Container Ships 18,000 TEU capacity

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPINGNYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

MSC OSCAR NYK Helios Container Ship 14,000 TEU capacity Introduced 2013

NYK Line introduced Feeder Max Vessel 3000-teu in Manila last April 2010

Largest as of 08 Jan 2015 19,224-teu ship Can not fit the New PANAMA Canal of 2016

FACTORY ASIA

366m

No US Port can accomodate

324m

CHINA FDI $117.6 Bn

MAN size relative to SHIP

Only to be assigned In the ASIA – EUROPE Trade

ASEAN FDI $137.4 Billion

MAERSK CHINA SHIPPING UNITED ARAB SHIPPING almost similar sizes

Sources : International Business Times

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

ASEAN FTA’s

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPINGNYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

CHINA–ASEAN FTA (CAFTA) INDIA – ASEAN FTA ASEAN FTA

COMMON EFFECTIVE PREFERENTIAL TARIFF

AFTA - CEPT

ASEAN-KOREA FTA (AKFTA)

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

ASEAN SINGLE WINDOW Can diverse Asean nations form a community by 2015? The free movement of goods and services; and an even freer movement of capital and talents among the 10 member states.

INTRA - REGIONAL TRADE • Consumption – Rising Population • Stronger economies • Increased Foreign Investments

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

Philippines Indonesia Malaysia Singapore Thailand Vietnam ASEAN

Intra-ASEAN Trade 19.1 25.6 27.4 26.4 21.7 14.9 24.2

Intra-ASEAN Export 16.0 22.3 28.1 31.4 25.8 13.7 26.0

Intra-ASEAN Import 21.8 29.0 26.7 20.9 17.8 16.2 22.4

NYK LINE services in ASIA are geared to connect the PHILIPPINES, The ASEAN countries and JAPAN / KOREA / CHINA

Source : Asean Secretariat Nov 2014 NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

REPORT .The 8th Philippine Ports and Shipping 2015 NCT Transnational Corporation

GDP 2014F: 6.4%

 Modern System and Equipment  Adjusted Operational Hours  Optimal flow of trucks

GDP 2015F: 6.7% Population : 100.6M

Most modern Container Depot Operations in Manila

2015 ASEAN Growth Leader

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

“We’d like to get the shipping lines to call and get the key shippers to ship from Subic.”

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

First DIRECT service ex-JAPAN to SUBIC / Taiwan to Subic

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

NYK METEOR SERVICE

First DIRECT service ex-SUBIC to SINGAPORE First DIRECT service ex-SUBIC to VIETNAM 5 x 3000-teu vessels

SBMA Chairman Roberto V. Garcia Osaka >Yokkaichi > Nagoya > Shimizu > Tokyo > Yokohama > Kobe > Kaohsiung > SUBIC > MANILA > Ho Chi Minh > Singapore > SUBIC > MANILA > Osaka

“The new road is from Tipo District to Subic Bay International Airport and Seaport Terminal to accommodate the increase of container truck traffic.”

PHP2.1 Billion 13KM Stretch Bypass Road Project

Source : SBMA

23 NOVEMBER 2014 MAIDEN CALL

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

Regular calls in December 2014 – January 2015

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

BUSINESS EFFICIENCY

CHANGE IN SUPPLY CHAIN ACROSS VARIOUS COMMODITIES

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

Manila: - 2 Int’l Ports: North & South - Major Export Commodities : - EGoods - Automotive components - Chemicals - Consumer Goods NYK vessels call the Manila North Port (MICT) and South Port.

Manila

Cebu: - 1 Int’l Port - Major Export Commodities : - Furniture - Handicrafts - EGoods - Automotive components

Laguna Batangas

Cebu

NYK Roro vessels call at Batangas. NYK also set up PDI facilities in Laguna and Batangas.

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

Surigao

TRANSNATIONAL DIVERSIFIED GROUP

NYK LINE Forerunner of the Mitsubishi Group since 1885

Philippine conglomerate of over 17,000 employees

Business Process Outsourcing

Logistics

Shipping

Ship Management

Academy

Davao & Gen. Santos: - 1 Int’l Port at each Origin - Major Export Commodities : - Aqua-Agricultural products - Pineapples - Bananas - Tuna in reefer

Cagayan de Oro Davao

General Santos NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

SUBIC connected DIRECTLY Japan, USA, Europe, ASEAN, Oceania with WEEKLY CALLS

More ALTERNATIVES for both EXPORTS and IMPORTS via SUBIC or via MANILA

METEOR NB : Subic (Sundays) Manila (Mondays)

Guarantee of NO DELAY to IMPORT PHILIPPINE ARRIVAL

Service is Expansion Ready for more PANAMAX Vessels

METEOR SB : Subic (Mondays) Manila (Tuesdays)

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

The 8th Philippine Ports and Shipping 2015 . REPORT We have to build facilities which complements SHIPPING.

Sta. Clara

NCT Transnational Corporation

NYK CREATED AUTOHUB IN BATANGAS

We have to INTEGRATE PROCESSES for Domestic Transport.

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

•

Joint venture with NYK Line (Japan)

•

Provides back-office functions for NYK Line across 22 countries: •

Export documentation

•

Container movement monitoring

•

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

Global help desk

•

Booking input

•

Manifest dispatching

•

Regional code administration

Average of 55,000 BLs/month

•

99.8% accuracy level

•

1st Non-Voice BPO to secure Philippine Quality Award

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

The Ships of the FUTURE

Lloyds List Ship of the Year 2009

NYK SHIPS OF TODAY are very eco friendly YAMATAI 2010 Innovative Ship

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

NYK LINE (PHILIPPINES) / TRANSNATIONAL DIVERSIFIED GROUP

12 FEBRUARY 2015 8TH PHILIPPINE PORTS AND SHIPPING

REPORT .The 8th Philippine Ports and Shipping 2015 Truong Bui, Project Manager, Roland Berger Strategy Consultants, Singapore Contents

Page

A. Introduction to Roland Berger

B. Global trade trends

C. BIMP

Trade development in BIMP region A. Introduction to Roland Berger

Presentation

This document shall be treated as confidential. It has been compiled for the exclusive, internal use by our client and is not complete without the underlying detail analyses and the oral presentation. It may not be passed on and/or may not be made available to third parties without prior written consent from Roland Berger Strategy Consultants. RBSC does not assume any responsibility for the completeness and accuracy of the statements made in this document.

Manila, February 12 2015

150212_Conference_Manila v10.pptx

Offices

Serving over 1,000 international clients

Clients

75% repeat clients

40% of Europe's

leading companies

Madrid São Paulo 1986 1976

1969 Milan

1982 Düsseldorf

Frankfurt Vienna 1989

1987 Stuttgart

Ranking in core consulting skills

Gothenburg Today Singapore Stockholm Mumbai 2013 2010 51 Casablanca Istanbul 2014 Bangkok Manama Taipei 2008 2011-12 Pune 2006 Yangon Dubai Amsterdam Detroit Jakarta 2002 Shanghai Kuala Lumpur Brussels Beijing 1998 2007 2009 Lagos Kyiv Beirut Doha Boston 1995 2003 Prague Guangzhou Zagreb Chicago 2000 1993 HongKong Montreal Warsaw New Delhi 1997 Seoul Budapest 1994 Zürich Moscow

Over 220 partners with specific expertise organized in 14 competence centers

Munich 1967

Tokyo 1991

Industry & company restructuring Score

Ability to implement

> Impartial recommendations

Roland Berger

397

1 Management Engineers

388

1 BCG

394

> Customized, workable solutions

McKinsey & Company

388

2 Roland Berger

385

2 McKinsey & Company

391

3 Oliver Wyman

343

3 Roland Berger

375

4 A.T. Kearney

338

4 Bain & Company

369

5 PWC

331

5 Booz & Co.

328

KPMG

365

> Sustainable value creation for our clients

PWC

350

Boston Consulting Group

338

> Strong implementation support

Organization & leadership

> Constant innovation

1 2

1990 Berlin Hamburg Lisbon London Paris

Ranking in key areas of expertise

> Rigorous analysis

1992 Bucharest

You can expect innovative strategies that really work for your company

Score

McKinsey & Company Roland Berger

Score

Market knowledge

Thought leadership

Score

150212_Conference_Manila v10.pptx

McKinsey & Company

401

1 Booz & Co.

355

390

BCG

396

2 Roland Berger

334

Roland Berger

367

3 BCG

332

Bain & Company

355

4 Management Engineers

330

Booz & Co.

346

5 McKinsey & Company

329

Boston Consulting Group

376

Booz & Co

368

Bain & Company

365

150212_Conference_Manila v10.pptx

Source: Firmsconsulting 2012, WGMB; Prof. Fink, 2011

We have assisted many port & terminal investors in making smart investment decisions and developing sustainable businesses

Roland Berger Competence Centers by industry and function

Focus Areas – where we have deep experience and expertise

Automotive > Energy & Chemicals > Consumer Goods & Retail > Travel, transportation and tourism > Financial Services > Infrastructure & Urban Development InfoCom > Pharma & Healthcare > Public Services & Not-for-profit > Utilities >

Functional competence centers

> > > >

> Methodological competence and approaches

< Information Management < Marketing & Sales < Operations Strategy < Corporate Finance < Corporate Performance – Strategy – Organization – Restructuring

> Conceptual spatial masterplan > Due diligence, strategic reviews > Physical re-development planning

> In-depth understanding of industries and their main players

> Corporate/business strategy > Operational improvement > Operating performance, KPIs

> Combination of industry expertise and functional know-how

Joint teams Joint solutions

> Institutional review > Port management model design

Development

> Regulatory review > Policy advisory > Tender process and negotiations Operations

Regulation

> Pricing strategies > Concession design > Port privatization studies

> Regional economic development strategy > Integrated logistics strategy > Regional/national port development planning 150212_Conference_Manila v10.pptx

Our team has worked with many of port authorities, global ports, shipping lines and maritime companies

Our team has successfully completed a significant number of projects for ports throughout Asia, as well as beyond Credentials – port projects (selected) Penang

> Market study and technical review

Klang

Port authorities

Conglomerates

Port operators

Shipyards

Logistics service providers Maritime transportation

Shipping liners

Tokyo

> Performance improvement strategies

> Container port market study

Busan

Gwadar

> Financing strategy

Kaoshiung

> Master plan and development strategy

> Port development plan

Maldives

Laem Chabang

> Port re-development plans

> Commercial due diligence

Suppliers

Haiphong

Johor, Tg. Bin, Pengerang

> Port and marine services market assessment

> Business rationalization, port policy, strategic re-development plan, cargo warehousing strategy

Tg. Manis, Samalaju

> Port development master plans

Tg. Priok

Source: Roland Berger

Selected clients in the maritime industry/transportation

Weifang

> Port turnaround strategy

> Business plan review

Estonia

> Market assessment study

Tg. Perak

> Container market study

Outside Asia 150212_Conference_Manila v10.pptx

Port master planning Market studies, traffic forecasting Acquisition targets scanning and strategies Business planning

Source: Roland Berger

150212_Conference_Manila v10.pptx

Source: Roland Berger

Casablanca

Score

401

We offer a unique combination of functional expertise and relevant industry and sector experience

Industry competence centers

Communication skills

Score

Score: 100 = very poor skills; 500 = very strong skills

Source: Roland Berger

> Container market assessment, cargo forecasting feasibility studies, operations improvement > Container forecast breakdown by commodity and by region

Positioning in global rankings

Our global presence

51 offices in 36 countries, with approx. 2,400 employees

global companies

150212_Conference_Manila v10.pptx

We are well positioned to help our clients succeed – Independent global rankings show we are top 3 in key consulting areas

Roland Berger is a leading global strategy firm with successful operations in all major international markets

30% of top 1,000

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

Source: Roland Berger

150212_Conference_Manila v10.pptx

The 8th Philippine Ports and Shipping 2015 . REPORT Global shipment demand has expanded by 4.4% CAGR in the past decade, bolstered by strong growth in containerized cargo

Industry trends Green shipping

B. Global trade trends

150212_Conference_Manila v10.pptx

Proactive government action

1 Sustained cargo traffic growth 2

Global shipment demand, 2005 – 2015 [m MT]

Maritime trade boom

10Y-CAGR

8 3

Key trends Escalating cost pressures

Global demand

Nine key industry trends will underpin the short, medium and longer term of global maritime landscape

Growing regional ports

4 5

7,171

6,711

Rising technological changes

Potential shipping route changes

2,975

2,851

150212_Conference_Manila v10.pptx

Source: Roland Berger

Booming maritime trade

Asia accounts for the largest portion of global maritime trade, recording steady growth in its market share

7,560

1,838

3,060

Imports

1,030

Asia

372

555

2009

2013

1,419 1,277 1,461 1,552 1,620 1,690 1,763 1,840

+7.4%

> Driven largely by higher degree of globalization, especially for manufacturing supply chains

2008

2007

2009

3,166 3,268

2011

2010

3,410

2012

3,712

2013 2014E 2015E

Containerized cargo1) 150212_Conference_Manila v10.pptx

Average ship size [TEU]

2013

4,000

Europe

6.0%

3,500

America

Imports

150212_Conference_Manila v10.pptx

Source: Review of Maritime Transport 2013; UNCTAD; Roland Berger

Maersk Triple E 18,000 TEU

3,000

Largest carrier in 2013, other carriers following suit

Emma Maersk 15,500 TEU

50.0% Asia

Europe 40.0%

America

Evolution of average container liner sizes [TEU]

0.1% 5.0%

3,817 2009

Larger container vessels

Looking back the past decade, there has been a clear and consistent trend in the industry towards larger container liner sizes…

Oceania Africa

3,468

2013

Asia

3 39.0%

America

3,743

1,283

4,679

+4.6%

3,027

3,558

Source: UNCTAD; Roland Berger analysis

Europe 39.0%

1,402 3,694

3,054

2009

4,106 3,772 3,935 3,465 3,615 3,154 3,001 3,389

> Main growth driver is due to high demand of grain for feed > Industry sectors with direct human consumption growing slower > Driven by fast-growing demand for raw materials, especially for infrastructure investments > Commodity-boom in resource-rich countries

Liquid bulk Dry bulk 1) including general cargo

13.0%

3,592

> Grew in line with global oil production > Political turmoil in key production areas negatively impacted growth due to disruptions of supply

8,644

9,410

Africa

0.1% 9.0%

6,528

Exports

Oceania

+16%

+31%

8,373

+2.9%

8,016 8,285

9,019

Share of world maritime trade [2013%]

Exports

6,646

2006

2005

+26%

3,873

7,305

3,082

3,056

1,121 1,223 1,352

Total maritime trade by region [m Tons]

+4.4%

7,578 7,655

3,170 2,739 2,972

9,819

Larger container vessels

Regina Maersk 7,400 TEU

MSC Oscar 19,224TEU Largest carrier in 2015, other carriers following suit

Largest carrier in the mid 2000s, other carriers followed suit

Largest carrier in the mid 1990s, other carriers followed suit

2,500 2,000 1,500

2000 2001 2002

Larger container vessels

2003 2004 2005 2006 2007 2008 2009 2010

2011 2012 2013 2014 2015

> Average size of container vessels has steadily grown over time > When a market leader introduces a significantly larger vessel into the market, other players eventually follow suit

… driven by high bunker costs causing a shift towards ultra-large container ships and wide beam vessels for unit cost advantages

150212_Conference_Manila v10.pptx

Source: Alphaliner; Drewry Maritime Advisors; Roland Berger

Attractiveness of vessel classes (selected examples) Ultra-large container ships

> > > >

Unit cost advantages (economies of scale, lower consumption) – but only if fully utilized! Operational challenges: stowage, draft, crane reach, terminal productivity, etc. As a result, their use has so far been limited to Far East-Europe routes But from 2016 there will be only 10,000+ TEU vessels on Far East-Europe routes

Wide beam vessels

> > > >

Size ratio offers better stability, optimum load capacity, lower consumption Growing interest, even some speculative orders (e.g. Oceanbulk/Oaktree Capital) Versatile when faced with operational restrictions: Latin America, India, Black Sea Panama Canal extension is helping demand: wide-beam vessels can use it from 2015

Panamax class

> > > >

Charter rates at a low (especially 4,800-5,100 TEU maxi-Panamax), little scrapping Being displaced by more efficient 7,000-9,000 TEU vessels as a result of cascading US east coast: Larger vessels rerouted through Suez instead of Panama Canal (e.g. Maersk) Further overcapacity from 2015: Panama Canal extended for vessels up to 13,000 TEU

> > > >

773 vessels with 500-999 TEU segment, of which 58 vessels (7.5%) are idle (Jul/Aug 2013) Regional feeder services and short-sea shipping increasingly have larger tonnage Reduction in feeder demand in Europe (e.g. Maersk Line: mainliner into the Baltic Sea) Additional pressure: More than 100 multi-purpose vessels in use as container vessels

(10,000+ TEU)

(up to 9,000 TEU)

(up to 5,000 TEU)

Feeder fleet

(up to 1,000 TEU)

Larger container vessels

The fleet profile of the future will feature a greater proportion of ULCVs, with implications on port planning, design and operations Current fleet profile breakdown1) [TEU, %]

150212_Conference_Manila v10.pptx

Source: Alphaliner; Roland Berger

20.5

Majority of current container vessels range between 4,00010,000 TEU 10.5

4.0

5.9

5.0

< 1,000 1,0001,499

1,5001,999

17.9

Key implications:

17.6 12.7

6.0

2,0002,999

3,0003,999

4,0005,099

5,1007,499

7,500- > 10,000 9,999

Orderbook fleet profile breakdown1) [TEU, %] Majority of new build orders are for container vessels > 10,000 TEU

48.0

25.3

0.2 3

Larger container vessels

0.9

< 1,000 1,0001,499

The trend towards ultra-large container vessels drives the forming of alliances among liner operators to achieve greater scale

2.1

2.5

5.9

9.7

1,5001,999

2,0002,999

3,0003,999

4,0005,099

5.6

5,1007,499

Note: ULCV – Ultra large container vessels > 10,000 TEU 1) Breakdown by total capacities in TEU. Based on data as on 1 March 2013. Source: Alphaliner; Roland Berger

> Port planning & operations – Deeper drafts, longer berths, wider channels etc. – Higher gate pressure – needs increased productivity, larger capacity equipment, greater inter-modal capacity > Vessel cascading – Vessel upsizing on corresponding spoke routes > Rationalization of shipping routes – Re-drawing of hub and spoke alignments; some hubs dropped

7,500- > 10,000 9,999 150212_Conference_Manila v10.pptx

Trends in alliances 3

Capacity share by Alliance on East-West trades[%]

Others

Ocean 3 4.3% 15.2%

CKYH

27.7%

26.1% 26.6%

Source: Alphaliner; Roland Berger

> Pursuit of scale has led towards even larger vessel sizes > In order to fill the ships, reduce operational risks – liners have entered into operating, noncommercial alliances with each other > Since 2011, the trend towards alliancing has intensified – there remains 4 major alliances controlling > 95% of market share > Others are under pressure to "join the pack"

Alliances: Implications The hope: Alliances will reduce rivalry and stabilize prices for the good of all...

Price

Increased leverage of liner alliances over port operators 150212_Conference_Manila v10.pptx

Larger container vessels

However, the implications alliances will have on the port industry still remains unclear

...but: based on experience to date, there may not necessarily be any improvement

> Informal price/capacity agreements within the alliances stabilize freight rates

> No decrease in overcapacity – volatile freight rates to continue in the battle for utilization

> Market clout and slot cost advantages of 2M/G6 compel all carriers to practice more price discipline

> The continued loss of differentiating features amplifies the price war

Efficiency

> More cost efficiency through better utilization + economies of scale (purchasing)

> Unit cost advantage of 2M may force competitors to place new orders for more efficient ULCS

Capacity

> Coordination of new builds – alliance partners no longer need to react to one another

> Standalone carriers/smaller alliances expand capacity in order to keep up with the big ones

Consolidation

> Growing cost pressure drives "genuine" industry consolidation

> Alliances reduce consolidation pressure (network synergies via alliances rather than M&A)

Terminals

> Consolidation may strengthen carriers' positions towards terminals in some ports…

> …but could shift balance of power towards 2M in other ports

Source: Roland Berger

150212_Conference_Manila v10.pptx

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

REPORT .The 8th Philippine Ports and Shipping 2015 4 Rising technological trends

Potential changes in shipping patterns

Changes in regulation and the continuous pursuit of cost efficiency will drive future technological innovation

While Johor / Singapore remains an important hub for east-west cargo flows, alternative trade routes may arise in the future

Technological trends

Cargo flows – East Asia

Regulation

Breaking the ice

Cost efficiency Tsugaru

> Historically, technology adoption in the maritime sector most strongly influenced by regulatory changes – often as a consequence of accidents/incidents > Increased implementation of environmental regulation will drive research and innovation in new emissions control technologies and advanced fuel technologies

Advanced fuel technologies

> The continuous pursuit of greater cost efficiency and savings will drive innovation > The maturity stage of individual technologies affects costs and its subsequent adoption > Increased drive for cost efficiency will drive research in advanced fuel technologies due to high fuel costs as well as increased adoption of automation and ICT

Automation

Solar sails ship, low carbon fuels e.g., LNG ships, slow steaming, electric ships

Increased automation of port land and marine operations

Environmental technologies

Information technology

Selective catalytic reduction converters to reduce NOx, low energy ship design e.g., improved hull design reduces drag

Ship voyage real time tracking, voyage optimization by using latest ocean and weather data, eNavigation

Promising economic rise

Tianjin

Tokyo Busan

The opening up of Myanmar's economy could eventually open shorter East-West routes bypassing the Straits of Melaka – from Dawei to Bangkok, Ho Chi Minh

Melting Arctic ice could open commercially viable trade routes for European cargo heading towards North East Asia

Yokohama

Johor / Singapore basin – Pre-eminent trade hub

Korea

Shanghai

Ningbo Shenzhen

> Situated along main EastWest trade route – 30% of world trade passes through the Straits of Melaka > Natural mid-point between 2 key growth markets – India & China > Strong inter and intraregional trade flows in ASEAN > Crossroads for Middle East – America west coast

Kaohsiung

Hong Kong

Hormuz Dawei

Mumbai

Economic powerhouse Colombo in the making

Bangkok

Ho Chi Minh City

Melaka

Indonesia's rise as an economic powerhouse could draw more cargo through Jakarta on EastWest route Major ports

South China Sea

Kota Kinabalu Port Klang

Belawan PTP Palembang

Bintulu

Singapore

Sunda

Tg Priok

Main shipping lanes

Ujung Pandang Surabaya

Lombok

Torres

150212_Conference_Manila v10.pptx

Sources: UNCTAD, Roland Berger

150212_Conference_Manila v10.pptx

Source: Roland Berger

Growing regional ports

Shipping lines continue to record negative operating margins, with continued pressure of cost escalations and increasing competition

Next to China, Southeast Asia has recorded the second-highest throughout for regional container activity

Historical financial performance of shipping lines

Top 20 ports in the World, Q1 2014 [m TEU] Shanghai Singapore Hong Kong Shenzhen Ningbo-Zhoushan Busan Qingdao Dubai Guangzhou Los Angeles / Long Beach Tianjin Rotterdam Port Klang Kaohsiung Hamburg Dalian Antwerp Tanjung Pelepas Xiamen Laem Chabang

Regional container activity, 20131) [m TEU]

8.22 7.93 5.31 5.23 4.50 4.43 4.15 3.60 3.58 3.44 3.17 2.91 2.54 2.48 2.39 2.15 2.15 1.95 1.87 1.51

Shipping lines operating margin, 2013 [%]

China & Hong Kong

213

Northern Europe

Other Northeast Asia

North America

50 46

Central & South America Southern Europe

Middle East

39 30

Africa South Asia

Oceania

1.0% 0.9% 0.5%

5.8% 4.8% 3.7%

16%

12%

10 5 0 -5 -10 -15 -20

8% 1% -5%

-11%

3% 0%

-6%

-1%

-2%

-9% -10%

-16% -16% -17%

2009

2010

2011

2012

2013

1) Average for APL, CMA CGM (fr 2010), CCNI, CSAV, CSCL, EMC, Hanjin, HMM, Hapag-Lloyd, KL, Maersk, MOL, NYK, RCL, WHL, YML, Zim

1) Forecasted figures 150212_Conference_Manila v10.pptx

Source: Alphaliner, Roland Berger

Maersk CMA CGM Wan Hai Hapag-Lloyd OOCL K Line NYK -0.5% CCNI -1.0% MOL -1.8% COSCON -2.0% APL -3.2% HMM -3.4% EMC -3.7% Zim -3.8% Hanjin Shg -3.8% RCL -5.3% CSCL -7.1% CSAV -7.4% Yang Ming -8.2%

Southeast Asia

Average operating profit margin1), 2009 -2013 [%]

Global container activity

Southeast Asian ports

Escalating cost pressures

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Escalating cost pressures

150212_Conference_Manila v10.pptx

Source: IMF, Roland Berger

Proactive government action

In contrast, terminal operators have historically enjoyed relatively high and consistent profitability levels

In light of increasing competition for port throughput, especially in SEA, improved national strategies and alignment are expected soon

EBIT margins for terminal operators, 2007 – 2012 [%]

Key factors in winning the seaports battle Comments

38% 34%

33%

31% 25%

36%

33%

34%

25%

24%

13%

19%

23%

32% 31%

07 08 09 10 11 12

21%

16%

07 08 09 10 11 12

Proactive government action

There are three levels at which the government must implement tactical tools for port development - national, regional and local Tactical tools to improve port competitiveness Local / port level

Local

> Operational efficiency of ports: – Facility for loading and unloading operations – Pilotage, towing

Regional level

Regional

> Capacity of the port infrastructure – railways and highways > Level of industrial zone development located near the seaport > Economic preferences for businesses located near the seaport – special economic zones

National level

National

Source: Roland Berger

> Involvement of private capital in the seaport sector (e.g. public-private partnerships, privatization) > Consistency and efficiency of public authorities > Level of corruption > Established legislation and mechanisms for attracting investments > Government strategy for seaports specialization 150212_Conference_Manila v10.pptx

Physical and technical infrastructure

Growth in cargo handling

Port

07 08 09 10 11 12

150212_Conference_Manila v10.pptx

Source: Annual Report, Roland Berger

2 Technology

> Depth of the approach channel and berths > Highway and railway capacity > Warehouse space > Port security

28%

Effects

10%

29%

27%

21%

32%

30%

29%

34% 31%

19%

Factors

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

Source: Roland Berger

> Modern facilities for loading and unloading operations, specialized terminals > IT solutions

Improved efficiency

Industry

1 & 2 Physical and technical

infrastructure and technology can be financed using private and public capital. Government's main role is to set the right mechanisms for private capital participation

Services

> Simplified customs clearance > Lack of bureaucracy, corruption (discrimination) > Deregulation > Multimodality > Logistics value-added services (consolidation, packing, sorting, assembling, etc.) Satisfied customers and greater loyalty

Winning the battle

Achieving best-in-class service quality depends on how high the overall level of corruption is in the country, the efficiency of the public authorities and presence of clear laws and regulations (e.g. flow of documents, customs clearance)

Country 150212_Conference_Manila v10.pptx

The 8th Philippine Ports and Shipping 2015 . REPORT 9

Green shipping

In addition, there is increasing focus on sustainability and environmental protection among the industry's leading players

Currently there are three ECA zones established to limit coastal sulfur emissions – Number of ECA zones expected to increase

Selected industry on-ship initiatives for environmental conservation

Emission Control Areas (ECAs)

Intelligent management reduces transport of empties Friction underwater paintings

Inboard fuel tanks

Slow steaming

Wastewater think-tanks and biological treatment plant

Fuel - tank system with over-run protection

Underwater ship cleaning between dock times

Steve tube seal with air chamber

Large bilge water tanks and separators

Atlantic + California To 2014: max. 1.0% From 2015: max. 0.1%

Highly efficient rudder and thrust -fin

Australia / New Zealand

S. Africa Possible ECA by 2018 Possible ECA after 2018

150212_Conference_Manila v10.pptx

Source: "Outlook for Marine Bunkers and Fuel Oil to 2030" (Facts Global Energy)

BIMP trade in goods

Trade within BIMP continues to grow as efforts to boost intraASEAN trade gains momentum and external trade continues to flourish

… and have strengthened trade links between other Asian giants and European countries

Malaysia

100

CAGR 2004 - 2013

300

Indonesia

Russia

16% 250

Malaysia

Indonesia

13%

200 150

Others

100 Brunei

21%

2004

2007

2010

Philippines

15% India Saudi Arabia 2% UAE 3% 3% Taiwan 5%

13%

Philippines

Brunei

2013

2004

Signed; in effect

2007

2010

Korea

150212_Conference_Manila v10.pptx

Logistics performance in BIMP still trails behind more developed world economies as it directly correlates to the poor quality of overall infrastructure of the region

25%

Under negotiation

17%

Proposed

20%

75%

25%

50%

31%

52%

15%

65%

Multilateral Agreements between two or more ASEAN countries and one or more non-ASEAN countries

16%

China

> In the aftermath of the Asian Financial Crisis, ASEAN nations intensified efforts to bolster crossborder regional trade which remains till this day > However, political agendas and vested interests have resulted in a fast-growing number of Free Trade Agreements with nonASEAN countries that are outpacing internal agreements > As of December 2013, the vast majority of FTA signed and are being negotiated by by ASEAN countries are bilateral and plurilateral which emphasizes the desire to cement extra-ASEAN trade > Japan, Korea and China are the primary non-ASEAN FTA signees

ASEAN 22%

Plurilateral Agreements between one ASEAN country and two or more non-ASEAN countries

10% 10% USA EU-28 Japan

2013

Source: ASEAN Stats Database

7% 7%

22% 3%

Signed; not yet in effect

BIMP major import partners, 2013 [%]

60 40

ASEAN

Korea 13% 26% Pakistan 3% New Zealand 4% 3% Japan 4% 6% 12% India Australia 9% 10% 10% eu 28 Canada China

350

Status of ASEAN Free Trade Agreements, 2013 [%]

BIMP major export partners, 2013 [%]

National extra-ASEAN Trade, 2004 – 2013 [USD bn]

CAGR 2004 - 2013

120

Bilateral

Agreements between one ASEAN and one non-ASEAN country

150212_Conference_Manila v10.pptx

Source: ASEAN Stats Database, ADB

Infrastructure remains a major hurdle for BIMP despite active efforts at both the national and regional level to improve quality and connectivity Overall infrastructure assessment index, [ 5 = High, 1 = Low ]

5.0

2012

2014

Germany

4.5 Logistics Performance Index, 2014

> Switch to more expensive, low sulfur bunker (LSRMG) will lead to further increases in fuel costs

ASEAN trade in goods

National intra-ASEAN Trade, 2004 – 2013 [USD bn] 150212_Conference_Manila v10.pptx

> Expected further reduction to 0.5 % and from 2020 to 2025

Hong Kong

Voluntary

Existing ECA

150212_Conference_Manila v10.pptx

C. BIMP

Mediterrannean

Malacca Straits

Main engines with electronic injection and valve control

Continuous monitoring of hull in the water resistor

> Reduction in global threshold for sulfur content in bunkers in 2012 from 4.5% to 3.5%

To 2014: max. 1.5% From 2015: max. 0.1%

Mexico / Panama

Shore power connection

Electric winches on deck

Implications

North & Baltic Sea

Cooling systems without greenhouse cooling medium

Energy-efficient reefer containers with intelligent control

Separate tanks for low-sulfur fuels

Active, weather-dependent navigation and route optimization

NE Atlantic

U.S.A. / Canada

Optimally trimmed ships

Special operating mode for main machine

Adaptive autopilot

Polishing of the propeller between dock times

Wave generator

Reduced power rating of main machine

100% recyclable: containers made with less wood or entirely of steel

Strict no-wasteoverboard rule

Ship energy efficiency management plan

Ballast water management

Cylinder oil lubrication by alpha lubricants

Netherlands United Kingdom Germany

4.0

Singapore Japan United States

Malaysia

3.5 Philippines

3.0

India

Thailand

4.15

4.23

0.08

4.14 3.95 4.11

China

3.61

Malaysia

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

150212_Conference_Manila v10.pptx

Source: World Bank

Brunei GDP and GDP per capita has seen growth of 1% and 1% CAGR, respectively – GDP growth of 4% expected in the future

Overview

GDP and GDP per capita

> Top export destinations: Japan, South Korea, Thailand > Top export commodities (2013): Mineral fuels; Machinery & Equipment; Chemical products > Top import origins: Malaysia, Singapore, US > Top import commodities (2013): Machinery and transport equipment; Iron and Steel, Food & live animals > Rank of Global Competitiveness Index 2014: n/a > Rank of Corruption Perceptions Index 2013: 38

GDP1), 2009–2019E [B$bn]

+1%

Strengths

Weakness

> Large English speaking population > Excellent and modern infrastructure > Well educated population > 4th largest oil and gas producer and 9th largest exporter of LNG in SEA > Stable political situation > No taxes (personal income, sales, export), no capital gains & low tariff regime

> Over-reliance on oil and gas sector > Lack of private sector development > High reliance on food imports (rice, sugar, milk) > Slow progress on government initiatives to diversify the local economy > Lack of agriculture and non-hydrocarbon sectors

> Diversification of other sectors (non oil and gas) > Government target on key sectors such as agro-industrial and creative technology > The development of Brunei Halal brand, domestic IT sector and Islamic Banking

> Declining in labor force as many of local professionals are practising abroad > Controversial Sharia Penal Code issue (penal code based on Islamic law)

Opportunities

Source: ASEANstats, Transparency International, DB Research, OECD, CIA World Fact Book, Brunei Economic Development Board, IMF Department of Economic Planning and Development Board (JPKE)

Threats 150212_Conference_Manila v10.pptx

0.04

GDP1) per capita, 2009–2019E [B$bn]

+4%

SWOT analysis

0.39 -0.20

150212_Conference_Manila v10.pptx

Source: World Bank

Brunei

406,200 5,769 16,117 +1.0% 908 Oil & Gas, Wholesale & Retail trade, Construction

0.01

2.14

Being the 4th largest oil and gas producer, Brunei has tried to diversify its economy into agro-indutrial and creative technology Key facts and figures

0.38

-0.20

2.21

2.10

Brunei

Population [2013] Area [sq. km] GDP, 2013 [USD m] GDP CAGR, 2009-2013 [%] FDI, 2013 [USD m] Key industries

0.43

2.58

2.40

Myanmar

0.32

2.60

2.20

Lao PDR

0.13

2.88

2.80

Cambodia

5.0

Quality of Overall Infrastructure, 2014

0.06

2.92

2.87

Philippines

1.0

0.05

3.11

2.54

India

0.21

3.40

2.68

Indonesia

1.5

0.05

4.16

3.56

3.08

Vietnam

4.18 4.16

3.67

3.43

Thailand

Lao PDR Myanmar

2.0

0.13

Netherlands

Japan

Indonesia

2.5

4.28

4.26

United Kingdom

Vietnam

Cambodia

0.07

4.15

United States

China

Index improvement 4.32

Singapore

30,377 30,627 31,148 30,93830,092 31,224

+3%

33,558 34,895 31,659 32,314

35,549

2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E

> Brunei GDP is growing significantly at 1% CAGR between 2009 and 2013 > Moving forward, WEO projects continuing growth at 4% between 2014 and 2019

> GDP per capita is expected to continue a stagnant growth over the next 5 years of 1% CAGR > This follows a historical growth of 9% CAGR between 2009 and 2013

1) GDP: real GDP; GDP per capita: current prices Source: IMF's World Economic Outlook (November 2014)

150212_Conference_Manila v10.pptx

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

REPORT .The 8th Philippine Ports and Shipping 2015 Brunei

Indonesia

Exports has grown by 12.7% from m$U7,200 in 2009 to m$U11,620 in 2013, while imports has grown by 10% in the same period

Indonesia's abundant natural resources and huge domestic market are the pillars of the economic growth

Exports & imports [2009-2013; USD million]

Overview

+12.7% +10.0% 13,001

12,440

11,620

8,908 7,200 3,629

2,538

2,449

2009

2010

Exports

3,572

2012

2011

3,580

2013

Imports

Key facts and figures Population [2013] Area [sq. km] GDP, 2013 [USD m] GDP CAGR, 2009-2013 [%] FDI, 2013 [USD m] Key industries

> Brunei exports has grown by 12.7% from USD 7,200.2 million in 2009 to USD 11,620 million in 2013 > Top exports destination countries are Japan, South Korea, and Australia > Top exports commodities in 2013 are mineral fuels, machinery & transport equipment, and miscellaneous manufactured goods > Brunei imports has grown by 10% from USD 2,448.9 million in 2009 to USD 3,580 million in 2013 > Top imports origin countries are Singapore, China, and UK > Top imports commodities in 2013 are machinery & transport equipment, basic manufactures, and food & live animals

248,818,100 1,860,360 862,568 +6.2% 18,444 Manufacturing, Trade, Hotel & Restaurants, Agriculture

SWOT analysis Strengths

> Top export destinations: Japan, China, EU > Top export commodities (2013): Oil and Gas, Fuel and Mineral products; Agricultural product > Top import origins: China, Singapore, Japan > Top import commodities (2013): Oil and Gas; Nuclear, Machinery > Rank of Global Competitiveness Index 2014: 34 > Rank of Corruption Perceptions Index 2013: 114

Weakness

> Abundant natural resources > Large population resulting in huge domestic market - 55% of GDP is generated by domestic consumption (2012)

> Logistical shortcomings make it difficult moving goods into and out of the country as well as internally > Corruption, excessive bureaucracy, and inadequate physical infrastructure > Weak institutions and bureaucracy > Low level of education

> Education and health care will be huge growth opportunities as more foreign involvement is allowed > Very large geothermal resources that it is just starting to develop > The new and promising government with talented ministers

> Corruption, bureaucratic inertia, and inconsistent and unclear regulations are three of the biggest threats > Labor unions can be unreasonable in their demands, and the legal structure does not offer employers much protection > Weak infrastructure such as a deficient healthcare system > Security threats, including both terrorism and crimes against persons and property, are relatively high

Opportunities

Threats

150212_Conference_Manila v10.pptx Source: Source: ASEANstats, World Economic Forum, Transparency International, Asia Risk, Bank Mandiri, Roland Berger Strategy Consultants Analysis, WTO, Indonesia Investments

150212_Conference_Manila v10.pptx

Source: Euromonitor

Indonesia

Indonesia GDP and GDP per capita has seen growth of 6% and 4.7% CAGR, respectively – GDP growth of 5% expected in the future

Increasing disposable income to USD 11.1k per household in 2013 – 39% of expenditure towards food, beverages and tobacco

GDP and GDP per capita

Consumption features

GDP2), 2009–2019E

GDP2)

[IDR$ bn]

6,2% 668

710

756

803

850

894

945

999

1.054

1.110

1.167

4,7%

12.652.589 13.819.480 14.442.681 12.106.630 10.712.821 13.223.169 11.606.128 10.225.129 11.172.818 9.739.294 9.299.405

463,521

2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E

> Indonesia GDP is growing steadily at 6% CAGR between 2009 and 2013 > OE projects growth of 5% between 2014 and 2019

> GDP per capita is also expected to continue stable growth over the next 5 years of 4.4% CAGR > This follows a historical growth of 4.7% CAGR between 2009 and 2013

480,613 486,108 475,387

402,405 317,328

39%

38%

17% 18% 15% 15% 13% 13% 6% 6% 10% 10% 2009

2010

39%

38%

18%

14%

13% 6% 10%

2011

2012

2013

Food, Beverages & Tobacco

510,230

538,827

575,330

38%

18%

617,586

38%

664,812

37%

10 18%

18%

15%

18%

14%

15%

13% 6% 10%

13%

6% 10%

7% 10%

2014E 2015E 2016E 2017E 2018E 2019E

Transport & Communication

Housing

Education & Healthcare

Leisure & Recreation

Others

> While the consumer spending is expected to increase to USD 664 bn by 2019, Food, Beverages & Tobacco will continue to hold the largest portion (37%) of consumer spending, followed by Housing (18%) and Leisure & Recreation (15%).

8.0

7.8

6.9

8.0

7.8

8.5

9.3

9.9

10.6

11.3

5.5

4 2 0 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E

2009 2010 2011

> Household income grew from USD 5.5k in 2009 to USD 8.0k in 2013 > This growth trend is expected to continue, reaching as estimated USD 11.3k by 2019

1) Total disposable income divided by number of household

1) Current price as of April 2014 2) GDP: constant GDP; GDP per capita: norminal GDP per capita

150212_Conference_Manila v10.pptx

Source: Oxford Economics Global Economic Database 2014 (June 2014)

150212_Conference_Manila v10.pptx

Source: Euromonitor (as of Sept 2014), Roland Berger analysis

Indonesia

Within 2009 to 2013, Indonesia export and import has grown 11.9% and 17.8% respectively

Driven by a strong demand, Indonesia continue to invest heavily in their own port capacity to facilitate its trade

Foreign trade

Recent major port developments in the region

+17.8% 203,497

116,510 96,829

157,779 135,663

2009 Exports Source: Euromonitor

2010 Imports

177,436

2011

190,032 191,691 182,552 186,629

2012

2013

150212_Conference_Manila v10.pptx

Bontang Samarinda

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

Bitung

Cargo Throughput '14 [m teu]

> Number of ports'12: 140 > Port infra. index ranking: 102th > Total cargo throughput'14: 13.6 m TEU

Makassar TJ Priok TJ Perak

7 Pontianak

Major Ports

+11.9%

Indonesia

> Indonesia exports has grown by 11.9% from USD 116,510 million in 2009 to USD 182,551.8 million in 2013 > Top exports destination countries are Japan, China, and Singapore > Top exports commodities in 2013 are coal, coke & briquettes, gas natural & manufactured, and petroleum products > Indonesia imports has grown by 17.8% from USD 96,829.2 million in 2009 to USD 186,628.70 million in 2013 > Top imports origin countries are China, Singapore, and Japan > Top imports commodities in 2013 are petroleum products, general industrial machinery & equipment, and food & live animals

Recent major developments

Exports & imports [2009-2013; USD million]

Annual household income1), 2009-2019E [USD '000]

Consumer Spending Trend, 2009-2019E [USD mn]

per capita, 2009–2019E [IDR Bn] 4,4%

5,4%

Total Container Capacity [m TEU]

Source: Roland Berger

+54%

20 13

Pelindo Pelindo Pelindo Pelindo I II III IV

Expansion of Tanjung Priok – Indonesia largest container port

> Dutch engineering/consultancy group Royal Haskoning DHV has been appointed lead consultant for the construction of the expansion of Tanjung Priok, Indonesia’s leading container port. > The new 400-ha terminal development will handle containers, tank storage/liquid bulk transhipment and other port industries > The project is estimated at USD 2.47 bn

Upgrade of East Java and South Kalimantan ports 2013

2020

> Indonesia’s state owned port operator Pelindo III plans to spend USD 634m on port development in 2013 in East Java and South Kalimantan to expand its regional ports and ease container congestion

150212_Conference_Manila v10.pptx

The 8th Philippine Ports and Shipping 2015 . REPORT Malaysia

Malaysia

While the country economy depends on export market, the government has strongly supported in developing of the creative content sector

Malaysia GDP and GDP per capita has seen growth of 6% and 10% CAGR, respectively – GDP growth of 4% expected in the future

Overview

GDP and GDP per capita

Key facts and figures Population [2013] Area [sq. km] GDP, 2013 [USD m] GDP CAGR, 2009-2013 [%] FDI, 2013 [USD m] Key industries

29,948,000 330,290 312,072 +6.0% 12,298 Services, Manufacturing, Mining & Quarrying

GDP2), 2009–2019E [USD bn]

+4% +6%

SWOT analysis Strengths

> Top export destinations: Singapore, China, Japan > Top export commodities (2012): Machinery &Transport Equipment, Mineral Fuels & Lubricants, Manufactured Goods > Top import origins: China, Singapore, Japan > Top import commodities (2013): Machinery &Transport Equipment, Mineral Fuels & Lubricants, Manufactured Goods > Rank of Global Competitiveness Index 2014: 20 > Rank of Corruption Perceptions Index 2013: 53

GDP2) per capita, 2009–2019E [USD1)]

230

Weakness

248

260

275

288

302

314

342

328

356

+10%

7,360

> Strong government support in developing the creative content sector (national policy, developmental programs, grants, incentives) > World's biggest producer of rubber, palm oil, pepper, and tropical hardwoods > Strong Islamic sectors such as halal and Islamic finance > Limited poverty and inequality > Rapid growth of infrastructure

> > > > > >

Government intervention on most sectors Dependency on export market Shortages of skilled workers Ethnic wealth gap High reliance on unskilled and cheap migrant workers non-tariff barriers for import

> Rapid expansion of tourism sector > Diversified investments in oil & gas and hydroelectric power > Development of ICT and high-technology sectors

> Religious and ethnic tensions which potential to cause social and political instability > Higher wages than in its competitors in China and Vietnam > Territorial dispute with China, Philippines, Brunei, Vietna,m and Taiwan > Existence of terrorist > Government-opposition tension

Opportunities

Threats 150212_Conference_Manila v10.pptx

Source: Source: ASEANstats, World Economic Forum, Transparency International, Asia Risk, International Business, Euler Hermes, BBC, OECD

+7%

371

8,866

10,184 10,575 10,697

11,198

12,325

13,141

13,909

14,748

15,672

2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E

> Malaysia GDP is growing steadily at 6% CAGR between 2009 and 2013 > Moving forward, OE projects continuing growth at 4% between 2014 and 2019

> GDP per capita is also expected to continue a healthy growth over the next 5 years of 7% CAGR > This follows a historical growth of 10% CAGR between 2009 and 2013

1) Current price as of April 2014 2) GDP: real GDP; GDP per capita: norminal GDP per capita

150212_Conference_Manila v10.pptx

Source: Oxford Economics Global Economic Database 2014 (June 2014)

Malaysia

Increasing disposable income to USD 25.1k per household in 2013 – 22% of expenditure towards FBT and transportation

Strong domestic demand have boosted the high growth in imports of 13.6% over the past five years

Consumption features

Foreign trade

Disposable income per household 1), 2009-2019E [USD '000]

Consumer spending trend, 2009-2019E [USD mn]

Exports & imports [2009-2013; USD million]

> Malaysia exports has grown by 9.7% from USD 157,242.9 million in 2009 to USD 228,094.6 million in 2013 > Top exports destination countries are Singapore, China, and Japan > Top exports commodities in 2013 are electrical machinery, apparatus & appliances, petroleum products, and gas natural & manufactured > Malaysia imports has grown by 13.6% from USD 123,756.1 million in 2009 to USD 205,856.9 million in 2013 > Top imports origin countries are China, Singapore, and Japan > Top imports commodities in 2013 are electrical machinery, apparatus & appliances, petroleum products, and general industrial machinery & equipment

285,609 261,301

107,896

128,030 16% 15%

16% 15% 27% 2009

145,763

158,369

15% 16%

15%

168,249

15%

179,593

15%

16%

27%

2010

2011

2012

2013

197,492

218,175

15% 17%

239,275

14%

17%

35 30

14% 17%

25 20

17.1

19.9

22.6

24.1

26.2

25.1

27.2

28.1

29.1

30.0

+9.7%

31.0

+13.6% 228,074 198,620

27%

28%

164,629

157,243

10 27%

227,421 196,645

187,463

228,095 205,857

123,756

5 0

2014E 2015E 2016E 2017E 2018E 2019E

Food, Beverages & Tobacco

Leisure & Recreation

Housing

Transport & Communication

2009

2010

2011

2012

2013 2014E 2015E 2016E 2017E 2018E 2019E

Others

> Strong spending on the transportation and housing sectors would drive cargo traffic in Malaysia

> Household income grew from USD 17.1k in 2009 to USD 25.1k in 2013 > This growth trend is expected to continue, reaching as estimated USD 31.0k by 2019

2009 Exports

2010

2011

2012

2013

Imports

1) Annual disposable income divided by number of household 150212_Conference_Manila v10.pptx

Source: Euromonitor (as of Sept 2014), Roland Berger analysis

150212_Conference_Manila v10.pptx

Source: Euromonitor

Philippines

Malaysia

Malaysia continues to develop further its port capacity

Supported by a large domestic consumption and free market economy, the overall economics has grew at an average of 6.3% p.a

Recent major port developments in the region

Overview

Malaysia Penang

Port Klang

PTP

Johor

Bintulu

Cargo Throughput '11 [m T]

Major Ports

Penang Port Port Klang

Extensive port developments in Johor: > PTP has a RM 1.4 bn expansion plan, increasing its capacity to 10.5 m TEU by 2014 and then to 15 m. Long term masterplan envisages a capacity of 150 m TEUs, 5 times the current volume of Singapore > Johor Port: 5 year modernization plan (MYR 421 m) to improve the port operations and lift its capacity to 45 m freight weight tonnes (FWT) in 2015 from 35m FWT currently.

Source: Roland Berger

PTP

On-going capacity expansion in Port Klang:

> Northport – RM 1.3 bn planned investment for physical expansion and purchase of equipment > Westport – RM 3.18 bn expansion project, including construction of 4 container berths expected completion in 2016

Key facts and figures Population [2013] Area [sq. km] GDP, 2013 [USD m] GDP CAGR, 2009-2013 [%] FDI, 2013 [USD m] Key industries

194 113

Recent major developments

> Number of ports '12: 31 > Port infra. index ranking: 22th > Total cargo throughput '11: 495 mT

99,384,500 300,000 269,025 +6.3% 3,860 Financial Intermediation, Manufacturing, Construction

SWOT analysis

Johor Bintulu Port Port

> Top export destinations: Japan, US, China > Top export commodities (2012-2013): Semiconductors and electronic products; Transport equipments; Garments > Top import origins: China, US, Japan > Top import commodities (2012-2013): Electronic products; Mineral fuels, lubricants & related materials; Transport equipment > Rank of Global Competitiveness Index 2014: 52 > Rank of Corruption Perceptions Index 2013: 94

Emergence of Pengerang as the regional O&G hub:

> Petronas' USD 20 bn Refinery And Petrochemical Integrated Development (Rapid) > 20-year project with initial storage capacity of 1.3 m3 by 2014. Construction on-going

Strengths > > > > > > >

Free market economy Service-oriented culture Accelerated economic growth (7.2% in 2013) Skilled and educated labor Political stability High level of English proficiency population Strong private and public consumption

> Close alliance with US > Good relationship with ASEAN countries and world organizations > Investment in tourism and public infrastructure sector > Robust privatization

Weakness > Weak manufacturing and agriculture sectors > Heavy dependence on foreign capital > Restricted foreign investments in sectors of strategic importance > High poverty and income equality > Bottleneck in public infrastructure > Lack of domestic job opportunities > High unemployment rate > > > > >

Opportunities 150212_Conference_Manila v10.pptx

Source: Source: ASEANstats, World Economic Forum, Transparency International, Philippine Statistics Authority, ERIA, BTI, World Bank, IHS

Climate change and natural disasters, such as typhoon Unstable democracy Large number of outmigration Radical forces from troubled community in the region Tension with China

Threats 150212_Conference_Manila v10.pptx

REPORT .The 8th Philippine Ports and Shipping 2015 Philippines

Philippines

Philippines GDP and GDP per capita has seen growth of 6% and 4% CAGR, respectively - GDP growth of 6.2% expected in the future

Increasing disposable income to USD 14.1k per household in 2013 – 44% of expenditure towards food, beverages and tobacco

GDP and GDP per capita

Consumption features

GDP1), 2009–2019E [Peso bn]

GDP1) per capita, 2009–2019E [Peso Bn]

Disposable income per household 1), 2009-2019E [USD '000]

Consumer spending trend, 2009-2019E [USD mn] 338,399 303,383

6,2% 6,3% 5.297

5.702 5.909

6.312

6.764

7.201

7.670

8.146

8.636

9.156

+4%

9.707

58,211 61,572

+4% 69,383 72,422 62,728 65,884

81,840 85,065 75,621 78,741

272,585

88,421

125,446

141,963

43% 44% 13% 12% 6% 15%6% 15% 6% 6% 18% 18% 2009

2010

163,849

184,787

201,885 207,385 44%

43%

12% 12% 6% 6% 14% 14% 6% 6% 18% 18%

12% 6% 14% 6% 18%

12% 6% 14% 7% 18%

2011

2013

44%

2012

Food, Beverages & Tobacco

2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E

> Philippines GDP is growing steadily at 6.3% CAGR between 2009 and 2013 > Moving forward, WEO projects continuing growth at 6.2% between 2014 and 2019

> GDP per capita is also expected to continue a healthy growth over the next 5 years of 4 % CAGR > This follows a historical growth of 4% CAGR between 2009 and 2013

222,269

245,677 42%

43%

15 42%

42%

12% 6% 14% 7%

12% 12% 6% 6% 14% 14% 7% 7%

18%

12% 14%

Transport & Communication Education & Healthcare

Leisure & Recreation

Others

> there is no major change in cusumer spending trend

1) GDP: constant GDP; GDP per capita: current prices

7.3

8.2

9.0

9.6

11.0

11.9

12.9

14.1

7% 18%

2014E 2015E 2016E 2017E 2018E 2019E

Housing

6.6

10.2

0 2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E

> Household income grew from USD 6.6k in 2009 to USD 9.6k in 2013 > This growth trend is expected to continue, reaching as estimated USD 14.1k by 2019

1) Annual disposable income divided by number of household 150212_Conference_Manila v10.pptx

Source: IMF's World Economic Outlook (November 2014)

150212_Conference_Manila v10.pptx

Source: Euromonitor (as of Sept 2014), Roland Berger analysis

Philippines

Within 2009 to 2013, Philippines's exports and imports has grown 10.2% and 9.7% respectively Foreign trade Exports & imports [2009-2013; USD million]

> Philippines exports has grown by 10.2% from USD 38,435.8 million in 2009 to USD 56,698.4 million in 2013 > Top exports destination countries are Japan, USA, and China > Top exports commodities in 2013 are electrical machinery, apparatus & appliances, office & automatic dataprocessing machines, and food & live animals > Philippines imports has grown by 9.7% from USD 43,091.90 million in 2009 to USD 62,410.60 million in 2013 > Top imports origin countries are China, USA, and Japan > Top imports commodities in 2013 are electrical machinery, apparatus & appliances, petroleum products, and food & live animals

+10.2% +9.7% 54,932 51,497 38,436

43,092

2009 Exports

2010

60,380 48,305

2011

62,129 52,100

62,411 56,698

2012

2013

Imports

150212_Conference_Manila v10.pptx

Source: Euromonitor

Tau Morwe, Chief Executive Officer, Transnet National Ports Authority, South Africa TNPA : An integral Operating Division of Transnet Group

Contents

• Transnet National Ports Authority • The South African Ports System :

Rail

Ports

Pipelines

– Core Services, Types of Infrastructure and Funding • Transnet National Ports Authority : Infrastructure Projects • Best Practice in Infrastructure Provision

Owns & Operates 20,500 km track, including 1,500 km dedicated heavy haul

Transnet National Ports Authority’s experience in promoting the investment and development of ports infrastructure in South Africa Tau Morwe, Chief Executive Officer, TNPA 8th Philippine Ports and Shipping 2015 : 13 February 2015

Supports TFR with rolling stock maintenace

Landlord to 8 commercial Ports around the South African coastline

16 cargo terminal operations across South African Ports

3 800 km of pipeline capacity for petroleum and gas products

The National Commercial Ports Policy

TNPA’s mandate for South African Ports

“A system of ports, seamlessly integrated in the logistics network that is jointly and individually self-sustainable through delivery of high levels of service and increasing efficiency for a growing customer base, enhancing South Africa’s global competitiveness and facilitating the expansion of the South African economy through socially and environmentally sustainable port development”

Contents

South Africa’s Commercial Ports Integrated Port System

• Transnet National Ports Authority • The South African Ports System :

Selfsustainable Port System

– Core Services, Types of Infrastructure and Funding

Johannesburg

Efficient and Competitive Ports

• Transnet National Ports Authority : Infrastructure Projects

SOUTH AFRICA

Richards Bay

Port Nolloth

Growing (expanding) Port System

Durban

East London

Saldanha

Economic Growth

Cape Town

Mossel Bay

Ngqura (Coega) Port Elizabeth

2,798 km of Coastline

Courtesy Google earth TNPA owns and manages all commercial ports in the South African Port System

Source : White Paper on National Commercial Ports Policy, approved by Cabinet on 6 March 2002 and Published in Government Gazette on 8 August 2002;

• Best Practice in Infrastructure Provision

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

Supporting

The 8th Philippine Ports and Shipping 2015 . REPORT Landlord and Master Planner : Port Infrastructure

TNPA’s Core Services Maritime Operations

Types of Port Infrastructure

Port Infrastructure

Marine Operations Pilotage, towage (tug assistance) and vessel berthing services. Pilotage is a compulsory service responsible for the safe navigation of vessels in and out of the port. Dredging Operations Responsible for maintenance dredging and hydro graphic survey of all ports. Lighthouse and Navigational services Providing, maintaining and operating 45 lighthouses along the South African coastline.

Responsible for Port planning, development and maintenance of basic port infrastructure. This is executed through port development framework plans, capital investment plans, and port infrastructure maintenance programme.

Port Land and Terminals

 Lease port land to terminal operators and other port service and port facility providers in the ports;  Undertake environmental management and land use planning;

Wet Infrastructure

 Lighthouse services infrastructure - lighthouses, buoys, beacons and electronic / radio navigation equipment;  Port control and safety;  Entrance channels, breakwaters, turning basins, aids to navigation within port limits, vessel traffic services, maintenance dredging within ports;  Construction of New Ports;

Dry Infrastructure

 Quay walls, roads, rail lines, buildings, fencing, port security, lighting (outside terminals), bulk services and in certain cases terminal infrastructure;

Ship Repair Services

 To provide and maintain repair facilities as well as the cranes utilised in such facilities;

Marine Services & Dredging

 Provide vessel pilotage (including helicopters), tug assistance, berthing, running of lines, floating cranes, dredgers;

Contents

Financing Port Development Projects • TNPA is a self-sustainable State-OwnedCompany (SOC) and Operating Division within Transnet;

• Transnet National Ports Authority • The South African Ports System :

• Transnet sources capital funding from external markets to fund port investments;

– Core Services, Types of Infrastructure and Funding

• TNPA is responsible to plan, provide, maintain and improve port infrastructure;

• Transnet National Ports Authority : Infrastructure Projects • Best Practice in Infrastructure Provision

• All terminal developments are funded from external operators within a concession context;

Durban – Widening/Deepening of Entrance Channel (Completed)

Richards Bay – New Liquid Bulk Berth (Completed)

• New berth for handling of liquid bulk and chemical products; • Depth of 14m, Length 400m, Capacity estimated 1.25mtpa;

• Increase entrance width from 130m to 220m; • Depth from 12.8m to 16.0-19.0m;

REPORT .The 8th Philippine Ports and Shipping 2015 Maydon Wharf - Berth Reconstruction

Port of Durban : Impact of the Berth Deepening Project

Existing dredged limits Proposed dredged limit

Steel Sheet Pile Walls (Current Project)

Replace old steel sheet pile berths 1-4, and 12-14, with new deep water berths : Provide infrastructure to sustain existing port operations and cater for growth in cargo volumes

Proposed quay wall extension

•

Pier 1 Phase 2 (Salisbury Island) Container Terminal Durban • •

Durban Old DIA Site – Aerial Photo

1.0 m3 of dredging; 2.8 m3 of reclamation;

• 15

• Deepen Container Terminal berths from -12.8m CD to -17.0m; Length of existing quay wall from 915 m to 1190 m, 3 x 350 m vessels; • Container vessels with a draft of 14.5 m can be accommodated;

Reclaim 12 hectares : 1.8 million TEU’s; • Draft of 14.5 m; • 1,180 m of productive quay length;

Port of Ngqura Aerial View of Proposed Developments

Durban Dig-out Port – Aerial View Construction of : 1. Breakwater and entrance channel; 2. 16-berth container basin and terminals (9.7m TEU’s); 3. Automotive terminal 4. Liquid Bulk Terminal; and 5. Road and rail connectivity.

B101 General Cargo berth

A100 Tanker berth

• • • • •

Liquid Bulk Berth A100 : 4 Mtpa General Cargo Berth B101 : 1 Mtpa; Design vessel sizes 100 000 DWT carriers; Water Depth = 18 m; 1.2 million m3 of dredging;

Future development up the river

PHOTOS: transportevents.com

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

The 8th Philippine Ports and Shipping 2015 . REPORT Cape Town : Deepening of Container Berths (Completed)

Saldanha : Oil & Gas Infrastructure

Saldanha Proposed Developments

Proposed Mosgas •Aerial picture of Port Quay Extension 1

General Maintenance Quay

Proposed Oil & Gas Repair Berth Proposed Iron Ore Berth

•1 Oil and Gas Supply Base; •2 Rig Repair Berth 205; •3 New Mossgass Quay;

• Port of Cape Town Container Berth Deepening; • Berths deepened to 15.5m; • Capacity Increase to 900 000 TEUs; 21

IDZ & Port-linked Investors

Port-specific interest: – Companies looking for dedicated infrastructure with quayside access for vessel fabrication, logistics, repair etc.

INVESTOR TYPE BY ACTIVITY Logistics Equipment Servicing Rig Repair Contractors

11% 7%

Fabrication Offshore Support

19%

26% 37%

Source: SBIDZ

To utilise Jetty at Mossgas

43%

Vessel Fabrication

International

Offshore Supply Base

48%

– BUT these companies are not necessarily interested in building the dedicated infrastructure – they just want to be able to use it for their activities; 22

Joint Venture

IDZ Interest: – Land-based facilities to support offshore operations in terms of logistics, equipment servicing, rig repair, fabrication etc.

•

Domestic

2 Investors – UK headquarter company (JV with SA partner) & Singaporean-based OSB operator

Require Berth 205 and OSB for support

•

INVESTOR TYPE FDI VS DDI

Subsea Fabrication Facility

Developing the Oil & Gas Services Complex will require from TNPA & the SBIDZ LICO dedicated infrastructure and resources, and collaboration of operations and improved efficiencies

Examples of Investor Projects

US headquarter company; UK headquarter company etc.

PetroSA; Dept. of Defence Procurement Projects; Private Sector (Domestic & International) Also working with DoD and the dti to support contracts

Equipment Services Yard

Source: SBIDZ Technip Photo Library; AP Group; Investor Sources

Saldanha : Oil and Gas Supply Base (Artist Impression)

Saldanha : Mossgas Jetty (Artist Impression)

Saldanha : Rig Repair Berth 205 (Artist Impression)

Contents

Infrastructure Lessons Learnt • A sound project execution methodology;

• Transnet National Ports Authority • The South African Ports System : – Core Services, Types of Infrastructure and Funding • Transnet National Ports Authority : Infrastructure Projects • Best Practice in Infrastructure Provision

• Governance structures to enable decision-making; • Project prioritisation (e.g. mandatory, bulk services, discretionary, external/internal policy driven); • Project Tracking and monitoring; • Dedicated Resources and project management skills; • Enabling procurement processes;

Istanbul Marriott Hotel Asia, Istanbul, Turkey Thursday 28 and Friday 29 May 2015 Official Hotel and Venue

23 39

Lanyards Sponsor 21

Conference Delegates Refreshment Sponsors

CONFERENCE ROOM

9 31

Name Tags Sponsor

Conference Delegates Lunch Sponsor

40 CONFERENCE

Networking Welcome Reception Cruise Sponsor

Official Carrier

6 33

Directional Signage Sponsor

MAIN ENTRANCE

Conference Sessions Sponsors

DISPLAY ALLOCATION 22 20 21 9 10 6 7 54 55 11 42 45 31 29 51 33 2 1 8 49 26 39 55 41

(updated on 23 / 02 / 2015)

Air-Rail APM Terminals Turkey APM Terminals Turkey ASSOPORTI ASSOPORTI Balen Makina A.S. Balen Makina A.S. Batumi Sea Port Batumi International Container Terminal LLC Bemo Rail BV Compania Nationala Administratia Porturilor Maritime S.A. Constanta Compania Nationala Administratia Porturilor Maritime S.A. Constanta Efesanport ERKE Group ERKE Group Evyapport FenderTeam AG Gaussin Manugistique Gulftainer Company Limited Hopaport Houcon Cargo Systems B.V Hyster Europe International Container Terminal Services, Inc. Kalmar

36 6 7 30 43 52 53 37 38 16 12 28 27 3 14 34 24 5 32 25 47 35 15 46 48 40 18 19 17 23

Kumport Port Services and Logistics Limas Port Limas Port Log@Sea (Circle – IB Network) Maktas Makinali Tasima San. Ve Tic. A.S. Marport Terminal Operators S.A. Marport Terminal Operators S.A. MCS International LLC MCS International LLC North Adriatic Ports Association (NAPA) Omida Port of Barcelona Port of Civitavecchia Port of Livorno Port of Livorno Port of Monfalcone – ITALY Prysmian Group RAM Spreaders Samsunport SIBRE Siegerland Bremsen GmbH SICK Solonport Stemmann - Technik GmbH STFA Construction Group STFA Construction Group Stinis Holland B.V Transas Marine Black Sea Transas Marine Black Sea The MediTelegraph Available

DISPLAY PACKAGE 3 x 2 Square Metres and Include:

• A Guaranteed Speaker Place in The Concurrent Conference Programme For Companies That Book a Minimum of 5 Events in a Calendar Year.

• Professional Standard Shell Scheme • 1 Table • 2 Chairs • Display Lighting • Electrical Power Point • Display Carpet • Name Panel • WiFi Broadband Internet Access • 3 Free of Charge Conference Delegate Registrations • The Rate Per Display Is GBP5,985 • There is a Registration And Administration Fee of GBP395 Per Display • There are Multiple Events Booking Discounts Please Visit: www.transportevents.com

Transport Events Management Limited (Co. No. LL05879) Level 1, Lot 7, Block F, Saguking Commercial Building, Jalan Patau-Patau, 87000 Labuan F. T., Malaysia Tel : +60 87 426 022 Fax : +60 87 426 223

Power Purchase Agreement Structuring Successful Power Purchase Agreements (PPAs), Managing Competitive Electricity Markets & Attracting Merchant Power Investments.

Overview There are many moving pieces affecting the future of electric power development in Emerging Market. Unlike the past Independent Power Project models, which featured standardised take-or-pay contracts – today’s market demands more innovative incentives to ensure better availability, better performance, as well as more attractive and sustainable mixtures of fuel sources. Economies throughout the region urgently need to master the key tools, models, and lessons learned for transforming and strengthening today’s electricity sector. These include the latest models in negotiating Power Purchase Agreements (PPAs), in designing and managing new competitive power markets, as well as attracting the right mix of renewable energy sources. This 4-day comprehensive workshop gives you clear explanations of the new models of PPA risk allocation, of designing and managing competitive power markets, attracting private investments in renewable energy, through a series of real case examples of contracts and markets. Case Studies will include real examples from Africa, Asia, Europe, and North America. Furthermore, cases stimulate independent thinking and discussion among participants. Key Learning Objectives ■ LEARN about all the essentials of different PPAs ■ NEGOTIATE fair and sustainable PPAs ■ STRUCTURE successful PPAs based upon your own company’s risk profile and risk allocation needs ■ EXPOSE to the frontiers of international experience in IPP development ■ LEARN theory and practice of pricing and tariff design ■ ANALYSE the relationship between Public, Private, and Government sector ■ PERFORM a policy and risk analysis of PPA contracts ■ EXPLORE a PPA relationship with EPC, O&M, Fuel Supply, and Interconnect Agreement ■ GAIN the tools and models in directing your country’s electricity transformation and market design plans ■ IMPROVE your awareness of the common pitfalls and mistakes to avoid in today’s private power investments ■ LEAD successful power project finance transactions ■ IDENTIFY how financial derivatives can be used as an effective hedge of financial and electricity market based risks

Course Certificate Upon the successful completion of this course, you will receive a Certificate of Attendance bearing the signatures from both the Workshop Director and the Course Organiser. This Certificate will testify your endeavour and serve towards your professional advancement. Infocus International Group Tel: +65 6325 0274 | Email: reanne@infocusinternational.com

EPC Contracts for Energy Industry

Mastering the legal and commercial framework, contract negotiation, financing, risk and contractor relationship complexities of upstream and downstream EPC projects!

Dates: 21 - 23 April 2015 Venue: Kuala Lumpur, Malaysia

Overview

Today, Engineering, Procurement and Construction (EPC) projects are uniquely challenging. Parties currently involved in large complex and fast-track EPC projects frequently suffer financial loss that could have been mitigated by effective contract management. Appropriate practical “know-how” of EPC contracts will improve your ability to take appropriate steps, or to obtain necessary advice, to minimise or manage such risks. This intensive workshop provides valuable insight into the rapidly evolving world of EPC contracts. It has been designed specifically for the professionals and management of energy industries throughout Asia and will be of particular interest to those with current or planned projects in Asia Pacific, Middle East, Africa, Europe and the CIS. You will analyse an EPC contract, clause by clause, focusing on your challenges in international and domestic projects. This unique interactive master class discusses the key issues in EPC contracts which are relevant for lenders, sponsors and borrowers in international construction projects and the keys to deliver successful projects. Course Highlights ■ Global and local legal and commercial framework in Asia, Middle East, Africa, Europe and the CIS ■ Contract negotiation best practices ■ Tips on contractual risk mitigation ■ Contract financing and project structuring ■ Contractor relationship management ■ Clause-by-clause discussion based on an actual contract precedent Key Learning Objectives UNDERSTAND the current finance market for EPC contracts MANAGE legal risks and environment for EPC contracts in the region DISCOVER alternative procurement options for projects and the risks and opportunities associated with these options DISTINGUISH new and effective contract negotiation strategies ANALYSE the types of claims that may be made under EPC contracts and develop strategies to manage these claims GAIN INSIGHTS into the best current dispute resolution options and the risks and costs associated with each option What Others Say About This Workshop... “The best training course on construction and projects issues I have ever attended.” - Qatari Diar “A very thorough presentation with excellent real life examples and war stories.” - Exxonmobil “The seminars were highly informative and the trainer is clearly very experienced in the EPC and major projects worldwide. It was very relevant for us in our business.” - Qatar Petroleum “The course faculty is spoke knowledgeably about matters that concern lenders, sponsors and borrowers bringing different perspectives to the discussion.” - KBC Bank NV “Interesting explanation of every clause of the contract (i.e. the thorough assessment of an EPC contract).” - KFW Bankengruppe “The seminars have been very useful and practical, thoughtfully structured and generously described in all the handouts.” - United Company RUSAL

Course Certificate

Upon the successful completion of this course, you will receive a Certificate of Completion bearing the signatures from both the Course Director and the Course Organiser. This Certificate will testify your endeavour and serve towards your professional advancement.

Overview

In this 4 days masterclass, we will outline the 3 keys that are crucial to your bidding success - Position Yourself To Win, End-To-End Control & Pricing To Win. On day 3, we will introduce the 3Ps Process and explore how to stop selling to your clients so they want to buy from you. During this intense day you will discover how to structure your bid so that your messages are easily understood; how to answer questions in a way that gets the best results; and how to use persuasive language to instantly connect with your client. Throughout this highly interactive masterclass you will complete a variety of exercises to challenge and develop your thinking. On day 4, you will finalise your Personal Bid Structure Plan that you can use on future bids to improve quality of your responses so you win more work. By the end of the masterclass you will have gained a detailed understanding of the issues that prevent you from winning more work and learn some of the methods that have helped clients win over $9 billion of new business. So if you’ve ever felt bidding is hard work, stressful and even a little hectic; lost bids that you know you should have won and want to do better; or, found your proposals fall on deaf ears even though you know you are better, then this Bid & Tender Masterclass is for you.

Benefits of Attending

•Confidently choose contracts where you are likely to have most success so you reduce your overall cost of bidding •Develop a self-assured bid team that is fully supported by your front line teams for best results •Use the 3Ps Process to truly understand the issues your client is facing so you can position your products and services to meet their de mands effectively •Produce a robust and workable Bid Management Schedule to place you in control so you focus on the content of your proposal and not just the deadline •Create an effective Bid Roadmap to guide authors and reduce the stress of bidding on your frontline staff and bid team •Identify how to promote the value of your approach and avoid the lowest price pitfall

Course Highlights - 3 Keys to Your Bidding Success 1. Position Yourself To Win •How to analyse your business so you truly understand what it is you do best •How this will help your potential client to fix their problems •How this will enable you to position yourself to the best advantage in a way that puts you ahead of your rivals 2. End to End Control •Manage your time effectively so you can reduce the stresses of bidding •Get higher scores by focusing on the questions you are asked •Identify the key areas of your Bid Roadmap that your team needs to be successful 3. Pricing to Win •The importance of knowing what your potential client is willing to pay •Knowing what you need to charge, and •How to balance these to achieve the optimum price to win Training Methodology This masterclass is specifically designed to build over the 4-day program through a combination of highly interactive workshops and traditional teaching methods. The emphasis is on learning and you will get the most from this program when you participate in the activities and complete all of the exercises because this is all about taking action. Over the 4 days, you will develop your personal Bid Structure Plan aligned to a specific client that you choose. Not only will you be able to use your plan on future bids, but you will also learn the tried and tested techniques that are used to develop bespoke plans for any bid.

Course Certificate Upon the successful completion of this course, you will receive a Certificate of Completion bearing the signatures from both the Course Director and the Course Organiser. This Certificate will testify your endeavour and serve towards your professional advancement.

Infocus International Group Tel: +65 6325 0274 | Email: reanne@infocusinternational.com www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

GCC SUPPLY CHAIN & LOGISTICS CONFERENCE 2015 - Sultanate of Oman

The 2nd GCC Supply Chain & Logistics Conference Announced!

Muscat: Spearheaded by the Ministry of Transport & Communication, the 2nd edition of the GCC Supply Chain and Logistics Conference is all set for next year. The event will take place from 13 – 16 April 2015 at the Al Bustan Palace, A Ritz-Carlton Hotel, Muscat. This follows the very successful 1st GCC Supply Chain & Logistic Conference with over 400 participants from 5 continents was held in April 2013 with High Level Government to Government delegations. The 2nd GCCSCL Conference objective is fully aligned with the MoTC’s- strategy as one of the most important in bringing together local &international top executives and professionals from all sectors, which relate to logistics and supply chain and various industries sectors to share insights and views on the opportunities and challenges in positioning Oman as the regional Logistics Hub within the changing landscape in the GCC taking fully into account the opening up of the hinterland by railways, new border crossings and expressways and new political & strategic logistics corridors being developed . The conference will also highlight emerging opportunities in Oman’s world-class ports, airports, railway, logistic hubs and free zones and its important role in the Gulf region, the Indian Ocean rim and beyond. Commenting on the side-line of the press conference, H.E. Said bin Hamdoon Al Harthy, Undersecretary for Ports & Maritime Affairs at the Ministry of Transport & Communication “ During the past year, an Omani Task Force under the Chairmanship of H.E. Dr Ahmed al Futaisi, Minister of Transport & Communication has intensively worked on developing the “Sultanate of Oman Logistic Strategy 2040” (SOLS 2040). This strategy has high ambitions and involves among others; Re-engineering of logistic related processes, implementing projects and inducing culture and behaviour change in the short and medium term, all of this is required to make Oman an even more important logistic hub to which will be the core themed of the conference.” He also added “The strategic infrastructure developments already completed and under construction complimented with the plannedstreamlined trade facilitation and human resource development will positively impact the country in attracting more business and foreign investments, as well as stimulate growth of local businesses and create job opportunities for locals. The Ministry of Transport & Communication is excited to stage this event and is confident that this conference will make once again a substantial and valuable contribution towards this objective” Mr. Warith Al Kharusi, chairman of the Oman Logistics & Supply Chain Association (under formation),see this event to

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

Sultanate of Oman - GCC SUPPLY CHAIN & LOGISTICS CONFERENCE 2015 be an annual logistics and supply chain platform to show case Oman’s potential of becoming an emerging ‘super hub’ not only for global supply chains but also for other sectors too such as Oil & Gas Hub, Petrochemical and other sub streams. In the future we intend to add to this event for Supply Chain &Logistics Excellence Awards to recognise personalities, professional and companies. According to the GCCSCL steering committee “one of the highlight of this event is the presence of leading industry executives and experts from top global brands and a list of luminaries who will share their thoughts and practical ideas on how to be innovative within your business such as: Mr. Eric S.C. Ip, Group Managing Director, Hutchison Port Holdings Limited, Hong Kong, Dr.Allard Castelein, Chief Executive Officer, Port of Rotterdam Authority, Mr Willem Heeren, Chairman,Jan de Rijk Logistics, The Netherlands, Mr. Dirk Reich, President & Chief Executive Officer,Cargolux Airlines, Luxembourg, Mr. Kim Fejfer, Chief Executive Officer, APM Terminals International A Maersk company DenmarkandMr. Paul Brooks, President, CILT International are among the few invited speakers who have already confirmed their presence. Mr. Peter Young, SOLs Project Director also added that this year the Conference will feature new activities such as; Market Brief & Outreach Seminar Program, Free Site Visits to the three main Ports: Salalah, Duqm and Sohar, and related Logistic Hubs and Customized Business Matching Meeting designed for international delegations as well as Special Networking Dinner and abundant networking opportunities for delegates. A dedicated mini-exhibition will also be held alongside the event - which will provide local and global companies an ideal marketing platform to promote and market their product and services to the high-level participants. For further information about the 2nd GCC Supply Chain & Logistics Conference, interested parties may visit the event website http://www.alnimrexpo.com/gccscl/ or may contact the organizers at + 968 247 00656 or email: sales@alnimrexpo.com

Platinum Sponsor

Gold Sponsor

Associate Sponsor

Strategic Partner

Exhibitor

Research Partner

Strategic Media Partner

Supporters

Media Partners

Middle East Maritime Media Partner

Intermodal Asia 2015

Shippers panel returns to Intermodal Asia 2015 in Shanghai Some of the key issues facing shippers will be explored during an informative Shippers’ Panel at Intermodal Asia 2015, which takes place at Shanghai World Exhibition and Convention Centre from 24-26 March. Taking place on day two of the three day event, the shippers panel conference session will be chaired by Joost Sitskoorn, Special Envoy of the European Shippers’ Council. One of the main topics expected to be raised is service levels within the industry and cooperation between shippers, freight forwarders, and logistics service providers. “Intermodal Asia provides a good opportunity for logistics service providers, freight forwarders and shippers to meet and discuss common issues,” explains Joost Sitskoorn. “Usually, for example, logistics providers will talk amongst themselves and shippers will talk amongst themselves, but at Intermodal Asia and Europe, all parties are involved and can discuss issues together – I think that is very important.” Speakers already confirmed to sit on the shippers’ panel include Mr. Frank Tang of the Macao Shippers’ Council, Mr. Toto Dirgantoro of the Indonesian National Shippers’ Council and representatives from the Hong Kong Shippers’ Council and the Thai National Shippers’ Council. Businesses within the shipping industry are always on the lookout for ways to make trade facilitation quicker and more efficient, so another key topic for discussion will be trade facilitation and the use of ICT systems to help improve this, which will also include the topic of data input and data sharing. Those expected to attend the conference session include shipping lines, freight forwarders, logistics service providers and shippers. “I was a conference speaker at Intermodal Europe 2014 in Rotterdam and I was surprised at the diversity of people present, including representatives from some port authorities - it would be great to see some in Shanghai for Intermodal Asia 2015” says Joost Sitskoorn. “There is a lot of misunderstanding in the industry, and the event provides a good opportunity to talk about the issues at hand, including service levels and innovations within the industry, and provides the space to look at the best way for the market to move forward.” Intermodal Asia is organised by Informa Exhibitions, in partnership with CCIA (China Container Industry Association) and the Integrated Transport Federation of the China Communications and Transportation Association (CCTA), as well as benefitting from the full support of the world’s largest container manufacturer, CIMC (China International Marine Containers). The event is following in the successful footsteps of Intermodal Europe, which has already sold over 80% of its exhibition space for the 2015 event, to be held at the Hamburg Messe in Germany on 17-19 November. To exhibit or speak at Intermodal Asia 2015, or to find out more, please contact Sophie Ahmed on sophie.ahmed@informa.com or + 44 (0) 207 017 5112. Visit www.intermodal-asia.com for further information. Intermodal Asia 2015 Ong, Mabel <mabel.ong@informa.com>

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

Working With Challenging Situations & How Effective Planning Can Work For You Faced with challenges on site including small working space and limited time schedule, Riga-Mainz – a long established family business whose core competencies involve a wide spectrum of crane and heavy haulage services, successfully installed a railway bridge in Bad Wimpfen, Baden-Württemberg, Germany. The new steel bridge for German rail company Duetsche Bahn (DB) weighed 355 tonnes and 40 metres long and to fully support the weight of the crane during the lift, a dozen 13 metre deep piles were driven into the site for the foundation. What was notably most unique about this heavy lift operation, as mentioned by Kathrin Gottschang from DB Projektbau project management, is that Riga-Mainz was the only supplier to offer the solution of lifting with only one crane and also the one who suggested the concept of threading the cross beam through the bridge trusses. Working under such challenging situations aren’t new to Riga-Mainz as they had demonstrated in late 2012, when they successfully lifted a 265 tonnes, 70 metre long steel footbridge at the A6 freeway near Kaiserslautern, Germany. Working within a short time frame and limited working space, a perfect scheduled plan and coordination was required for Riga-Mainz to bring the crane at the freeway, perform the heavy lift and clear the road. To ensure that the lifting of the bridge was done safely across the freeway, both directions were closed between 6:00pm, Saturday – 8:00am the next day. Once it was clear, weeks of preparation to assemble and erect the bridge sections on both sides of the freeway allowed for them to quickly complete the assembly of the bridge within the short time frame. Such meticulous planning to ensure that the project is done safely and timely is essential especially to address the introduction of any new or unusual techniques, type of lift or its environment. As in the case of both Riga-Mainz’s experience with working in challenging situations, such as constricted working space, it is imperative that every safety measures are considered such as ensuring that all personnel and third parties are kept out of any area of any heavy lifting equipment where if it swings, shifts or falls can potentially struck or crush them. Doing so would not only allow them to reduce the risk and consequences of but also to respond and manage all foreseeable lifting and hoisting emergencies that can occur during a lifting operation.

CONTACT 229, Mountbatten Road, Mountbatten Square #03-38, Singapore 398007 Phone: +65 6602 8048 Fax: +65 6725 0786 E-mail: enquiry@petrogasasia.com

No.2B-12-3, Block 2B, Plaza Sentral, Jalan Stesen Sentral 5, 50470 Kuala Lumpur Malaysia Phone: +603 2261 4226 Fax: +603 2178 4789 E-mail: enquiry@petrogasasia.com

www.indonesialogisticsonline.com | vol. 27 | I. XXVII | FEBRUARY 2015

ADVANCED HEAVY LIFTING AND TRANSPORTATION: An In-depth Analysis of Technicality, Maintenance and Safety Lifting heavy equipment and operating heavy transport have emerged to be among the most challenging tasks in the oil

and gas industry. With no room for error, it is utmost essential for operators to be able to manage heavy lifting equipment by providing regular maintenance and abiding by the weight limit. With innovation and experience, the industry has evolved and developed ways to overcome heavy lift challenges onshore and offshore to ensure zero accidents. This training is an excellent platform to fully equip yourself with in-depth technical knowledge and skill sets to operate heavy lifting equipment optimally, incorporate ways to maintain safe working environment and to mitigate potential risks and accidents.

Key Takeaways

•Learning why it is required to agree on terminology before starting the job •Acquiring key concepts of heavy lifting and transportation •Understanding important techniques on lifting loads using two or more cranes •Developing in-depth technical specification of offshore operations contact: June Lee •Maintaining accident-free working environment with the suitable safety standards E: june.lee@petrogasasia.com •Selecting the right transporter or crane for the load or job •Instilling the importance of good and correct communication based on the examples from NASA •How to plan a project and understanding the planning and execution of a transport and lift covering the load, the route to travel, equipment selection and execution •What is possible and what is not, learning how to take equipment to the maximum level in a safe way •Making aware why it is essential to know the application and limits of each equipment, rigging tool •Recognising unsafe situations before they occur •Knowing the calculation of ground pressure •Establishing skills on how to assess (complex and multi-discipline) transport and lift plans •Exposure to how to prepare and to perform a load-out properly •Thorough understanding of all heavy lift and transport aspects beyond the common boundaries

Who Should Attend •CEOs and Company Owners •Crane and Transport Contractors •Freight Forwarders •Lifting Engineers •EPC Contractors •Operation Managers •Cargo Superintendents •Marine Warrantee Surveyors •Rigging and Transport Supervisors •Offshore Installation Contractors

About the Trainer

•Transport and Lifting Supervisors •HSE Managers and Engineers •Onshore / Offshore Project Managers and Planners •Construction Managers •Structural Engineers •Naval Architects

Industries

•Refineries •Oil and Gas •Power Plant •Construction •Marine Warrantee •Insurance Companies •Consulting Companies •Crane Rental Companies •Offshore Fabrication Yard •Project Logistics Companies •Heavy Lifting Shipping Companies

The trainer has been in the heavy lift and transport industry since 1993. He started working with Mammoet Transport Netherlands, followed by Fagioli Italy, both respected companies and leading authorities in the industries. In the early days of his career, the trainer worked mostly on projects in the Middle East and East Africa, when he joined Fagioli Houston, USA in 2001 and left for Aruba in the Dutch Caribbean in 2004. Since 2005, he heads Caribbean Heavy Lift & Transport, focusing on servicing the Caribbean islands and in 2006, he founded his own business known as The Works International (TWI). TWI offers worldwide heavy transport and lift training both in a classroom environment as well as hands-on.The trainer’s skills are wide ranging, including project preparation and planning, equipment selection, engineering and scheduling plus the execution, managing, and guiding of heavy transport. He has experience with SPMT, conventional and multiple transporters, multiple operators, RO-RO operations and site moves. He has a real passion for sharing knowledge and experience, which is the prime reason for his frequently-held seminars all over the world and providing advice to companies who want to grow/expand beyond their comfort zone. He was a guest speaker for the World Crane and Transport Summit 2013 in Amsterdam and currently, he writes a monthly column in the ‘International Cranes and Specialized Transport’ magazine.

Trainer’s Recognition

The trainer has been awarded a contributing membership with the American Society of Mechanical Engineers (ASME) on the committee that sets the standards for the use of cranes and other lifting devices. A committee focusing on a transport standard is in the making. Besides that, he is also a member of NIRIA, the Dutch Engineering Society; FEANI, the European Engineering Society alongside ESTA (European Association of Abnormal Road Transport and Mobile Cranes) task force focusing on formulating a “best practice guide” for Heavy Transport preparation and execution. Other members of the task force are Mammoet, Fagioli, Sarens, Goldhofer, Scheuerle, Collett & Sons and Shell. An engineering degree holder, the trainer holds a postgraduate degree in general management and economics from Hogeschool in Amsterdam.

petrogasasia.com

Introduction to Exploration and Production for New Engineers and Non Technical Professionals The objective of this course is to provide a comprehensive introduction to the upstream industry. This training will take you through all the major stages in the life of an oil and gas field from exploration to decommissioning. It is intended to help professionals understand the major technical and business considerations that make up each of of the life of a typical oil and gas field.

Kuala Lumpur Malaysia, 16 - 17 June 2015 Benefits

This course is designed for industry professionals who wish to be better informed about the fundamentals of exploration and production methods, concept and technology. It is also intended for others not directly working in oil and gas companies but who are providing related support services.

•Estimation and Proposal •Finance and Administration •Finance •Health, Safety and Environment •General Management

•Joint Ventures •Legal •Logistics •Materials Planning •Planning and Budgeting

•Procurement •Sales •Sourcing •Supply Chain •Tender Contract

•Training

About the Trainer The trainer graduated from The University of Texas at Austin with 3 degrees – BS Geology and BS Petroleum Engineering on January 1969, and MS Petroleum Engineering January 1970. He joined Gulf Oil Company in March 1970 and has spent his entire petroleum industry career of 41 years working in many countries for many private companies, multinational companies and national companies globally. He had held positions such as officer engineer, geologist, field engineer, field geologist, drilling supervisor, company man, deepwater drilling superintendent and assistant drilling manager. The trainer had mentored many young engineers and served as international petroleum engineering instructor in the Middle East and Asia. With over 40 years of drilling work, The trainer has designed drilling and well-completion programs and supervised operations on many types of land rigs, and also have worked as company man on deepwater floaters, including jackup rigs, semi-submersible rigs and a drillship. This deepwater work was off West Africa and Eastern Brazil includes all phases of drilling, sidetracking, horizontal extended reach, well control, coring, stuck pipeline, fishing, directional drilling, running and cementing casing and liners, deep air drilling, conventional drilling with oil-based muds, freshwater mud and salt muds, drilling holes from 24” OD down to 4-3/4”OD, bit selection, coil tubing supervision for fishing and well testing from jacups and well completion using tubing from 1inch to 7inch with multiple completions, including multilateral completions in fishbone wells. He had also supervised many workover rigs, including hydraulic fracturing of wells, pulling rods and tubing and balancing pump jacks. He has often designed the drilling and well completion programs for some of the deepest wells in the world, setting the records with the assistance of junior engineers as well as team leader. He then implemented the programs at the wellsite as senior drilling engineer or night company man. The trainer designed the programs for Lone Star’s Bertha Rodger in United States – 32,500ft TVD and Hungary’s first and sixth deepest well to 6,000metres. He had also assisted in the designing of FES12ST1, a side-track well on the Forties Echo platform in the North Sea using Galaxy I jackup rig. He was also part of the Admasco Rig on a complex multilateral exploratory well on the East Bank of the Dead Sea in Jordan and the deepest gas well in Hungary. Employment History: •BP •Chevron •Shell SEPCO •Saudi Aramco •VetcoGray of GE •TransOcean

•Yemen Hunt Oil Company •Kuwait Oil Company •Esso Exploration •ConocoPhillips •Gulf Oil Company •Pan Ocean Oil Company •Qarun Petroleum •PetroBel

•PetroSaudi International •Forest Oil Company •Chengdu Dahongli Machinery Company •Peregrine Oil and Gas •InterAct PMTI •Apache North Sea •Sea Dragon •Great Wall Drilling Company •EPI Holdings •Luling Oilfield •Boots & Coots •Respsol •Sonangol

petrogasasia.com

Offshore Drilling Essentials for New Engineers and Non Technical Professionals Kuala Lumpur Malaysia, 18 - 19 June 2015 This training offers insight to the process of a drilling program to assist both new engineers and non-technical professionals to understand their role and contributions to support the drilling team.

Key Takeaways •Gaining

deep understanding on drilling process and technical jargons used the important of safety procedures and risk involved in drilling •Improving supporting role to ensure effective team work •Establishing different types of activities around the rig and well planning •Exploring the principles of drilling, logistical requirements and technologies available •Recognising

Who Should Attend New engineers and non-technical professionals looking to enhance their knowledge and awareness of the drilling process for increased productivity and contribution to the team they’re supporting: •Accounting •Health, Safety and Environment •Sales •Administration •General Management •Sourcing •Business development •Joint Ventures •Supply Chain •Commercial •Legal •Tender Contract •E&P IT •Logistics •Training •Estimation and Proposal •Materials Planning •Finance and Administration •Planning and Budgeting •Finance •Procurement

About the Trainer The trainer graduated from The University of Texas at Austin with 3 degrees – BS Geology and BS Petroleum Engineering on January 1969, and MS Petroleum Engineering January 1970. He joined Gulf Oil Company in March 1970 and has spent his entire petroleum industry career of 41 years working in many countries for many private companies, multinational companies and national companies globally. He had held positions such as officer engineer, geologist, field engineer, field geologist, drilling supervisor, company man, deepwater drilling superintendent and assistant drilling manager. The trainer had mentored many young engineers and served as international petroleum engineering instructor in the Middle East and Asia. With over 40 years of drilling work, The trainer has designed drilling and well-completion programs and supervised operations on many types of land rigs, and also have worked as company man on deepwater floaters, including jackup rigs, semi-submersible rigs and a drillship. This deepwater work was off West Africa and Eastern Brazil includes all phases of drilling, sidetracking, horizontal extended reach, well control, coring, stuck pipeline, fishing, directional drilling, running and cementing casing and liners, deep air drilling, conventional drilling with oil-based muds, freshwater mud and salt muds, drilling holes from 24” OD down to 4-3/4”OD, bit selection, coil tubing supervision for fishing and well testing from jacups and well completion using tubing from 1inch to 7inch with multiple completions, including multilateral completions in fishbone wells. He had also supervised many workover rigs, including hydraulic fracturing of wells, pulling rods and tubing and balancing pump jacks. He has often designed the drilling and well completion programs for some of the deepest wells in the world, setting the records with the assistance of junior engineers as well as team leader. He then implemented the programs at the wellsite as senior drilling engineer or night company man. The trainer designed the programs for Lone Star’s Bertha Rodger in United States – 32,500ft TVD and Hungary’s first and sixth deepest well to 6,000metres. He had also assisted in the designing of FES12ST1, a side-track well on the Forties Echo platform in the North Sea using Galaxy I jackup rig. He was also part of the Admasco Rig on a complex multilateral exploratory well on the East Bank of the Dead Sea in Jordan and the deepest gas well in Hungary. Employment History: •Yemen Hunt Oil Company •Qarun Petroleum •BP •Sea Dragon •Peregrine Oil and Gas •Kuwait Oil Company •Chevron •EPI Holdings •PetroBel •Apache North Sea •Esso Exploration •Shell SEPCO •Boots & Coots •PetroSaudi International •Great Wall Drilling Company •ConocoPhillips •Saudi Aramco •Chengdu Dahongli Machinery•Respsol •Luling Oilfield •VetcoGray of GE •Gulf Oil Company •Sonangol •Company •Pan Ocean Oil Company •InterAct PMTI •TransOcean •Forest Oil Company June Lee E: june.lee@petrogasasia.com

petrogasasia.com

The Tenth International Rail Business Forum 1520 Strategic Partnership 3 - 5 june 2015-Russia,Sochi

3 - 5 июня 2015 года, Россия, Сочи X Международный железнодорожный бизнес-форум «Стратегическое Партнерство 1520»

X International Rail Business Forum 1520 Strategic Partnership The Tenth International Rail Business Forum 1520 Strategic Partnership will take place from June 3-5 in Sochi. This special edition tenth anniversary event will summarize the achievements reached throughout the past decade and identify the priorities of the rail complex in the near term. In light of the challenging economic environment facing the 1520 space, the agenda will focus on new windows of opportunity in the railway sector, with an emphasis on core business areas such as engineering, transportation, logistics, and infrastructure. One of the centerpieces of the business program will be the Razvitie transport and energy corridor as a factor in promoting economic growth and social well-being in the areas adjacent to it. Mega projects will also be considered in the investment context, through the prism of financial/economic calculations and the investment model for infrastructure projects. Considerable attention will be given to support for railcar-building companies in light of the rising cost of raw metal and energy, as well as complications with bank lending. The forum will gather the heads of railway companies and specialized international organizations, national rail administrations from the CIS and the European Union, rolling stock operators, transport machinery manufacturers, transport logistics companies, leasing and insurance enterprises, members of the Russian executive and legislative authorities, and a broad range of experts in economic policy, banking, and international relations. The International Rail Business Forum 1520 Strategic Partnership is a unique platform where participants work together to find effective solutions to the most controversial issues in the railway sector, which affect the interests of all players on the transport market: industrial enterprises, transport and logistics companies, railcar and locomotive manufacturers, and small and medium business. The event’s business program contains more than 20 different discussions and interactive formats, with participation by some 1,400 specialists from more than 30 countries. The forum targets top companies in the transport sector from Russia, the CIS, and the European Union. Major international agreements on strategically important aspects of railway development in the 1520 space are signed at the forum every year. Participants also sign large supply and maintenance contracts for railway machinery and equipment.

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forum1520.com

Sheraton Casablanca Hotel and Towers, Morocco Wednesday 25 and Thursday 26 March 2015 Fully Supported by