Total Terminal Maintenance

A New Service Concept fromA New Service Concept from Kalmar

CARGOTEC IN BRIEFCARGOTEC IN BRIEF• World’s leading provider of cargo handling solutions

• Net sales in 2006 were EUR 2.6 billion

• Approximately 11,000 employees

• Operates in over 160 countries

• Class B shares listed on the Helsinki Stock Exchange (CGCBV)• Class B shares listed on the Helsinki Stock Exchange (CGCBV)

COMPANY STRUCTURECOMPANY STRUCTURECARGOTEC

HIAB KALMAR INDUSTRIES MacGREGOR

KALMAR TRAILERLOGISTICS

KALMAR INDUSTRIALSYSTEMS

KALMAR CONTAINERHANDLING

KALMARSERVICES

OTHERSRTC BROMMALOGISTICS SYSTEMS HANDLING SERVICES RTC, BROMMA

KALMAR IN BRIEFKALMAR IN BRIEF

KALMAR PRODUCTSKALMAR PRODUCTS

KALMAR CUSTOMERSKALMAR CUSTOMERS1. Ports and terminals from small

stevedoring companies to large international terminal operators around the worldthe world

2. Heavy industry from the wood and timber handling to steel factories andtimber handling to steel factories and paper mills

3 Distribution and logistics from RoRo3. Distribution and logistics from RoRo ships to global express, transportation and logistics companies

KALMAR FUNDAMENTALSKALMAR FUNDAMENTALSBest cost over lifetimeBest cost over lifetime• Modern & innovative technology • Lasting equipment• Lasting equipment• Parts and service

Kalmar is the technology forerunner. Our lasting equipment, global network and service offering ensure our customers find that working with us increases their productivity.

KALMAR FUNDAMENTALSKALMAR FUNDAMENTALSGlobal networkGlobal network• Reliable and trustworthy partner• Investing in sales & service networks• Investing in sales & service networks• Ability to serve also the biggest

customers

We have the largest service networks in the industry. We take advantage of our global resources to ensure that our customers always get the best service.

KALMAR FUNDAMENTALSKALMAR FUNDAMENTALSLocal serviceLocal service• Local customer service• Innovative service development• Innovative service development• Understanding local cultures

We are near out customers everywhere. Knowing our customers’ local conditions is a key for the promise we give our customer: Value every week, day and hour.

KALMAR FUNDAMENTALSKALMAR FUNDAMENTALSContinuous developmentContinuous development • Investing in automation• Environmentally friendly solutions• Environmentally friendly solutions• Developing new services

Our technology is continuously developed to improve our customers productivity and to enforce environmentally friendly solutions.

TOTAL TERMINAL MAINTENANCEA NEW SERVICE CONCEPT

WHAT IS TOTAL TERMINAL MAINTENANCE?

WHY WHY KALMAR?KALMAR?

A WIN WIN COMBINATIONA WIN WIN COMBINATIONA WIN-WIN COMBINATIONA WIN-WIN COMBINATION

A SEA CHANGE FOR THE INDUSTRYA SEA CHANGE FOR THE INDUSTRY

SHARING EXPERTISE AT DESIGN STAGESHARING EXPERTISE AT DESIGN STAGE

SKILLS INSKILLS INSKILLS IN PARTNERSHIPSKILLS IN PARTNERSHIP

INNOVATIVE PLANNING AND INNOVATIVE PLANNING AND RESOURCE MANAGEMENTRESOURCE MANAGEMENT

SKILLS IN PARTNERSHIPSKILLS IN PARTNERSHIP

THE WORLD PORT THROUGHPUT IN TEUm

9001000

600700800

300400500600

0100200300

095 96 97 98 99 OO O1 O2 O3 O4 O5 O6 O7 O8 O9 1O 15

Current Forecast

MAIN REASONS FOR OUTSOURCING IN %

50

60

30

40

50

0

10

20

d e t r n t t n l t

Gre

enfie

ld

of p

eopl

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logy

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ft

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our u

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olve

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rove

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WIDE RANGING MAINTENANCE EXPERTISE

GLOBAL PRESENCE, LOCAL PROMISE

EVERY 4TH CONTAINEREVERY 4TH CONTAINERMOVEMENT IN THE

WORLD IS COMPLETED BYMOVEMENT IN THE

WORLD IS COMPLETED BYWORLD IS COMPLETED BYKALMAR EQUIPMENT

WORLD IS COMPLETED BYKALMAR EQUIPMENTKALMAR EQUIPMENTKALMAR EQUIPMENT

BUILDING STRONGBUILDING STRONGBUILDING STRONG PARTNERSHIPS

BUILDING STRONG PARTNERSHIPS

FULL COMMITMENT TOFULL COMMITMENT TOFULL COMMITMENT TOHEALTH AND SAFETY

FULL COMMITMENT TOHEALTH AND SAFETY

LOST TIME INJURY FREQUENCY RATE

1618

10121416

/ Milli

ons

68

10

s W

orke

d

024

Hou

rs

02001 2002 2003 2004

Industry average (source: Deltalings) Kalmar

BESPOKE SOLUTIONSBESPOKE SOLUTIONS

THE DEVELOPMENT PHASE

Detail on specifications of the fleet/equipment

Plan of approach

Contract development

Scope of supply

Set up and discuss the maintenance management structure

THE DEVELOPMENT PHASE

Set up formal communication for contact development

Set up framework for the agreement

KPI agreement and definition

Risk and reward discussion and agreement

Price and conditions agreement

THE DEVELOPMENT PHASETHE DEVELOPMENT PHASE

CHART

OUR KEY CUSTOMERSFAA Aarhus Stevedoring Company (Cargonet)

ICTSI Container Terminal Madagascar AfricaICTSI Container Terminal – Madagascar Africa

HPH Container Terminal – Holland

PSA Container Terminal HollandPSA Container Terminal – Holland

HPH Container Terminal – Rotterdam Holland

Corus Group (Steel Industry) UKCorus Group (Steel Industry) – UK

APM Empty Container Depot – Rotterdam Holland

OVAKO Global Steel Industry HollandOVAKO Global Steel Industry – Holland

SE Saw Mill – Sweden

WWL Global RORO Company Sweden / NorwayWWL Global RORO Company – Sweden / Norway

OUR KEY CUSTOMERSSabah Ports Container Terminal – Malaysia

DPW Container Terminal Antwerp BelgiumDPW Container Terminal – Antwerp Belgium

CMA/CGM Container Terminal – Marseille / Fos France

SE Saw Mills Austria / Czech Republic / GermanySE Saw Mills – Austria / Czech Republic / Germany

RSC Railway Container Terminal – Rotterdam Holland

SCA Interforest Container Terminal / Rotterdam HollandSCA Interforest Container Terminal / Rotterdam Holland

APM Container Terminal – Mumbai India

STEVECO Container Terminal Kotka FinlandSTEVECO Container Terminal – Kotka Finland

SRMP Container Terminal – La Reunion Island Africa

Hind Terminals / MSC Container Terminals IndiaHind Terminals / MSC Container Terminals - India

Customer :

SERVICE LEVEL AGREEMENTS IN ALL FORMSCustomer :SRMP:/Container terminal; La reunion Island/ Africa

Service: Full service maintenance 24/7/365Paid by the hour

Equipment:• Yard cranes• Straddle carriers• Reach stackers• Terminal tractors• Fork lift trucks all makes• Terminal chassis

Special:• Kalmar set up a joint venture with a local company

to assure agreed upon performance of the equipment g p p q pof the terminal.

Customer :

SERVICE LEVEL AGREEMENTS IN ALL FORMSCustomer :STEVECO/Container terminal /Kotka Finland

Service: Full service maintenance 24/7/365Paid by the hour

Equipment:• Straddle carriers• All other terminal equipment.

Special:• Customer asked Kalmar to build a work shop as part

of the full service contract.• The customer pays a fixed rate per hour for the usage

of the machines (including workshop).

Customer :

SERVICE LEVEL AGREEMENTS IN ALL FORMSCustomer :APM /Container terminal/ Mumbai India

Service: Full service maintenance 24/7/365Paid by the hour

Equipment:• Yard cranes• Reach stackers• Empty Container Handlers

Special:• Agreement includes the supply of drivers for all shiftsg pp y• Greenfield

Customer :

SERVICE LEVEL AGREEMENTS IN ALL FORMSCustomer :SCA interforest/Container terminal / Rotterdam Holland

Service: Full service maintenance 24/7/365Paid by the hour

Equipment:• Ship to shore cranes• Reach stackers• Terminal tractors• Lift trucks

Special:p• Total terminal maintenance is outsourced

Customer :

SERVICE LEVEL AGREEMENTS IN ALL FORMSCustomer :RSC/ Railway Container terminal Rotterdam

Service: Full service maintenance 24/7/365Paid by the hour

Equipment:• Reach stackers• Terminal tractors• Chassis• Yard cranes/RMG (under negotiation)

Special:p• Inland terminal

Customer :

SERVICE LEVEL AGREEMENTS IN ALL FORMSCustomer :SE/ Saw mill ; Sweden

Service: Full service maintenance 24/7/365Paid by cubic meter wood

Equipment:• Log stackers• Fork lift trucks all makes• Various other equipment

Special:• Kalmar took over the work shop, 30 service engineersp g

and all drivers from the customer

Customer :

SERVICE LEVEL AGREEMENTS IN ALL FORMSCustomer :WWL/ Global RORO company ; Sweden/ Norway

Service: Full service maintenance 24/7/365 for on board rolling equipmentFixed ratesFixed rates

Equipment:• Terminal tractors• Heavy Fork lift trucks all makes• Trailors• Goose necks• Various other equipment

All b k i• All backup units

Special:• Kalmar global service network makes it possible to replace on board engineers by flexible g p p g y

capacity on shore to service the equipment. Sailing in all time zones and calling many ports inthe world

Customer :

SERVICE LEVEL AGREEMENTS IN ALL FORMSCustomer :OVAKO /Global Steel industry; Holland

Service: Maintenance 24/7/365 for all equipment;Fixed rates per monthEquipment is off balance financedEquipment is off balance financed

Equipment:• Terminal tractors• Heavy fork lift trucks all makes• Trailers• Various other equipment• All backup units

Special:• All equipment of the plant in one maintenance contract

Customer :

SERVICE LEVEL AGREEMENTS IN ALL FORMSCustomer :Corus group/ Steel industry/ UK

Service: Maintenance 24/7/365 for all logistic equipment;Machines rented out to the customerPrice per hourPrice per hour

Equipment:• Coil handlers• Tow tractors• Heavy and medium lift trucks• Combi lift warehouse stackers

Special:• All equipment of the logistics of one plant

in one maintenance contract

Customer :

SERVICE LEVEL AGREEMENTS IN ALL FORMSCustomer :HPH /Container terminal; Rotterdam; Holland

Service: Maintenance 24/7/365 for all equipmentFixed rates per hourMachines rented out to the customerMachines rented out to the customer

Equipment:• Reach stackers• Empty container handlers• Terminal tractors• Trailers

Special:• All equipment of the plant in one maintenance contract.• Workshop built and maintained by Kalmar

Customer :

SERVICE LEVEL AGREEMENTS IN ALL FORMSCustomer :PSA / Container Terminal / Holland

Service: Preventative maintenance on STS cranes;Fixed rates

Equipment:• STS cranes• Reach stackers• Empty container handlers

Special:• Kalmar global service network makes it possibleg p

to replace on board engineers by flexible capacityon shore to service the equipment. Sailing in alltime zones and calling many ports in the world

Customer :

SERVICE LEVEL AGREEMENTS IN ALL FORMSCustomer :FAA Aarhus stevedoring company (Cargonet)

Service: Full maintenance contractWorkshop Design support

Equipment:• Straddle carriers• Reach stackers (offered sale and leaseback)• All other equipment sale and lease back offered

Special:• All equipment to be maintained by one company q p y p y

Kalmar Danmark A/S. Different makes New Kalmar established company

Customer :

SERVICE LEVEL AGREEMENTS IN ALL FORMSCustomer :ICTSI/ container Terminal / Madagascar Africa

Service: TOTAL TERMINAL MAINTENANCEFixed rates

Equipment:• Mobile harbor cranes• Reach stackers• Terminal tractors• Tailors• Lift trucks

Special:• All equipment to be maintained by one company• Different makes• Difficult logistic processesg p

CONTAINER TERMINAL DEVELOPMENTCONTAINER TERMINAL DEVELOPMENT

THE CATALYST FOR CHANGETHE CATALYST FOR CHANGETHE CATALYST FOR CHANGETHE CATALYST FOR CHANGE

A COMMITMENT TO EXCELLENCE

EUROMAX TERMINAL MAINTENANCE STRATEGY

The concept of Euromax is a new strategy in p gycontainer terminal management in Europe:

• The objective of the project team is to choose one supplier for the equipment of the terminal;

Th bj ti f th j t t i t t th i t f• The objective of the project team is to outsource the maintenance of the terminal;

The partner has to agree pon a ser ice le el agreement ith• The partner has to agree upon a service level agreement with Euromax. In the agreement there will be agreed upon KPI’s with a risk and reward system.

EUROMAX TERMINAL MAINTENANCE STRATEGY

• Maintenance will be• Maintenance will be outsourced

• Parties have to agree upon a service level agreement

• Contract has fixed prices and agreed upon KPI’s

STARMAXSTARMAX• Consortium Stork/KalmarConsortium Stork/Kalmar

• 65 fte dedicated;

• In phase I ; machines on contract;

MAINTENANCE

INFRA EQUIPMENT ICT • In phase I ; machines on contract;• 16 x STS;• 58 x A RMG;

96 AGV’

ELECTRICAL & COMMUNICATIONS

CRANESNETWORKS

• 96 x AGV’s;• 20 x TT• 120 Trailers;

3 RST

CIVIL

BUILDINGS

VEHICLESHARDWARE

SOFTWAREOTHER EQUIPMENT• 3 RST;• 6 LFT.

HELPDESK

WHAT WE ARE DELIVERINGWHAT WE ARE DELIVERING

ENGAGEMENT FRAMEWORK

Asset Performance

Maintenance Management

Human Resources Management

SHEQ Management A O

Do The Right ThingsEffectiveness

Financial Management

Installation Management

Maintenance Concept ManagementAvailabilit

Mainten

Com

plia

Operation

Do The Things RightEfficiency

Maintenance Concept Management

Work Order Management

First In Line Maintenance

ty / Reliab

nance Cos

ance -Saf

nal Excell

At The Right Price(Sub) Contract Costs

Shutdown

Material Management

Facility Management

bility

st fety

ence

Outsourcing

Information Management

MODEL ENABLERS RESULTS

TYPICAL PROJECT ENGAGEMENT STRUCTURE

Terminal Board Kalmar Board

Terminal contract managerTerminal contract manager

Maintenance Manager

Control / Admin CMMS Maintenance Engineering

Bedrijfsburo and Control RoomLogistics / Warehouse ICT Team

Equipment Maintenance

Specialist Industry Services

Infra-Partner Partner X / Sub Contracter

Resource Pool Kalmar

Centre of Expertise

Resource Pool SpecialistResource Pool Specialist Industrial Services

SUCCESS FACTORSSUCCESS FACTORS

ContinuousDeveloping KPIs

Skilled Resources

MaintenanceConcept

TransparencyContinuous Training

MEETING OBJECTIVES