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Building Stability and Promoting

Growth in the Mediterranean

John Trenchard,

Director Port Investments, Europe & Mediterranean,APM Terminals

Med Freight Conference2 November 2011Istanbul

The view from a Port Operator

Importance of theMediterranean region

Key Trends for PortOperators on key Trade

Routes Future port development

areas and challenges

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Historically the Mediterranean has been

considered the middle of the Earth

Mediterranean

mediterraneus (Latin)

mediusmiddle"

terra,"earth"

Published in 1624 in the famous historical Atlas Parergonby Abraham Ortelius

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In the early 21st century, the Mediterranean isthe centre of the global economy

Source: Danny Quah, Economics Department, London School of Economicsand Political Science and LSE Global Governance

1980 2010 2050

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The statistical centre of the global economy isshifting eastwards

1998

1992

5

201020072004

Source: Danny Quah, Economics Department, London School of Economicsand Political Science and LSE Global Governance

has 8% of theGlobal Population

Has 21% of globalcontainer trade

The Strategic geographic position makes theMediterranean a key region for container shipping

In addition to cargodestined or sourced in

The Mediterranean.

8%

21%

79%

rans ng e e , e reg on skey to other trades

6

92%

And many more

Source: APM Terminals Analysis,& Drewry

Source: APM Terminals Analysis, UnitedNations World Population Data

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Mediterranean Transhipments are concentrated on

the main trade route

1

5 8

Port 2010 T/Steu mlns

Gioia Tauro 2.681

4

6

2

2 .

Suez Canal CT 2.48

Malta 2.26

Valencia 2.15

Tangier 1.98

Damietta 0.85

Istanbul 0.85

373

4

5

6

7

8

Data Source: Drewry Maritime Research

7

30%

35%

T/Sasproportion ofGlobalPortTeu

Transhipments have increased and African terminals arerapidly increasing share of the T/S in the Mediterranean

Transshipments have beenincreasing

10%

15%

20%

1980 1985 1990 1995 2000 2005 2010

20

25

T/S

volume

growth

accelerating

in

Africa

Proportion appears to beleveling out at c. 30%

eu

African T/S terminalsincreasing rapidly

8

0

5

10

15

1980 1990 2000 2010

Africa SouthEurope

Million

Transshipment market ismore competitive thangateway markets

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New larger vessels will be deployed through the

Mediterranean raising the bar for port operatorsWorld Container FleetDevelopment to 2014

Asia

Europe

14

15

16

17

18

19

city

MillionTeu

Nominal

Asia

Europe

10

11

12

2010 2014

FleetCap

>10,000teu 7,500 9,999teu

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Crane evolution to service increasing vessel size

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APMT FastNet Concept DesignEnables High Productivity

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Europe 2010

Population(millions)

232

Turkey 2010

Population(millions)

79

Mediterranean market fundamentals

MedianAge 39 MedianAge 29

South Med 2010

Population(millions)

210

MedianAge 27 Source:WorldPopulationsProspects,the2010

Revision UnitedNations,Departmentof

EconomicandSocialAffairsPopulationDivision.13

Europe 2010 2050 Trend

Population(millions)

232 212 9%

Turkey 2010 2050 Trend

Population(millions)

79 9216%

Mediterranean market fundamentals:Changing demographics will change demand

MedianAge 39 4925% MedianAge 29 42 45%

South Med 2010 2050 Trend

Population(millions)

210 280

MedianAge 27 36

33%

33%Source:WorldPopulationsProspects,

the2010Revision UnitedNations,

DepartmentofEconomicandSocial

AffairsPopulationDivision.14

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South

Europe

Low

Growth

Maximize efficienciesfromexisting

Infrastructure.

Turkey ExcitingGrowth

Develop worldclassportsto

serve ex andin well established

Mediterranean market fundamentals:

Different considerations for Port Operators

Expandinghinterlandsthrough

inlandinfrastructure

economy

Serviceincreasingvesselsizes

cascadedintoTurkey

South Med

Potential

high

growth

Newlocations witheffective

capacitytoservicelocalmarkets

Enablingcountriestotapinto

economicgrowthpotential15

Proportion of Exports destined to Euro Area 2010

Significant spill-over risks exist in the near termfrom Europe.

16

Source:IMFJuly2011,EuroAreaPolicies:Spillover

Reportforthe2011ArticleIV

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Other key trends for Terminal Operators

Process Excellence

Investing in People Sustainability

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Port Operators have a key role to play inachieving the potential in the Mediterranean

Core capabilities within design,engineering and operation

Experience

Ability to work constructively withvarious stakeholders

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Ability to form- and maintaineffective local partnerships

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And finally as APM Terminals is based in Holland wouldlike to say thank you to our Turkish hosts for the Tulips

Thankyou

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Building Stability and Promotingrow n e e erranean

John Trenchard,

Director Port Investments,Europe & Mediterranean,APM Terminals

Med Freight Conference2 November 2011Istanbul