Marin HiliHili Company Ltd

IntroductionIntroductionHili Company – originated in 1923; maritime

industry

Mariner Ltd – investor, developer and operator of terminals

Current operations: SIA Baltic Container Terminal (BCT) in Riga, Latvia Terminal Intermodale Venezia SpA (TIV) in Venice,

Italy

Malta Freeport TerminalsMalta Freeport TerminalsValuable experience at Malta Freeport

Chairman for 15 years (from inception in 1988)

Transhipment hub in central Mediterranean

Redevelopment of Terminal One1989 : commenced phased redevelopment

Malta Freeport TerminalsMalta Freeport Terminals1995: Over 500,000TEUs; North quay extension

and yardexpansion complete.

Development of Terminal Two1994: $205m secured for financing1997: Phase A of facility openedfor business1998: loan restructured and refinanced via 30-year $250mbullet bond1999: Terminal Two complete

AttractiveAttractive Port InvestmentsPort Investments Identification of qualities and potentials

Successful acquisition of terminals

Management interventions and operating procedures

Attractive niche terminals

General Investment Characteristics SoughtGeneral Investment Characteristics Sought

Regional/ location perspective:

Emerging markets (especially in its hinterland) Affluent supply areas

Size and profile not dominant criteria

Risk assessment – due diligence but not predominantdecision factor

Detailed understanding of the business

Studies to boost terminal activity

Intrinsic Potential for DevelopmentIntrinsic Potential for Development 1. Contiguous uncommitted areas for expansion Thorough research Identification of trends and ideal conditions for

marketgrowth

Dependable relationship with PA and other majorstakeholders

2. Capacity to take heavy equipment loads Load-bearing capacity of quay-side and land-side

activities and structures

Intrinsic Potential for DevelopmentIntrinsic Potential for Development 3. Versatility of layout and physical attributes Adaptable parameters to give terminal

potential to switch from conventional operations to container handling

4. Good Transportation Accessibility Efficient land-based connectivity from gate to

hinterland Rail or/and road

Acquired Experience and FeedbackAcquired Experience and Feedback 1. Labour Practices Old labour practices – opportunity to modernise

2. Human Resource Development On-going training on all aspects of operation Restructure terminal organisation and train

local personnel

3. Synergies and Focus Company size is to our benefit

Acquired Experience and FeedbackAcquired Experience and Feedback 4. Individual and Stand-Alone Capability Each terminal treated as stand-alone business Sound operational practices within healthy

financial scenario Neatness of planning and timeliness of well-

thought interventions makes a successful niche investment

Current OperationsCurrent Operations 2 European container terminals

Both gateway terminals – handling import/ export cargo

Very different

Baltic Container TerminalBaltic Container Terminal Chairman of BCT Commenced operations in 1996; Mariner acquired

fullshareholding and managerial responsibility in 1999

47ha container terminal

Good rail and road links tolarge Russian hinterland andother CIS states

Baltic Container TerminalBaltic Container Terminal

Specific characteristics: Very well placed for

Russian cargo Very good work ethic

Challenges: Reorganisation from Soviet times Gaining credibility Political relationship with Russia

Terminal Intermodale VeneziaTerminal Intermodale VeneziaChairman of TIVIn 2003 TIV taken over by Mariner and Marinvest

s.r.l.(50:50); Mariner full management responsibility

Originally multipurpose; nowsolely containerised cargo

Located at northern most tip of Adriatic Sea

Terminal Intermodale VeneziaTerminal Intermodale VeneziaSpecific characteristics: NE is the richest part of Italy Venice good catchment area (Trieste has

better port mainly due to depth)

Challenges Old labour practices Great institutional

power of unions Cumbersome PAs