Global Ports Connecting Global Markets

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Global Ports Connecting Global Markets
Information contained in this presentation is
accurate as of 16 November 2008
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Vision, Mission and Values
Vision Sustainable value through global growth,
service excellence.
Mission A global approach to a local business
environment where excellence, innovation and
profitability drive our core business philosophy
of exceptional customer service.

• Values
• Commitment to our people and our customers
• Profitable global growth
• Responsible corporate and personal behaviour
• Excellence and innovation

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DP World Global Reach

• 48 (1) marine terminals across 27 countries
• Total throughput of around 43.3 million TEU 2007
• Expansion to meet future customer needs
• 2007 gt48 million TEU
• 2017 gt90 million TEU
• Team of 30,000 staff
• Top 4 Global Operator
• Awards
• 2008 Asian Freight Supply Chain Awards (AFSCA)
• Best Seaport in Middle East Jebel Ali (14th
  consecutive year)
• Best Container Terminal in Asia under 4m TEUs per
  annum
• DP World Asia Container Terminal Ltd (ACT), Hong
  Kong.
• 2008 Annual Supply Chain Transport Awards
  (SCATA)
• Port Authority and Terminal Operator of the year.
• 2008, 2006 and 2005 Lloyds List Middle East
  Subcontinent Awards

Over a year, laid end to end, the boxes we handle
would circle the world more than six times
(1) As of November 2008
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Dubai World

• Among worlds largest holding companies
• gt 80 companies
• 100 countries

• 6 continents
• Over 50,000 employees
• Evolving vision

The Palm Jumeirah
The World
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Unique Group Abilities

• DP World is able to bring a complete suite of
  operational expertise to a project
• Container Terminals 48 Terminals around the
  world
• Logistics Centres Own and operate the largest
  warehouse
• in the world.
• Free Trade Zones 3 Free Trade Zones operated
  including
• the worlds largest through our affiliated
  company
• Customs Uniquely able to provide Customs
  training,
• development, systems implementation
• Comprehensive Package Oil and Bulk Facilities,
  Cruise Terminals, DryDock Facilities.

ATL Hong Kong
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Djibouti
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Jebel Ali A vision made real
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Dubais GDP DP Worlds complementing growth
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Port Operations
Rail/Road connectivity
Lifting of containers on/off ships

• Around 75 of terminal operator revenues comes
  from handling containerised cargo

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Sector Fundamentals

• Consistent and uninterrupted growth
• Global containerised transport of goods has grown
  from 88m TEUs in 1990 to 496m TEUs in 2007 (CAGR
  10.7)(1)
• Favourable impact of
• Global trade, manufacturing moved from developed
  to underdeveloped countries
• Increased containerisation
• Transhipment
• Global container traffic projected to grow
  average 8.8 annually (2007 - 2013)(1)
• Supply/demand
• Capacity shortage
• High barriers to entry
• Long term concessions
• Planning and environmental issues

• Historic data from Drewry Annual Container Market
  Review and Forecast 2006, 2007 and 2008 and
  forecast data from Drewry Annual Review of Global
  Container Terminal Operators 2008
• Historic data on World GDP Growth from IMF World
  Economic Outlook, April 2008

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DP World Jebel Ali A Flagship Facility
Jebel Ali Terminal

• 7th largest container port (1) in 2007
• Annual growth has averaged over 20 for the past
  five years
• Handled 10.65m TEU in 2007(Jebel Ali Port
  Rashid)
• Jebel Ali is the largest container port outside
  Asia
• 2008 Best Middle East seaport for the 14th
  consecutive year (AFSCA)

(1) Source Drewry Shipping Consultants
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DP World Jebel Ali Innovation in Action
Innovation DP World uses the largest cranes in
the world and the first with Quad-Container lift
capability
The 367-metre long Grete Maersk (nominal capacity
of 8,200 TEUs) being handled by four of the
port's largest tandem lift gantries, the biggest
of their kind in the world.
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Jebel Ali Master Planning On a Grand Scale
Jafza North
Jafza South
Dubai Logistics City
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Robust Growth
1000
800
600
M teu
400
200
1
0
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008e
2010e
2012e
2014e
Strong growth in global port handling
Source Historical data from Drewry Annual
Container Market Review and Forecast 2007/2008
forecasts data from Drewry Annual Review of
Global Container Terminal Operators 2008
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Economies Driving Growth
Capacity Utilisation (2007)
Industry Throughput (2007)
Total 496m TEUs
80 effectively full
Far East and South East Asia accounted for half
the global market in 2007
Source Drewry Shipping Consultants
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Terminals and new developments
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Terminals and new developments
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As of November 2008
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Capacity Crisis

• There is a looming capacity crisis in the
  container shipping industry
• As a matter of strategic commercial policy, DP
  World have set out to raise awareness of the
  implications of this
• With our direct customers (the liner companies)
• With our customers customers (eg. major
  forwarders principals)
• We hope in doing this all stakeholders in the
  supply chain will
• improve their awareness and understand the role
  of terminals and the implications
• Use the advice to reshape their working /
  contractual relationships with their terminal
  operators where appropriate

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Global Supply / Demand Imbalance
Substantial capacity constraints expected
Source Drewry Annual Review of Global Container
Terminal Operators 2008, based on confirmed
expansion plans
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Consolidation Emergence of Big Four
2007 Top 10 Container Terminal Operators
Ranking Operator m TEU Market Share
1 PSA 47.5 9.6 2 HPH 33.6 6.8 3 APM
Terminals 31.6 6.4 4 DP World 28.9 5.8 5 Cosco 9.8
2.0 6 Evergreen 8.9 1.8 7 Eurogate 7.4 1.5 8 MSC
7.0 1.4 9 HHLA 6.7 1.4 10 APL 4.8 1.0

• Global operators emerging following consolidation
  and globalisation of customers
• Top 4 have increased their combined gross market
  share from 29 in 2001 to 45 in 2007
• Competitive advantages
• Global network
• Leveraging global customer base
• Ability to meet customer needs
• Critical mass
• Technical expertise
• Financial strength

Equity-based throughput
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The Big Four Container Traffic by Trading Region
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Technology
Security

• Global Industry Leader in Supply Chain Security
  Excellence Securing and protecting our business
  and our partners interests.
• First International Port Operator to achieve ISO
  28000 (Supply Chain Security Management Systems)
  Lloyds Certified.
• Executive commitment to a Global ISO 28000 roll
  out programme covering all of our facilities over
  the next three years.
• Adoption of European initiatives on supply chain
  security (AEO)
• First International Port Operator invited to
  become a member of the US Customs Trade
  Partnership against Terrorism (C-TPAT).
• Largest number of terminals participating in
  Customs Security Initiative.
• Partner in US Secure Freight Initiative
  (Integrated Container Scanning Pilot).

• IT systems focused on delivering efficiency and
  meeting customer needs.
• IT strategy provides flexibility to design IT
  solutions that best fit the needs of each
  terminal.
• Majority of terminals uses synchronous planning
  and real time control system (SPARCS), a software
  solution designed by NAVIS, as terminal operating
  system and optimal inventory controls.

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Global Supply Chain Security Initiatives

• ISPS Code (2004) IMO (Development of MTSA 2002,
  USCG Regs 2003)
• Operation Safe Commerce (US)
• Container Security Initiative (US)
• Customs Trade Partnership Against Terrorism (US)
• Secure Freight Initiative
• World Customs Organisation (Framework -
  Standards)
• EU Supply Chain Security Standards (AEO)
• IS0 28000 Standards for Security Management
  Systems

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Evolution from ISPS
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SECURITY INITIATIVES (Procedural)
ISO 28000 International Standards for Security
Management Systems of Supply Chain

• Builds on ISPS from being a port-ship interface
  to interface entire supply chain.
• Complies with WCO Framework principle, US CBP
  C-TPAT, EU AEO and serves as a model for other
  standards in development.
• DP World first terminal operator to gain
  international certification of its security
  management systems.
• Currently 10 sites, Head office, Jebel Ali,
  Pusan, Antwerp, Le Havre, Djibouti, Vancouver,
  Caucedo, Tilbury and Southampton.
• Process underway for certification of further 10
  sites by end 2008.
• Complete roll out across all terminals by 2010.
  All new build terminals being commissioned to ISO
  28000 standards.

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SECURITY INITIATIVES (Procedural)

• Customs Trade Partnership Against Terrorism
  (C-TPAT)
• Government Business Initiative to Strengthen
  Supply Chain Border Security
• Voluntary partnership between CBP Industry.
• Cooperation with importers, carriers, brokers,
  warehouse operators, manufacturers.
• Businesses to ensure integrity of their security
  practices communicate security guidelines to
  business partners within the supply chain.
• Businesses must commit to self assessment of
  supply chain security
• DP World has attained full membership making us
  the only international port operator to be
  invited to join the Customs-Trade Partnership
  against Terrorism (C-TPAT) initiative by US
  Customs and Border Patrol.

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SECURITY INITIATIVES (Procedural)

• Authorised Economic Operator (AEO)
• EU Regulations to Improve Security of the Supply
  Chain Across EU - Customs Security Programme
• Compliance and Partnership between customs and
  trade
• Compliance with customs requirements, management
  systems, financial solvency and
  security/safety/risk assessment standards.
• Pilot project complete July 2006, voluntary until
  2009 then legislated.
• DP Worlds ISO 28000 certification program
  and security practices provides evidence and
  manages compliance with AEO requirements

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Pilot Project - SFI

• DP World Southampton
• Over a period of 23 weeks (Sept Feb) scanned a
  total of 120, 000 containers
• Systems raised 720 alarms
• All of them resolved during secondary screening
  (ASP) in an average time of less than 2 minutes
  per container
• No operational or commercial impact.
• Qasim International Container Terminal
  Pakistan
• Project commenced April 2007
• Volumes of containers handled at QICT increased
  by 3

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Integrated Facility Security System
CLOSED CIRCUIT TV
ACCESS CONTROL
ALARM SYSTEM
ANTI-INVASION SYSTEM
CONTROL CENTERS
SOFTWARE INTERFACING
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DP World

• We are involved in all current global security
  programmes and initiatives.
• We are committed to implementing the highest
  levels of security standards, processes and
  technology in all our global ports.
• We believe 100 scanning of containers is
  practical and viable globally.
• We look forward to the development of a common
  security standard applicable universally across
  the supply chain.

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Safety Environment

• Global Objectives
• Safety
• First ever global fatality free year ASAP
• 20 reduction in injury frequency rates per annum
  for 5 years
• Ready for accreditation under Safety Management
  System (OHSAS18001) by 2009.
• Environment
• Zero serious spills globally
• 1 reduction in CO2/MTEU emissions per annum for
  5 years
• Ready for accreditation under Environment
  Management System (ISO 14001) by 2009.

DP World is committed to a policy of Zero Harm to
people and the environment
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Safety Environment

• Global Strategy
• Leadership
• Active senior management involvement and
  commitment
• Budgets for Safety
• Promotion and Communication
• Performance Management
• Organisation Services
• Global SE in Dubai and links with regions
• Regional dedicated SE professional support
• Business units have min one full time SE
  Professional support
• Fatal Risk Standards
• Sign off by CEO/COO for mandatory compliance 80
  by end of 2008
• Behaviours Supervision
• Implementing DP World Behaviour Based Safety
  (BBS) programme
• Training ( Train the trainer)
• Management Systems
• Develop Safety Environmental Management System
  (SEMS)
• Competency Based Standards

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Case Study Jebel Ali T2 Expansion Project
Strategic Rationale
Project Description

• Terminal 2 expansion project adding a total
  capacity of 5m TEUs
• Phase 1 consists of 1.2km of quay length, 2.0m
  TEUs capacity.
• Equipped with 8 gantry cranes
• Phase 2 will consist of additional 1.3 km of
  quay, 3 berths, 17m depth alongside, 3.0m TEUs
  capacity
• Terminal 2 will be fully operational by Mid 2009
  with an expected capacity of 5.0 million TEUs.

• Demand-led investment, able to cater for Suezmax
  vessels (12,000 TEUs)
• Adjacent to Terminal 1 and, therefore, the Free
  Zone also
• Maintain leading position in customer service
  having the most advanced infrastructure and
  superstructure

DP World will become a mega hub servicing the
Dubai World Central International Airport and
Logistics City
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DP World Jafza complementing growth
TEUs handled by DP World, Dubai
No of companies in Jafza
gt 6,000 customers in Jafza
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DC World
Services

• Total Customs Management
• Customs Consultancy
• Reform and Modernisation of Customs
  Administration by developing
• Custom Systems, Policies, Processes and
  Procedures
• IT Application Solution for all types of Custom
  Clearance
• Financial Management System
• HR Management System
• Organisational Structures Job Descriptions
• Customs Warehouses Management System
• FREEZONE Customs Management System
• Full Training Programme Package for all Human
  Resources

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DC World
Djibouti Project

• By implementing the Mirsal System in Djibouti
  Customs, DC World quickly reached significant
  achievements in producing the following results
  when compared to 2004.
• Increased Revenue by 40
• Reduced transactional time consumed for Customs
  Clearance from 3 days to 30 minutes to complete
  all processes
• Increased Customs Bills transaction by 50
• Reduced Customs Clearance by Green Channel
  Customers to 5 minutes

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Thank you
Information contained in this presentation is
accurate as of 16 November 2008