AHTI KUNINGAS

1
"Access to markets in Baltic Sea Region changing
patterns and emerging hubs"

• AHTI KUNINGAS
• Deputy Secretary General
• 09.11.2008
• Ministry of Economic Affairs and Communications,
  Estonia

2
Global trends

• Global economic downturn
• Financial crisis
• Rising (and falling) oil prices
• What is the impact on international trade and
  shipping industry?

3
Source Financial Times
4
Source Financial Times
5
Where is the market? Average GDP growth in Europe
in next 5 years
6,0
4,6
1,5
Source IMF World Economic Outlook Database,
October 2008
6
Oil prices high and unstable
Source Energy Information Administration (USA)
7
Future in shipping industry trends

• Big is beautiful. Also in global container fleet?
• Current hubs congested
• New attractive markets
• Emergence of regional container hubs
• Estonia regional hub in the making

8
Increasing size of container vessels
lt2000 TEU
2000-3999 TEU
50
4000-4999 TEU
40
gt5000 TEU
30
20
10
1991
1996
2001
2006
9
Global conteiner fleet keeps getting bigger
2008 Global container capacity grows 15 by
2012 more than 157 ships larger than 10 000 TEU!
MAIN QUESTION How to utilize extra capacity?
10
Current hubs congested

• Capacity utilization rate in Rotterdam,
• Hamburg, Antwerp 95-96
• 2. Markets growth coming from Eastern
• Europe and former CIS countries
• 3. Conteiner traffic increasing faster
• that port capacity
• .

NEED FOR NEW PATTERNS!
11
Emergence of regional hubs

• Direct intercontinental routes getting closer to
  the market

12
Estonia is a well positioned gateway to emerging
markets -North-Western Russia -Baltic
countries -former CIS -Scandinavia Total
approx. 93 million sophisticated consumers
Stockholm 375 km
Riga 308 km
Moscow 1044km
Vilnius 600 km
Minsk 620 km
Kiev 1269 km
13
New connections, new partnerships
Tallinn
Ningbo
14
Development plans 2008-2011 Port of Tallinn
Muuga container terminal
320m/-16m
1260m/-16m
320m/-14,5m
15
Welcome to the future!

• Thank you! ??!
• Ahti Kuningas
• ahti.kuningas_at_mkm.ee