How Fast Can You Run

1
How Fast Can You Run?

• Challenges and Opportunities in the
• Global Marketplace of the 21st Century

2
Economic Transition

• Local Economy
• National Economy
• Global Economy
• Telecommunications
• Global Supply Chain
• Expanding Markets

3
Birth of the Intermodal Global Supply Chain

• Pan Atlantic Steamship IDEAL-X 4/26/56
• New York-Houston
• Caribbean
• California-Honolulu
• Alaska
• International 1965

4
Cost Efficiency Productivity Rule the Waves

• Economics
• 1956 - IDEAL-X 5.83/ton vs. 0.16/ton
• 1966 - Moore McCormack 16.00 vs. 2.25
• Productivity
• Container 1/6 of Conventional
  Loading/Off-Loading Port Dwell Time 50 / 50
  vs. 15 / 85

5
Maritime Explosion

• Fleet Size and Capacity
• 1956 IDEAL-X Enters Service
• 1965 50 Vessels/25,000 containers
• 1974 600 Vessels/325,000 containers
• 2004 3,478 Vessels/7,708,524 containers
• 2006 400 New Vessels Delivered
• Vessel Size and Capacity
• 1956 58 containers
• 1966 250 containers
• 1978 3,500 containers
• 2000 10,000 containers
• 2006 13,000 containers
• Malacca Max 18,154 containers

6
Global Supply Chain Extends Inland

• Intermodal Interchange
• Vessel - Truck
• Vessel - Rail - Truck
• Double Stack Land Bridge
• Railroad 1 Revenue Source
• 3PLS - Seamless Logistics Management
• Ports Become Logistic Campuses Centers of
  Commerce

7
Supply Chain in Place - Global Economy Takes-Off

• New Business Opportunities
• Extend Reach Expand Markets
• Improve Efficiency Competitiveness (JIT)
• Global Partners Sourcing
• 2/3 Containers Intermediate Goods
• Barbie Goes Global Hair-Taiwan, Plastic-Japan,
  Colorants-USA, Assembly-China, Product
  Distribution-Worldwide.

8
Global Trends

• US Economic Activity
• 1970 7
• 2000 25
• 2050 - 50
• US Ports become Commercial Gateways
• 1970 1 million containers
• 2000 20 million containers
• 2020 50 million containers
• 2050 100 million containers

9
The Global Marketplace of the 21st Century
Looking Ahead( of World GDP)

2004
2050
10
Global Economic Opportunity

• Accessibility
• Existing Business More Competitive
• Potential to Attract New Enterprise
• Business Growth and Diversification
• Isolation
• Existing Business Less Competitive
• Little Potential for Attracting New Enterprise
• Business Stagnation and Ultimate Decline

11
Its Time to Run!

• Every morning in Africa, a gazelle wakes up.
• It knows it must run faster than the lion or it
• will be killed.
• Every morning a lion wakes up.
• It knows it must outrun the gazelle or starve.
• It doesnt matter if youre a gazelle or lion.
• When the sun comes up, you better start
• running!