Ports & Container Shipping Growth Outlook – Saudi Arabia

1. Maritime Saudi Arabia 2010 May 31, 2010 Ports & Container Shipping Growth Outlook – Saudi Arabia

2. Saudi Arabia Economic indicators • GDP real growth has dropped from 4.4% in 2008 to 0.2 in 2009, and expected to steadily regain upto 4.9% within 2012 • Population 2009f: 29m, GDP per capita 2009f: USD14.7k • Exports 2009f: USD180b; expected to grow 17% in the year 2010 • Imports 2009f: USD86.6b; expected to grow at 9% in the year 2010 • Trade Balance: USD93.4b, Current Account: USD24.56b

3. Economic Outlook • Saudi Arabian economy is built on very strong foundation • The Saudi petrochemicals is the fastest +25% growing export commodity in the region • USD+8B has been invested in the Petrochemical sector over the last 3 years • Additionally, there is further USD8B planned for the next 4 years primarily in the industrial hub city of Rabigh, Yanbu and Jubail • The Saudi retail business is the largest in GCC – estimated to be USD97B within the next 03 years • Government is continously supporting development projects; plans to spend USD+400b on infrastructure in the next 4 years • Real estate sector, infrastructure projects receives major share of budgetary spending • King Abdullah Economic City development project – a major milestone • Ambitious Land-bridge project linking the West and East of the Kingdom underway • Construction of 06 major economic cities going ahead as planned

4. What drives the Saudi Arabian Economy.. • The economy is driven by Oil and Petrochemicals export today, and is expected to grow exponentially in the coming years amid the rapidly expanding construction and real-estate market • Active diversification program • Cost advantage enjoyed by the Saudi Arabian petrochemical exporters • Saudi Arabia – a key player in the global Petrochemical manufacturing and exports • Some 3,657 factories operating in the kingdom with total investments of $68b • +650 projects currently on-going; primarily construction and infrastructure related

5. Saudi exports growth expectations in FFEs 13% 29% 21%

6. Saudi Exports are set to catch up imports really fast..

7. High focus areas to exploit the economic boom.. • Enhanced port capacity and productivity • Operational Excellence • Attract transportation capacity • Equipment availability to move the export flows • Develop the land bridge infrastructure • Build awareness on the Global freight rate trends • Understand the needs of the end customer to service them better.

8. Terminal capacity expectations in TEU 17% 24% 30%

9. Without the Land bridge

10. With the Land bridge

11. Growth Management – Critical Factors to Consider • 2010 is a kick start to robust growth for the overall market • Export growth in the region continues to outpace the import growth, to the extent that container availability is fast becoming a challenge • Port development has been good over the recent years, with new terminals as well expansion plans being worked at to manage the growth expectations • Far East, China in particluar, is growing more rapidly, many carriers are deploying furthermore assets in the profitable trades. • The asset deployment to cover Saudi Arabia is dependant on the margins which the market will offer, which at this moment is one of the least in the GCC region. This will make both space as well equipment situation further worst, which will impact the Saudi customers and market negatively. • West bound cargo (Exports) average freight from Saudi Arabia is currently 30% lower than other countries in the region, making our market relatively less attractive from investment perspective • Post expansion logistics are foreseen to remain a hindrance.