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Beijing Olympics 2008 Logistics information KWEPEK Branch April, 2008

Beijing Olympics 2008 Logistics information KWEPEK Branch April, 2008. Content. Map of Beijing Olympics Venue s Beijing Olympics 2008 Schedule Beijing Paralympics 2008 Schedule Outlook For Restrictions Olympic Restrictions Impact on Logistics (1) Vehicle control

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Beijing Olympics 2008 Logistics information KWEPEK Branch April, 2008

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  1. Beijing Olympics 2008 Logistics information KWEPEK BranchApril, 2008

  2. Content • Map of Beijing Olympics Venues • Beijing Olympics 2008 Schedule • Beijing Paralympics 2008 Schedule • Outlook For Restrictions • Olympic Restrictions Impact on Logistics (1) Vehicle control • KWE Contingency Measures (1) Vehicle control • Olympic Restrictions Impact on Logistics (2) Traffic control • KWE Contingency Measures (2) Traffic control • Olympic Restrictions Impact on Logistics (3) Security Control Air Export Import and Ocean Export Import • KWE Contingency Measures(3) Security Control Air Export Import and Ocean Export Import • Olympic Restrictions Impact on Logistics (4) Environment Control • Tailor-made Contingency Plan • Related Web Sites

  3. Beijing Olympics Venue Maps

  4. Beijing Olympics 2008 Schedule • Start date: Friday Aug 08, 2008 • End date: Sunday Aug 24, 2008 • Period:17 days 1) Beijing 2) Qingdao (Sailing event) 3) Hong Kong (Equestrian events)

  5. Beijing Paralympics 2008 Schedule • Starting: Sep. 06, 2008 • Ending: Sep. 17, 2008 • Duration: 12 days 1) Beijing 2 ) Qingdao (Sailing events) 3 )Hong Kong (Equestrian events)

  6. Outlook For Restrictions Vehicle Traffic • RestrictionsStrengthened : Apr-Jun, 2008 • Restrictions Implemented: Jul-Sep, 2008 • Very Strict Restriction Implemented: Aug-Sep, 2008 Environment Security Olympics Aug 08th～Aug,24th Security Control related Restrictions strengthened Apr～ Paralympics Sep 06th～Sep,17th * Traffic Controls Start * Automobile restrictions Start * Environment and other restrictions Start Jul ~ Sep

  7. Olympic Restrictions Impact on Logistics1) Vehicle Control Key Government Policy Governmental and commercial vehicle utilization reduced by 50%. (Special case controlled by 70%. ) Implementation guidance 1）Jul. 1st ～Sep. 20th 1 “Yellow label” trucks (Non-Emission Control Standard) prohibited from entering Beijing 2）Jul. 1st～Aug. 27th 2)Trucks registered in other provinces banned from entering Beijing 3）Jul. 1st～Jul. 19th 3)20% of vehicle registered to Beijing enterprises prohibited from use during Olympic 4）Jul. 20th～Sep. 20th 4)Daily traffic is subject to odd and even number plate controls 5) Automobiles registered in other provinces allowed to enter Beijing, but prohibited from entering into 5th ring road 5）Aug. 28th～Sep. 20th Anticipated Problem: shortage of Trucks for delivery and pick-up

  8. KWE Contingency Measures Odd-Even plate number regulations Beijing “Passport Road License” issued only to Logistics Providers who Possess a valid Transportation Business License, and Operate 10 or More “Green Label” Trucks • EFFECTIVE June 15th, KWEPEK will operate a fleet of 14 Green-label trucks • KWEPEK contractors Secure additional 15~20 Green label trucks • KWEPEK implements truck operation plan based upon Odd-Even plate number • restrictions (effective Jun 15th)

  9. Olympic Restrictions Impact on Logistics (2)Traffic control Key Government Policy Top Priority: Olympic related operations 1) Trucks over 3 tons prohibited from entering Beijing City 1) Current 2)3rd-5th ring road designated by BOCOG (Beijing Organizing Committee for Olympic Games) as “Olympic Lane” or zone 2) Effective July * Limitations rescinded overnight (00:00~05:00) • Anticipated Problems: • Entry into Warehouse and Airport Terminal prohibited for trucks registered • in other provinces • Pick up and delivery in Beijing city delayed

  10. KWE Contingency Measures Expand KWE TSN’s warehouse（1,500 M2) as buffer zone Countermeasure A Domestic cargo Delivery to KWEPEK warehouse by Beijing regesty truck or direct delivery to customers in Beijing city. Export cargo Delivery to PEK airport by Beijing registy truck or delivery to Tianjin for customs clearance and export (Air and Ocean) Set up domestic warehouse in Langfang area (Hebei) or Mentougou Area (south of Beijing) as buffer zone Countermeasure B Domestic cargo Delivery to KWEPEK warehouse by Beijing registy truck or direct delivery to customers in Beijing city. Export cargo Delivery to PEK airport by Beijing registry truck or delivery to Tianjin for customs clearance and export (Air and Ocean) Around-the-clock operation at KWEPEK domestic warehouse ( 2 locations,total12,000M2)

  11. Olympic Restrictions Impact on Logistics(3)Security Control: Air and Ocean Export / Import Key Government Policy Customs clearancerelated to Olympics top priority. Security at airport strengthened Restriction Plan IATA dangerous goods for both export and import embargo. Embargo dangerous good list( As of 18th-Apr) 1)Class1, Explosives 2)Class2.3, Toxic Gas 3)Class6.1(Packing Group I—high danger), Toxic Substances 4)Class 6.2, Infectious Substances 5)Class7. Radioactive Material (Category III - Yellow) Air Export 1) Increased cargo security inspection (X-Ray machine) Effective 18th Apr If security officer can not see the contents of cargo clearly, the skid must be broken down and carton opened. 2) Begin operations at New Airport Terminal (T3) With the launch of BJS New Terminal 3 from Mar. 26, Cargo Terminal’s tender and retrieval cut off times extended by approximately1.5 hours. 3) Cargo Freighter services are expected to put on hold during Olympics ANA will cancel cargo freighter on the Japan lane and other cargo freighters are expected to be put on hold. Increase expected in passenger flights, ,but cargo freighter space will be decreased.

  12. Olympic Restrictions and Impact on Logistics(3)Security Control: Air and Ocean Export / Import • Continued • Anticipated Problem (Air Export): • Limited Space Capacity, especially for North America, Europe and HKG • Transport Restrictions may cause original flight schedules to be missed • The Increased cargo inspections may result in higher incidence of damaged cargo • General recommendation: Beijing customers consider changes in supply-chain • planning and scheduling for procurement, manufacture and shipping

  13. Olympic Restrictions Impact on Logistics (3)Security Control: Air and Ocean Export / Import Air Import • Continuation 1)Customs Clearance and CIQ inspection related to the Olympics assume top priority. 2) Cargo Freighter services are expected to put on hold during Olympics ANA will cancel cargo freighter on the Japan lane and other cargo freighters are expected to be put on hold. Increase in passenger flights, but cargo freighter space to decrease. 3) Longer delivery times due to vehicle restrictions and traffic controls Ocean Export and Import TSN Xingang Gateway port trucking to/from PEK may be impacted by traffic control • Anticipated Problems: • Priority given to Olympic-related cargo customs clearance and CIQ inspection, non-Olympic related • cargo expected to require longer processing time • Longer pick-up times due to vehicle restrictions and traffic control

  14. KWE Contingency Measures • Air Export • KWE will work proactively and closely partner airlines to protect space capacity • Especially for Japan lane, Europe (transit cargo for Germany, Netherlands and UK), • North America, HKG and Southeast Asia and other KWE network destinations • Prepare buffer warehouse capacity at KWE Beijing domestic warehouse • to accommodate customer’s production planning • Utilize TSN as alternative airport cooperated with KWETSN branch • Coordination with airlines and customers to avoid cargo damage

  15. KWE Contingency Measures • Air Import ・Ocean Import and Export Provide warehouse buffer capacity at KWE Beijing domestic number 2 warehouse Special accommodations for delivery, vanning, de-vanning (24 hr operations) Provide warehouse buffer capacity (Bonded) at Beijing Bonded Logistics Center Organize special team for customs and CIQ to support customer’s requirements. (KWE is nominated as recommended customs broker by BOCOG) KWE Beijing branch will make customer-specific delivery routing and scheduling Plans (4) Environmental Controls As an environmental control measure power stations and some factories may be required To reduce production or shut down to minimize smog-producing emissions during the Olympics and Paralympics.

  16. KWE Beijing system for Olympic Customer-specific Contingency Planning • KWE sales and operations teams will meet with customers to discuss customer-specific issues for the period of the Olympic games • Based upon customer-specific issues, KWE teams will formulate and implement proposals to optimize customer’s supply-chain strategies during the period of the Olympic games Thank You!

  17. Related Web Sites 1. Beijing 2008 Olympic Games http://en.beijing2008.cn/index.shtml 2. Beijing 2008 Paralympics Games http://en.beijing2008.cn/paralympic/ 3.BOCOG website http://en.beijing2008.cn/bocog/ 4. BOCOG Customs & Freight Manual website http://en.beijing2008.cn/news/official/bulletin/media/n214144391.shtml 5. Equestrian Freight Manual http://en.beijing2008.cn/news/official/bulletin/media/n214168070.shtml BOCOG:Beijing Organizing Committee for the Olympic Games

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