A Competitive Europe needs short sea & feeder shipping

1. A Competitive Europe needs short sea & feeder shipping Gavin W. Roser Deputy Chairman Coastlink Network Ltd “Motorways of the Sea: Very supportive of principle, there are oceans of space on the oceans; the politicians will have to act eventually due to environmental factors, levels of congestion on the roads, weight restrictions, weekend road restrictions, expansion of road tolling, increased cost of haulage including the fuel factor. Tony Paulsen former MD of Unifeeder 040706” Coastlink Network Ltd

2. Europe “Motorways of the sea” • Western Europe GDP14,345 billion $ • Population400 million • South Central & Eastern Europe includes Russia GDP2,587 billion $ • Population 401 million Coastlink Network Ltd

3. Impact of China & India on the global economy • China & IndiaGDP = 3,595 billion $ • Population 2,427 million • Combined per capita 2,860 $ • Assumption: • Per capita of 15,000 $ say by 2020 fivefold increase • Combined population (2007 levels) 2.4 billion as against US & Europe • 1.1 billion x 2.4 therefore 5 x 2.4 = consumption x 12 over US & Europe • Questions: • What does that do for energy demand especially if oil is in short supply? • What impact on the global economy? • Conclusion: • Turbulent world if we do not find a substitute for oil, result significant • impact in transport strategy, • Perhaps stable world if we do find alternative energy and growth in Asia • & Indian sub continent is gradual. Coastlink Network Ltd

4. The “Scandinavian Initiative” Annual Conference School of Business, Economics & Law Gothenburg University Wednesday 3rd & Thursday 4th September 2008 Coastlink Network Ltd

5. Annual Conference Gothenburg The bridge to the hinterland The mother vessel The feeder TruckTrain an Intermodal solution Coastlink Network Ltd

6. Tunnel Vision Shippers Shipping Lines Legislation & supporting structures Ports Coastlink Network Ltd

7. Shipping Lines, Ports, Shippers & Maritime Education meet to produce the “Scandinavian Initiative” • Feeder networks in Northern Europe - are they fit for purpose and can we make them more cost effective? • European Bottlenecks - How do we reduce or eliminate them? • Are shippers driving the choice of transport modes? Is cost the main driver? Are shippers serious about reducing the carbon footprint? and the Role of Dry ports in the supply chain • Is there really an oil crisis? If so, will the consumer pay? • What is the industry, ports and shipping, doing to prepare their executives for managing change in 2020? Coastlink Network Ltd

8. Stakeholders & Gothenburg Coastlink Network Ltd Port of Sodertalje

9. Capacity. • Service patterns. • Price fixing. • Closer co-operation. • Increased focus of data interchange. Coastlink Network Ltd

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11. What does LEGO expect from Shipping Lines and Ports • Alternative solutions: • Short sea alternative to road transport to/from Nordic ports to EU main ports • Train solutions from Central Europe to EU main ports (capacity and reliability) • Use of European waterways (reliability is important) • Differentiated services: • Fast and slow boat set-up • Premium cost for use of fast boat service • Environmental friendly and lower cost for slow boat • Flexible and quick port handling • Fast lane service at a premium cost • Service • Shipping Lines manage door/door solution with full visibility • Having a environmental policy, reports, statistics etc. • Minimize list of surcharges (BAF, CAF, ISPS etc.) • Secure reliability in service with increased demands to security and environment • in mind • Port capacity if all containers need to be scanned • Risk of increased congestion if infrastructure is not supporting volumes going in • and out of ports (congestion on road/rail) Coastlink Network Ltd

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13. Source Dynamar Coastlink Network Ltd

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15. The future Hyper Leviathan Length overall: 455 metresBreadth: 61.50 metresDraft: around 19.7 metres Total capacity: 21,700 TEUUnder deck: 10,500 TEU (11 tiers)On deck: 11,200 TEU (9 tiers) Data sourced from AXS-Alphaliner Coastlink Network Ltd

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19. European Short Sea Average spot rates D. Shea LSCM Consulting Coastlink Network Ltd

20. Gothenburg Coastlink Network Ltd

21. Russia St Petersburg (Cobelfret) Killingholme Zeebrugge Coastlink Network Ltd

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23. Port of SODERTALJE Stockholm The Stockholm Regions best located port! Helsinki Oslo St. Petersburg Tallinn Södertälje Gothenburg Riga Moscow Copenhagen Vilnius Kaliningrad Coastlink Network Ltd Hamburg

24. Litre of diesel per container Goal No 3 Coastlink Network Ltd

25. Geographic Coverage • Unifeeder currently serves 36 ports and estimates 10,000 port calls in 2008 • Frequent reliable calls with a flexible schedule that can adapt to customer needs • Five additional ports in 2008 – so far. • S – Umeaa • S – Sundsvall • Fin – Mantyluoto • B – Zeebrugge • NL – Amsterdam • More in the pipeline Umeaa Umeaa Mantyluoto Mantyluoto Hamina Hamina Sundsvall Sundsvall St. Petersburg St. Petersburg Kotka Kotka Helsinki Helsinki Oslo Oslo Tallinn Tallinn Moss Moss Fredrikstad Fredrikstad Skien Skien Halden Halden Larvik Larvik Riga Riga Gothenburg Gothenburg Klaipeda Klaipeda Halmstad Halmstad Helsingborg Helsingborg Aarhus Aarhus Malm Malm ö ö Fredericia Fredericia Copenhagen Copenhagen Hamburg Hamburg Bremerhaven Bremerhaven Amsterdam Felixstowe Felixstowe Rotterdam Rotterdam Antwerp Antwerp Zeebrugge 25 Coastlink Network Ltd

26. Cargo flow - Baltic Sea – containers Mainly import Mainly export Postioning of empty units direct from Baltic Sea surplus ports to Baltic Sea deficit ports. 26 Coastlink Network Ltd

27. “The Scandinavian Initiative” Short Sea Shipping {SSS} 1 • Bunker prices and competitiveness of short sea shipping (SECA areas, will also have negative impact on road) • Need for ports, shippers and shipping lines to create an open environment for dialogue to mutually sweat the assets in an environmentally positive way • Road pricing (maut) WTD, digital tachographs, shortage of drivers will combine to increase tonne mile costs of road haulage, SSS will benefit • Shippers support reduction in carbon footprint but few are prepared to pay 1 cent extra for greener transport solutions, however some shippers are now open to new ideas provided any new SSS solution ticks the boxes of price, flexibility and reliability Coastlink Network Ltd

28. “The Scandinavian Initiative” Short Sea Shipping {SSS 2} • Main criticism of shippers: “you cannot ask shipping lines to tender for business based on spreadsheet numbers only” • If shippers want frequency, reliability and low cost they should be prepared to sit down in the same room as other shippers, including their competitors, to identify how volumes can be concentrated on to specific routes – making the frequent operation of a shipping service viable {role of competition regulation?} • Swedish Ship Owners Association amongst others are impacted by State Aid guidelines on shipping policy & practice • Not withstanding priority in all sectors {or tunnels see slide 10} will be given to Air emissions Sox, Nox and CO2 levels. Coastlink Network Ltd

29. Channel Tunnel & RoRo Links to Continental Europe Intermodal rail growth yes Continent/UK provided no negative on the shuttle services – tunnel perspective Ferries competitive influence and new tonnage Coastlink Network Ltd

30. Rail & the Supply Chain Reefer High Cube JIT High Value Goods Major KPI – value of freight moved Coastlink Network Ltd

31. F & L - Project Pendolino Intermodal hubs 2015 In a borderless Europe Coastlink Network Ltd

32. Congestion buster Coastlink Network Ltd