The way to become a modern Port Solutions Integrator. APM Terminals Gothenburg. STHLM E-PACK & LOGISTICS 24 th October 2017

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1 The way to become a modern Port Solutions Integrator APM Terminals Gothenburg STHLM E-PACK & LOGISTICS 24 th October 2017

2 Agenda Conflict in Gothenburg a problem for Sweden Industry & Market Trends Way forward: Port Solutions Integrator

3 Conflict in Gothenburg A problem for Sweden

4 Some people still have a romantic picture of Port of Gothenburg - in an isolated world far away from reality and not sustainable.

5 Port of Gothenburg is known for strong dockworker unions We need long term labour stability, within the Swedish Labour model, similar to all industries in Sweden! Break out from TWU Swedish Dockworkers Union (SDU) is established, without CBA rights Long conflicts at Port of Gothenburg: Working hours, labour benefits, reduction of staff including long periods of blockades without results being reached 2015, new conflicts/blockades about overtime, summer plans resulting in poor customer flexibility. Repeated in 2016 SDU demands 11 points rolled back prior to APMT take over, later present 6 point list of demands SDU demands more influence and VETO over Transport Union, who holds CBA within all Swedish Ports! Minister of Labour involved, inquest to change the labour laws (ready MAY 18) Transport Workers Union & Swedish Ports Association holds the Collective Barganing Agreement for all Swedish Ports Port of Gothenburg and City of Gothenburg decides to privatise port operations: RoRo-, Container- and Energy facilities 17 terminal operators bid on PoG container concession, APM Terminals wins the rights to operate 25 years During 2016: - 70 dialog meetings, - 32 directly with SDU, - 5 days with lawyers, - 7 days with Swedish Mediation Institute, APMT offers SDU a local agrmt. National Swedish Mediation Institute offers 2 agreements : - A local side agreement - A local limited CBA - APMT agrees to both, - SDU declines both APM Terminals reset the business - Partial Lock-out to counter SDU (4) blockades - Reduce manning by Layoffs AUG 17 - JAN 18 - New manning agency

6 The main reason to the conflict is a legal mistake in the conflict rules Swedish labor model Union base democratic structure conflict rules (mistake) CBA Swedish Ports Transport workers union Demands conflict Konflikt All Swedish companies have agreements within the Swedish Labor model Each and every issue that one of more members finds important can start a strike, anytime The law allows blockades or strikes, to obtain a CBA, BUT in this case a CBA is already signed with Transport Workers Union

7 What s the solution to the conflict? CBA Law Sveriges Hamnar Transportarbetarförbundet Actions needed: Legal change necessary Speed up the current investigation of legal possibilities 7

8 APM Terminals: Working together under the same roof, within the Swedish labor model Engaged in Safety Customer flexibility Competence development Transportarbetareförbundet Övriga fackförbund Clear roles and responsibilities Efficiency to customers/company Increased engagement Negotiations and dialog Kollektivavtal APM Terminals Hamn 4:an

9 Labor conflict affecting the volume *) Moves /month Blockades 40,000 Blockades Strikes spring 2016 Strikes fall % Blockades 60% 15,000 50% Blockades/ Partial lock-out Business Reset JAN FEB MAR APR MAJ JUN JUL AUG SEP OKT NOV DEC JAN FEB MAR APR MAJ JUN JUL AUG SEP OKT NOV DEC *) JAN2016-SEP2017 actuals. OCT-DEC2017 forecast

10 Industry & market trends

11 Growth continues globally Million TEUs (Source: Drewry Shipping Consultants)

12 Market consolidation is shaping the shipping industry

13 Deployment of larger vessels drive port selections Fewer bigger import/export gateways Ultra efficient hub terminals Natural navigational access and water depth

14 Swedish trade is under pressure Sweden is at the end of worlds largest trade corridor; Asia Europe Swedish container market is small: 1,500,000 x 20 containers/year Gothenburg Gothenburg at risk of loosing mainliner calls Aarhus Risk of extra costs for transshipment and feeder vessels SEK 3-4b per year, Each shipment 1 week longer, increased environmental impacts etc. Bremerhaven Wilhelmshaven Hamburg Gdansk

15 Progress in other industries

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17 Way forward: Port Solutions Integrator

18 Business focus at APM Terminals Improve the product line Operational excellence Deliver reliable services Growing direct services Flexible and engaged workforce 18

19 Concluding remarks Customers demands: Predictability, Flexibility and Connectivity at Lowest costs Equipment Intelligence, Digitalisation and Automation differentiates the port industry The entire Logistics Industry will be connected APM Terminals will be on the forefront and stimulate Sweden s economic growth

20 What s at stake? Swedish Trade, risk of loosing markets Swedish competitiveness, unnecessary extra costs Growth for West Swedish region Scandinavia's largest port Jobs in the industry and logistics sector Increased infrastructure investments in or near Port of Gothenburg

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