2011 Company brochure. Leading the industry. Providing port and inland services expertise essential to world trade

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4 2011 Company brochure Leading the industry Providing port and inland services expertise essential to world trade

5 Algeciras, Spain Providing the port and inland infrastructure that drives global commerce APM Terminals operates a Global Port, Terminal and Inland Services Network comprising 56 ocean port and terminal facilities in 33 countries, and over 100 Inland Services locations in 47 countries, with a combined total of 24,000 employees in 63 countries worldwide. Modern port infrastructure and access is essential to global trade and economic growth. APM Terminals is an independent port and terminal development, management and operating division within the A.P. Moller-Maersk Group. The APM Terminals Global Port and Terminal Network is the world s most geographically balanced port and terminal portfolio, and continues to grow to meet the needs of our customers in the shipping industry, and the global economy. To put this industry in perspective, 90% of all global trade moves by ship, with liner services alone carrying $4.6 trillion worth of international trade annually - approximately one third of the total value of world trade. APM Terminals works closely with the global shipping community, national governments, and individual businesses to reduce costs, deliver operational excellence and improve market access worldwide. Access to modern port infrastructure drives local, regional and international market competitiveness and economic development. For logistics professionals, the APM Terminals Global Port and Terminal Network plays an important role in supply chain management with location, capacity, flexibility and efficiency clearly linked to supply chain success and port-centric logistics. See to download photos, videos and more information. APM Terminals by the Numbers Countries: 63 Internal Administrative Regions: 4 Employees: 24,000 Operating Port and Terminal Interests: 56 New port projects in development: 5 Inland Services locations: 132 Annual Revenue in 2010: $4.2 billion Containers handled in 2010: 31.5 million (weighted by equity share) Size of global container market in 2010: 550 million TEUs On the cover: Algeciras, Spain 3

6 Contents 6 Meeting the requirements of global commerce 8 Partnerships and Progress 10 Our strategy and business model 11 Investing in the Future 12 The Power of People Third Quarter results Financial highlights 18 Crane & Engineering Services 19 Quantifying a positive presence: Socio-economic impact in Apapa, Nigeria 20 Safety is a way of life at APM Terminals 21 Environmental sustainability 22 APM Terminals journey 26 Global port and terminal network 28 Global inland services network Port Elizabeth, New Jersey 4 5

7 Meeting the requirements of global commerce Global economic growth depends upon efficient port and inland infrastructure. APM Terminals accepts the challenge. The outlook for the global container port industry (in TEU millions) % Figures from Drewry Shipping Consultants, 2010 ( figures based on 7.2% average annual growth projections) Kim Fejfer CEO I am proud to say that APM Terminals is one of the world s leading terminal operating and management companies. It is our goal to be the best. We offer our customers a comprehensive and geographically balanced Global Port, Terminal and Inland Service Network of 24,000 employees representing over 60 port and terminal facilities in 33 countries including 16 new development or expansion projects underway, And more than 100 Inland Services locations in 47 countries. Providing the world s shipping industry with world-class service, reliability and efficiency, APM Terminals offers unrivalled experience in developing and operating marine infrastructure, and inland container facilities. With new international trading patterns taking shape around the world APM Terminals is continuing to invest in meeting the need for modern port, container terminal and Inland Service infrastructure, particularly in high growth areas where access to global markets remains underserved. commitment to implementing a safety culture across the company. Our emphasis as a company, and as individuals, in such areas as safety, sustainability and corporate governance is what helps to differentiate APM Terminals from other companies in our industry. As global trade grows, driving the expansion of global economic growth, the role of shipping and of the marine infrastructure Earn the customer by being the best in our customers eyes. Take costs out by offering the best operational performance to our customers. Drive performance upon which it relies will become an even larger factor in global economic and social progress. This is a role we take very seriously, and it is part of our company philosophy to promote health, education and employment opportunities as an agent of positive change as we continue to grow with our customers and the industry s needs. Our ambition remains unchanged - to become the leading port operator in the world, not necessarily the biggest but the best in our customer s eyes. Three simple objectives guide our activities: by being the best with our people and delivering organizational results through any economic cycle. These objectives drive our ongoing efforts to work closer than ever with our customers, our partners and government leaders to support their goals and provide the port infrastructure necessary to drive global commerce and help people and businesses worldwide Infrastructure investment and the container industry The future of the port industry is promising and exciting. It is not, however, without challenges. In the first half of 2011 container throughput in the APM Terminals Global Port and Terminal Network grew by approximately 8%, allowing for discontinued operations at six facilities worldwide last year, as we have aggressively managed our portfolio to match customers needs, and our own market analysis. Overall global container throughput has risen at approximately the same rate during this period, while expanding by 14.5% in High growth markets will be at the forefront of economic and trade growth in the years ahead, and will be a focus of our own project development and expansion planning. The most recent International Monetary Fund (IMF) World Economic Outlook projections, updated for September 2011, call for a combined annual GDP growth rate of 6.4% and 6.1 for economically developing and emerging nations in 2011 and 2012 respectively a rate as much as four times the projected growth for the advanced economies of Western Europe, North America and Japan during the same period. World trade in goods by volume has been forecast by the IMF to rise by 8.4% in 2011 and by 5.8% in 2012, again led by emerging and developing economies. In these areas historically underserved by the container industry, significant port and terminal infrastructure investment and modernization will continue to be a priority. In 2010, approximately half of APM Terminals container volume was generated in emerging market nations. We will continue to focus on this sector to strengthen our competitive position and anticipate the needs of our customers and the shipping industry. Global strength in people, ports and Inland Services We are committed to expanding APM Terminals most distinctive advantages over our competitors: our Global Port, Terminal and Inland Services Network, and our employees. Another major difference is our adherence to strict company policies and principles concerning corporate governance, corporate social responsibility, and sustainability. Sustainability is a central tenet of our business model with regard to social and environmental impact, and in terms of safety performance at all APM Terminals facilities. We view these efforts as socially responsible and economically sound. I remain optimistic about APM Terminals aspiration to become the leading port operator in the world for a number of reasons: Our customer base represents the world s leading shipping lines and importers/exporters. World trade is expanding and as a result, the marine and inland container handling infrastructure in which we specialize will assume an increasingly larger role and importance in the global economy. Capacity around the world -in both mature and emerging markets enables us to better withstand any cyclic industry or regional downturns which may occur. Our people are passionate about winning in the marketplace and making a difference in their profession. These combined strengths will help us to continue to lead the evolution of our industry and to create opportunities for our customers, our colleagues, our business partners, and the world around us. Making a difference APM Terminals was named winner of the 2011 Lloyd s List Global Safety Award at the prestigious annual industry Awards Gala on September 20th in London. The award was presented in recognition of APM Terminals exceptional commitment to improving safety standards over the past year, and genuinely comprehensive approach to safety and a real Portsmouth, Virginia Tangier, Morocco 6 7

8 Partnerships and Progress Martin Gaard Christiansen Chief Commercial Officer We view our business relationships as partnerships. The success of these partnerships assures success in business for all concerned. At APM Terminals partnership means a close working relationship with every customer -providing value-driven services from the company philosophy that every customer is a global client. Cost of terminals to shipping lines Terminal Costs Vessel Costs Bunkers Inland Transportation Adminisration & Other Costs Container & Equipment Cost of terminals on the supply chain a) FOB Value b) Other Costs: Ocean Freight 25% 25% 18% 14% 12% 6% 98.85% 0.57% What s different about APM Terminals? Location, location, location A truly Global Port, Terminal and Inland Services network serving both mature markets and high growth economies. China: Ten operating terminals serving the second largest economy in the world, and a national container throughput of 170 million TEUs in 2010, or nearly one out of every three TEUs handled worldwide. Europe: 11 operating terminals with 3 in development serving this 400 million person market. India: Two terminals serving the second most populated nation in the world, with one of the world s fastestgrowing economies: Mumbai: Operating the busiest container terminal in India at the country s largest commercial and financial center. Pipavav: A growing alternative as gateway port to Northwestern India s inland markets. Latin America and Caribbean: Four operating terminals: two in Brazil and one each in Argentina and Peru, with two new terminals in development at the ports of Santos, Brazil, and Moin, Costa Rica. Middle East: Khalifa Bin-Salman Port- the Bahrain Gateway, and the region s fastestgrowing ports of Salalah, Oman; Aqaba, Jordan and the Suez Canal Container Terminal at Port Said East, Egypt. Southeast Asia: Operations include Cai Mep, Vietnam, the only deep-water terminal in Vietnam; interests in two terminals in Laem Chabang, Thailand; and Tanjung Pelepas, Malaysia- one of the region s fastest-growing ports, ranked 17th globally in throughput with 6.5 million TEUs in USA: 9 terminals serving the 308-million strong American market: the world s largest economy at $14.6 trillion; largest merchandise importer with $1.97 trillion, and the world s second-largest exporter, with $1.28 trillion worth of goods in West Africa: 9 facilities in 8 counties, including APM Terminals Apapa, the busiest container terminal in West Africa. APM Terminals has built the world s most comprehensive and geographically balanced Global Port, Terminal and Inland Services Network to serve our partners and to grow our relationships in every major trade lane and market across the globe. Inland Haulage Insurance Terminal Handling 0.28% 0.23% 0.06% We plan for the long-term, and invest in operations and locations to meet not only the current, but the future needs of our business partners. Relationships are long-term as well, with a commitment to making sure that we meet our customers expectations- and more in service, quality and reliability. Documentation Source: Drewry 0.01% Zeebrugge, Belgium We are working hard every day around the world to keep our partnerships healthy and strong, and to keep our customers our customers. Industry-recognized excellence Let us start working for you Awards 2010 Awards Tanjung Pelepas, Malaysia Lloyd s List 2011 Global Safety Award Seatrade 2011 Innovation in Ship Operations Award Pacific Maritime Association Safety Awards Ecoval Trophy Transport Africa Awards Best Port Operator in Africa Corporate Governance Award for Transparency and Honesty Zero Accident Award (Bronze Level) Special Jury Award, Oman Green Awards Safety at Sea International Award Port Community Award Pacific Maritime Association Safety Awards New York Shipping Association Safety Award Chemtech Leadership and Excellence Award Moroccan National Safety at Work Award 8 9

9 Our strategy and business model Investing in the Future Francois Delenclos Vice President, Business Development To accompany the transformation of APM Terminals into the leading port company in the world, not necessarily the biggest but the best in our customer s eyes, we designed and started the execution of a disciplined, multi-year strategy with clear targets. This medium-term ambition is supported by yearly milestones with a focus on: Earn the customer by being the best in our customers eyes. Take costs out by offering the best operational performance to our customers. Drive performance by being the best with our people and delivering organizational results through any economic cycle. We have defined measurable performance indicators to monitor how we fare on our targets and discuss progress and necessary actions several times a year with our Regions and terminals. In addition to this business strategy, we are frequently reviewing our portfolio to make sure our footprint is aligned with commercial demand changes and to make sure our management efforts are focused on the most demanding locations. to invest where our customers require new investments, expansions or equipment upgrades. In particular, emerging markets with high growth require investment either to replace outdated port infrastructure or to create new gateways. We are in constant dialogue with all shipping lines to anticipate their needs and even develop strategic partnerships and pursue investments together. Inland Services Container Inland Services was a business unit of the A.P. Moller-Maersk Group which was integrated into our company in 2010, and will allow us to offer customers more solutions as well as new efficiencies, operating flexibility, inland transporation and container lifecycle management. Offering both gateway and relay ports designed for today s large ships The trend for larger vessels entering into the world s container fleet is ongoing. An order was recently announced for 20 vessels of 18,000 TEU capacity- the largest vessels of any kind afloat. Ships of this size require 16.5 meters (50 feet) deepwater draft, large turning basins, and high productivity cranes able to reach as many as 23 containers across the deck; efficiency of port and terminal operations is essential for the economies of scale represented by these Ultra-Large vessels to be fully realized, or even possible. APM Terminals is well-positioned to serve the new fleet of superships that offer shipping lines the chance to consolidate port calls, save money, attain eco-goals and fuel efficiency, reposition containers quickly and grow with the market. Our partners make us stronger Our Global Terminal Network is made of numerous joint ventures. By teaming up with customers, local business partners, governments and other industry players we have been able to help our clients defray costs, enter new markets faster and offer sustainable service while keeping pace with the demands of the marketplace. We remain focused on operational excellence, and the disciplined execution of our business strategies, which position us well for the future. Tiemen Meester Vice President Business Implementation Our Port, Terminal and Inland Services facilities are carefully designed for local conditions, but with the future in mind, to maximize efficiency and productivity as soon as they become operational. Cai Mep International Terminal, which was opened this March 50 km (31 miles) southeast of Ho Chi Minh City in Vietnam s primary port area with an annual capacity of 1.1 million TEUs, is the only container facility in Vietnam capable of handling the larger vessels now increasing entering into the global fleet. CMIT s first call was the 11,500 TEU capacity CMA CGM Columba- the largest containership ever to call a Vietnamese port, introducing a new era in the region s access to global trade and markets. New port and terminal development projects are currently underway in the APM Terminals network around the world in fast growing and underserved markets such as Santos, Brazil; Moin, Costa Rica and Poti, Georgia. During the first six months of 2011 APM Terminals committed to investing over $1 billion in new infrastructure projects and expansion. We will continue to carefully evaluate markets and opportunities with both global and local considerations in mind for our company, and the communities we serve. Modern infrastructure, particularly port and transportation, is an essential requirement for economic development, but one size does not fit all. Port projects Asia Pacific Cai Mep, Vietnam Qingdao, China Americas Callao, Peru Moin, Costa Rica Santos, Brazil Cai Mep, Vietnam Forecast average utilisation levels by world region North America West Europe Far East South East Asia Mid East Latin America Oceania South Asia Africa Eastern Europe World % 67% 71% 79% 79% 72% 75% 74% 77% 72% 71% Africa Middle East Pointe-Noire, Republic of the Congo Monrovia, Liberia Europe Poti, Georgia (Poti Sea Port) Rotterdam, Netherlands (Maasvlakte 2) Vado, Italy Wilhelmshaven, Germany (Container Terminal Wilhelmshaven) % 61% 90% 86% 91% 72% 84% 84% 71% 51% 78% Low utilisation levels High utilisation levels As market conditions change with economic cycles and because we seek majority ownership and control in the locations where we are present, we may from time-to-time adjust our portfolio by divesting non-strategic minority holdings. By doing so, resources are freed up Los Angeles, California 10 11

10 The Power of People Derrick Shirley Interim Head of Human Resources APM Terminals is global in scale, scope and influence, with 24,000 dedicated colleagues in over 60 countries working together to make our company the best in the industry. Accomplishing such a goal takes commitment and ambition on both a corporate and personal level, but the rewards, both personally and professionally are well worth the effort. Diversity With operations on five continents and in every major global trade lane, APM Terminals draws from the very best, providing opportunities for personal and professional growth for employees locally and internationally. As we continue to expand into high growth markets in Asia, Latin America, Africa, the Middle East and Eastern Europe, our workforce, at all levels, will increasingly reflect the richly diverse social fabric of the communities which we serve. Local hiring and training is a cornerstone of APM Terminals corporate policies. Training Standardized formal instruction and practical training on equipment and procedures is being implemented throughout the APM Terminals Global Port, Terminal and Inland Services Network. We have invested in crane simulators which are now the most advanced in Africa so that for the first time crane operators can be trained within the region. There will be more opportunities to come. Professional Education The APM Terminals talent acceleration MAGNUM program introduced a three year affiliation this year with the prestigious Barcelona-based ESADE (Escuela Superior de Administración y Dirección de Empresas- School for the Higher Study of Business and Administration ). Chosen from applicants within the APM Terminals Global Port, Terminal and Inland Services Network through a rigorous selection process, MAGNUM participants undertake a three-module, one year program featuring practical terminal hands-on training assignments as well as rigorous classroom curricula. The current 2011 MAGNUM class of 30 managers represents APM Terminals operations in 22 countries in North and West Africa, East, South and Southeast Asia, the Middle East and Latin America as well as North America and Europe. The MAGNUM program is just one of the ways in which APM Terminals invests in our most valuable asset: our people. Corporate leadership team APM Terminals places a very high value on leadership. Our Leadership Team is comprised of experts in diverse areas from across the company, including commercial, legal, finance, operations and safety. These senior executives represent significant experience in navigating Kim Fejfer CEO Christian Moller Laursen Vice President and CFO the complexities and opportunities of running and growing a global business. We are proud to have combined the most talented and proactive team of business leaders yet, and confident that working together we will achieve our shared goal of becoming the best company in the industry. Martin Gaard Christiansen Chief Commercial Officer CEO, Asia Pacific region Francois Delenclos Vice President Business Development Tiemen Meester Vice President Business Implementation Erik Eisenberg Head of Communications Drawing upon the best talent in the world we aim to constantly improve our service to customers, shareholders and business partners. Peder Sondergaard CEO Africa-Middle East Region Eric A. Sisco President Americas Region Martin Poulsen CEO Europe Region Derrick Shirley Interim Head of Human Resources Johan Breukelaar Head of Health and Safety 12 13

11 2011 Third Quarter results Revenue USD $1.205 billion Segment result after tax was a profit of USD $174 million 11% increase in container throughput Business from customers outside the A.P. Moller-Maersk Group are 46% of total volume 8.6 million TEU throughput (weighted by equity share) Return on invested capital after tax (ROIC) of 13.5% Signed 33-year concession for Moin, Costa Rica Commenced operations at Callao, Peru Awarded concession for Skandia Container Terminal, Gothenburg, Sweden The global container market Global container throughput increased by 7% in the third quarter, and during the first nine months of 2011 compared with the same periods in Worldwide container volume has been projected to continue to expand, led by high-growth emerging markets for the remainder of the year. As the third quarter began, the global liner fleet stood at 5,969 vessels, representing 15.6 million TEUs of capacity. There are outstanding orders for 660 new containerships, representing additional capacity of 4.5 million TEUs, including 162 vessels of 10,000 TEU capacity or more. These ultra-large container ships (ULCS) represent nearly half of all new capacity awaiting delivery. APM Terminals facilities are at the forefront in expanding equipment and depth capabilities to accommodate this latest generation of containerships which will account for an increasingly larger proportion of the industry s volumes. APM Terminals Container traffic through the APM Terminals Global Port and Terminal Network increased to 8.6 million TEUs during the third quarter (container volumes weighted by equity share) representing an 11% rise over the third quarter 2010, and 10% growth on a like-for-like basis for existing facilities Revenue of $1.205 billion for the third quarter represents a 15% increase over the Third quarter of 2010, with a profit of $174. EBITDA rose by 17% for the period, compared with last year, to $280 million, and return on invested capital (ROIC) improved to 13.5% from 11.9%. Business from customers outside of the A.P. Moller-Maersk Group accounts for 46% of all volume. For the first nine months of 2011 revenue was $3.417 billion, with container throughput (weighted by equity share) of 24.8 million TEUs. During the third quarter APM Terminals signed a 33-year concession for the Moin Container Terminal at Puerto Limón in Costa Rica, and began operations at the North Terminal in Callao, Peru. APM Terminals was also awarded a 25- year concession to manage and operate the Skandia Container Terminal at the Port of Gothenburg, Sweden s largest container port. For the 3rd quarter Highlights Change Revenue 1,205 1,049 15% Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) % Depreciation, amortisation and impairment losses % Gain on sale of non-current assets and businesses, net % Associated companies share of profit/loss for the period % Profit before financial items (EBIT) % Financial items, net 1 1 0% Profit before tax % Tax % Profit % Cash flow from operating activities % Cash flow used for capital expenditure % Return on invested capital after tax (ROIC), annualised 13.5% 11.9% Containers handled (measured in million TEU and weighted with ownership share) % Cai Mep, Vietnam 14 15

12 2010 Financial highlights Revenue USD $4.251 billion Gain of USD $459 million from sale of noncurrent assets Segment result after tax was a profit of USD $492 million (adjusted) 7% increase in the number of containers handled by APM Terminals, allowing for discontinued operations Business from customers other than Maersk Line and Safmarine increased to 44% of total volume in million TEU throughput (based on equity share) APM Terminals global market share of 6% 2010 Financial highlights APM Terminals USD million Highlights Revenue 4,251 4,240 Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) Depreciation, amortisation and impairment losses Gain on sale of non-current assets, net Associated companies share of profit/loss for the year Profit before financial items (EBIT) Financial items, net 3 41 Profit before tax Tax Profit Cash flow from operating activities Cash flow used for capital expenditure Non-current assets 5,116 5,466 Current assets Non-interest bearing liabilities 1,137 1,152 Global recovery In 2010, the global container terminal market rebounded strongly from the steep drop of Overall port throughput worldwide, measured in Twenty-foot Equivalent Units (TEUs), increased by 13% in 2010 over the year prior, according to Drewry Shipping Consultants. The number of containers handled by APM Terminals (as measured by crane lifts weighted by APM Terminals facility ownership share) was up 2% compared with 2009 to 31.5 million TEU. Allowing for discontinued operations in six locations: (Oakland and Savannah in the USA; Kaohsiung, Taiwan; Yantian, China; Voltri, Italy; and Dunkirk, France), however, APM Terminals volumes grew by 7%. APM Terminals During 2010, APM Terminals continued to focus on development in emerging markets and portfolio management to improve performance. The integration of inland activities into APM Terminals was a strategic step designed to strengthen and expand client services. APM Terminals is now also able to enter new markets related to marine cargo activities and provide our customers greater opportunities for integrated solutions, covering a larger part of the logistics chain. As part of our increased focus on infrastructure development in high growth markets, APM Terminals concluded a joint venture agreement regarding establishment of a new terminal in Santos, Brazil, and a concession agreement for the operation of the port terminal in Monrovia, Liberia. The construction of the new port terminal in Cai Mep, Vietnam neared completion on schedule to commence operations in early A number of facilities were expanded or upgraded during 2010 to address growing market demand, notably the Suez Canal Container Terminal in Port Said, Egypt, the Aqaba Container Terminal on the Red Sea, in Jordan, and the terminals in Lagos, Nigeria and Luanda, Angola. New terminal development is ongoing at Wilhemshaven, Germany; Vado, Italy; and the Maasvlakte II project at the Port of Rotterdam. APM Terminals continued to broaden its customer portfolio as container volume from customers other than Maersk Line and Safmarine increased by 12% (19% adjusted for discontinued terminals), to account for contributing 44% of APM Terminals total volumes, up from 41% in APM Terminals entered into long-term agreements with Hyundai Merchant Marine for space at the Pier 400 facility at the Port of Los Angeles, and with the Virginia International Terminals operating division of the Virginia Ports Authority for a 20-year lease of the APM Terminals Virginia facility in Portsmouth, Virginia. APM Terminals remains an industry leader in the areas of Safety and Sustainability, and was awarded the Safety at Sea International (SASI) Award in the category of Management and Operations in 2010, and recorded a reduction of more than 10% in CO2 emissions per crane lift during 2010 compared with Revenue for the combined Port and Inland Services businesses Increased to USD $4.251 billion in The EBITDA margin for port activities increased from 24.4% to 25.3%, primarily as a result of cost reductions. The total EBITDA margin was negatively affected by lower earnings and restructuring costs in inland activities, declining from 21.2% to 20.4%. The results were positively affected by divestment of an ownership interest in Sigma Enterprises Ltd. at a gain of USD $423 million before tax and negatively affected by impairment losses and provisions made for restructuring of inland activities, etc. Excluding these amounts, profit for 2010 was USD $492 million as compared with USD $431 million for 2009, with Cash flow from operating activities USD $845 million Return on invested capital (ROIC) was 16.0%, up from 10.0% in the preceding year. Invested capital, net 4,749 5,173 Return on invested capital after tax (ROIC 16.0% 10.0% Containers handled (measured in million TEU and weighted with ownership share) APM Terminals crane lifts split by region, weighted by ownership share % Americas Europe Asia Africa, Middle East, India 17% 18% 37% 29% Americas Europe Asia Africa, Middle East, India 15% 19% 37% 16 17

13 Crane & Engineering Services An APM Terminals Company now serving the terminal and ports industry Quantifying a positive presence: Socio-economic impact in Apapa, Nigeria Project management Attending the project from the feasibility study to handover Engineering Providing technical expertise at every stage and design review Quality assurance Inspection of the supplier s manufacturing per standardized Inspection Test Protocol Commissioning Verification and supervision of supplier s commissioning according to standardized commissioning report APM Terminals Crane & Engineering Services has formally expanded its scope to offer expert technical guidance and project management services for the design, procurement and installation of STS cranes, RTG cranes and other heavy terminal equipment to Port Authorities and container terminal operators outside of the APM Terminals Global Terminal Network. Officially established as an independent business interest within APM Terminals in February of 2009 with headquarters in Shanghai, China and offices in The Netherlands and Germany, the focused 25-person team represents collective experience of over 200 years in crane engineering and procurement procedures in 28 ports and 22 countries on five continents. Apapa, Nigeria The new enterprise is headed by Managing Director Halfdan Ross who is located in the Shanghai office. CES headquarters location enables close coordination with Shanghai Zhenhua Heavy Industries (ZPMC), the world s leading manufacturer of port cranes, and a long-time business partner of APM Terminals. The CES team will retain its responsibility for crane engineering, procurement and project management for the APM Terminals Global Terminal Network while taking on new clients, with an emphasis on expertise in emerging markets which are projected to lead container industry growth in the years ahead. Services offered: Assistance in the generation of technical specification and tender documents; Proposal evaluation and recommendation of potential suppliers; Support during contract negotiations; Development of Functional Descriptions; Project Management, from awarding of the contract to crane commissioning; Engineering design review; Electrical, structural and mechanical inspections throughout the manufacturing process at the crane manufacturer s facilities; Commissioning supervision at both the manufacturing base and the destination terminal; Assessment of existing cranes. Tanjung Pelepas, Malaysia For more information, please CESinfo@apmterminals.com Total turnover distribution Suppliers Employees Investors Management Public Sector* 72% of our total turnover is channelled back into the local economy Since assuming operational responsibility for the Apapa Container Terminal in 2006, APM Terminals has invested nearly $200 million USD in terminal improvements, equipment and personnel development. In order to assess the overall impact of the investment in and operation of a modern port or container terminal in the local community a formal study was undertaken by APM Terminals of the Apapa Container Terminal, which with an annual throughput of approximately 485,000 TEUs in 2010 was the busiest container terminal in West Africa, in Africa s most populous country. The project included 30 key stakeholder interviews, which evaluated the terminal s (*A tax adjustment was made in 2009, due to an overpayment in 2008). 61% 15% 13% 15% 4% impact on promoting local economic growth, job creation, improved standards of living and technology transfer. Using 2009 data, the study revealed that the terminal occupied over 1,000 people in daily operations, including 700 direct employees, representing family dependents of an additional 3,500 individuals. The extended indirect activities required by the facility, including trucking, maintenance and other supporting functions were found to have created 31,393 jobs overall. Notably, it was also determined that 72% of the Apapa Container Terminal s financial throughput remained within the local Apapa community. (*Tax adjustment in 2009, due to overpayment in 2008). (Reduced waiting time for vessels loading and unloading containers and the elimination of terminal congestion fees has saved the Nigerian economy an estimated additional $200 million USD annually as productivity has improved). APM Terminals has refined this assessment tool for use at other facilities to promote and maximize local economic growth and benefits for every community in which we operate throughout our Global Terminal Network

14 Safety is a way of life at APM Terminals Environmental sustainability APM Terminals adopted a Safety for Life program in 2004, designed to continuously improve safety practices throughout the APM Terminals Global Terminal Network. Safety education, training, drills and rigorous measurement are combined to bring focus, awareness and positive results to this effort, and we have had results; recognized most recently with the Lloyd s List 2011 Global Safety Award. In 2010 our overall safety metrics continued to demonstrate APM Terminals significant gains in safety performance. By the standard industry measure of Lost-Time Injury Frequency (LTIF), which is calculated per million of man-hours worked, there was a 25% improvement over the course of the year as the combined Port, Terminal and Inland Services LTI rate dropped from 5.82 in 2009 to 4.35 in Many more individual facilities have achieved at least a 100 day LTI-Free performance since the introduction of Safety Culture training in 2008 for all employees. One key factor in the success of this program is local accountability. This principle has helped to promote the sense of inclusion and personal responsibility that the Safety Culture initiative has introduced. This starts at the very top of the organizational chart, with our company CEO and other senior leadership expected to prepare personal safety plans along with everyone else, and to be evaluated according to LTI reduction among APM Terminals personnel world-wide. A key component of this company engagement is the reporting of nearmiss incidents, which catalog occasions in which accident or injury was narrowly avoided. Filing a near-miss report can address potentially dangerous situations, as well as send an important signal of alertness to safety issues in our day-today operations. The number of near-miss incident reports by Marine Operations and Inland Services personnel increased by 26% from 10,151 in 2009 to 12,832 in It is notable that in 2008, when the program began, the nearmiss reports numbered 2,600. We are very pleased with this clear sign of enthusiastic acceptance of the concept into our company mindset, and as an increased level of accountability in all employees, working toward our shared goal of eliminating all accidents and fatalities within APM Terminals, and the terminal industry Safety performance Injuries EUR APAC AMI AMR LITF performance (combined ports and inlands activities) Near miss reports (combined ports and inlands activities) 947 2,298 1,862 1, ,251 6, AMI AMR APAC EUR 449 1,127 AMI AMR APAC EUR AMI: 55 AMR: 223 APAC: 41 EUR: 165 Total: % reduction in LTIF rate vs % improvement in Near miss performance vs APM Terminals is an industry leader in the protection and proactive conservation of the environment, and environmental sustainability is a priority in managing our operations. On a company-wide level, major policy steps were taken in 2010 to promote Green operations. One of the primary initiatives is to utilize carbon-neutral energy sources rather than diesel power. Approximately 12% of APM Terminals electricity is now sourced from CO2 neutral power, up from 4% in 2009, which has reduced diesel fuel consumption by 10,000 tons. Other conservation measures have reduced overall electrical consumption by 40,000 megawatt-hours (MWh) compared with The decision was made in 2010 to covert the APM Terminals global RTG fleet to eclectic power from diesel power. The conversion will commence with the Asia-Pacific Region facilities this year. Aggressive ongoing environmental initiatives have enabled APM Terminals to meet its stated goal of reducing CO2 emissions per TEU handled by 15% from the 2007 baseline. In 2010, kg of CO2 per TEU were produced, representing a 16.3% decline in emissions per TEU from 2009, when CO2 emissions were kg per TEU; (of this figure, 9% of the CO2 reduction registered for 2010 was due to direct efficiency improvement, while the remaining 7% difference reflected changes in the scope of emission tracking and measurement). This year APM Terminals will also implement a company-wide Environment Management System (EMS) which is aligned with ISO14001 standards; a framework that will allow all business units to mitigate and control environmental impact in both marine and Inland Services operations. These and other tools such as Process Excellence programs, outside performance auditing and benchmarking will also be used to promote employee engagement and environmental awareness. All new terminal projects are designed to reduce environmental impact by 20% compared with existing business levels. All business units are now required to track monthly energy consumption to gauge progress, and identify new opportunities for improvement. Our goal for 2011 is to reduce our environmental footprint by another 6%. CO2 emissions per TEU declined by 16.3% in Rotterdam, The Netherlands C0 2 (kg/teu) C0 2 (kg/teu) C0 2 (kg/teu) 21

15 APM Terminals journey Captain Peter Mærsk Møller and his son, Mr. A. P. Møller establish A/S Dampskibsselskabet Svendborg (the Steamship Company Svendborg) with a single second-hand ship in Copenhagen, Denmark Laem Chabang Terminal B-1 opens in Thailand Mr. A.P. Møller independently establishes Dampskibsselskabet af 1912, Aktieselskab (the Steamship Company of 1912), for cargo vessel operations Agreement signed to develop the Port of Salalah, Oman The first dedicated company terminal opens in Brooklyn, in the Port of New York. Agreement signed for Dalian Port Container terminal, China The container era begins with weekly Sea-Land Services vessel calls between the US and Northern Europe The first dedicated Maersk container terminal opens at Port Elizabeth, New Jersey. American shipping company Sea-Land Services is acquired, including a significant holding of container terminals in major US ports Operations begin in Rotterdam; 30% share acquired in Port Tanjung Pelepas, Malaysia

16 APM Terminals journey (continued) APM Terminals is established as a container terminal operator within Maersk Line APM Terminals annual throughput (weighted by terminal equity share) is 14.3 million TEUs. APM Terminals Pier 400, the world s largest proprietary container terminal, opens in Los Angeles. Agreement signed to create joint venture to operate the Port of Luanda, Angola Annual throughput (weighted by terminal equity share) is 16.7 million TEUs. A 49% share of Shanghai East Container Terminal, in China s largest port is negotiated APM Terminals becomes an independent business unit, moving to a separate company headquarters in The Hague, Netherlands. Annual throughput exceeds 20 million TEUs Annual revenue $1.5 billion USD. Teconvi opens in Itajai, Brazil; majority share acquired in Port Pipavav, India. Annual revenue is $2.06 billion USD. APM Terminals is named Best Global Terminal Operator by Containerization International. Operational control is assumed at Apapa Container Terminal, Nigeria; and Mina Salman Port, Bahrain. APM Terminals Zeebrugge and Gateway Terminals India, Mumbai open Financial results reported separately as an independent business within the Group. Annual throughput exceeds 30 million TEUs; revenue $2.51 billion USD. APM Terminals Virginia, the largest privately-owned container facility in the US, opens in Portsmouth Annual throughput exceeds 34 million TEUs, with revenue of $3.1 billion USD. Mobile Container Terminal Opens; operational control assumed at Port of Pecém, Brazil New Bahrain Gateway Terminal opens; consortium to develop Pointe-Noire, Republic of Congo; non-ap Moller-Maersk companies account for 42% of revenue. Named Port Operator of the Year by Lloyd s List A.P. Maersk-Moller Group Inland Services unit added to the APM Terminals portfolio. Acquisition announced of 50% share in Brasil Portuário Terminal and a new 2.2 million TEU capacity facility under construction at the Port of Santos, Brazil. APM Terminals signs Monrovia Concession for 25 years to operate Port of Monrovia, Liberia, investing USD 120 million to modernize the port. The port will be the first 100% APM Terminals-owned terminal in Africa, representing the company s positive outlook for the region Awarded the concession for the design, financing, construction, operation and maintenance of the new Moin Container Terminal in Costa Rica; awarded the concession for Terminal Muelle Norte in the port of Callao, Peru, to be developed into a modern multipurpose facility; purchased majority share in APM Terminals Poti, Georgia; awarded concession for Skandia Container Terminal, Gothenburg, Sweden

17 Global port and terminal network Serving global trade and economic growth Key colors Head Offices Operational terminals Terminals with expansion projects New terminal projects Office Americas 1 Port Elizabeth, New Jersey, USA 2 Americas Regional Office Portsmouth, Virginia, USA 2 Portsmouth, Virginia USA (Leased to VA Port Authority) 3 Charlotte, North Carolina, USA 4 Charleston, South Carolina, USA 5 Jacksonville, Florida, USA 6 Miami, Florida, USA 7 Mobile, Alabama, USA 8 Houston, Texas, USA 9 Los Angeles, California, USA 10 Tacoma, Washington, USA 11 Moin, Costa Rica 12 Panama City, Panama 13 Callao, Peru 14 Pecem, Brazil 15 Santos, Brazil 16 Itajai, Brazil 17 Buenos Aires, Argentina Europe 18 Le Havre, France 19 Zeebrugge, Belgium 20 Rotterdam, Netherlands 21 Maasvlakte II, Netherlands 22 Europe Regional Office Rotterdam, Netherlands 23 Bremerhaven, Germany 24 Wilhelmshaven, Germany 25 World headquarters, The Hague, Netherlands 26 Aarhus, Denmark 27 Oslo, Norway 28 Algeciras, Spain 29 Vado, Italy 30 Poti, Georgia 31 Gioia Tauro, Italy 32 Tangier, Morocco 33 Port Said (SCCT), Egypt Africa Middle East 34 Monrovia, Liberia 35 Abidjan, Ivory Coast 36 Tema, Ghana 37 Cotonou, Benin 38 Apapa, Nigeria 39 Onne, Nigeria 40 Douala, Cameroon 41 Pointe Noire, Congo 42 Luanda, Angola 43 Aqaba, Jordan 44 Salalah, Oman 45 Bahrain, Bahrain 46 Africa, Middle East Regional Office, Dubai, UAE 47 Colombo, Sri Lanka Asia Pacific 48 Pipavav, India 49 Mumbai, India 50 Laem Chabang, Thailand (2 terminals: LCB1 and LMCT) 51 Cai Mep, Vietnam 52 Tanjung Pelepas, Malaysia 53 Kobe, Japan 54 Yokohama, Japan 55 Guangzhou, China 56 Xiamen, China 57 Shanghai, China 58 Asia Pacific Regional Office Shanghai, China 59 Qingdao, China (3 terminals: QQCT, QQCTU and QQCTN) 60 Dalian, China (2 terminals: DCT and DPCT) 61 Tianjin, China (2 terminals: TACT and TECT) 26 27

18 Global inland services network Americas 1 Mexico 2 Guatemala 3 El Salvador 4 Honduras 5 Dominican Republic 6 Costa Rica 7 Ecuador 8 Peru 9 Chile 10 Argentina 11 Uruguay 12 Brazil Europe 13 Denmark 14 Germany 15 Netherlands 16 Belgium 17 UK 18 France 19 Spain 20 Tunisia 21 Turkey 22 Romania as Africa Middle East 23 Mauritania 24 Senegal 25 Mali 26 Ivory Coast 27 Ghana 28 Nigeria 29 Cameroon 30 Dem. Republic of the Congo 31 Namibia 32 South Africa 33 Mozambique 34 Tanzania 35 Kenya 36 Uganda 37 Sudan 38 Jordan 39 Saudi Arabia Asia Pacific 40 Pakistan 41 India 42 Thailand 43 Malaysia 44 Vietnam 45 Philippines 46 Taiwan 47 China 28 29

19 Tangier, Morocco 30 31

20 2011 World headquarters APM Terminals Anna van Saksenlaan HW The Hague The Netherlands T Regional offices Africa Middle East APM Terminals AMI Management DMCEST Suite 1809, Executive Heights TECOM Site C, Al Barsha P.O. Box Dubai United Arab Emirates T F Americas APM Terminals 1000 APM Terminals Blvd. Portsmouth, Virginia United States T Asia Pacific APM Terminals No. 166, Lujiazui Ring Road Mirae Asset Tower, Unit C - E, 8/F Pudong New Area Shanghai China T Europe APM Terminals Rivium Boulevard LK Rotterdam The Netherlands T For further information contact APM Terminals Communications Department The Hague, Netherlands Thomas.H.Boyd@apmterminals.com An A.P. Moller-Maersk Group company

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26 Sustainability Report 2011 Our Journey Towards Excellence in Sustainability

27 APM Terminals 2011 Sustainability Report APM Terminals 2011 Sustainability Report About the Report CEO Statement This report provides an overview of APM Terminals sustainability performance for The report complements the content of A.P. Moller-Maersk Sustainability Report 2011, with specific reference to APM Terminals operations, activities and interests. In addition to this sustainability report, we refer readers who are interested in a more detailed overview of our sustainability activities and performance, to our website: sustainability The report is designed as a reference for our stakeholders including our employees, contractors, joint venture partners, customers, suppliers, local, regional and global regulators, government agencies and non-governmental organisations and the members of the communities in which we operate. In this report we present updates on our economic, social and environmental performance and provide a perspective as to how we manage sustainability in our businesses both globally and locally. We also examine how sustainability is integrated into our daily operations as well as our long-term company strategy and planning. We consider this document an essential part of a process of open dialogue and invite comments, observations and views from our stakeholders. In compiling this report, we have observed good practice reporting guidance such as the Global Reporting Initiative (GRI) reporting framework, including the GRI transport and logistics sector supplement, the principles of the AA1000 Assurance Standard and advice from Business for Social Responsibility (BSR), a global business network focused on sustainability. This report covers all APM Terminals operations and activities for the period of 2011 unless otherwise specified. The APM Terminals 2011 sustainability performance data are part of the Group consolidated performance data in the A.P. Moller Maersk Group s Sustainability Report KPMG Sustainability issued an Independent Assurance Report on the Group Sustainability Report. Content 2 About the Report 3 CEO Statement 4 About the Business 6 Our Commitment & Governance 8 Financial Performance 10 Safety Performance 14 Environmental Performance 18 Our People 22 Our Communities 24 Socio-Economic Development 26 Performance Data 28 Awards 29 Partnerships 30 Global Port and Terminal Network Kim Fejfer Chief Executive Officer, APM Terminals Sustainability: Our Commitment and Responsibility I am very pleased to present you with APM Terminals 2011 Sustainability Report. This is our second annual review of our achievements, performance and priorities in the area of sustainability. APM Terminals is a global business with continuing expansion focused on high growth markets, especially in Asia, South America and Africa (where we are currently the biggest terminal operator by container throughput, weighted by equity share). Through financial investment in these markets and the promotion of global trade and world-class operations, our business creates positive effects in terms of local economic growth and also social progress. There is still much to be done and we view this challenge not only as a commitment to our owners but to all of our stakeholders. We are proud of the role we play in promoting economic growth through prudent infrastructure investment, particularly in high-growth markets currently underserved by modern port facilities and cargo handling inland services. Most of the 3 billion USD APM Terminals committed to invest in 2011 in new port infrastructure and expansion of existing facilities was invested in the high-growth markets of Moin (Costa Rica), Callao (Peru), Monrovia (Liberia) and Poti (Georgia). Our goal is for APM Terminals to become the recognised industry leader in port and terminal operations and management. There are many ways to measure industry leadership and success, not all of which are reflected in financial performance, crane lifts and new concessions signed. We determine the success of our accomplishments also by achieving high safety standards, reducing the environmental impact of our expanding global operations and by making positive contributions to the communities in which we operate. We will achieve this through a strict adherence to principles in the areas of human rights, labour, environment and anti-corruption, as listed in the United Nations Global Compact to which we are a signatory, by meeting or exceeding environmental regulations and by making safety and local job creation a priority as we expand our business interests. Through continuous improvement we are confident that we can achieve long-term sustainable business success. We share our report with you in the hope of exchanging ideas and finding new ways to achieve our goals through ethical, transparent and sustainable business practices. There is still much to improve, notably the unacceptable number of fatal accidents. Our goal of zero fatalities and zero accidents is of major importance and I fully support it. I hope you find the information contained here beneficial and that you will join us in working toward a successful, safe and sustainable business. Contact Details We welcome your feedback. If you have any comments about this report or about APM Terminals sustainability activities generally, please contact us at sustainability@apmterminals.com 2 3

28 APM Terminals 2011 Sustainability Report APM Terminals 2011 Sustainability Report About the Business Highlights Our ambition remains to become the leading port, terminal and inland services provider. Serving global carriers and the international trading community through long-term partnerships based on operational excellence. Actively managing our Global Port, Terminal and Inland Services Network through selective but aggressive investment in port infrastructure and transportation infrastructure with an emphasis on high growth market. Adhering to our core values and to responsible business practices. 56 port and marine terminals 25 marine terminals are operated by JV partners 0Our Goal is: Zero incidents and Zero fatalities 95,000 third-party truck drivers entering our yards every day 36 Countries with Terminal facilities 6new port facilities in development and 11 existing facilities undergoing expansion 24, Inland Services in 154 locations in 47 countries employees in 64 countries across 5 continents 4 5

29 APM Terminals 2011 Sustainability Report APM Terminals 2011 Sustainability Report Sustainability Commitment & Governance Sustainability at APM Terminals is an integrated part of the way we conduct our business. We generate profits for our owners and are committed to doing so in a socially and environmentally responsible manner. Tiemen Meester Vice President Business Implementation and policies. The A.P. Moller-Maersk Group, including APM Terminals, has committed to observing the principles of the UN Global Compact as a guide to implementing our programmes. Our Goals 25% 15% Sustainability encompasses Health, Safety, Security, Environmental (HSSE) and Corporate Responsibility (CR) issues. Safety is a top priority for our operations and is fully incorporated into our business strategy. We are improving our global minimum standards for safety as well as for environmental and social performance. As our operations and activities expand around the world, conducting our business in a responsible manner and addressing social, environmental and ethical challenges is becoming an increasingly important factor for sustainable growth. As a global company with operations in 64 countries across 5 continents, APM Terminals creates a significant positive Sustainability Framework Our Commitment No harm to people Protect the environment CO 2 Emissions reduction by 2020 from the 2010 baseline reduction in Lost Time Injury Frequency rate for 2012 from 2011 Respect our neighbours Use energy and resources efficiently Lift global trade Publicly report on our performance Promote best practice in our industry Manage HSSE & CR matters as any other critical business activity Promote a culture in which all APM Terminals employees share this commitment socio-economic impact. We do this by contributing to long term economic development through job creation, investing in the communities in which we operate, contributing to the well being and safety of our employees, contractors and third- party visitors and through initiating proactive environmental policies and responsible business practices. Our Commitment APM Terminals aspires to being the best port operator in the world; the best in terms of financial performance, best in the eyes of our customers, best in the eyes of our employees and of course the best in health, safety, security and environmental performance as well as in corporate responsibility. Our Governance A.P. Möller Maersk Sustainability Council APM Terminals Senior Management Team Global APM Terminals HSSE & CR organisation Regional HSSE & CR organisation Local HSSE & CR organisation We have made a commitment to further improve and take our HSSE & CR performance to the next level. Our commitment builds upon A.P. Moller- Maersk Group policy and reflects APM Terminals consistent and integrated approach to HSSE & CR. All APM Terminals companies and joint ventures under our operational control must manage HSSE & CR in accordance with these principles and practices. For joint ventures not under operational control, we will promote the adoption of our approach to HSSE & CR management, though recognising that this may not always be achieved. Our Policy Systematic approach to HSSE & CR Objectives and targets Compliance with the law Continuous improvement HSSE for business partners (Contractors & Joint ventures) Community engagement Personal objectives Sustainability Management The Executive board of the A.P. Moller- Maersk Group has been given overall responsibility for sustainability across its companies and has appointed a Sustainability Council with representation from each A.P. Moller-Maersk Company. APM Terminals is represented on the Council by Tiemen Meester, Vice President for Business Implementation. The Sustainability Council s main function is to oversee compliance to group standards and policies, as well as to make recommendations on any new Group-wide sustainability strategies Our Sustainability Priorities + Interest to our key stakeholders Financial perfomance Worker safety Security and access control Global minimum standards HSSE & CR performance and challenges are discussed at the regular meetings of the APM Terminals Senior Management Team (SMT), which includes Johan Breukelaar, Global Head of HSSE & CR (who is supported by a team of HSSE & CR professionals). Sustainability Priority Issues Taking into consideration the interests of APM Terminals key stakeholders, the impact on our business and our impact on the environment and local communities, APM Terminals has identified a number of priority areas that will be addressed in 2012 and beyond. Management of sustainability within APM Terminals follows a continuous improvement approach, enabling flexibility while achieving Impact to the business Labour relations Climate change Business conduct (anti-corruption) Responsible procurement Other Environmental impacts maximum results. The most recent review of our priorities was undertaken in December 2011, through an internal workshop with key senior staff from a range of departments within the company. Stakeholder Engagement APM Terminals works in partnership with many stakeholders to ensure sustainable business practices beyond our operational scope for the benefit of our shareholders, employees, JV partners, suppliers, customers and governments. We engage our stakeholders in our dayto-day business activities, through this sustainability report and by soliciting their input and feedback. An example of an area we seek to improve is working more closely with our customers to further improve the energy efficiency of the transport segment of the supply chain and thus reducing Green House Gas (GHG) emissions associated with global cargo movements. Examples of how we engage with our key stakeholders are provided within this report. Responsible Procurement Responsible supplier management, or Responsible Procurement (RP), has become a central part of our global procurement policy since its introduction in September The goal of the programme is to establish consistent standards of international and local purchasing in alignment with the ten principles set out in the UN Global Compact. The implementation of the RP programme is for both centralised and local procurement. Most procurement managers in APM Terminals have been trained in 2011 on responsible procurement practises and the work to implement the responsible procurement practices with our suppliers has been started. 6 7

30 APM Terminals 2011 Sustainability Report APM Terminals 2011 Sustainability Report Financial Performance Highlights Number of containers handled increased by 7% compared to On a like for like basis, volumes increased by 8%. Revenue of USD 4.7bn was 10% above the level of The customer portfolio was further expanded and share of volumes from third party customers increased to 46% from 44%. Profit was USD 649m (USD 793m) and USD 614m (USD 492m) excluding sales gains and impairment losses. Cash flow from operating activities was USD 909m (USD 845m). Return on invested capital (ROIC) reached 13.1% (16.0% and 10.4% excluding divestment gains and other special items). In 2011, the global container terminal market measured in TEU increased by 7% compared to 2010 and by 5% in Q (Drewry). The economic challenges facing consumer markets in both Europe and USA have, to a limited extent, affected volumes in ports along the main eastwest trade lanes. This was compensated by high growth in the north-south trades and the Intra-Asia market. The number of containers handled by APM Terminals (crane lifts weighted with APM Terminals ownership interest) increased 7% compared to 2010 and 8% on a like-for-like basis. In Q4, the growth in APM Terminals volumes continued the trend seen in Q3 to exceed market levels, by growing at 8% on a like-for-like basis. During the year, operations in the container terminals in North Africa and the Middle East were negatively influenced by unrest related to the Arab Spring, resulting in reduced service levels towards the shipping lines and lower throughput particularly during first quarter. Through implementation of operational recovery plans in close coordination with our customers, most of the affected terminals were again operating normally towards year end. Volumes in the second half of the year were positively affected by newly added terminals in Poti and Callao and strong volumes on terminals along the Asia-Europe tradelane on the back of market share gains for Maersk Line. The volumes from third party customers increased by 11%, contributing 46% of total volumes as the company continues to diversify its client portfolio. The substantial improvements in margins and competitiveness in 2011 were largely due to consistent implementation of improved operational methods, enhanced efficiency in partnership with customers and portfolio optimisation. Inland Services taken over in 2010 went through a successful strategic reorientation and financial turnaround process, and the activities contributed positively to the improvement of financial performance in APM Terminals is today well positioned as one of the leading global operators in an attractive industry with good long term growth prospects. Most industry analysts forecast an increasing need for additional port capacity over the next decade, and APM Terminals is actively pursuing an investment strategy with focus on high growth markets. 36 out of 55 operating container terminals are in growth markets, and contributed 76 pct. of earnings before interest, taxes, depreciation, and amortisation (EBITDA) in During 2011, APM Terminals secured a number of new investments and development opportunities in growth markets: APM Terminals took over operations in port of Callao, Peru; acquired a controlling interest of the Black Sea port of Poti, Georgia; signed a concession agreement to build and operate the new Moin container terminal on the Caribbean coast of Costa Rica and was awarded a concession agreement to build and operate a new container terminal at the port of Lazaro Cardenas, Mexico. APM Terminals was also awarded the concession to operate the Skandia Container Terminal in Gothenburg, taking control of operations in January In total, 7 port projects were in development during APM Terminals will continue to invest strategically to handle the globally growing container volumes and also to accommodate the tendency among container carriers to deploy bigger ships, creating a need for higher port specifications and more sophisticated operations. 8 9

31 APM Terminals 2011 Sustainability Report APM Terminals 2011 Sustainability Report Safety Performance APM Terminals goal is zero fatalities and zero incidents. Our commitment is to ensure no harm to people and that applies not only to our employees, contractors and sub-contractors, but extends to third party visitors. Every day more than 100,000 truck drivers enter APM Terminals port, terminal and inland services facilities in 64 countries around the world. Our responsibility is to ensure a safe work environment; we believe that everyone should be able to return home safely at the end of their work day. Our Safety Strategy Our goal is zero fatalities and zero incidents. To achieve our required safety performance we will focus on three areas: Johan Breukelaar Head of Health, Safety, Security, Environment and Corporate Responsibility 2011 Targets 2011 Performance Zero fatalities A 15% reduction in Lost Time Injury Frequency (LTIF) Improve near miss reporting 10 fatalities 21% reduction +21% near misses reported 2012 Target Zero fatalities 15% reduction in LTIF in 2012 from to 2011 No target set Culture First and foremost Culture is about leadership, we need our leaders to demonstrate visible and felt safety leadership. Culture is also about people taking their responsibility to make sure they and their colleagues work safely and get home safely. If you see it, you own it says Johan Breukelaar, Head of HSSE & CR; I need people to fix it or have it fixed whenever they observe an unsafe act or unsafe condition. Technical Integrity Technical integrity is about improving process safety to improve our operational safety performance. This can also be phrased as reducing or eliminating the risks associated with the interaction of moving equipment and people. Maintain Employee Engagement Score (EES) on Safety at 90% 90% score Maintain EES score at 90% LTIF Performance Fatalities Near Miss Reporting HSSE & CR Management System We will develop a globally aligned HSSE & CR Management System that includes minimum Global Safety Standards. This will assure that risks are reduced to an acceptable level. Managing Risks APM Terminals Inland service Combined APM Terminals Inland service APM Terminals continued to be an industry leader in safety performance in 2011 in terms of reducing injuries as the LTIF rate decreased by 21% to 3.46 per million man- hours from 4.37 in From 2011 onwards we will apply the operational scope in our safety reporting meaning we will only report on data for entities falling within this scope. Using this scope, the LTIF figure for 2010 would be 4.89 and The 15% reduction target has been set against these numbers. Despite this improvement, there were ten fatal accidents at APM Terminals operated facilities in In addition, there were two fatal accidents involving APM Terminals employees working at facilities operated by Joint Venture partners or external operators. Going forward, our focus will be on eliminating fatalities and high severity accidents. In order to meet our goal we have redesigned our Safety Strategy to focus on process safety rather than personal safety and have established new targets for safety performance. 10, ,832 15,540 The increase in near-misses reported in 2011 is a positive aspect of our safety performance as it demonstrates the increase in awareness of the safety risks by our employees and contractors, as well as our commitment to prevent risks from becoming accidents by identifying and implementing the proper corrective measures. A Safety Leadership Workshop was conducted in November 2011 to enhance understanding and support of the APM Terminals Safety Strategy by the company s most senior leaders. During the workshop, several external safety experts shared their perspectives on safety; the participants took part in active dialogue and were offered the opportunity to put their training into practice by visiting the APM Terminal in Rotterdam. Four high risk areas were identified during this exercise: traffic (internal and external), working at heights, falling objects and container lashing. The latter is a high risk activity involving people working at our customers vessels applying the metal rods, which are used to stabilise containers on board of the vessel. These are attached often in very tight spaces and with very limited visibility. Road traffic is a high risk for APM Terminals Inland Services, in particular, where external professional drivers are employed. Other examples of high risk activities include Maintenance & Repair functions and the handling of hazardous chemicals. Each of the four APM Terminals Regional CEOs has taken ownership of one of the high-risk activities to identify a set of engineered solutions to create global minimum safety standards: Traffic (internal) Peder Sondergaard, CEO Africa-Middle East Region Container Lashing Martin Poulsen, CEO Europe Region Falling Objects Eric Sisco, President, Americas Region Working at Heights Henrik Pedersen, CEO, Asia-Pacific Region An action plan will be developed to enhance safety performance for new terminal design and operation. Tiemen Meester, Vice President Business Implementation, has assumed the responsibility for this area

32 APM Terminals 2011 Sustainability Report APM Terminals 2011 Sustainability Report Global Safety Day 2011 In October 2011 APM Terminals Global Port, Terminal and Inland Services Network celebrated its 5th annual Global Safety Day with the participation of 24,000 employees at the company s facilities around the world. The theme for this Global Safety Day was Care for People and each facility organised its safety day activities around relevant local challenges, concerns or issues. The goal of these programmes was to improve awareness of safety through training and demonstrations which encouraged the active participation of various stakeholders including employees and their families, executive management, customers, suppliers, local communities and regulators. A special feature of Global Safety Day was the introduction of the Safety Culture Survey. The survey was available to employees, contractors and third parties to assess the safety culture at a specific facility. The survey provided the senior management of the facility with information which could be used to improve their safety performance. A total of 19,009 employees participated in the survey, leading to immediate improvements and the creation of visible leadership and its effects. Case: APM Terminals Cai Mep Promoting Safety in the Community The Cai Mep International Terminal (CMIT), Vietnam, which officially opened in March 2011, has begun a tradition of promoting road safety through the donation of cycle safety helmets to school children and teachers at Nguyen Thi Dinh Primary School in Tan Thanh, Vietnam. The helmets for kids programme supports the school s efforts to raise awareness of road safety amongst school children. The Nguyen Thi Dinh Primary school is located near the Cai Mep - Thi Vai Port complex and National Road 51 which carries heavy traffic due to the port s activities. About a third of the school children either walk or ride a bicycle to school, while the remainder is transported by parents on motorbikes, the most common vehicle on Vietnamese roadways. Approximately 700 safety helmets have been distributed through this programme. Case: APM Terminals Mumbai Raising Safety Awareness The Managing Director of Road Wing South Africa, Isobel Louw, found the experience very valuable for her organisation as stated in her feedback to us: I must say that the survey helped us tremendously during safety day -- because we used that to get the accounts staff involved with the drivers. The drivers do not understand English and the accounts staff had to translate the questions --- and it opened a completely new communication channel. So thank you for a one-in-a-million survey that added much value. You can learn more about global safety days at APM Terminals Mumbai has been raising safety awareness at their facility and in their community by providing: Education to improve safety awareness in schools which reached 10,000 students in neighbouring communities Safety training for external drivers: over the past three years 2,000 local drivers have received training on road safety. This is a 2 hour training programme conducted on a monthly basis Eye and health check-ups for employees and contractors 12 13

33 APM Terminals 2011 Sustainability Report APM Terminals 2011 Sustainability Report Environmental Performance Improving our environmental performance is an essential dimension of our sustainability efforts. Our goal is to be the industry leader in environmental performance and to share best practices not only within the APM Terminals Global Port, Terminal and Inland Services Network, but with other operators within the industry as well. As we continue to improve our environmental performance and reduce our operational environmental footprint, we are also working to help our customers to reduce their environmental footprint Targets 2011 Performance Drive CO 2 reductions Build environmental mind-set Improve data quality Decrease of 0.5% in CO 2 emissions per TEU (2010 baseline) 79% Employee Engagement Survey score on Environment Integrated Inland Services to data management system 2012 Target Reduce 25% of CO 2 emissions per TEU by 2020 (2010 baseline) Energy Conservation In order to reduce CO 2 emissions across our facilities, several energy conservation initiatives have been implemented or proposed. Our HSSE & CR staff, facility managers and design and operations teams will continue to work closely together to identify new technologies, improved operational efficiencies and alternative energy sources to drive further CO 2 emissions reductions. Electrified Rubber-Tire Gantry (RTG) Cranes A proposal to equip all APM Terminals with electric-powered Rubber-Tire Gantry Cranes (RTGs) was recently endorsed by the Senior Management Team. This will be accomplished by both retrofitting diesel-powered RTGs at existing terminals and including electric-powered RTGs as standard equipment for all new terminal projects. The conversion of diesel RTGs began in 2011 and will convert approximately 400 RTGs from diesel power to hybrid engines capable of using both diesel fuel and electricity. A pilot project for RTG conversion at APM Terminals facilities at the Port of Tanjung Pelepas, Malaysia and Pier 400 at the Port of Los Angeles, California, USA began last year has resulted in the savings of 1,652,715 litres of diesel fuel and a reduction of 3,185 metric tons of CO 2 emissions. The RTG electrification initiative has been projected to reduce terminal operations CO 2 emissions by 20%. Green Electricity In Europe the APM Terminals facilities in Rotterdam, Algeciras and Zeebrugge have converted their power supply to CO 2 - neutral, wind generated electricity sources. APM Terminals Algeciras began utilising green electricity in February 2011 and has now obtained certification by the Spanish National Agency for Energy that 100% of the electricity supplied is produced from renewable resources. While APM Terminals Algeciras had already reduced GHG emissions by 32% between 2007 and 2010, the new energy contract achieved a further reduction of 34% in 2011 compared with Our Environmental Priorities In 2011 APM Terminals prioritised the following environmental aspects associated with our operations and our activities: Climate change Soil contamination Biodiversity Major spills (for some of our facilities) In 2012 we will continue to work to improve our environmental performance specifically in these areas and to develop global environmental standards and guidelines. GHG Emissions As part of the global supply chain, APM Terminals produces a relatively small proportion of greenhouse gas emissions (GHG) most of which are CO 2 emissions resulting from energy consumption. We have improved energy efficiency considerably in recent years and have consequently steadily reduced our CO 2 emissions. We have met our target of 15% reduction in CO 2 emissions by 2011 against a 2009 baseline for terminals by achieving a reduction of 16.5% per Twenty Foot Equivalent Unit (TEU). We also met our target for Inland Services by achieving a reduction of 15.2% in absolute CO 2 emissions against a 2009 baseline. However, due to continued growth and expansion we have seen a 2.1% increase in the combined absolute CO 2 emissions between 2009 and Reduction in C0 2 Emissions Terminals: 16.5% reduction (per TEU) from Inland Services: 15.2% reduction (absolute) from Total Overall Data on CO 2 Emissions (in 000 tonnes) This slight increase in emissions in 2011 can be attributed to the sizable investment in new cargo handling equipment to accommodate the expansion of operations around the world, even as some terminals achieved significant emission reductions as a result of the introduction of green electricity sourcing (zero CO 2 ). Emissions associated with electricity consumed by refrigerated containers, known as reefers, are considered the responsibility of the shipping line, as the reefers are not owned or controlled by APM Terminals. However, as we are currently unable to consistently allocate electricity use to the consumer, this report presents our emissions including energy consumption by reefers. We will continue to work with our customers and other operators to further investigate and enhance the GHG reporting for the supply chain. In support of the APMM Group target of 10% reduction in relative CO 2 emissions, we have set a target for our terminals of a reduction of 25% in CO 2 emissions per TEU by 2020 against a 2010 baseline

34 APM Terminals 2011 Sustainability Report APM Terminals 2011 Sustainability Report Case: APM Terminals Mumbai CO 2 Emission Reduction APM Terminals Mumbai established a target of reducing CO 2 emissions by 10% by the end of 2012 from the 2009 baseline. They have achieved that goal and further reduced CO 2 emissions by 14.7 % by the end of They have managed to achieve this goal through a number of initiatives that have been implemented since 2009 based on the findings of an energy audit conducted in Since 2009, the following initiatives have been implemented: Two Speed Engine Conversions: 29 RTGs have been converted to twospeed operation, enabling RTG engines to run at idle speed when no lifting is being performed. This action has resulted in reduced fuel consumption of 742,439 litres in 2010 and 843,726 litres in 2011, with considerable reduction of overall CO 2 emissions. 11 Eco-friendly RTG-Cs: New RTG-Cs with specially designed Variable Speed Generators through which the engine speed adjusts to the weight of the container have been put into service. This has resulted in reduced fuel consumption of 43,632 liters in 2010 and 112,283 liters in Wind Turbine Ventilators: Replacing electrically-powered forced ventilation fans in Shore-to-Ship (STS) crane machine houses with Wind Turbine Ventilators has reduced electricity consumption by 514,134 kwh in 2010 and a further of 616,961 kwh in ElectromiZer Units in Yard Lighting: The engineering team introduced `ElectromiZer panels for yard area illumination circuits to reduce electricity consumption. This has led to a savings in electricity of 506,875 kwh each year from Soil Contamination Terminal operations involve the use of a number of substances that can pose a risk to the environment if accidentally released or improperly disposed of. These compounds include fuels, lubricants and chemicals used in maintenance. Spillages or leakages of these substances during operations can adversely affect the soil, and can also have consequences for water quality if washed or leached into surrounding water. Contamination can also be inherited when APM Terminals acquires an existing operating facility, or develops a new facility on land previously used for industrial activity. APM Terminals requires that strict procedures be established and observed at each facility to limit and control the release of potentially harmful substances to the environment. When acquiring or constructing terminals, environmental surveys are undertaken, as appropriate, to identify contamination and the need for remediation or other management measures. Biodiversity Development of new terminals and port facilities particularly in emerging markets and in non-urban areas may increase the risk of affecting biodiversity, such as marine life environments in close proximity to port facilities. For existing operations, new constructions and significant expansions of existing facilities, we will continue to ensure that environmentally sound practices are employed to prevent any disruption of natural habitats. We are developing global guidelines and requirements for conducting environmental, social and health impact assessments for new projects to help identify the impact on the environment as well as local communities. Where indicated, biodiversity action plans will be designed implemented.these initiatives will be aligned with the International Finance Corporation (IFC) Guidelines and will help us identify the needs of local communities in which we operate and to contribute positively to their quality of life

35 APM Terminals 2011 Sustainability Report APM Terminals 2011 Sustainability Report Our People To achieve our goal of becoming the world s leading global port operator, we depend on the success of our people worldwide. We are a progressive, high-performance organisation that cultivates and advances its people by developing a stimulating and supportive work environment. Derrick Shirley, Director, Organisational Development. Developing Talent and Leadership Our people are our most important asset, and no investment in our future as a company has more impact than our investment in the training and education of our future leadership - says Derrick Shirley, Director, Organisational Development. In 2010, 54% of employees participating in our annual engagement survey answered that they felt positive about their career opportunities at APM Terminals. A number of measures and tools to improve career and leadership opportunities were initiated in response and the results have been positive: our 2011 survey showed that the number of employees who feel positive about their career opportunities at APM Terminals has increased to 62%. I feel positive about my career opportunities cf. external top quartile 54% 62% 53% 24,000 employees across 64 countries Developing our Employees An extensive Leadership and Development Programme designed to assure a steady flow of talented and trained employees to assume senior positions has been in place for more than 10 years. These initiatives include the annual APM Terminals Management Talent Acceleration Programme (MAGNUM) which selects candidates from among General Managers nominated by business units in a highly competitive process. There are similar opportunities for personnel beneath the General Manager level that will be enhanced in 2012 with the introduction of new programmes as well as other training programmes, including employee orientation, supervisory training and labour relations training for nonmanagerial level staff. Anti-Corruption and Compliance Compliance with business practices which conform to existing anti-corruption and anti-trust standards is an essential component of APM Terminals Corporate Responsibility programme. Strict Anti-corruption Guidelines have been implemented that forbid any employee to directly or through other parties - offer, promise, authorise or give money or anything else of value to any public official in any country or to any private business partner to secure any improper business advantage. This requires strict adherence to very specific guidelines regarding gifts and entertainment, political donations, charitable donations and facilitation payments. In addition to developing these guidelines, formal training continues to be offered to APM Terminals employees on the APM Terminals Group guidelines on Anti-corruption. More than half of our office personnel have undergone this training in the form of webinars, e-learning or classroom training. Ongoing awareness-raising activities are in practice throughout the APM Terminals Global Port, Terminal and Inland Services Network. APM Terminals also conducts due diligence investigations when considering entering into any contract with a new business partner representing a transaction in excess of $ 1 million, for a period in excess of 12 months. These APM Terminals standards are applicable for any proposed new joint venture. At the end of 2011 a self-assessment tool was introduced to all facilities and offices under APM Terminals operational control with the purpose of confirming compliance with the all anti-corruption and anti-trust practices and to identify any areas needing improvement. In 2011, APM Terminals introduced a whistle blowing system for the reporting of any legal or ethical infractions on part of any APM Terminals employees. Any persons making good-faith reports are protected from harassment or retaliation. All incidents reported through the system to date have been successfully investigated and concluded. Case: The MAGNUM Programme APM Terminals CEO Kim Fejfer and other senior executives attending the graduation ceremony of the MAGNUM advanced management training Class of 2011 in Delft, Netherlands in February, witnessed the first MAGNUM group to complete the new global business coursework introduced in partnership with ESADE, a top global business school based in Barcelona. The ESADE partnership was established to introduce a stronger external component to the programme, which has also been accelerated into an eight month curriculum and includes completing management projects and field study at operating facilities. The 28 MAGNUM graduates for 2011 represented 13 countries throughout the APM Terminals Global Port, Terminal and Inland Services Network and included natives of Brazil, India, Peru, Mexico, Honduras and Egypt. Chosen from applicants within the APM Terminals Global Port, Terminal and Inland Services Network through a rigorous selection process, the MAGNUM participants completed a three-module, intensive eight-month multi-functional programme featuring practical terminal hands-on training assignments as well as rigorous classroom curricula focusing upon business applications addressing practical needs of the port and cargo transportation industry. Each module was completed in a different country in which APM Terminals operates. One of this year s 28 MAGNUM graduates was Arturo Montero Guevara, the Inland Services Manager for Mexico. A native of Mexico himself, Arturo started with Maersk Line in 1996 as a port manager and joined Inland Services in Mexico as a General Manager in The MAGNUM programme has helped me develop leadership skills and understand the full spectrum of APMT s businesses said Arturo, adding In the MAGNUM programme, I learned that it is valuable to build and establish relationships across the company. You can gain so much from learning how others in the organisation work

36 APM Terminals 2011 Sustainability Report APM Terminals 2011 Sustainability Report Engaging Employees Diversity & Inclusiveness Labour Relations We engage our employees by investing in their talent and development, to achieve progression, safety and productivity through personal and professional growth. As we continue to grow as a company, we must continue to invest in tomorrow s leaders. 13,900 respondents to our Employee Engagement Survey Every year, APM Terminals conducts an Employee Engagement Survey (EES). In 2011, more than 13,900 people participated worldwide, providing valuable insights both into our strengths as an employer and into areas that need reinforcement. Based on the results of the 2010 Employee Engagement Survey, a followup action plan has been defined with the purpose of: Communicating a clear strategy and empowering leadership. Creating a culture of development. Better managing organisational changes. These actions are aligned with APM Terminals strategic priorities and have been successful in promoting higher levels of employee engagement throughout the organisation. In 2010, 55% of respondents indicated that they felt supported by the company during organisational changes. In 2011, the Human Resource (HR) team worked to improve communication plans pertaining to key organisational changes, such as the integration of the Inland Services companies into the existing regional operations and various senior position assignments. As a result of these improvements, 61% of respondents said they felt supported during organisational changes in the 2011 survey. Providing Career Opportunities In 2011, Core capabilities for APM Terminals employees to perform their jobs and achieve our business objectives were defined. Competencies were further established at each job level. To align people s careers with the core capabilities, we introduced the Career Compass, a professional development planning guide. This tool helps employees and their managers to develop a career and development action plan, as well as identify personal and professional development opportunities. The company has also implemented a 360 survey tool which was introduced in 2011 and its implementation will continue in By linking the 360 survey to the core capabilities, participants receive feedback based on competencies that are closely tied to job performance and successful career development. Diversity & Inclusiveness (D&I) at APM Terminals is about creating an inclusive environment which provides an opportunity to leverage differences, enable individual development and produce exceptional business results. Diversity refers to the variety of differences such as gender, ethnicity, race, age, physical ability, religion, language, sexual orientation, educational background, nationality, and culture represented by our 24,000 employees around the world. We believe that through hiring, training and promoting a diverse and inclusive workforce to reflect the range of communities in which we operate we will be better able to serve our global customers. GM Population - Gender Diversity 15% In 2011, APM Terminals invited some 500 employees to participate in a D&I survey aimed at assessing current attitudes and perceptions and identifying key focus areas for future initiatives. There was a good response rate of 68% and our overall Inclusivity Score was 3.93 out of a possible 5 and was 2.4% above the Global Norm of APM Terminals scored high compared to external benchmarks in the areas of fairness of treatment and freedom of expression. While these results are encouraging, the survey also highlighted some weaker areas we have to work on. Through the incorporation of D&I initiatives into our existing business processes we expect to see real change. Director Population - Gender Diversity 5% As a global company operating in 64 countries on five continents, encompassing port and terminal operations, cargo inland services, and crane engineering services, APM Terminals draws from and interacts with staff representing a diverse cross-section of cultures, religions, ethnicities, languages and levels of responsibility on a daily basis. As part of the A.P. Moller-Maersk Group, APM Terminals engagement with employees is guided strictly in accordance with eight established labour principles; these principles can be found on our website. When interviewed about this topic,the Managing Director of APM Terminals Aqaba Container Terminal, Soren Hansen, defined labour relations in this way: The relationship between the company and the employees is a partnership. For the partnership to succeed it must be build on mutual respect, where the parties invest the required time to nourish the relationship. In all successful partnerships, both parties agree and accept that both parties need to give and take. If there is only one winner, both parties lose. Female Male 95% 85% Female Male 95% GM Population - Cultural Diversity Director Population - Cultural Diversity 4% 60% 13% 40% 29% 23% 18% Denmark Netherlands USA Other Denmark Netherlands USA Other 13% 20 21

37 APM Terminals 2011 Sustainability Report APM Terminals 2011 Sustainability Report Our Communities The communities in which we operate or that are affected by our operations and activities are one of our key stakeholders. Contributing positively to these communities and improving their quality of life are essential elements of our sustainability efforts. Case: APM Terminals Tangier Contributing to Local Communities APM Terminals Tangier carried out a number of community outreach initiatives in the fields of education, health and assistance to women and children to help to improve the local social conditions in the surrounding area. These initiatives also enabled pro-active individual engagement by the Tangier work force. The goal is to exert a positive influence on the communities in which we operate and where our employees live and work. These initiatives focus on promoting education, emphasizing safety, and encouraging health through funding for local athletic events, recreational activities and health awareness programmes. APM Terminals Tanger has sponsored the costs for children from remote douars (traditional tent encampments) to travel to school by bus. This aims to help reduce illiteracy and early Case: APM Terminals Poti Developing a Social Plan Since assuming operational control of the Poti Sea Port Corporation in May 2011, serving Georgia s primary port facility on the Black Sea, APM Terminals has introduced international operating standards and organisational changes to turn the multi-purpose port into a modern, world-class facility. In the new organisational structure it was necessary for APM Terminals Poti to reduce its workforce of 1,499 by 385 persons. To mitigate the negative impacts of these redundancies APM Terminals defined a social plan, through dialogue with the local authorities, which is the most comprehensive and ambitious undertaken in the Republic of Georgia: Compensation: Employees made redundant will receive between 40% and 100% of their salary for a full year depending on seniority. This school withdrawal prevalent among some segments of the population. The programme enabled 45 schoolchildren from eight informal villages to attend school from November 2010 through to June Since October 2011 this programme has been expanded to include 77 students. Following on from this, in January of 2011 APM Terminals Tangier fully equipped a classroom dedicated to the study of English in a high school located in the nearby suburbs of Tangiers. The classroom was provided with 22 computers and other modern learning tools such as a projector and a projection screen. goes beyond legal compliance, which requires only one month salary paid. They will also receive health insurance coverage during this period. Working time reduction: As far as possible, redundant positions will be reduced by developing rosters based on reduced working hours. This will mainly affect blue collar positions with routine responsibilities. Recruitment: In filling vacancies, priority will be given to former employees. Education: Employees made redundant will be offered English language and computer literacy training to increase their employability, as well as outplacement services to gain new employment. Approximately 80 former employees will benefit from this training. The training period will be for 12 months, commensurate with the severance payment period. Addressing recreational needs in 2010, APM Terminals Tangier in coordination with the local Es-Sahil Association have improved Dalia Beach through the construction and introduction of facilities such as football and volley-ball fields, parasols, waste bins and small swimming pools for children. These facilities have been very welcomed by the local community. Case: Responding to Community Needs Global Emergencies APM Terminals is at the front line of global disaster response through participation in Logistics Emergency Teams (LETs), organised through the UN Global Logistics Cluster and in association with the World Economic Forum. LETs deploy worldwide upon request from the UN Global Logistics Cluster in response to sudden major new emergencies requiring a multisectoral response with the participation of a wide range of humanitarian actors. Logistics experts from APM Terminals participate as volunteers through the membership of A.P. Moller-Maersk Group, which joined in In the event of a large-scale natural disaster, LETs assists the UN World Food Programme, which handles logistics on behalf of the United Nations. The group provides logistics specialists, physical assets and transport services, and we have set up a special unit to help meet these needs. Between 2008 and 2010, LETs were deployed in Mozambique, Myanmar, Haiti, the Philippines, Indonesia, Pakistan and Chile. Approximately 100 trained volunteers are currently available for emergency deployments, including six APM Terminals staff currently stationed in Benin, Georgia, the UAE and the USA. Case: APM Terminals Apapa - Nigeria Logistics Capacity Assessment APM Terminals personnel took part in a Logistics Capacity Assessment (LCA) Report prepared for Nigeria to compile information on national logistics infrastructure which would be utilised in the event of a natural disaster to provide medical relief and assistance. An LCA Report contains country specific logistics infrastructure information, which is considered life-saving in case of a possible disaster. Nigeria is Africa s most populous country and has the eighth-largest population in the world with approximately 155 million people, many of whom live in austere conditions particularly vulnerable to dislocation and accessibility in emergency situations. Karl Gnonlonfin, APM Terminals Benin LET Volunteer: Ready to Respond When asked to speak about his experience with the LET programme one of the six APM Terminals volunteers said, The training programme in Amsterdam was not only an incredible learning experience but also an inspiring event for me. I won t say that this changed my life, but it actually made a big impact on me. When I returned from my training in Amsterdam, the very first thing I did was to start making a monthly donation to the WFP. I realise this is only a small gesture compared to what is needed, but I couldn t wait to start giving and trying to make a difference and I am ready to be sent wherever I can help, if the need arises. My bag is packed and I hope those disasters will never happen again, but we must be prepared APM Terminals Apapa Managing Director Dallas Hampton affirmed the value of this participation, observing that the emergency response capacity in Nigeria is unfortunately inadequate. In the event of a serious and reasonably widespread emergency, the emergency authorities would face great difficulties coping. There is no doubt that the LCA report has improved Nigeria s disaster response capacity

38 APM Terminals 2011 Sustainability Report APM Terminals 2011 Sustainability Report Socio-Economic Development The United Nations Conference on Trade and Development (UNCTAD) released its annual Review of Maritime Transport report for 2011 in December. The review observed that the developing countries share of global trade increased from approximately 30% to more than 40% from 2008 to 2010 alone. Improved efficiency and reduced costs of modern port operations have contributed significantly to the increase in global trade and overall economic output. What these figures and trends tell us is that the future of the shipping industry is heavily weighted toward developing markets in Asia, Latin America, Africa, the Middle East, and to a certain extent Eastern Europe, and that aggressive infrastructure investment is required right now to keep up with the pace of that projected growth. Kim Fejfer, Chief Executive Officer APM Terminals. APM Terminals company policy, principles and standards require proactive efforts to design, develop, operate and maintain economically, environmentally and socially advantaged facilities. It is a responsibility we take very seriously as corporate citizens and as members of the communities in which our world-wide network of Revenue Split Per Region Europe and Eurasia Asia & Pacific Middle East Americas Africa 27% 36% 95% 19% terminals and depots operates. Infrastructure investment in highgrowth emerging markets is important business for APM Terminals, as about half of our container volume is currently generated in emerging markets. Such investments have wide-reaching positive effects on local job creation and the stimulation of local industry as access to global markets serves as a powerful economic engine. APM Terminals New Terminal development strategy is based on our commitment to sustainable business operations and practices which include employee safety and well being, education, environmental protection and transparent corporate governance. 11% 7% Cash Flow Distributed by Stakeholder Group Paid to vendors Paid to employees Investments, net Taxes paid This commitment covers the entire project lifecycle, from initial planning, through construction and operation. This is part of the value proposition that APM Terminals implements for any new terminal development project which includes: Contribute positively to the societies and communities in which we invest. Deploy the best teams to the site with the goal of promoting and developing local talent in the long term. Introduce the latest technology to help minimise any environmental impact created by new projects as well as expansions of existing business. 54.0% 27.3% 15.6% 3.1% Case: APM Terminals Callao Contributing to Socio-Economic Development The Port of Callao, Peru, on South America s pacific coast is home to one of APM Terminal s newest projects, through a 30-year concession signed with the Government of Peru on July 1st The terms of the concession include the investment of $749 million USD to update and expand the existing facility into a modern multi-purpose terminal serving general, break bulk and containerised cargo as well as cruise ships. APM Terminals Callao is a joint venture between APM Terminals (Callao Port Holding) of the Netherlands and Central Portuária of Peru. When built out to full capacity, APM Terminals Callao will employ approximately 1,500 personnel. In the first six months of operations under APM Terminals the first $25 million has been invested in terminal improvements and productivity in container handling has increased by 63%. Inevitably this type of investment and port development is going to have a huge socio-economic impact - new jobs and opportunities says Henrik Kristensen, Managing Director, APM Terminals Callao. Case: APM Terminals Pipavav Contributing to Socio-Economic Development Port Pipavav, located in the Municipality of Rajula in the Amreli District of India s Gujarat State has helped to generate change as one of India s fastestgrowing ports over the past three years. With new business from the port, the first privatised port in India, a flurry of activity has brought new roads, commerce, professional and educational possibilities for the local population in an area previously underserved by infrastructure and opportunity. APM Terminals Pipavav, which took over management of the port in 2005, has overseen a massive modernisation and expansion of the facility which is now profitable for the first time in its history. In 2011 Gulf Petrochem announced plans to develop a 302,000 square meter (74 acre) storage facility at the port and container traffic surged by 45%. In 2011 a new record was established of 705 days without a lost time injury. We are now amongst the elite group of ports within APM Terminals portfolio of ports and terminals across the world noted APM Terminals Pipavav Managing Director Prakash Tulsiani. The port has invested in several local improvement schemes including: New roads connecting nearby villages including for example an island village Shiyalbet, located across the waterfront at Pipavav, with a population of about 5,000 people that previously did not have access to Rajula. Thanks to Port Pipavav, they now have easy access to Rajula, have roads to run their vehicles and can also access medical facilities. Youth from nearby villages now have new employment opportunities. Suicide attempts due to unemployment have almost stopped as it is now possible to get a decent job and a good pay commensurate with education levels

39 APM Terminals 2011 Sustainability Report APM Terminals 2011 Sustainability Report Performance Data Financial Performance Unit Revenue 4,682,320 4,251,443 4,235,938 USD 1000 Segment profit/loss 649, , ,941 USD 1000 ROIC, segment 13.1% 16.0% 9.9% Safety Performance Unit Lost time injuries (Terminals) Lost Time Injury Frequency (LTIF) (Inland Services) LTIF Combined LTIF Fatalities Number Environmental Performance Unit Diesel use ,000 Tonnes Electricity use ,000MWh GHG emissions ,000 Tonnes Direct CO 2 as a portion of total GHG emissions ,000 Tonnes Indirect CO 2 emissions ,000 Tonnes Total CO ,000 Tonnes Waste total ,000 Tonnes Water consumption ,000m 3 Spills (oils) m 3 CO 2 Footprint Methodology Explanations Scope: The data has been collated in accordance with the provisions of the Greenhouse Gas (GHG) Protocol and we have reported CO 2 emissions under scope 1 and 2 as outlined in the Protocol. Footprint includes Port and Inland Activities Inland activities added from Financial Control Scope Applied from 09 Calculation methodology follows the principles determined by A.P. Moller - Maersk Group. Reefer electricity consumption is included in all the emissions calculation. Waste numbers show an increase due to better reporting by our facilities. Water consumption increased in 2011 due to increased operations. For a more comprehensive overview of our 2011 Sustainability Performance please refer to our website

40 APM Terminals 2011 Sustainability Report APM Terminals 2011 Sustainability Report Awards Partnerships APM Terminals received numerous awards in 2011: Lloyd s List 2011 Global Safety Award APM Terminals was named winner of the 2011 Lloyd s List Global Safety Award at the prestigious annual industry Awards Gala on September 20th in London. The award was presented in recognition of APM Terminals exceptional commitment to improving safety standards over the past year and genuinely comprehensive approach to safety and a real commitment to implementing a safety culture across the company. The award was accepted by APM Terminals CEO Kim Fejfer. Signal Mutual Gerald H. Halpin Safety Excellence Award APM Terminals was presented with The Gerald H. Halpin Safety Excellence Award for by the Signal Mutual Indemnity Association in January 2012, as the APM Terminals operations in the United States were cited for Signal s highest award. The Halpin Award is given in special recognition of the Signal Member Company which has best exemplified the promotion of employee safety and health throughout their organisation. The Halpin Safety Excellence Award is presented only in cases of exceptional safety performance. Signal Mutual Industry Leader Safety Award APM Terminals Pacific Ltd., which performs cargo handling services at APM Terminals Pier 400 Los Angeles and APM Terminals Tacoma, was named this year s winner of the Industry Leader Safety Award in the category of large stevedoring operations (over 500,000 man hours worked) for demonstrating the most improvement of safety performance in terms of declining reported incidents for the past three consecutive years within their group. India Maritime Week Gateway Award of Excellence APM Terminals Chennai, Ltd., part of APM Terminals Inland Services operations, was named Container Freight Station of the Year of 2011 at the India Maritime Week Gateway Awards of Excellence Ceremony. Lloyd s List Middle East and Indian Subcontinent 2011 Safety Award The Port of Salalah, Oman, which is managed by APM Terminals, was named the winner of the Safety category of the Lloyd s List Middle East and Indian Subcontinent 2011 Awards at the annual gala in Dubai on November 16th. The award recognises exceptional commitment to improving safety standards in the shipping industry through robust and effective improvements to their operations at sea or ashore. Transport Africa Awards Best Port Operator in Africa APM Terminals was named winner of the Best Port Operator in Africa award at the Transport Africa Awards 2011 ceremony held in Johannesburg, South Africa on June 29th. The criteria for the award were operational efficiency and effectiveness and the ability to demonstrate best practice in Africa s ports sector. Seatrade Award for Innovation in Ship Operations The 2011 Seatrade Award for Innovation in Ship Operations was won by APM Terminals for the FastNet Crane concept at the 23rd Annual Seatrade Awards presented in London in April. FastNet was cited as an innovative design or device which has the potential to significantly improve the efficiency of any aspect of ship operations and/or cargo handling. Pacific Maritime Association Safety Awards APM Terminals Pier 400 Los Angeles facility was awarded First Place for the fourth consecutive year in the Pacific Maritime Association s Coast Accident Prevention Awards ceremony in the category of Terminal Operations, Group A, representing terminal operations with one million or more man-hours worked in APM Terminals Tacoma won Second Place in the Group C category, which includes facilities of between 100,000 and 499,999 man-hours worked. Ecoval Trophy APM Terminals Tangier-Med was recognised with a Sustainability award in January 2011 in Casablanca, at the first annual Ecoval Trophy Awards given by Ecoval Morocco, a subsidiary of Holcim Morocco, which is part of Swiss-based cement and aggregates producer Holcim Ltd. The Ecoval Trophies are presented in three categories covering the collection and recovery of waste oils. APM Terminals Tangier-Med was one of three winners in the category of Eco-Enterprise. All India Maritime and Logistics Award APM Terminals Mumbai received the All India Maritime and Logistics Award in 2011 for being The Port/Terminal of the year in Health Safety and Environment. APM Terminals participates in a number of partnerships with organisations dedicated to sustainability issues, including: UN Global Compact APM Terminals has been a signatory to the UN Global Compact, through the A.P. Moller-Maersk Group, since The UN Global Compact is described as a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption. Business, as a primary driver of globalisation, can help ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere. Within the Global Compact, APM Terminals is also a participant in the Caring for Climate initiative and Global Compact LEAD. Caring for Climate Launched by the UN Secretary-General in 2007, Caring for Climate is the UN Global Compact and UN Environment Programme s initiative aimed at advancing the role of business in addressing climate change. It provides a framework for business leaders to advance practical solutions and help shape public policy as well as public attitudes. Chief Executive Officers who support the statement are prepared to set goals, develop and expand strategies and practices, and to publicly disclose emissions. Caring for Climate is endorsed by nearly 400 companies from 65 countries. UN Global Compact LEAD Global Compact LEAD supports UN Global Compact participants in their efforts to achieve higher levels of corporate sustainability performance and provides recognition for achievement in this area. The A.P. Moller-Maersk Group has been part of this programme since International Cargo Handling Coordination Association (ICHCA) ICHCA is an organisation dedicated to the promotion of safety and efficiency in the handling and movement of goods by all modes and during all phases of both local and international transportation. EEEG THE EEEG is a platform that was initiated by the EU port Economic Interest Group (EEIG) in 2009 and is used to discuss carbon dioxide and other greenhouse gas (GHG) emissions in relation to container terminal activities. It comprises leading European container terminal operators who represent more than 75% of all container lifts in Europe. Business for Social Responsibility (BSR) BSR is a global business network focused on sustainability. The A.P. Moller-Maersk Group is a corporate member of BSR and participates actively through BSR led working groups and annual conference participation

41 APM Terminals 2011 Sustainability Report APM Terminals 2011 Sustainability Report Global Port and Terminal Network Key Colors Head Offices Operational terminals Terminals with expansion projects New terminal projects Office Inland Services Americas 1 Port Elizabeth, New Jersey, USA 2 Americas Regional Office Portsmouth, Virginia, USA 2 Portsmouth, Virginia USA (Leased to VA Port Authority) 3 Charlotte, North Carolina, USA 4 Charleston, South Carolina, USA 5 Jacksonville, Florida, USA 6 Miami, Florida, USA 7 Mobile, Alabama, USA 8 Houston, Texas, USA 9 Los Angeles, California, USA 10 Tacoma, Washington, USA 11 Lazaro Cardenas, Mexico 12 Moin, Costa Rica 13 Panama City, Panama 14 Callao, Peru 15 Pecem, Brazil 16 São Paulo, Brazil 17 Santos, Brazil 18 Itajai, Brazil 19 Buenos Aires, Argentina Europe 20 Le Havre, France 21 Zeebrugge, Belgium 22 Rotterdam, Netherlands 23 Maasvlakte II, Netherlands 24 Europe Regional Office Rotterdam, Netherlands 25 Bremerhaven, Germany 26 Wilhelmshaven, Germany 27 World headquarters, The Hague, Netherlands 28 Gothenburg, Sweden 29 Aarhus, Denmark 30 Oslo, Norway 31 Algeciras, Spain 32 Vado, Italy 33 Poti, Georgia 34 Gioia Tauro, Italy 35 Tangier, Morocco 36 Port Said (SCCT), Egypt Africa Middle East 37 Monrovia, Liberia 38 Abidjan, Ivory Coast 39 Tema, Ghana 40 Cotonou, Benin 41 Apapa, Nigeria 42 Onne, Nigeria 43 Douala, Cameroon 44 Pointe Noire, Congo 45 Luanda, Angola 46 Aqaba, Jordan 47 Salalah, Oman 48 Bahrain, Bahrain 49 Africa, Middle East Regional Office, Dubai, UAE 50 Colombo, Sri Lanka Asia Pacific 51 Pipavav, India 52 Mumbai, India 53 Laem Chabang, Thailand (2 terminals: LCB1 and LMCT) 54 Cai Mep, Vietnam 55 Tanjung Pelepas, Malaysia 56 Kobe, Japan 57 Yokohama, Japan 58 Guangzhou, China 59 Hong Kong 60 Xiamen, China 61 Shanghai, China 62 Asia Pacific Regional Office, Shanghai, China 63 Qingdao, China (3 terminals: QQCT, QQCTU and QQCTN) 64 Dalian, China (2 terminals: DCT and DPCT) 65 Tianjin, China 30 31

42 World Headquarters APM Terminals Anna van Saksenlaan HW The Hague The Netherlands Tel: Regional Offices Africa Middle East APM Terminals AMI Management DMCEST Suite 1809, Executive Heights TECOM Site C, Al Barsha P.O. Box Dubai United Arab Emirates Tel: Fax: Americas APM Terminals 1000 APM Terminals Blvd. Portsmouth, Virginia United States Tel: +1 (757) Asia Pacific APM Terminals No. 166, Lujiazui Ring Road Mirae Asset Tower, Unit C - E, 8/F Pudong New Area Shanghai China Tel: Europe APM Terminals Rivium Boulevard LK Rotterdam The Netherlands Tel: +31 (10) For Further Information Contact APM Terminals Corporate Responsibility Department, The Hague, Netherlands sustainability@apmterminals.com An A.P. Moller - Maersk Group company

43 APM Terminals Technical Review APM Terminals Virginia Portsmouth, Virginia Prepared By: CH2M HILL Submitted: November 2, 2011 Page 1

44 Executive Summary APM Terminals Virginia is a marine container terminal located along the Elizabeth River in the Port of Hampton Roads, Virginia. The facility was commissioned in September 2007, and is the largest privately-owned container terminal in the United States. Phase I of the terminal is in operation, and is estimated to have 1.44 million TEU of annual throughput capacity. At full build-out the terminal will accommodate an estimated 2.63 million TEU of annual throughput capacity. The terminal is designed to serve super post-panamax class vessels, and is accessible by a -50-feet navigation channel, the interstate highway system, and double-stack intermodal service. The terminal is constructed as a semiautomated operation, with a mix of manual and automated container handling equipment. Its design is unique in that many terminal operations are operated remotely from a centralized terminal operations center, promoting efficiency, accuracy, and worker safety. The container wharf is 3,100-feet in length, and provides 3,225-feet of effective berth capacity. Backlands consist of an approximate 65-acre semi-automated rail mounted gantry (RMG) stacked container storage yard, as well as approximately 50-acres of dedicated storage space for stacked empty containers, wheeled refrigerated containers, wheeled intermodal staging, chassis storage, and wheeled oversized loads. The facility is equipped with a 6-track ondock intermodal yard with capacity for 48 five-pack double stack rail cars. A modern and efficient truck gate facility is deployed, consisting of 13 inbound and 13 outbound lanes, and which is operated remotely. The facility is home to all requisite terminal support facilities including: a terminal operations building, maintenance and repair facilities, container wash facilities, and other ancillary structures necessary to deliver efficient and reliable service. The terminal is equipped with a fleet of eight super post-panamax class ship-to-shore gantry cranes, capable of handling the largest container vessels. The terminal is operated with semi-automated RMGs, shuttle trucks, rubber tired gantry cranes, and a fleet of other smaller container handling equipment. Future expansion projects consist of doubling the size of the existing RMG storage yard, lengthening the berth by 775-feet, extending the effective berth length to a total of 4,000-feet, doubling the operating capacity of the intermodal yard, deploying additional container handling equipment, and increasing truck processing capacity as required. Page 2

45 Key Facts APM Terminals Virginia Size: Yard Breakdown: Reefer receptacles: Channel Berth: Capacity: Cost: Duration: Three years Completion: 2007 Highway access Rail details: River: Forest: Wetlands: Oyster Bed: Wetland Plants: Other: TERMINAL Property acres Full terminal build-out 365 acres Developed Phase I 310 acres Undeveloped woodland 130 acres RMG yard 65 acres (existing) RMG yard 100 acres (future) Other storage yards 50 acres Truck gate facility 25 acres Intermodal yard 40 acres 424 receptacles -50 feet depth / 600 feet width / -55 feet at berth 3,225 feet (existing) / 4,000 feet (future) TERMINAL DETAILS 1.44 million TEU (existing) 2.63 million TEU (future) $509 million / Largest privately funded marine container terminal in the U.S. CONSTRUCTION INLAND ACCESS Rt. 164 / 4-lane divided highway / grade separated interchange 6 on-dock loading tracks (storage of 48 double-stack rail cars) Linkages to Norfolk Southern Railway and CSX Transportation ENVIRONMENT $5.3 million donation to the Elizabeth River Trust Fund 130 acres of wooded land will not be developed 17 acres of created wetlands $300,000 was used toward the oyster bed seeding project. 199,407 (four separate locations on the property) All-electric terminal EQUIPMENT Ship-to-shore cranes: 8 super post-panamax Shuttle trucks: 20+ RTGs (rubber tire gantry cranes): 4 (on dock rail and empty storage) 6 wide x 5+1 high RMGs (rail mounted gantry cranes): 30 semi-automated 8 wide x 5+1 high TECHNOLOGY Terminal Operating System NAVIS RFID readers: 4 OCR Portals: 4 Truck Gate Lanes: 13 inbound; 13 outbound gates Operations control center: Located in the Terminal Operations Building / remote operation for RMGs and gate facilities INTERESTING FACTS Cable (underground): >120 miles Largest ship handled 9,200 TEU Fiber, facility: >46 miles Conduit (underground): >112 miles Copper wiring: >60 miles Site lighting: 729,000 watts Page 3

46 Contents Executive Summary...2 Key Facts APM Terminals Virginia...3 Contents...4 Introduction...6 Purpose of this Report...6 Report Organization...6 Overview of APM Terminals Virginia...7 Location & Setting...7 Facility Access...7 Landside Access...7 Waterside Access...8 Terminal Layout...9 Summary of Terminal Operations...10 Estimated Throughput Capacity...11 Terminal Development...12 Site Characteristics & Selection...12 Terminal Planning...12 Site Geology / Soil...13 Environmental Stewardship...14 Development Sequencing...15 EXHIBIT Panoramic Photographs of Terminal Development APM Terminals Virginia...15 Commissioning...16 Terminal Infrastructure...17 Marine Container Wharf...17 Mooring Dolphins...17 Fender Systems...19 Bollards...19 Ship-to-Shore Crane Rails...19 Container Yards...19 RMG Yard...20 RMG Yard Landside Transfer Zone...21 RMG Yard Waterside Transfer Zone...22 Intermodal Staging Yard...24 Empty Storage Yard...24 Chassis Storage Yard...25 Wheeled Reefer Storage Yard...25 Wheeled Out-of-Gauge Yard...25 Yard Paving...25 Intermodal Rail Yard...25 Truck Gate Facility...26 Inbound Gate System...27 Outbound Gate System...28 Terminal Buildings...29 Terminal Operations Building (TOB)...31 Shop Building...31 Page 4

47 Wash Dock Building...32 Marine Labor Building...32 Drivers Assistance Building...33 Site Utilities...34 Firefighting Water...34 Potable Water...34 Site Drainage...35 Sanitary Sewer...35 Natural Gas...35 Electricity...35 Technology & Communications...36 Terminal Lighting...36 Container Handling Equipment...37 Ship-to-Shore Cranes...37 Rail Mounted Gantry Cranes...38 Rubber Tire Gantry (RTG)...39 Shuttle Trucks...39 Utility Tractors / Translifters...40 Cassette Trailers...40 Facility Maintenance...41 Future Expansion...43 RMG Yard Expansion...44 Intermodal Rail Yard Expansion...44 Truck Gate Expansion...44 Wash Dock Expansion...44 Expansion of Shuttle Truck Parking...44 Berth Expansion...44 Future Equipment Deployments...45 Estimated Capital Budgets...46 Page 5

48 Introduction APM Terminals Virginia is a privately-owned ocean freight container terminal, located in Portsmouth, Virginia. The first phase of the facility was constructed over the period 2004 through 2007, and began operations on July 30, Today, it is widely recognized as one of the most technologically advanced container terminals in the world, and is the largest privately-owned container terminal in the United States. The facility has a theoretical annual capacity of 1.44 million TEU and is forecasted to handle over 0.9 million TEU in The full facility build-out has a theoretical annual capacity of 2.63 million TEU. Purpose of this Report The purpose of this report is to provide the reader with a broad overview of key technical information for APM Terminals Virginia, and enable the reader to understand: The unique nature and value of the terminal s operational design The level of service the terminal offers to the marketplace The terminal s durability as a long-term port infrastructure investment To that end, the report documents and summarizes the key components of the APM Terminals Virginia facility, and highlights the technical details of key terminal features as they exist in today. Report Organization This report is organized to guide the reader from a high-level view of the terminal to increasing levels of detail for specific terminal components. The report is organized as follows: Overview of the terminal providing a general description of the facility s location, access points, layout and features, operating modes, and throughput capacity Terminal development providing a general description of the facility s overall development history, including site characteristics and setting, planning efforts, geologic conditions, environmental stewardship strategies, and development sequence. Terminal infrastructure providing increasing levels of detail on each of the major infrastructure components of the terminal, including operating areas, support facilities, and equipment Future expansion providing a description of planned improvement projects to increase operational capacity of the terminal to full build-out The report includes a number of graphics and photographs to aid the reader in understanding the context of the written text. Graphics are generally taken from studies, design documents, and as-built drawings. Photographs are presented from varying timeframes of construction, and include captured images through October, Page 6

49 Overview of APM Terminals Virginia Within the following paragraphs, we provide an overview of the APM Terminals Virginia facility. Location & Setting APM Terminals Virginia is located at 1000 APM Terminals Boulevard in Portsmouth, Virginia. The terminal is constructed on a 576-acre (233-hectare) parcel located on the west bank of the Elizabeth River just west of the Craney Island Reach. It is bounded by the Elizabeth River to the East, State Rt. 164 to the South, and the Craney Island confined dredged material management area (CDMMA) to the North. At project inception, the site was undeveloped, and required both waterside access and landside transportation infrastructure improvements in order to support development of the terminal and ensuing operations. Exhibit 1 presents a site location and vicinity map for the APM Terminals Virginia marine container terminal. EXHIBIT 1 Location and Vicinity Maps, APM Terminals Virginia Source: CH2M HILL Facility Access Facility access includes landside and waterside access. Landside infrastructure provides access for over-the-road vehicles, and intermodal rail cars. Waterside improvements provide access for vessel navigation and berthing. Exhibit 2 on the following page presents a high level view of the facility access points. Landside Access Landside access is provided for over-the-road vehicles from Rt.164, a 4-lane divided highway, through a grade separated interchange connecting with APM Terminals Blvd. Rt. 164 provides direct access to Interstate-664, which connects with Interstate-64. Exit and entry ramps are provided for both Eastbound and Westbound directions on Rt.164. Rail access is provided from the Commonwealth Railroad which runs in the median of Rt Rail access includes double-stack intermodal rail car clearance, and terminates with an on-dock intermodal rail yard, located at the terminal Page 7

50 EXHIBIT 2 Facility Access Map APM Terminals Virginia Waterside Access Vessel navigation and access is provided by a navigable -50-feet deep terminal approach channel from the Elizabeth River. This depth correlates with the Federal navigation channel depth provided within the river. The terminal approach channel is funnel-shaped to allow for vessel maneuvering. The channel width is 600-feet at its narrowest point, and is designed with 4H:1V side slopes. Maintenance dredging was estimated to occur every four years but has not been required to date. Maintenance dredging material is expected to be loose sediment, and would be placed at the Craney Island Dredged Material Management Area, which is a 2,500-acre confined dredged material disposal site operated by the U.S. Army Corps of Engineers, and located north of the terminal. Channel aids to navigation are provided and maintained by the U.S. Coast Guard. Exhibit 3 presents an overview of the terminal approach channel as documented by NOAA. EXHIBIT 3 Terminal approach channel navigation chart and bathymetric survey result APM Terminals Virginia Source: CH2M HILL Source: NOAA, CH2M HILL Page 8

51 Terminal Layout Generally constructed around rectangular and linear terminal components, the terminal is laid out to provide efficient and unencumbered movement of vessels, containers, drayage equipment, over-the-road trucks, and intermodal rail cars. Exhibit 4 below presents an overview of the APM Terminals Virginia facility layout. The geometric layout of the facility is defined by the orientation of the marine container wharf, which runs in a generally north-south direction, and forms the eastern boundary of the terminal. Directly behind the wharf, to the west, is a semi-automated rail mounted gantry (RMG) container storage yard, providing stacked storage of containers oriented perpendicular to the wharf. The RMG yard is currently half developed, with the remaining half to be built north of the existing RMG yard. On the landside end of the RMG yard, an over-the-road truck and terminal drayage corridor is provided, which runs parallel with the container wharf. Further landside, and adjacent to the drayage corridor, the facility is provided with dedicated storage yards for wheeled reefers, chassis storage, empty container storage, and intermodal staging. The drayage corridor provides vehicle access to the RMG yard to the east, and to each of the dedicated storage yards to the west EXHIBIT 4 Facility Overview Map, APM Terminals Virginia Source: CH2M HILL Page 9

52 of the drayage corridor. Located west of the dedicated storage yards, and oriented parallel to the marine container wharf, a number of terminal support buildings are positioned. The terminal support buildings generally form the western boundary of the main terminal development. The facility is bounded on the north with an on-dock intermodal rail yard, which is oriented perpendicular to the marine container wharf. The south boundary primarily consists of a wharf access corridor, which is provided with specialized equipment and out-of-gauge cargo storage along its length. The southeast corner of the facility, adjacent to the wharf area consists of specialized cargo storage, container handling equipment storage, and a marine labor building. The southwest corner of the facility, which extends beyond the general rectangular shape of the terminal, is where the inbound and outbound truck gate facilities are located. This location is adjacent to Rt. 164, and provides immediate access to the terminal from the highway network via a dedicated grade separated interchange. Surrounding the terminal are environmental preservation areas, consisting of a large forested parcel to the west, and wetlands mitigation areas and stormwater retention ponds on both the north and south sides of the terminal. Summary of Terminal Operations APM Terminals Virginia is unique in its operational design when compared to other terminals within the United States. The facility utilizes a mix of manual and automated technologies to maximize container handling efficiency, and promote worker safety. All container movements (from gate to vessel) as well as container inventory management is provided by a computerized terminal operating system (TOS). Exhibit 5 presents a brief summary of key terminal operations, the equipment deployed, and whether the operation is classified as automated or manual. EXHIBIT 5 Summary of Terminal Operations APM Terminals Virginia Operation Equipment Technology Comments Vessel loading / unloading Super Post-Panamax Ship-Shore Gantry Cranes Manual Deployed cranes are capable of handling the largest container ships currently deployed Waterside transfer Shuttle Truck Manual Shuttle trucks provide horizontal movement of containers between the wharf and RMG storage yard Loaded Container Storage RMG Yard Empty Container Storage Reefer Storage RMG Yard Chassis-mounted reefer storage Landside Transfer Truck Loading / Unloading Landside Transfer Intermodal Rail Yard Staging Intermodal Yard Loading / Unloading Rail Mounted Gantry Cranes Rubber Tired Gantry Cranes Rail Mounted Gantry Cranes Utility trucks and chassis equipment Rail Mounted Gantry Cranes Automated Manual Automated Manual Manual All container selection, movements, stack grooming, and waterside transfer operations are automated and controlled by the central terminal operating system Empty containers are stored in a stacked configuration within a dedicated storage yard Reefer stack areas are provided at five locations within the RMG Yard Chassis-mounted reefers are stored in a wheeled configuration within a dedicated storage yard To maximize safety, over-the-road trucks are loaded/unloaded at the RMG yard via manual control of the RMG crane Translifters / Cassettes Manual Translifters and cassettes enable drivers to move containers without exiting utility tractors, maximizing safety Rubber Tired Gantry Manual RTGs span three parallel loading tracks Cranes Source:CH2M HILL Analysis Page 10

53 Estimated Throughput Capacity Capacity figures are based on estimates derived from the onsite management team prior to transition in operations to the current tenant. Based on several key assumptions, including the ability to adjust the number of working days per week and operating hours for throughput growth, the annual theoretical capacity has been derived as 1.44 million TEU with a rail capacity of 0.44 million TEU. Container storage within the RMG yard represents the current limiting component of the terminal system. The RMG yard is planned for future expansion, essentially doubling the capacity of this storage component. Assuming all planned terminal improvements are implemented as outlined in the Future Expansion section of this report, the throughput capacity modeling indicates the total expanded capacity as 2.63 million TEU with a rail capacity of 0.88 million TEU. Key supporting assumptions are as follows: Crane productivity of 33.8 moves per hour Gate operating 16 hours per day and 6 days per week TEU : Lift Ratio of 1.75 Container dwell time of 6.5 days Page 11

54 Terminal Development Site Characteristics & Selection APM Terminals Virginia was constructed on an undeveloped parcel, principally used for agriculture production. The site includes areas of tidal wetlands and habitat for waterfowl, deer and other wildlife. The overall property is generally triangular in shape, and is bounded by a U.S. Coast Guard facility to the north, Rt. 164 to the south, and the Elizabeth River to the east. A Cogentrix power plant, located to the southeast of the property, buffers a portion of the property. The site is commercially advantageous because of its proximity to deep water, the interstate highway system, and availability of double-stack rail service. Planned transportation network improvements within the region add significant value potential to the property. Specifically, the site would benefit from planned implementation of the Hampton Roads Third Crossing project, and ongoing expansion of rail capacity along Rt EXHIBIT 6 Undeveloped APM Terminals Virginia site and future regional transportation improvements Aug 2006 Source: APM Terminals Terminal Planning Planning for the terminal focused on delivery of a high capacity, efficient and safe facility that was capable of handling the largest container vessels. Using a rectangular template for an efficient layout, various site plan alternatives were developed before selection of the concept that was eventually constructed. Detailed simulation modeling was performed to assess the planned operation, optimize the developed footprint, and right-size initial investments to match market demands and service requirements. Facility development is planned in phases, where Phase I represents the facility as it is constructed today. Ensuing phases involve expansion of the container storage capacity, extension of the wharf, expansion of the intermodal yard, and expansion of gate facilities as required. All expansion requirements are included in the plan, and allow for future implementation with minimal disruption to existing operations. The terminal plan is largely dictated by the orientation of the wharf, forming the eastern boundary, and the location of rail access, forming the northern boundary and adjoining the U.S. Coast Guard facility. With these boundaries fixed, Page 12

55 the remainder of the key operating features were located and sized to maximize productivity of the overall terminal footprint. The primary feature is the RMG yard, which was located adjacent to the marine wharf to minimize shuttle truck travel distances. The gate was located to the southwest to capitalize on roadway access provided by Rt All support buildings are located at the back of the facility to minimize conflicts with container operations. Site Geology / Soil A subsurface investigation was performed at the site between 2002 and Thirty-two soil borings were performed in order to supplement an additional twenty-four soil borings previously performed at the APM Terminals property by others. Subsurface soils strata along the proposed wharf alignment are generally arranged in two distinct layers. These consist of a surficial sand layer containing variable amounts of silt and clay with embedded deposits of silty clay (CH), underlain by the Yorktown Formation soils. The upper sand layer extended to approximate depths of 30- to 50-feet below Mean Sea Level (MSL). The majority of the soils within this layer consist of sand materials, of very loose to loose average relative density. The clay deposits within this layer vary between 5 feet and 35 feet in thickness, and are very soft in consistency. Additionally, the clay soils may contain decayed organics, along with a 5- to 10-feet thick peat (PT) deposits. These soft materials (Clay and Peat) were observed only at the northern one third of wharf alignment and at the southern tip of wharf alignment. The subsurface soil strata immediately adjacent to the wharf alignment and within the 600-feet wide dredged berthing area indicated similar subsurface soil conditions to those previously described for the wharf alignment, although containing slightly more clay. The subsurface soil strata further into the river and towards the main channel along the one-way approach channel to the berthing area indicate the presence of very soft clay generally to a depth of 70-feet below the water surface. The subsurface soil strata within the container terminal area, indicates the upland subsurface soils are also arranged in a two-layer configuration. This stratigraphy is again similar to that described for the wharf alignment, with the exception that the very soft clay layer being more predominant, and averaging about 20- to 25-feet in thickness across the site, initially occurring at an average depth of 20-feet below the existing ground surface elevation. EXHIBIT 7 Typical Soil Stratigraphy, APM Terminals Virginia The groundwater table at the boring locations was measured to occur at an average depth of 5-feet below existing site grades. Groundwater conditions within the marine container terminal area vary with environmental variations and seasonal conditions, such as the frequency and magnitude of rainfall patterns, as well as man-made influences, such as existing swales, drainage ponds, underdrains and paved areas. Seasonal groundwater fluctuations of 2-feet are common in the project s area; however, greater fluctuations have been documented. Normal seasonal high groundwater level will typically be within 2- to 3-feet below the existing grade elevations. Exhibit 7 presents a cross section of the typical soil stratigraphy observed at that the site. Source: Williamsburg Environmental Group, Inc Page 13

56 Environmental Stewardship Environmental stewardship is a cornerstone of the APM Terminals Virginia development and operational design. During project development, the following key environmental protection strategies were implemented: Preservation of a 130-acre forested wetland area through deed restrictions to buffer the terminal from the community Development of four tidal wetlands areas, totaling 17-acres, and two stormwater retention ponds. Installation of approximately 200,000 new wetland plants and reseeding of nearby protected clam beds with an addition of 1 million clams Underground retention and storage of stormwater for fire protection. Deployment of electrified ship-to-shore and rail mounted gantry cranes to reduce emissions Deployment of automated systems to reduce lighting requirements within the container yard area. Use of approximately 225,000 cubic yards of recycled aggregate for pavement subbase, saving landfill space. Exhibit 8 presents the locations of the environmental protection areas, and stormwater retention ponds located at the project site. A fourth wetland mitigation area is off-terminal, and not shown. EXHIBIT 8 Site Map - Environmental Protection Areas, APM Terminals Virginia Page 14

57 Development Sequencing Terminal development commenced with conceptual design and permitting in 2001, followed by field investigations and detailed engineering in Construction commenced in May of 2004, and was initiated with a phased dredging program, which encompassed approximately 2-years. Construction of the marine container wharf commenced in November of 2004 and was concluded in December of Construction of container yards commenced in July of 2005, and was followed by construction of terminal buildings and the intermodal rail yard, which was constructed over the period of 2006 and Exhibit 9 provides a high-level timeline of the terminal development sequence. Exhibit 10 presents a series of photos showing the terminals project on a year by year basis. EXHIBIT 9 Terminal development timetable, APM Terminals Virginia Terminal Component Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Dredging Improvements Marine Container Wharf Container Yards Terminal Buildings Intermodal Rail Yard Terminal Operations Permitting Compliance EXHIBIT 10 Panoramic Photographs of Terminal Development APM Terminals Virginia Source: APM Terminals CH2M HILL Page 15

58 Commissioning Terminal operations began on July 30, 2007, when the gates opened. The first vessel to call at the new terminal was the Thekla Schulte which initiated container movement through the facility. The official grand opening and terminal commissioning occurred on September 7, Exhibit 11 presents an aerial photograph of the terminal as it looked on that day. EXHIBIT 11 APM Terminals Grand Opening and Commissioning, September 7, 2007 Source: APM Terminals Page 16

59 Terminal Infrastructure Terminal infrastructure consists of the following key components: Marine container wharf Container yards Intermodal rail yard Truck gate facility Terminal buildings Site utilities The following paragraphs provide descriptions of each of the terminal infrastructure components. Marine Container Wharf The marine container wharf is 3,100-feet in length and 120-feet 9-inches in width. The wharf is planned for a future 650-feet extension. The wharf design consists of an open pile-supported structure built on 36-inch and 54-inch diameter high-capacity concrete cylinder piles with precast deck units and a cast-in-place diaphragm slab. Pile bents are spaced twenty-five feet on center with intermediate piles placed along the crane beams. Four expansion joints are provided along the slab, and are shielded with overlapping metal plates. The land-side is retained by an HZ sheet pile combination wall, which runs the full length of the planned wharf. A timber bull-rail is located along the outboard face with T-type concrete-filled cast iron bollards spaced along the wharf s length at intervals of approximately 75- feet. The wharf is also fitted with a high-capacity fender system along its length. The wharf s rated capacity is 1,000 pounds per square foot (psf) across most of the structure. A rated 2,000 psf area is provided along a length of 125-feet located at mid-wharf. The crane beams are designed to support crane loads of 100,000 pounds per lineal foot. The wharf substructure is designed to allow for a future dredge depth of -67-feet (NAVD 88). In addition to the ship-to-shore gantry cranes, the structure design considers live loads from trucks, container handling equipment, and loaded stacked containers. Fender and mooring loads were developed for future generation container vessels, and were developed utilizing OPTIMOOR. Exhibit 12 on the following page presents a typical cross section of the marine container wharf. Mooring Dolphins Two mooring dolphin structures are located north of the container wharf and are accessed via a catwalk from the wharf. Each dolphin is a concrete slab (approximately 4-feet thick) supported by six steel batter piles. One of the dolphin structures supports an electric capstan winch, which is used to assist in vessel mooring operations. The mooring dolphins extend the effective berth length of the wharf by 125-feet, for a total of 3,225-feet of berth length available today. Two additional mooring dolphins are planned for the south end of the wharf at full build-out, bringing the future berth length to 4,000-feet. Page 17

60 EXHIBIT 12 Typical Cross Section, Marine Container Wharf Structure APM Terminals Virginia Source: CH2M HILL Page 18

61 Fender Systems Fender systems are provided at every 50-feet along the length of the container wharf structure to buffer horizontal vessel loads. The installed fender system is a Trelleborg (Fentek) closed box panel faced with UHMW-PE and supported by two rubber elements to absorb impacts. The rated energy of the system is 778 ft-kips of energy and represents a design vessel of displacement 206,719-tons with a 25% abnormal impact. The container wharf was designed for a maximum lateral force from a 230,000-ton displacement and a maximum fender reaction of 398-kips. Exhibit 13 presents images of the installed fender systems. Bollards The container wharf is equipped with 300-ton capacity bollards, spaced approximately every 75-feet. The bollards are of concrete-filled cast iron fabrication, and are mounted to the wharf with seven 4-inch diameter galvanized steel anchor bolts, each over 3-feet in length and embedded into the wharf s concrete structure. The installed bollards provide mooring capacity for super post-panamax class container vessels. Exhibit 14 presents an isometric view of a typical bollard. EXHIBIT 13 Fender Systems, Marine Container Wharf APM Terminals Virginia EXHIBIT 14 Typical 300-ton Bollard Isometric View APM Terminals Virginia Ship-to-Shore Crane Rails The container wharf is equipped with a pair of 171-pound crane rails along the length of the wharf. The crane rails are spaced at a gauge of 100-feet and are sized to accommodate the fleet of super post-panamax ship-to-shore gantry cranes. The crane rails are supported by a reinforced concrete beam and intermediate piles between pile bents. The crane rails are encased with asphaltic concrete pavement, and have diagonal expansion joints to allow for thermal expansion and shrinkage. Container Yards Container yards provide for temporary storage and staging of inbound and outbound containers, empty containers, chassis-mounted reefers, and chassis equipment for over-the-road trucks. A total of six container storage and staging yards are provided on the terminal. The container yards consist of the following: RMG yard Intermodal staging yard Empty storage yard Source: CH2M HILL Source: CH2M HILL Page 19

62 Chassis storage yard Reefer on chassis storage Out-of-gauge storage yard EXHIBIT 15 Container yards location map APM Terminals Virginia The location of each yard is identified in Exhibit 15 above, and discussed in the following paragraphs. RMG Yard Source: CH2M HILL The RMG yard provides for stacked storage and transfer of containers between both vessel and landside transportation operations. The yard is configured as defined parallel storage blocks oriented perpendicular to the marine container wharf, and is approximately 65-acres in area. Container handling within each block is provided by two RMG cranes, each sized to span the width of each block, and powered to move along the length of the storage block. Each block is provided with a waterside transfer zone to support vessel operations and a landside transfer zone to support truck operations. Individual storage blocks allow for 8-wide / 5-high container stacking density, and Page 20

63 deliver a total of 2,400 TEU slots each. Currently, 15 storage blocks are in operation (numbered 2 through 16). At full build-out, a total of 30 storage blocks will be in operation, and be equipped with a total of 60 RMG cranes. The RMG yard is surrounded by a security fence to prevent unauthorized access to the area for safety and security. Exhibit 16 presents a photograph of the RMG yard in current operation. EXHIBIT 16 Operating RMG Yard APM Terminals Virginia Source: APM Terminals RMG Yard Landside Transfer Zone The landside transfer zone provides a safe and uniform location for loading and unloading over-the-road truck chassis and translifter cassettes. The landside transfer zone is located at the west end of each of the container storage blocks, and consists of five truck lanes to position vehicles under the RMGs. The landside transfer zone is paved with concrete and includes signage, lighting, transaction booths, and cameras. Safety rules require truck drivers to exit vehicles and enter a booth prior to loading or unloading operations. Booths are equipped with a pressure sensitive floor which is activated when the driver is standing within the booth. Only when the driver is safely within the booth will the safety interlock system allow loading and unloading operations to Page 21

64 occur. When the interlock is met, the automated RMG will enter the transfer zone and align itself over the target truck. At this point, control of the RMG is transferred to a manned control station located in the Terminal Operations Building for the actual vertical movement of the container by manual operation. Exhibit 17 presents a photograph of the landside transfer zones EXHIBIT 17 RMG yard landside transfer zone APM Terminals Virginia RMG Yard Waterside Transfer Zone Source: APM Terminals The waterside transfer zones are located at the east end of each container block and are used for queuing containers for transfer to/from the container block for transfer to/from a ship via manned shuttle carrier. Each zone is paved with concrete and can queue up to 20 TEU with a single stack height. The zone is segregated from the container stack by security fencing on three sides. The open side of the transfer zone uses sensors to provide a safety interlock causing the automated RMGs to automatically shut down within the zone any time a shuttle truck crosses the threshold into the transfer zone. Exhibit 18 on the following page presents a photograph of the RMG yard waterside transfer zone. RMG Yard Reefer Storage Stacked reefer storage capacity is provided adjacent to the landside transfer zones within the RMG yard blocks. Currently, five reefer stack areas are operational, one at every third storage block. The reefer storage areas are equipped with steel racks designed for safe personnel access to reefers, and are each equipped with reefer plugs for Page 22

65 EXHIBIT 18 RMG yard waterside transfer zone APM Terminals Virginia Source: APM Terminals provision of electrical power. Each reefer rack can support 32 reefers on one side, stacked up to 4-high. Five reefer racks are installed at present, providing capacity inside the RMG yard for 160 reefers. Full build-out capacity allows for up to sixty reefer racks, or two per storage block, co-located in pairs adjacent to the landside transfer zones. Exhibit 19 presents photographs of typical reefer storage racks within the RMG yard. EXHIBIT 19 RMG yard reefer storage rack APM Terminals Virginia Source: APM Terminals Page 23

66 RMG Yard Crane Rail Systems The RMG yard crane rail systems provide for safe and uniform operation of the RMG cranes. The crane rail systems include: RMG crane rails, ties and ballast Crane stops Stow pins and tie downs Cable trays The RMG crane rails are 171-lb head hardened steel rail, supported by concrete ties in a bed of gravel ballast. The design allowed for cost-effective construction of the system, and simplified maintenance and realignment of rails as required to account for settlement. The distance between the crane rails is The maximum vertical crane wheel force was established as 94.4 kips and the maximum lateral force per corner was 49.5 kips. Track anchors were placed at the midpoint of the rail to allow for thermal expansion. The ties are CST-399 concrete gantry ties for rail mounted gantries and are 72-inches long x inches x inches thick. Tie spacing ranges from 18-inches to 24-inches. The CXT-399 Gantry ties came fitted for a Pandrol Safelok rail clip and Pandrol Zero Longitudinal Resistance Clips. The crane stops, located at the ends of each crane rail, are designed to resist a 200 metric ton crane mass traveling at 1 to 2 m/s. Crane tie downs and stow pins are installed with a rated capacity of 32 metric tons. The rail aisles between the container stacks have two configurations that alternate; a rail-only aisle with limited clearance between the rails of the adjacent blocks and a maintenance aisle with an approximately 8-feet wide asphalt paved walkway between the rails of the adjacent stacks. Precast concrete curbs are located along the edge of the walkway sides to protect metal cable trays located on both sides of the walkway. Periodically spaced within the walkway are cleanout assemblies for the perforated drainage pipe located underneath each container stack. RMG Yard Paving Inside the RMG yard area, a thin asphalt paving layer was provided for container stacking locations, to provide a smooth landing area. The paved landing sections extend the length of each block, and are separated by parallel V ditch drainage channels, giving the appearance of zebra striped paving. The 15 RMG blocks each consist of three strips of asphaltic concrete separated by coarse aggregate drainage beds. Each asphalt pavement strip is wide enough to accommodate two containers, while an additional container can straddle the drainage beds. Intermodal Staging Yard The intermodal staging yard provides staging space for loading and unloading operations associated with intermodal rail cars. Located adjacent to the intermodal rail yard, the yard is laid-out as a wheeled storage facility that accommodates translifter cassettes for movement and positioning of containers. The 10-acre yard is paved with heavy asphalt paving and equipped with a small gate facility for processing inbound and outbound containers. Two single-lane Optical Character Recognition (OCR) portals and one Radiation Portal Monitoring (RPM) station are provided for container movements between this area and other container yards. Approximately 300 spaces are provided within the intermodal staging yard. Empty Storage Yard An empty container storage yard is located adjacent to the intermodal staging area. The yard encompasses approximately 16-acres, and is paved with heavy asphalt paving. The empty yard utilizes a stacked storage arrangement, and is equipped with one RTG for container handling between seven RTG storage blocks. Approximately 4,900 total TEU slots are available within the empty yard, which may be stacked up to 5-high. Page 24

67 Chassis Storage Yard Bare chassis storage is provided by an approximate 9-acre, heavy asphalt paved area, located adjacent to the empty container storage yard. The yard is monitored and controlled through entry and exit gates. There is a covered facility for conducting roadability checks prior to entering the chassis storage facility and an electronic gate facility with RFID sensors controlling exit from the area. Wheeled Reefer Storage Yard Wheeled reefer storage is provided adjacent to the chassis storage yard. The yard consists of approximately 7-acres, is paved with heavy asphalt pavement, and is equipped with reefer receptacles for 264 reefer parking spaces. Concrete landing strips are provided for chassis legs to prevent damage to the pavement. Wheeled Out-of-Gauge Yard Storage for oversized and out-of-gauge cargo is provided along the southern fence line of the terminal, south of the RMG yard. Over 1,300 lineal feet of space is provided. Yard Paving Asphalt paving is provided for yard areas with primarily container truck traffic, though it could also be used for empty container handlers. Paving was designed for 100 million equivalent single axel loads (ESALs) with a focus on providing a low maintenance paving system that would be economical to install. The asphalt pavement is a uniform 12 inch thickness comprised of a thick structural layer topped by a thin wear layer. Personal vehicle parking lots were provided with a much smaller pavement section appropriate to much lighter loads. Concrete paving is provided where heavy container handling equipment, such as shuttle trucks or RTGs operate, particularly in areas on the waterside of the RMG stacks and in the rail yard. Concrete pavement is also provided in the RMG transfer zones which see more maneuvering by over-the-road trucks and shuttle trucks. A uniform 12-inch thick pavement profile was used to provide reinforced concrete paving in the yard, with a similar but slightly different profile provided in the rail yard for use by RTGs. Intermodal Rail Yard Located along the north boundary of the terminal is an approximate 40-acre intermodal rail yard. The rail yard provides for loading and unloading of double stack intermodal trains, and is outfitted with two sets of three loading tracks for a total of six loading tracks. Each loading track is nominally 2,400-feet in length, and capable of staging eight five-pack intermodal rail cars. An area is reserved for two additional sets of three tracks. Loading tracks are mounted on timber ties over ballast. On either side of each 3-track set is concrete pavement to support RTGs which are used to transfer containers between the rail cars and translifter cassettes. The remaining area of the intermodal yard, which supports container queuing and other storage, is paved with asphalt concrete. The intermodal rail yard is served by the Commonwealth Railroad, providing double stack intermodal service to inland destinations. The Commonwealth Railroad short-line provides a single track spur that originates in Suffolk, VA and presently extends along the median of Rt. 164 with vertical clearances of on the order of 25 feet, sufficient for double stack trains. EXHIBIT 20 Intermodal rail yard & Intermodal staging area APM Terminals Virginia Source: APM Terminals Page 25

68 Exhibit 20 presents photographs of the intermodal rail yard, as well as the intermodal staging area. Drainage within the rail areas and paved areas south of the rails is provided by an underdrain system within the ballasted rail area. Pavement drainage north of the tracks is provided by slot drains. An oil water separator is also located at the north edge of the site to treat general terminal runoff prior to its discharge into a stormwater pond north of the intermodal yard. A compressed air facility located on the north side of the tracks provides compressed air to stations within the intermodal yard for charging railcar brakes. A sanitary sewer lift station is present but not in service. It was intended to serve a rail support facility that has not been constructed. Truck Gate Facility The truck gate facility is located along the southwest corner of the terminal, and provides for processing of inbound and outbound over-the-road trucks and containers. The truck gate facility is designed as a split gate, having discrete inbound and outbound gate lanes and support facilities. Exhibit 21 presents a general overview of the truck gate facility. The components of the inbound and outbound gate facilities are discussed separately below. EXHIBIT 21 Truck gate facility site map overview APM Terminals Virginia Source: CH2M HILL Page 26

69 Inbound Gate System The inbound gate system consists of the following components: RFID scanners, located at the Rt. 164 interchange Drivers assistance building Inbound Optical Character Recognition (OCR) portal Inbound Gate canopy RFID Scanners Radio Frequency Identification (RFID) scanners are provided at the Rt. 164 interchange, serving both westbound and eastbound traffic, and enables electronic transfer of truck and container information to the TOS prior to truck entry onto the terminal. Drivers Assistance Building Trucks not identified by the TOS are not allowed to enter the terminal and are directed to the drivers assistance building for exception processing. Inbound OCR Portal All inbound trucks enter an OCR portal, which reads the container number and electronically enters the information into the TOS. The inbound OCR portal consists of three bays (numbered 2-4) within a drive-thru metal building. Lane 1 is an oversized load lane which is available to bypass the portal. A sign bridge is located between the OCR portal building and the entrance gate queuing lanes. Example OCR portals are presented in Exhibit 22. EXHIBIT 22 Typical OCR Portals, inbound and outbound gates APM Terminals Virginia Source: APM Terminals Inbound Gate Canopy The inbound gate canopy is utilized for processing trucks and containers entering the terminal. The canopy is remotely operated, utilizing cameras and intercom systems for communication between drivers and gate operators. The remote operations center is located within the Terminal Operations Building. The inbound gate canopy has twelve main lanes (numbered 2 through 13) as well as an oversized out-of-guage load lane (lane number 1) outside of the canopy. Each lane is equipped with a scale, camera pedestal, driver kiosk, and Page 27

70 swing arm. Illumination under the canopy is provided by overhead lighting and spotlights mounted at the entrance to illuminate the back ends of the entering trailers. The truck scales are surrounded by concrete slabs and covered by the canopy (excluding the oversized load lane). The remaining areas, including the queuing lanes up to the entrance trench drain and the exit lanes past the canopy are paved with asphaltic concrete. Drainage for the entrance lanes is provided by a trench drain that spans the entrance threshold of the canopy and large catch basins located in the entrance lanes. Exhibit 23 presents photographs of the inbound gate canopy, which are typical for both inbound and outbound operations. EXHIBIT 23 Inbound gate canopy APM Terminals Virginia Outbound Gate System The outbound gate system consists of the following components: Source: APM Terminals Outbound OCR portal Outbound gate canopy Radiation Portal Monitoring (RPM) station Outbound OCR Portal Similar to the inbound OCR portal, all outbound trucks enter the outbound OCR portal, which is located waterside of the outbound gate canopy. The outbound OCR portal consists of three bays (numbered 2-4) within a drive-thru metal building. Lane 1 is an oversized load lane which is available to bypass the portal. Outbound Gate Canopy The outbound gate canopy has a similar configuration as the inbound gate canopy with twelve lanes plus an out-ofgauge lane. Under the canopy, a similar configuration of camera pedestal, driver kiosk, and swing arms are present, though no scales are installed. Pavement under the canopy is a concrete slab. The queuing and exit lanes are asphaltic concrete. A trench drain located between the OCR portal and the Exit Gate drains the queuing area. Radiation Portal Monitoring (RPM) Station Radiation Portal Monitors (RPMs) are used by Customs & Border Protection (CBP) to screen all import shipping containers departing the facility via truck. The RPM stations are located landside of the outbound gate canopy, and consist of four lanes. If a vehicle or container causes a primary RPM to alarm, a CBP officer will direct the vehicle to Page 28

71 proceed through a secondary RPM and then to an inspection area where a more thorough scan will be performed. Traffic control devices such as lights, signs, lane markings, and concrete roadway barriers serve to limit the speed of vehicles through the RPMs to 5 mph or less and prevent the vehicle from stopping within the RPM s sensor zone. An RPM system is composed of two radiation portal stands facing one another on each side of a lane of traffic. For seaport terminals, two radiation sensor panels (RSPs) mounted one above the other comprise a radiation portal stand. Each radiation portal monitor stand (comprised of 2 RSPs) is about 15 feet high and weighs approximately 5,400 pounds, including the weight of the two RSPs and the stand support structure. The RPM has presence sensors, which detect when a vehicle is physically in the RPM and initiates the recording of data and the annunciation of alarms. The RPMs are connected to a supervisory computer located in the nearby CBP booth. Enunciators/indicators alert CBP officers to alarms. The overall RPM installation includes a CBP booth, a remote-operated (RO) RPM at the intermodal staging yard, and fiber optic cable and phone lines installed for communications and equipment interconnections. Remotely-operated RPMs (RO-RPMs) provide CBP staff with the means to efficiently monitor cargo leaving extended port areas with multiple exit points, such as those with on-terminal rail. Utilizing RO-RPMs, a minimal number of CBP staff can oversee multiple monitoring stations. RO systems typically include intercoms, area surveillance cameras, and a vehicle identification system (VIS). Exhibit 24 presents photographs of the RPM station associated with the outbound truck gate system. EXHIBIT 24 Radiation Portal Monitoring Station and CBP Booth Outbound gate system - APM Terminals Virginia Terminal Buildings Five Terminal buildings are included within the facility, and consist of: Source: APM Terminals Terminal Operations Building (TOB) Shop Building Wash Dock Building Marine Labor Building Drivers Assistance Building Exhibit 25 presents a summary of the terminal buildings. Locations for each of the buildings are shown in Exhibit 26. Each of the buildings are discussed in the ensuing paragraphs. Page 29

72 EXHIBIT 25 Summary of Terminal Buildings APM Terminals Virginia Building Use Size Construction Terminal Operations Building Shop Building Office / Remote Operations Control Industrial 71,440 sf 4 stories 41,437 sf Open area Steel frame & glass curtain wall Steel frame Wash Dock Building Cleaning 4,976 sf Steel frame canopy Marine Labor Building Drivers Assistance Building Locker rooms / restrooms Office 9,447 sf 2 stories 2,455 sf 1 story Steel frame & masonry Steel frame & masonry Source: CH2M HILL EXHIBIT 26 Site Map, Terminal building locations APM Terminals Virginia Source: CH2M HILL Page 30

73 Terminal Operations Building (TOB) The Terminal Operations Building is the headquarters for terminal operations, administration, and management. The building is a four-story office building, providing approximately 71,440 square feet of space. The building layout is planned around a repetitive square bay pattern. In this case the structural bay size for the vast majority of the building is 40 x 40. The building configuration creates a floor plan of 15,380 S.F. for levels three, and four. Levels one and two have an extended floor plan of 20,340 S.F. per floor to accommodate parts storage. The building is built around a major service and vertical core with two entrance points; one for management and visitors and one for operations staff. The building utilizes a structural steel framing system with a light-weight concrete slab on galvanized composite steel floor deck, supported on composite structural steel beams and girders on wide-flange structural steel columns. Lateral loads in the east-west direction are resisted by X-bracing located adjacent to the stair towers. Lateral loads in the north-south direction is resisted by a combination of moment-resisting frames at the east and west exterior walls, and K-bracing along the corridor between the stair towers. All floor slabs are designed to provide a minimum load capacity of 80 pounds per square foot for the typical office area. A patio is provided at the TOB over the extended level two roof. The patio connects to the Terminal Management floors break room and provides panoramic views of the outside container yard operations or woodlands, allowing fresh air breaks without leaving the building. The ground floor consists of a non-structural concrete slab-on-grade with welded wire mesh reinforcing over a vapor retarder and 4-inch porous fill. In the parts storage areas, with heavier loading, the slab is designed for forklift loading and for the concentrated loads of the rack-storage system. The floor slab is reinforced with reinforcing bars. The foundation consists of cast-in-place concrete pile caps and grade beams, supported by 12 x 12 precast prestressed concrete piles, approximately 80 feet long. Exhibit 27 presents photographs of the TOB. EXHIBIT 27 Terminal Operations Building APM Terminals Virginia Shop Building Source: APM Terminals The Shop Building, located adjacent to the TOB provides functional industrial spaces for equipment and terminal maintenance. A total of 26 shop bays are provided, consisting of 6 shuttle truck repair bays and 20 smaller repair bays for other yard equipment. Typical bay spacing is 50 x 40 for the shuttle truck bays, and 50 x 20 for the smaller bays. Twenty-ton capacity bridge cranes are provided in the first and third shuttle truck bays, with a hook height of 36-feet. Two shuttle truck bays are provided with overhead gantry cranes each having two synchronized, three-ton Page 31

74 automatic hoists spaced forty feet apart. Three smaller shop bays located adjacent to the shuttle truck bays are provided with 20-ton capacity bridge cranes with a hook height of 18-feet. A four-foot wide catwalk is located at 32-feet above the floor on one side only of the first and third shuttle truck bays, with a secondary platform provided at 24-feet above the floor to provide convenient access to shuttle truck cabs. Each catwalk consists of open grating with appropriate guardrails and a stairway to the main floor. The structural system uses open-web steel bar joists on structural steel moment frames. Transverse lateral loads are resisted by the main structural steel moment frames, with additional transverse stiffness obtained by X-bracing between the interior columns. Longitudinal lateral loads are resisted by moment frames constructed of the main building columns and long-span steel joists. The floor at the parts storage areas is designed for forklift loading, for the concentrated loads of the rack storage system, and for the storage live load. Floor slabs are flat, with no slope for drainage and no floor drains. In the shuttle carrier bays and two chassis bays, the ground floor slab is thickened with Kansas anchors embedded into the floor slab to allow equipment to be securely anchored to the floor. The foundations consist of a combination of cast-in-place concrete continuous wall footings at the exterior walls and castin-place spread footings at all columns. Exhibit 28 presents photographs of the shop building. EXHIBIT 28 Shop Building APM Terminals Virginia Source: APM Terminals Wash Dock Building A reefer and container washout facility is located adjacent to the shop building, along the west boundary of the terminal. The wash dock facility provides space for up to 32 containers, and may be used for inspection and/or cleaning operations. This facility has an elevated concrete platform, which is covered with a canopy. The canopy is of light-gauge steel frame construction. A fueling facility to service terminal vehicles is also located in this area. Exhibit 29 on the following page presents photographs of the wash dock building Marine Labor Building The marine labor building, located at the southeast corner of the terminal provides lockers, restrooms and access to shuttle truck equipment for terminal personnel. The building is a two-story structure of steel frame and concrete masonry unit construction, and provides 9,447 sf of covered occupancy. A canopy is provided on two sides of the Marine Labor Building and is constructed of light-gauge steel framing. Page 32

75 EXHIBIT 29 Wash Dock Building APM Terminals Virginia Source: APM Terminals Virginia The Marine Labor Building provides elevated access to the shuttle truck parking area through an elevated steel catwalk (shuttle truck parking rack). The catwalk provides safe access for personnel to enter shuttle trucks at the cab level and connects to the second floor of the Marine Labor Building. Stairways, located at each end of the parking rack, provide access to the parking rack from grade. The stairway nearest the Marine Labor Building and the walkway between the Marine Labor Building and the stair are covered by a roof structure. The rack consists of a structural steel frame on spread footings with a 4-foot wide open grate catwalk at 24-feet above the pavement. The shuttle truck parking rack currently provides parking for 24 shuttle trucks. Expansion space is provided for up to 28 additional shuttle truck parking spaces. Exhibit 30 presents photographs of the Marine Labor Building. EXHIBIT 30 Marine Labor Building APM Terminals Virginia Drivers Assistance Building Source: APM Terminals Located at the entrance to the inbound gate facility is a drivers assistance building, which provides a location for truckers to resolve interchange issues prior to entering the inbound gate canopy queue. Interchange issues are identified as trucks pass under the RFID scanners or enter the inbound OCR portal. Where issues are identified, drivers are directed to the drivers assistance building for trouble resolution. The building is a single story steel frame and concrete masonry unit structure, consisting of 2,455-sf of occupied space. A parking area is provided for trucks adjacent to the building. Page 33

76 Exhibit 31 presents photographs of the driver s assistance building. EXHIBIT 31 Driver s Assistance Building APM Terminals Virginia Site Utilities Source: APM Terminals The terminal utilizes a loop system for the firefighting water, potable water, communication, and electrical site utilities that encircles the current and proposed RMG yard. This allows for redundant service paths from key utility systems. Sanitary sewer service is provided to key buildings via a pump station and force main system that feeds the sanitary waste to a central collection station where it is then pumped into a nearby Hampton Roads Sanitation District line. Firefighting Water Firefighting water is supplied from the northern storm water retention pond via two electric pumps located in an adjacent concrete block pump house. A dedicated emergency power generator is provided to ensure the pumps will always have power available. The northern storm water retention pond is connected to the terminal storm water collection system by two 72-inch concrete pipes that run the length of the terminal to the southern storm water retention pond. All the terminal storm water drainage empties into the 72 inch lines and the drainage system and retention ponds extend below the water table to ensure that firefighting water will always be available. The fire hydrants provide flow in excess of 1,500 gallons per minute (gpm) at a residual pressure of 20 psi. Fire hydrants are located approximately every 1200 feet along the site fire protection loop. Each fire hydrant has two 2 ½ inch house outlets and one 4 ½ steamer connection each with national standard threads. The Terminal Operating Building (TOB) is supplied from a 6 inch lateral off of the site loop. Potable Water Water service is provided by a 16-inch City of Portsmouth water line along Coast Guard Boulevard, via a single site meter. The City service supplies a loop system that supports the Marine Labor Building, the Drivers Assistance Building, Wash Dock, Shop and the Terminal Operations Building and provides water service to the wharf for container vessel use. Metered water service is available at the wharf inside five concrete utility boxes mounted on the surface of the wharf at the water s edge. Based on conversations with the City of Portsmouth public utilities office, available flows and pressures in the existing 16-inch-diameter water line are as follows: Static Pressure: from 54 to 58 pounds per square inch (psi) Residual Pressure: 44 1,090 gallons per minute (gpm), 50 1,190 gpm Page 34

77 Site Drainage Stormwater runoff is collected inside the terminal and routed though oil-water separators before being discharged into retention ponds which serve as firefighting reservoirs. This reduces the firefighting water supply demand required by the utility district and avoids storm water discharges into local waterways. Trench drains collect water from paved areas waterside and landside of the RMG stacks. The RMG stacks themselves contain an extensive underdrain system where gravel filled V-shaped ditches collect water parallel to the crane rails and pipe it to 72-inch wide collection pipes that feed the stormwater retention ponds. There is an overflow capability from the terminal system in to the river, in the event of extreme rain events. Certain areas within the stacks are designated for hazardous material storage and are segregated from the remaining stack drainage area by a concrete curb perimeter. PVC pipe penetrations and valve assemblies permit the draining of these areas as required. Sanitary Sewer Sanitary sewer service is provided to the Marine Labor Building, the Drivers Assistance Building and the Terminal Operations Building via submerged wet-well pump stations and a force main system that feeds the sanitary waste to a central collection station adjacent to the Terminal Operations Building. From the collection station, waste is then pumped into a nearby Hampton Roads Sanitation District force main located along Wild Duck Lane. Three additional pump stations are installed to accommodate future expansion at the wharf, rail yard and gate areas. Grit settlement tanks are provided ahead of each pump station to trap grit and inorganic floatables while duplex grinder pumps are provided at each pump station to liquefy solids for pumping. Natural Gas The Terminal Operations Building and Shop Buildings are supplied with natural gas, from Commonwealth Gas, for the heating boilers and gas fired heaters in the shop mezzanine. Electricity Electricity is provided from the Dominion Power substation located at Cedar Lane via two geographically separated 34.5-kV feeders. Distribution lines run underground along Wyatt Drive to a Dominion Power 13.2-kV substation dedicated to the terminal and located near the Cogentirx plant. A redundant underground power line is also provided via West Norfolk Road to the 13.2kV substation to ensure a redundant power source is available to keep the electrified yard cranes, terminal lighting, and technology systems in operation. A medium voltage transfer switch is used to select which feeder serves the terminal. The main switchgear is comprised of Cutler-Hammer circuit breakers with GE 750 Feeder Management Relay system for control. Each major piece of equipment can be fed from either 13.2-kV feeders, which are interlocked to avoid both feeders being energized at the same time. STS Cranes are supplied with 13.2-kV power via a crane cable system installed in the wharf, which includes a Panzerbelt trench system feeding a crane cable reel. The crane cable is connected to the power feed in twelve cable pits installed under the wharf and accessible via hatches adjacent to the Panzerbelt trench. Each pit can support two crane cables. An underground loop electrical distribution system of concrete encased schedule 40 PVC conduit and manholes provides a redundant power source to STS and RMG crane systems, as well as to terminal buildings and terminal lighting. The main substation was designed for the connection of up to 6 mobile generator units. The mobile generator electrical output operates at 480-V so a step up transformer (480-V to 13.2-kV) is required to make the transition to the main substation operating voltage. Three transformers, each rated at 2,500-kVA, are currently installed and connected to the main bus through the associated circuit breakers. The remaining capacity of 3 transformers and circuit breakers can be provided by future construction. During a long term power outage, mobile generator units can be brought on site and connected to the transformers. The total standby generating capacity of the terminal is Page 35

78 currently 7,500-kVA. When the 3 future transformers and circuit breakers are installed the standby generating capacity will be 15,000-kVA. Key buildings have permanently installed stand-by generators. The standby generators are located at the drivers assistance building, the outbound gate, the fire pump building, and the Terminal Operations Building. Technology & Communications For an automated facility to operate properly, communications between system elements (people, software, hardware, machines etc) must be fast, functional, and reliable. Lightweight highly functional tablet PCs with rich client software are deployed to make sure the right information is available immediately to the key decision makers. This technology is employed with equal success in the control center, in manager s offices, in vehicles performing work tasks, and by roaming mechanics performing on-the-ground service tasks. This system depends on the right software designs and a high performance wireless network. In this regard, high performance means: speed, coverage, and availability. The communications system deployed at the facility has yielded tremendous aids to productivity by virtually eliminating paper in the terminal, and providing real-time access to vital information. Terminal Lighting Terminal lighting is fed by the 13.2-kV primary loop system via 480-V step down transformers to provide reliability in case of problems with cable sections or breakers. Thirty eight light poles are provided to cover built-out areas as well as the future expansion areas inside the terminal. The terminal utilizes Green Generation Lighting manufactured by Musco Lighting, which provides the lighting solution necessary to safely and securely operate a port at night, while utilizing less energy than conventional high-mast lighting systems. Through a series of timed power adjustments, this proprietary system is able to maintain constant light levels while operating the lamp with less energy. Further, through the use an advanced reflector system within the luminaire and an external visor system, off-site spill and glare is reduced by half or more when compared to conventional lighting systems. This ability to focus the light where it is needed increases efficiency while avoiding sky glow, light spill and glare. A central lighting control system is used to centrally manage the high mast lights via a PC based application. Exhibit 32 presents photographs of the terminal lighting results. EXHIBIT 32 Terminal lighting APM Terminals Virginia Source: APM Terminals Page 36

79 Container Handling Equipment Container handling equipment operating on the terminal consists of that equipment owned by APM Terminals and that equipment owned and operated by others. A summary of container handling equipment is provided in Exhibit 33. Each of the major container handling unit categories are discussed in the ensuing paragraphs. EXHIBIT 33 Summary of container handling equipment APM Terminals Virginia Equipment Type Manufacturer Number of Units Ship-to-shore cranes ZPMC Model (2006) 6 Ship-to-shore cranes ZPMC Model (2009) 2 Rail mounted gantry cranes Konecranes 30 Shuttle trucks Konecranes SCH250H 20+ Rubber tired gantry cranes Konecranes Model KONE G734 4 Utility Tractors / Translifters Cargotech TTS Model LTHC Cassette trailers TTS Model D007683E 200+ Ship-to-Shore Cranes Source: APM Terminals Ship-to-shore (STS) cranes provide container lifting capability to/from the ship to the wharf. A total of eight STS cranes are currently deployed at APM Terminals Virginia, and consist of the following machines: Six 2006 ZPMC machines with 105 metric ton lift capacity on the ropes, 65 metric ton twin lift spreader capability, 118 meter total trolley travel distance including 62 meters of outreach from the waterside gantry rail. These cranes are capable of servicing vessels approximately 22 containers wide stacked 8 high on deck. Two 2009 ZPMC machines with 100 metric ton lift capacity on the ropes, 65 metric ton twin lift spreader capability, 120 meter trolley total travel including 65 meters of outreach from the waterside gantry rail. These cranes are capable of servicing vessels approximately 23 containers wide stacked 8 high on deck. Page 37

80 Exhibit 34 presents photographs of typical STS cranes deployed at the terminal EXHIBIT 34 Typical ship-to-shore gantry crane APM Terminals Virginia Rail Mounted Gantry Cranes Source: APM Terminals Virginia Rail mounted gantry cranes (RMG) provide for container handling within the automated RMG yard, and provide for transfer of containers within the landside and waterside transfer zones. A fleet of thirty semi-automated RMGs are currently deployed at the terminal, and were manufactured and delivered by Konecranes in Each RMG crane has a 40 metric ton lift capacity under a single lift spreader and is capable of stacking containers up to 5 high and across 8 rows. The cranes are principally controlled by the TOS, and can also be manually controlled from a remote operations center. The RMG cranes are electrified, and are fed from a single primary feeder at 13.2kV to provide flexibility for maintenance and unforeseen problems with feeder cables or breakers. A cable tray system manages the crane s electric supply cable. EXHIBIT 35 Typical rail mounted gantry crane APM Terminals Virginia Source: APM Terminals Page 38

81 Rubber Tire Gantry (RTG) Four rubber tire gantry (RTG) cranes are deployed on the terminal, and are used for container handling at the intermodal yard and the empty container yard. All four RTG cranes have 50 metric ton rated lift capacity with 60 metric ton occasional heavy lift capacity under the 60 metric ton twin lift spreader. Each crane is capable of stacking containers 6 rows wide plus 1 truck lane and lifting one container over a 5 high stack. The cranes are manufactured by Konecranes, and were acquired in 2004 (2 cranes) and in 2006 (2 cranes). Exhibit 36 presents photographs of typical RTGs deployed at the terminal. EXHIBIT 36 Typical rubber tired gantry crane APM Terminals Virginia Source: APM Terminals Shuttle Trucks Shuttle trucks provide waterside transfer of containers from the wharf to the RMG yard. Shuttle trucks straddle containers, lift, move, and position containers independently. A fleet of 20 Konecranes (2007) shuttle trucks, Model SCH 250H, with 50 metric ton lift capacity, was originally deployed at the terminal. Additional units have been deployed by the current terminal operator. EXHIBIT 37 Typical shuttle truck APM Terminals Virginia Source: APM Terminals Page 39

82 Utility Tractors / Translifters Landside drayage is accomplished with deployment of Commando 50 Utility Tractors and TTS translifter trailers. The utility tractors, manufactured in 2006 by Kalmar Industries, have a gross combined weight rating of 96,000 pounds, and a hydraulically controlled 5th wheel with an 18-inch lift range. Ten of the utility tractors originally put into service include the pumps and controls necessary to interface with translifter trailers. Ten TTS Port Equipment 2007 model LTHC60-2 translifter trailers were originally deployed. Each translifter has a 66 metric ton lift and carry capacity and can transport any of the terminal's cassette platforms. Additional units have been deployed by the current terminal operator. Cassette Trailers Containers are moved around the yard using TTS Port Equipment 2007 model D007683E cassette platforms which include only a transport bed without suspension or wheels. The cassette is capable of carrying 20', 40', 45' or twin 20' containers and is moved within the yard by Translifter trailers connected to utility tractors. Use of these cassettes enhance worker safety as the operators can access and move containers without having to get out of their vehicles. Two hundred cassette trailers were originally deployed. Additional units may have been deployed by the current terminal operator. Page 40

83 Facility Maintenance The facility is designed and constructed to provide a long service life with regular maintenance. Implementation of a regular maintenance program is recommended to preserve the investment in infrastructure, maintain peak operating efficiency, prevent failures and service delays, and promote a safe and healthy work environment. Excluding container handling equipment, a recommended facility maintenance plan is provided in Exhibit 38. EXHIBIT 38 Recommended Facility Maintenance Program APM Terminals Virginia Terminal Component Maintenance Action Frequency Channel / Berths Bathymetric survey 3 years Visual wharf inspection Annually Engineering wharf inspection (above and below water) 5 years Crane rail survey & maintenance 5 years Marine Container Wharf Fender maintenance Routinely Wharf electrical & utilities inspection Annually Wetlands maintenance Annually Recoat steel piles 15 years RMG Yard All Pavements Inspect RMG yard Inspect electrical components Re-tamp ballast / rails Pavement overlay Inspect pavement Pavement restriping Annually Annually 5 years 10 years Annually 5 years Light Pavements Pavement overlay 10 years Heavy Pavements Terminal Buildings Repair/reseal joints/cracks Pavement overlay HVAC maintenance Fire protection maintenance Electrical system maintenance Elevator maintenance Inspect roofing Inspect structural/finishes Repaint Scales maintenance 5 years 15 years Monthly Monthly Quarterly Quarterly Seasonally Annually 10 years Annually Page 41

84 EXHIBIT 38 (Continued) Recommended Facility Maintenance Program APM Terminals Virginia Terminal Component Maintenance Action Frequency Utilities Intermodal Rail Yard Terminal grounds maintenance Emergency electrical maintenance Fire protection maintenance Sanitary system maintenance Drainage system maintenance Water system maintenance Electrical system maintenance Re-lamp high mast lighting Visual inspection Track re-level and ballast Compressed air system Daily Monthly Quarterly Quarterly Seasonally Seasonally Annually Annually Annually 10 years Annually Source: APM Terminals / CH2M HILL Page 42

85 Future Expansion The APM Terminals Virginia facility is planned for future expansion projects beyond its existing Phase I construction. The planned projects are deemed necessary to bring the facility up to its full planned operational capacity. Seven expansion projects are planned, and consist of the following: RMG Yard expansion Intermodal rail yard expansion Truck gate expansion Wash dock expansion Shuttle truck parking expansion Berth expansion Container handling equipment deployments EXHIBIT 39 Site Map, future expansion projects APM Terminals Virginia Source: CH2M HILL Page 43