Welcome in Antwerp. Steel handling prespective. Ardian Lekaj Platts October 15th, 2013

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1 Welcome in Antwerp Steel handling prespective Ardian Lekaj Platts October 15th, 2013

2 Today s 3 main battles 1- Wild mergers and acquisitions 2- Drastic cost cutting 3- Supersonic evolution Our education has not trained us to break the rules, but rather to follow them. These are the days where thoughtful experimentation is in order, not blind following.

3 Handling perspectives in the breakbulk sector Is it an evolution or a revolution? The future of breakbulk for handling steel and metals will be geared by: Commercial forces Technological forces Logistical forces

4 Breakbulk handling and shipping has changed in nature by becoming a specialized sector with specific niches Each of this niche is traded and handled in its own specific way. Main breakbulk groups are : Steel and metals Forest products Fruits and vegetables Bagged products Project cargo and machinery Heavy lifts Others (general cargo)

5 Breakbulk handling and shipping has changed in nature by becoming a specialised sector with specific niches Antwerp Rule Range Rule 1 ton fruit = 1.5 ton of cars and vehicles = 1.6 tons of other conventional cargo = 3 tons of forest products = 3 tons of roro = 3.5 tons of coils and ferro = 5 tons of other liquid bulk = 7 tons of containers = 10 tons of other dry bulk = 11 tons of ores and coal = 12 tons of cereal = 47 tons of crude oil 1 ton of roro = 1 ton of conventional cargo = 2 tons of other liquid bulk = 3 tons of containers = 5 tons of dry bulk = 18 tons of crude oil

6 Steel and metals market Steel and metals market remains one of the key drivers of the breakbulk cargo handling in ports. Steel has a share between 55% and 60% of all conventional general cargo traffic in the past ten years. The breakbulk cargo in Antwerp represents about 8% of total throughput, but 40 % of total dock labour.

7 Project cargo, heavy lifts and machinery Project cargo, heavy lifts and machinery is one of the most important segments within breakbulk market, which is still growing. In this sector the consolidation of cargo is done at the terminals. Added value activities are required.

8 Breakbulk developments versus containers Breakbulk Containers Impact of commodities (one way trafic) Consolidation and distribution point of cargo Direct transshipment possible Small terminal surface Lower costs for homogeneous large parcels Products longer than 12 meter Limited mechanisation and automation Non standardised terminal operations No impact of commodities Transshipment Indirect transshipment Large terminal surface Higher costs for homogeneous large parcels Products less than 12 meter Advanced mechanisation and automation Organisation and planning

9 Various influences on breakbulk cargo handling Type of cargo Packaging of cargo Instructions and handling manuals Berthing facilities Type of the ship Type of handling equipment Way of loading (cargo plan) Way of slinging Way of lashing and securing Restrictions at the other Ports Skilled labour forces Safety regulations Atmospheric circumstances

10 Diversity in breakbulk cargo fleet Ship operators are renewing the fleet and are mainly investing in specialised ships that still offer some degree of versatility. Most ship operators follow a business model that runs on a combination of cargo.

11 Trends and perspectives Breakbulk terminals are challenged to adapt to the new market reality. Less export and more import of steel is expected. This will rise the distribution function of the terminals. Global sourcing of projects cargoes represents opportunity for terminals to strengthen the consolidation point function. Developments of breakbulk terminals will further evolve from pure handling to servicing cargo flows within the supply chain. Requirement of adequate storage and warehouse capacity. Added value activities at the terminals.

12 The competitive position of our Antwerp terminals for the steel and metals market Geographical location and nautical accessibility Cargo generating capacity Hinterland accessibility Availability of space at the terminals Covered warehousing capacity specialised for steel Dock labour (flexibility, productivity, quality and cost efficiency) Innovation

13 What do we need to optimize handling at the terminal to reduce hidden costs? Standardization in handling instructions Adequate information flow Increase operational knowledge for the industry/trade people Direct IT link between supplier, shipper and cargo handling company

14 If we want to change the results and we cannot change the circumstances, than we have to change the possibilities Thank you Ardian Lekaj Antwerp October 15th, 2013