LATC: Executive Series Old Country Ranch Club January 9, 2018 BUSINESS UPDATE Managing Director and Dr. Noel Hacegaba Chief Commercial Officer
Agenda Business performance by line of business Industry updates Supply chain trends New business opportunities Customer outreach and engagement
Container Volumes (CY2017) ($225 million in operating revenues) 2017 vs 2016 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV Terminal A 91.34% -10.63% 33.08% -36.74% -41.85% -13.56% -9.84% -0.71% -8.91% 1.51% -7.61% Terminal B -30.82% -10.93% 111.36% 14.21% 11.35% -11.84% -6.35% -3.11% 1.02% -8.68% 3.60% Terminal C 66.98% 77.79% 143.55% 123.67% 43.74% 27.64% 91.83% -2.73% 31.77% 16.92% 9.55% Terminal D 20.51% 40.92% 46.51% 35.48% -30.18% -0.93% -27.47% -33.58% -15.88% -30.38% -0.10% Terminal E -21.87% -23.40% -16.86% 14.05% 9.75% 4.13% -7.40% 58.66% 25.85% 13.63% -7.36% Terminal F -8.24% -54.83% -37.28% -5.04% 10.68% 23.37% 40.24% 13.88% 117.04% 77.91% 78.11% Monthly YOY % Cumulative CYTD % 8.67% -11.24% 8.72% 16.53% 1.21% 9.18% 13.06% 8.01% 28.31% 15.02% 14.66% 8.67% -1.51% 1.53% 5.05% 4.13% 5.06% 6.36% 6.59% 8.92% 9.54% 9.98% YTD 6,847,589 TEUs
Annual Container Volumes 2017 (proj) 7.3 7.5 million TEUs 2016 6,775,171 2015 7,192,066 2014 6,820,806 2013 6,730,573 2012 6,045,662 2011 6,061,085 2010 6,263,499 2009 5,067,597 2008 6,487,816
Pier A (SSA) 782,000 TEUs Pier C (Matson) 346,000 TEUs Pier T (TTI) 2,073,000 TEUs Pier E/F (LBCT) 1,408,000 TEUs Pier G (ITS) 1,113,000 TEUs Container Volumes Projected (CY2017) Pier J (PCT) 1,823,000 TEUs
Container Volume Drivers New Ocean Carrier Alliances New Ad-Hoc Services COSCO/PIL/Wan Hai Med-Pac Service Deployment Fine-Tuning New Ownership at TTI (Pier T)
Non-Container Volumes (Q1-Q3 2017) ($150 million in operating revenues) CY2017 YTD CY2016 YTD % Change FY2017 YTD FY2016 YTD % Change Liquid Bulk 25,178,092 23,473,935 7.26% 32,627,744 31,174,058 4.66% Dry Bulk 5,577,728 4,769,687 16.94% 7,142,427 6,008,533 18.87% Break Bulk (Including 512,381 389,570 31.52% 678,480 515,709 31.56% SAR) Break Bulk (Less SAR) 489,843 372,356 31.55% 650,384 496,550 31.07% Automobiles 219,086 226,510-3.28% 302,288 316,654-4.54% Lumber 194,089 189,982 2.16% 262,632 241,684 8.67%
Market Share (2015-2017 Total Volume) 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2015-01 2015-02 2015-03 2015-04 2015-05 2015-06 2015-07 2015-08 2015-09 2015-10 2015-11 2015-12 2016-01 2016-02 2016-03 2016-04 2016-05 2016-06 2016-07 2016-08 2016-09 2016-10 2016-11 2016-12 2017-01 2017-02 2017-03 2017-04 2017-05 2017-06 2017-07 2017-08 2017-09 SPBP vs All U.S. Ports USWC vs All U.S. Ports USEC vs All U.S. Ports USGC vs All U.S. Ports
Market Share (2006-2017) 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% SPBP vs All U.S. Ports USWC vs All U.S. Ports USEC vs All U.S. Ports USGC vs All U.S. Ports
Ocean Carriers on the Move Ocean Network Express to deploy newlyintegrated services (Q2 2018) COSCO to acquire OOCL (Q2 2018) SM Line, HMM poised to grow business Big ships getting bigger
Average Size Vessel AVG Vessel Size (TEU) 2013 2014 2015 2016 2017-YTD POLA 6,170 6,894 7,082 7,157 7,474 POLB 5,874 6,372 6,983 7,655 7,788
Vessels on Order
Future Vessel Deliveries
Ocean Freight Rates (SCFI) 4000 1,200 3500 1,000 3000 SCFI (USD/FEU) 2500 2000 1500 800 600 400 Comprehensive Index 1000 500 200 0-1/1/2016 1/22/2016 2/12/2016 3/4/2016 3/25/2016 4/15/2016 5/6/2016 5/27/2016 6/17/2016 7/8/2016 7/29/2016 8/19/2016 9/9/2016 9/30/2016 10/21/2016 11/11/2016 12/2/2016 12/23/2016 1/13/2017 2/3/2017 2/24/2017 3/17/2017 4/7/2017 4/28/2017 5/19/2017 6/9/2017 6/30/2017 7/21/2017 8/11/2017 9/1/2017 9/22/2017 10/13/2017 11/3/2017 11/24/2017 12/15/2017 Hanjin Bankruptcy Shanghai/USWC Shanghai/USEC Comprehensive Index
Industry Consolidation Over 50% of global TEU capacity is moved by the top three ocean carriers 2M+H, Ocean Alliance and THE Alliance collectively move 82% of the world s containers...and 94% in the Trans-Pacific trade lane
Ocean Carrier Alliances Ocean Carrier Alliances Q2 2016 (20 Carriers) 2M CKYHE G6 Ocean 3 N/A Maersk MSC COSCO Evergreen Hanjin K Line Yang Ming APL Hapag-Lloyd HMM MOL NYK OOCL China Shipping CMA CGM UASC Ocean Carrier Alliances Q2 2018 (13 Consolidated Carriers) 2M+H OCEAN THE N/A HMM Maersk/H. Sud MSC CMA CGM COSCO/OOCL Evergreen K Line/MOL/NYK Hapag-Lloyd/UASC Yang Ming PIL SM Line Wan Hai ZIM Hamburg Sud PIL Wan Hai ZIM
New Ocean Carrier Alliances OCEAN Alliance 2M+H Alliance Independent Carriers THE Alliance
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Pier A/SSA 3 Berths 10 Cranes 50 Design Depth Pier C/SSA 1 Berth 3 Cranes 42 Design Depth Pier T/TTI 3 Berths 14 Cranes* 55 Design Depth *Crane heightening to accommodate 20,000-TEU ships by 2020 Pier E/LBCT 3 Berth 14 Cranes* 55 Design Depth Project will accommodate 22,000-TEU ships by 2019 Pier G/ITS 3 Berth* 17 Cranes 52 Design Depth Berth extension to accommodate 14,000-TEU ships in the near future Pier J/PCT 5 Berth* 14 Cranes 55 Design Depth Wharf strengthening to accommodate 18,000-TEU ships in the near future
Port s Role in Optimizing Operations -Facilitating communication and collaboration -Enabling innovation and information-sharing -Enhancing velocity and reliability -Creating value for the end-user
Free Flow (Peel Off) 22
Reservation System (Appointments) 23
Chassis Availability and Fluidity 24
Predictive Analytics
Supply Chain Trends
Turbulent Atmosphere - Amazonization The 360 Consumer - Anywhere, Anyway, Anytime 28
Network Transformation 1-DC Network 2-DC Network 29
Container Import Targets Big Box Retailers Footwear Industry Garment, Textile and Fashion Industry
Container Export Targets Plastic Resin Frozen Proteins (beef, poultry, pork) Agricultural export match-backs
LATC: Executive Series Old Country Ranch Club January 9, 2018 BUSINESS UPDATE Managing Director and Dr. Noel Hacegaba Chief Commercial Officer