Port of Algoma Focal Point of the Great Lakes Region
Overview Essar Global Fund Ltd s Investments ENERGY PORTS & INFRASTRUCTURE METALS & MINING SERVICES Oil & Gas #2 largest single location refineries in India and UK c.700k bpd / 37 MTPA operating refining capacity c.1,400 retail fuel outlets 5+ TCF coalbed methane reserves Power 3,910 MW operational capacity increasing to 6,700 MW Large scale assets in west, central and east India 460+ MT coal reserves 2 Secured long term PPAs Ports One of India s largest ports businesses Strategic Partnership Agreement with Port of Antwerp 5 major strategic locations on the east and west coasts of India Ownership of key infrastructure for EGFL assets 104 MTPA operational capacity 194 MTPA planned capacity Projects $3bn+ order book 40 year track record and global operations #2 largest equipment bank in India Resources 2 bn tonnes of resources 27 MTPA pellet capacity 1 7 MTPA: Minnesota, USA 20 MTPA: Eastern India Steelmaking & Marketing 14 MTPA steelmaking capacity 10 MTPA India 4 MTPA Canada #4 largest single site globally 5 MTPA distribution capacity 300 retail outlets across India Shipping #1 cape size shipping fleet in India by size 25 ships; 6 ships on order 15 rigs, 4,200 chartered trucks BPO 55,000+ employees 300+ global clients 56 locations in 13 countries Real Estate Portfolio of 16mn sq.ft. in residential, commercial and mixed use projects 1 Includes impact of 7 MTPA new capacity from Minnesota pelletization project and 6 MTPA new capacity at Paradip due to come online during CY 2014 2 Includes Rampia coal mine and excludes Amelia coal mine 1
Essar Ports: Overview Operational India s 2 nd largest private sector ports company Current capacity of 104 MMTPA to be scaled up to 194 MMTPA 58 MTPA Liquid Terminal at Vadinar 30 MTPA Dry Bulk / General Cargo Terminal at Hazira 16 MTPA Dry Bulk Terminal at Paradip Vadinar Under Construction Salaya 20 MTPA Dry Bulk Terminal at Salaya Under Development 23 MTPA Iron Ore Berths at Vizag 20 MTPA General Cargo Terminal at Hazira 14 MTPA Coal Terminal at Paradip Liquid Storage Terminal (expansion) at Vadinar Hazira INDIA INDIAN OCEAN BAY of BENGAL Paradip I (Dry Bulk) Paradip II (Coal) Vizag (Iron Ore) Hinterland for Essar Ports 3 stand-alone ports on the West Coast and 3 terminals on the East Coast of India Presence in strategic locations of east and west coast, with bulk of the investments in the key state of Gujarat High visibility on revenue with long term Take-or-Pay contracts High operating margins at operating ports. Further scalability possible at most locations 2
Partnership with Port of Antwerp International Port of Antwerp is the 2 nd largest port in Europe and gateway of many European economies. The port handled 190 MMT of cargo in 2013. Port of Antwerp and Essar Ports have entered into a Strategic Partnership Agreement Port of Antwerp and Essar Ports will work together in the areas of: Training and consultancy services, Port planning, Traffic flows, Both companies will mutually assist in volume growth of their businesses Developing world class port facilities with focus on quality, productivity and environment Access to relationship with port operators and port based companies operating in Port of Antwerp Port of Antwerp has numerous Memoranda of Understanding signed with other ports or countries: including Montreal, Nagoya, Rosmoport, Panama, Singapore, India (Essar Ports) and Oman (Duqm) 3
Port of Algoma A new company, Port of Algoma, is being set up under Essar Ports, to benefit from its capabilities as a major port company, and leverage the business and strategic relationships. Proven track record of a high quality port operator. Strategic Partnership with Port of Antwerp to be extended to Port of Algoma, to put together a long term development plan, which can benefit the City of Soo and the Algoma region overall. Benefits would include coming up of industries and logistics infrastructure in future, which could create thousands of jobs, and give a complete economic uplift to the City. Essar to work with Port of Antwerp to develop maximum waterfront as berths, with a total back up land of more than 440 acres in Phase I (Pic. 1), going up to approximately 1,000 acres in future (Pic. 2), as requirements grow. As a port company, Port of Algoma shall provide efficient and high quality port services to ESAI as well as all other local users as a multi user port, striving to serve big as well as small volume business. Pic. 1 Pic. 2 4
Port of Algoma: Highlights Essar Ports Management and expertise Water Front and Backup land Strategic location Port of ALGOMA Direct Rail Access Infrastructure Mechanized Facilities Strategic location- On the Soo Canal on St. Mary s River. An integral part of the Great Lakes waterway. Focal point of transportation from Lake Superior region to Lakes Huron and Michigan Infrastructure - 1.3 km of dock length, with draft ranging from 6.7 to 9.2m. ~5.5MTPA of existing cargo Mechanized facilities with high capacity conveyors, stacker cum reclaimers, loaders and unloaders. Expansion project to bring in further modernization and efficiencies, seeing margin expansion Direct rail access- To the Trans Canadian Railway Waterfront and back up land available for further development - Essar providing much larger waterfront and back up land (3.5km, 440 acres). Essar Port Management Expertise in running some of the most modern dry and wet bulk terminals globally, and strategic tie up with Port of Antwerp, one of the largest ports in the world. Technical collaboration for Port planning and development of facilities, Cargo potential mapping and facilitating tie up. Preparation of proposal for refurbishment & expansion of facilities. 5
Location and Site Key Link for all Shipping between Lake Superior and Lakes Huron & Michigan The harbor facility is comprised of various docks that are used for specific commodities as well as storage areas for inbound and outbound commodities Dock Length Draft Cargo Storage Area Steel Dock 110m + 147m 6.7m 8.2m Steel Coils, Tar 13,500SqM Ore & Coal Docks 875m 7.6m 9.2m Iron Ore, Coal, etc. 62,400SqM Commercial Dock 60m 7.6m Limestone, Miscellaneous 16,820SqM Export Dock 184m 8.5m General Cargo, By-products 14,200SqM Total 1,376m 6.7m 9.2m 106,920SqM 6
Port of Antwerp 7
The Antwerp Model of Development Gradual development of diverse industry and logistics units leading to added throughput of the port 8
The Multimodal Advantage Antwerp has leveraged on the location being well connected to the rail and barge routes 9
Potential for Algoma and the region Comparing with a world class port like the Port of Antwerp, Port of Algoma has the basics in place already, and shows great potential, if this can be developed further in a planned manner Port of Antwerp Port of Algoma 1 Strategically located 2 Rail Connectivity 3 Road Connectivity 4 Barge Connectivity 5 Pipeline Connectivity x 6 Developed hinterland x 7 Strategic Tie-ups x 8 Diverse cargo flows x Strong fundamentals existing, making it an exciting project to build upon 10
The Port of Algoma Advantage Port of Algoma shall be a seaway depth, full service marine terminal, integrated with a fully serviced industrial park with direct access to the Trans-Canada Highway and U.S.Interstate highway systems, continental rail (CN & CP) networks and marine transportation access. This international gateway development, situated in the centre of the North American continent, is a globally competitive location for companies throughout Canada. The Port of Algoma will directly support the regional and national economy by: Optimizing the capacity, efficiency and safety of the existing transportation system; Linking major markets with rural and remote communities, economic opportunities, resource development areas, and service hubs; Meeting the needs of the existing and emerging priority sectors to execute regional economic plans; Enhancing connectivity among transportation modes including rail, road and marine; Reducing emissions and other environmental impacts associated with transportation. Furthermore, it significantly supports regional development and diversification along with enhancing Sault Ste. Marie s role as an economic and service hub. 11
Port of Algoma Snapshots Steel Dock 10,000DWT Barge at Jetty Export Dock Steel Loading Equipment 12