Samskip Multimodal Short Sea and Multimodal Business 1
Samskip Group Profile Samskip is a globally active company offering transport and related services by land, sea, rail, inland waterways and air. Dutch based. Group revenue is 500+ M Euro shipping over 850.000 TEU annually. 1.230 Samskip employees, of which 460 are in the Euro 350 M short sea and multimodal business. Samskip operates 55 offices in 23 countries in Europe, Asia, Australia, North- and South America. 2
The European Transport Market International and National Intra-EU freight transport: Trucks (47.3%) Seagoing ships (37.8%) Rail (11.2%) Inland waterways (3.7%) Trucks dominate inland EU freight transport with a 76.1% share of the tonne-kilometres and about 94% of the CO2 emissions. 3
The European Transport Market International Only Type M Units % Share Road Only 17.3 40.7 Road and Rail 10.2 24.0 Fixed link/rail 0.5 1.2 Sea and Rail or Road 14.5 34.1 Total 42.5 4
Key Facts Multimodal competing effectively and efficiently with road transport. Certain of Samskip s multimodal products are faster than accompanied trailers. Not just environmentally friendly but cost efficient. 5
Market Context and Trends Short Sea and Multimodal Substantially increased interest in multimodal products: Trailers eliminated from the market past 3-4 years and this is accelerating as we speak as refinancing is not available for small and mid sized operators Increasing fuel cost and road taxation Customer risk management Declared EU Objective : 300+ km = multimodal, not road 6
What Do Customers Want? Or : Sustainability from a customer and operator perspective Key Parameters Price Reliability and predictability Security of supply Speed Sustainability Cost Efficiency = The Right Combination Short Term versus Long Term? Environmental sustainability a bi-product of cost efficiency? End consumer increased awareness of sustainability Cost will in the end always be shouldered by the end customer and end consumer 7
EU Transport Policy Drivers Taxation to drive behavior Subsidies to promote policy Good Intentions Attention to Unintended Consequences Who to listen to? Broad and close consultation required with carefully selected industry operators and associations and still be critical of their motives. 0.1% Bunker Sulphur legislation January 1 st 2015 = substantial shift away from short sea to rail and (back) to road in many trade lanes. Substantial cost increase for European transport industry (Euro 1 B) and substantial increase of congestion and CO2 pollution in many areas. 8
EU Transport Policy EC 2011 White Paper Key to efficient transport : Consolidation of large volumes for transfer over long distances, in between the so-called first and last miles. Above some 300 km : Significant rebalancing - 30% road freight shifting to multimodal solutions by 2030, and more than 50% by 2050. Major challenge : Reduce the environmental impact of intra-eu freight transport without sacrificing its efficiency (= cost). Focus obviously need to be on the road industry, which as an added benefit alleviates crippling congestion. 9
Samskip Short Sea and Multimodal Business Barge Rail Reliable, sustainable and cost effective unitised transport solutions through short sea, rail, road and barge across Europe Road Short Sea
Multimodal Equipment 11
Multimodal Equipment Innovation Samskip and DSM jointly developed a light weight composite 45foot High Cube Pallet Wide container for European multimodal market. 20% lighter than steel Steel frame with walls of propriety developed and patented composite panels, glues and building techniques Successfully real life field tested by Samskip for over one year. Assist in taking cargo off the road and onto more environmentally friendly transport solutions (rail, barge and vessels or a combination). Carry more cargo weight or carry the same cargo weight whilst using less energy. Composite walls, unlike steel, insulate cargo from outside temperature. Flat instead of corrugated walls make cargo loading/unloading operation easier. Composite walls have longer lifetime than steel, will not corrode and easy to clean. 12
Short Sea and Multimodal Network 13
Landside Network Tools (Example) Multimodal Rail Terminal Duisburg Operational Feb 2013 150,000 units Phase 1 300,000 units Phase 3 14
Why Multimodal Competitive advantages Lower total cost of multimodal transportation combined with reduced carbon footprint Hedging against capacity shortage Less trailers & structural lack of drivers Increased reliability and less volatility Traffic jams: road (and port) congestion due to increasing intercontinental trade Oil price: fuel cost is a relatively larger cost component for trailers Inventory optimization In transit: storage in transit (rolling stock) Flexible: higher (operational) flexibility (potential delays, use of off dock depots) Safety & Security Stowage: less lashing and securing requirements Pilferage: lower risk of theft 15
Why Multimodal Competitive advantages (2) 16
Issues Now and In Future Infrastructure Rail paths and rail monopolies Multimodal terminals Collection and delivery facilities Fixed infrastructures with monopoly / minimal competition risk Seamless connectivity Legislation consultation with real, major operators less political process Still cumbersome procedures multimodal and short sea versus road Consumer attitudes cost and sustainability Risk management avoid two step forward and one back Role of sustainability on the Board agenda 17
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