Why Automation?

Container TerminalsFor the 21st Century

Daniel Reiss, President + CEOAutomated Terminal Systems, Inc.

1025 Connecticut Avenue NWWashington DC 20036

atsysusa@atsysusa.comwww.atsysusa.com

Telephone: +1.703.723.0861Facsimile: +1.703.723.0862

1

The Issues:

2

Capacity

Congestion

Rising Costs

Diminishing Efficiency

Environmental Constraints

Diminishing Returns on

Increasing $s Spent

0

250

500

750

1,000

1965 1975 1985 1995 2005 2015

$s Spent % Improvement

3

What is Wrong with Current Systems + Methods?

Too Fragile

Too Complex

Too Expensive

Rely on Expert Systems

New Facility Designs Repeat the Errors of the Past

4

Why?Terminal Operations were Sub-Optimal in the First Instance

Accretion of Methods and Subsystems

Lack of Integration

Piecemeal Solutions

Keeping those Practices in Place only Embeds them Even Further

5

How to Go Forward

Look Outside the Industry

Stop Trying to Get a Different Result by Continuing to Do the Same Thing

Example - What was the Response to Larger Ships?

Add Ship-to-Shore Cranes

6

Large Robust RMGs

CMAA Class F - AISE Sever Duty

Replace Multiple Units

Lower Operational Cost per Unit

Higher Reliability > 99.99999

Higher Availability > 99.99999

7

Lessons Learned in Heavy Industry

Piecemeal Solutions Do Not Work

Integrated End-to-End Systems are Required

Automation is Not Justified Through Reductions in Head Count

Appropriate Automation Solutions Contribute to the Bottom Line While Maintaining Stable Labor Environment

8

IACT is the FutureIntegrated End-to-End System

2Xs the Capacity

2.5Xs the Throughput

CI Real-time Process Control + Management

Environmentally Friendly

Low Cost

9

Volumetric Efficiency

AssumptionsHypothetical Area

305 x 305m (1,000' x 1,000')6 High Stack

Maximum Numberof TEU Footprints = 6,250

Maximum Numberof Container Locations = 37,500

10

0

22.5

45.0

67.5

90.0

% Volume

Wheeled Strads RTGs IACT

Low CostConventional IACT

0

37.5

75.0

112.5

150.0

1 Berth 2 Berths 3 Berths 4 Berths

$s M

Acquisition

0

0.9

1.8

2.7

3.6

4.5

1 2 3 4 5 6 7

Hours per Year (000s)

Operation

$s M

11

Environmentally FriendlyReduced Footprint

Faster Ship + Truck Turn Times

All Electric System

No Particulate Emissions

No Hydrocarbons

Low Noise

Low Light

Kyoto Compliant℠12

Easy to Implement

Overlays Existing RTG + Strad Configurations

Minimal Disruption

Gate and Business Systems Remain in Place

13

Ease Road + Rail Congestion

Automated All-Electric Shuttle Car System

Light WeightHigh SpeedLow Cost

Remote Gates Eventually

14

Light Weight + Low CostNot a Rail Car

Not MagLev

Facilitates Low Cost Construction of Elevated Rights-of-Way

Individually Dispatched + Driven

15

Automation

Not a Labor Show-Stopper

Contributes to the Bottom Line Without a Reduction in Head Count

Safer Cleaner Working Environment

Increased Terminal Efficiency

Contributes to the Amelioration of the Other Problems

16

Next StepsVisit Our Website:

http://www.atsysusa.com

Contact Dan Reiss

President + CEO

email: dan.reiss@atsysusa.com

Telephone: +1.703.723.0861

Facsimile: +1.703.723.0862

17