Efficient Maritime Bulk Logistics Orange Juice; Opportunity for Egypt by Trilobes

Efficient Maritime Bulk Logistics

Orange Juice; Opportunity for Egypt

Egypt – Netherlands Meeting on Agro-Logistics

Cairo, December 2014

First visit in 2012, start of contacts with Egypt

Egypt large (Nr 2) and expanding in fresh oranges

Orange juice still small, study for development

Key Succes Factor is efficient export supply chain

Juice export study with HEIA

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Why relevant for Egypt?

Citrus Nr 1 agro export product

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Worldwide Juice Flows; Orange Juice Largest Brazil today by far the largest in the world

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Why did Brazil become so successfull? Good resources for growing …… in combination with logistics

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Bulk logistics can reduce cost by 40% (volume!) Meanwhile maintaining the quality (temp controlled, aseptic)

US$ per ton Drum Bulk

Example project

Packaging 100

Inland Transport 70 50

Port Terminal Americas 30 30

Shipping 60 90

Terminal Europe 60 30

De-packaging cost 15

Total cost per ton 335 200

100% 60%

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Trilobes; developing supply chains for food liquids

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Current Activities

1. Turnkey delivery of technical projects for liquids

- Storage, terminals and Juice Ships (cargo systems)

- Design, Detail engineering, Project management

2. Logistical studies

- Logistical & Feasibility studies for practical solutions

- Leading to a cost-effective infrastructure

- Large investments require good research

3. Development of new Infrastructure for Liquids

- EU multimodal infrastructure for juices

- Export study for Mexico, originated by Pepsico

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Developing terminals and projects worldwide Focus on the orange juice industry

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Orange (Juice) Processing Plant inland in SP State, Brazil

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“Processing; a soccer field of high speed orange extractors” Processing up to 10.000 tons per day, 2,5 million oranges per hour

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Modern logistics from inland production to the coast

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Large intercontinental Bulk Juice Infrastructure, Santos Some 3 million tons transported annually from Brazil

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Large intercontinental Bulk Juice Infrastructure Some 2 million tons transported annually from Brazil to Europe

Trilobes the partner in developing (aseptic) Supply Chains

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Developments in the worldwide juice industry

Demand for healthy food (juice!) is worldwide increasing (Asia!)

- Juice production in “Developed world” downward trend

- Decline in Florida production, Brazil production stable

- Rising cost of traditional producers (land, labor, currencies)

An opportunity for the emerging countries to export

- Way of making money on “less looking” fruit

- Juice storage is easier and transport (volume) is efficient

- The “essentials” are exported; peel etc stays behind (animal feed, fertilizer)

But key issue is not production, but logistical infrastructure to clients

- Logistical cost key element to be competitive (“to be connected”)

- Larger processing plants near production and sufficient (bulk) storage

- Good internal logistics, transport to ports, export

Efficient Maritime Bulk Logistics

Orange Juice; Opportunity for Egypt

Egypt – Netherlands Meeting on Agro-Logistics

Cairo, December 2014

First visit in 2012, start of contacts with Egypt

Egypt large (Nr 2) and expanding in fresh oranges

Orange juice still small, study for development

Key Succes Factor is efficient export supply chain

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Back; Orange sector very relevant for Egypt Oranges by far Nr 1 export product

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Success story; Egypt Nr 2 worldwide (tons)

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Egypt Nr 2 tons worldwide fresh …… but Orange Juice

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Egypt well located; possible export markets?

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Export of Egyptian Orange Juice To North West Europe?

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Other interesting destinations nearby Saudi Arabia, Gulf Region, ……. Russia, India?

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Intercontinental Juice Logistics from Brazil to EU

Production - Road Transport Internal Egypt

Port Terminal – Ship – Port terminal Our focus

Port Terminal – Road Transport – Factory Client, Buyer

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Ship EU - Mediterranean juice transport, 2.500 MT Possibility of various juices; Orange, Other, NFC’s

Reefer containers on deck?

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Short Sea Ship layout; Tanks, CIP system, etc

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A small port terminal for Short Sea Modular built, flexible to install

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Creating an Egyptian juice export industry

Worldwide demand for orange juice

- Florida down, Brazil stable

- More demand from Middle East, India

- Inland “year long” storage, control of complete supply chain to EU, Asia, USA

Egypt unique position to profit

- Experienced, large and successful “fresh” citrus export industry

- Proximity to very interesting market

- Expected increase in citrus production can be juiced, preventing price decline “fresh”

The following steps to be taken in the proposed study with HEIA;

- To identify key export markets, large clients

- Develop a efficient supply chain to these markets; quality & cost

- Built a profitable proposition for participating farmers

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Trilobes BV

Curieweg 9

8501XC Joure

The Netherlands (1 hour from Schiphol)

+31-513-412717

Gert Jan Vossnack

Eric van der Zalm

Diederik Brasser

info@trilobes.com