EUROMETAL STSG International Steel Trade Day

Steel terminal BROEKMAN DISTRIPORT - Port of Rotterdam

Frankfurt 13 November 2014

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Steel Port Logistics: Optimizing for Steel the Gateway to the European Hinterland

Rik Pek, General Manager Broekman DistriPort

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Port development

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European Top 20 ports2013 - 2012

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Breakbulk throughput in 2013 (4.7 mio tons)

*Conventional cargo only (other cargo included in RoRo and Container figures)

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The port of Rotterdam has excellent connectivity

Inland shipping*

Germany 52x per week

Belgium 45x per week

Switzerland/ Austria 6x per week

France 5x per week

Rail*

Germany, Switzerland/ Austria

89x per week

Italy 50x per week

Eastern Europe 29x per week

France 10x per week

Short sea*

United Kingdom 50x per week

Med Spain, Portugal, etc

25x per week

Russia/ Baltic 20x per week

Scandinavia 20x per week

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Hinterland connection Rotterdam - Antwerp - HamburgTo Duisburg: Rotterdam 16 hours, Antwerp 25 hours, Hamburg 40 hours

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Rotterdam – Logistical Hub

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Broekman Group

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Broekman- Group in general

Activities:

•Terminal operations•Warehousing & Distribution•Shipping•Logistics•In house Customs Services

Markets:

•Breakbulk (Steel / Non-Ferro’s / Metals / General Cargo)•Containers•Industrial Equipment / Off Shore / Heavylift & Project Cargo•Chemicals (dry & wet packed)•Automotive

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Ber

th 1

: 300

met

er, 1

2,65

mtr

Berth 3: 250 meter, 12,65 mtr

Berth 4: 700 meter, 11,65 mtr

Berth 2: Covered 80 mtr

Broekman Distriport Berth overview

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• 1246 meter deep-sea quay / max 12,65 meters draft

• Covered quay 80 meters

• Cranes up to 112,5 tons

• Open area 220.000 m2

• Covered storage 46.000 m2

• 95 well trained own dockworkers

• ISO 9001 & 14001 certificated

• Lowest damage rates in ARA range

Broekman Group – Broekman Distriport (BDP)

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• Strategically located in the port of Rotterdam• Excellent accessibility for all transport modes• 1,5 hour sailing time from open sea, no locks• Located in Europe’s largest and most modern port

Broekman Distriport location

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State of the art Deepsea Terminal

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All Weather Terminal

• 80 meter of covered quay• 31 meter free horizontal

clearance/width of the entrance• 18.3 meter free vertical clearance from

waterline till under crane-track (NAP average tide)

• Covered berth for vessels till 9,500 DWT, draft 10 mtrs

• Humidity controlled warehouse of 13,500 m2

• 4 overhead-cranes with 42,5 mt lifting capacity each

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• Own special equipment for container handling;• Spreaders • Reach stackers• Reefer connections• Stripping/Stuffing containers

Broekman Distriport Container handling

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Broekman’s view to the world of steel logistics

• We are not distributors

• We are not traders

• We are not a steel service center

• We are a neutral steel logistics stevedore & transport company

• We serve steel producers, traders, distributors, stockholders and end users

• How do we differ from other logistics service providers?:

Our assets in combination with tailor-made logistical solutions can be the missing piece of the puzzle in search for increasing margins!

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Characteristics of a production driven market

•Steel producers focus on output maximisation

•Goal: max output => lower production costs => higher margins

•Players and their influence in logistics:

– Traders +

– Distributors +

– Steel Service Centers +

– Steel producers +/–

– End consumer -/-

•Consequences:

– Large quantity stockholding caused by trade

– Logistics is not that important, marginal costs

– Damage to coils is a matter of insurance

Stevedores are a “necessary evil”

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Characteristics of a customer oriented market

•Focus on customer satisfaction & service•Two goals: Increase of margins + customer satisfaction•Players and their influence in logistics:

– Traders +/-– Distributors +/-– Steel Service Centers +/-– Steel producers ++– End consumer +

•Consequences:– Logistics is getting more important, implementation of total supply chain

management– Developing of Just In Time concepts– Focus on damage control, cost savings and risk reduction

– Asset based logistics service providers “necessary partners” for success

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Future outlook

• Will Steel producers implement total supply chain management from raw materials to finished products?

• Export from NWE: Steel producers have become lean and mean by years of restructuring and adapting. More stable growth is possible. Logistics will be increasingly organized on a project bases with tailor-made concepts

• Import: Asian producers are already developing DDP/DDU concepts to European customers without the use of traders. The increasing quality combined with lower costs and high productivity will mean larger cargo flows in the near future

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Broekman is geared for the future!

Vertical integration, in logistics?

We adapted to the new situation by improving our services to be able to provide our customers a one stop shop and included:

• chartering services

• port agencies

• fiscal representation

• forwarding activities

• strategic partnerships with inland terminals

• steel supply chain consultancy

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Flexible, creative and reliable, in logistics

• flexible own labor

• damage control

• damage survey

• damage repair packing material

• improving automation in stock & movement reports

• further educating our own staff

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Roberto Re

Commercial Director of Metinvest Western Europe

“ I think that this is a time to select and develop partnerships … to provide efficient logistics and guarantee uninterrupted service and technical support”

(Metal Expert interview 21-01-2013)

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Partnerships are critical points in the steel supply chain!

A partnership implies:•Trust (by transparency)•Long term vision•Information exchange, understand each others pains & gains•Developing logistical concepts together

– Just in time deliveries– Strategic stocks– Service level agreements– Dedicated investments in hardware

•The next step towards customer satisfaction

•Working together on operational excellence and creating competitive advantages!