ACCC Regulation Conference

The changing face of the terminal operator business:

discussion

July 2007Steve Meyrick

2

Terminal operators in Australia

DPW Asciano

Specialist in container terminals

Spin-off from integrated transport company

Ultimately owned and controlled by government

Entirely private and always been

Major global operator No terminal interests outside of Australia

No rail interests in Australia Significant rail presence

Terminals in all five major container ports

Terminals in four of the five major container ports

Coming soon to Brisbane: HPH

3

Global consolidation - lines

0

10

20

30

40

50

60

70

80

90

100

1988 1996 1998 2000 2006

Year

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of

cap

acit

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Source: Meyrick and Associates, based on Containerisation International, various issues

4

Global consolidation - impacts

Market components

Relevance of global consolidation

Local Largely irrelevant

Gateway Can be important if it leads to presence in a number of ports within a port range

Transhipment Very relevant, but not likely to lead to regulatory concerns

5

Terminal networks

Pure terminal operatorsHutchisonPSA CorporationDPWEurogateSSA Marine

Self-service shipping linesCoscoEvergreenMSC

Affiliate of shipping lineAPM Terminals

6

A range of companies from historically distinct industries all see their future in the provision of value added logistics servicesA range of companies from historically distinct industries all see their future in the provision of value added logistics services

Liner Shipping Companies

- Maersk - APL

- P&O Nedlloyd

Terminal Operators

- PSA Corporation- HPH- Patrick

Land transport operators

- CSX - Toll Holdings

Freight forwarders/NVOCC

- Kuehne & Nagel- Schenker

- DANZAS/DHL

The Logistics

Market

Vertical integration…

7

..or disintegration

RoadAcquire a number of road

transport companies, including Finemores

Acquired FCL Over 4,200 vehicles operating

Together with Patrick acquire rail assets of NRC

and FreightCorp

Acquired CRT Group and part of ARG, Largest rail

operator in Australia

Rail

Terminals

Patrick acquisition gives Toll 100% of PN, additional road

and forwarding business and major terminal holdings

Restructures to separate infrastructure and logistics business

Acquires P&O Ports and related businesses

Spins off general stevedoring and logistics businesses

8

Barriers to entry

Regulatory/institutional Reputation Lack of physical opportunity Partnerships with port authorities Networked terminal