Global Ports Connecting Global Markets

The potential of the Danube river for Romanian logistics

DP World Global Reach
The most balanced portfolio of countries and services of the major global port operators 43 (1) marine terminals across 23 countries Total throughput of around 43.3 million TEU 2007 Expansion to meet future customer needs 2007 >48 million TEU 2017 >90 million TEU Team of 30,000 staff Top 4 Global Operator

Over a year, laid end to end, the boxes we handle would circle the world more than six times

(1) As of March 2008

The potential of the Danube river for Romanian logistics

Why is a Constanta Terminal Operator talking about the Danube?
Constanta has demonstrated that in building capacity there is an element of build it and they will come Northern European ports are struggling to meet demand Constanta and particularly CSCT- DP World can augment the overall European capacity Targets are Western Romania, Hungary, Austria and Ukraine Connected to Constanta via Danube and road & rail services

The potential of the Danube river for Romanian logistics

Background DP World Constanta
The Black Sea has seen remarkable growth and is likely to see similar patterns in the short term. Constanta is now the largest EU port in the East. Former Eastern Bloc countries form the renewed Central Europe Hungary, Czech Republic etc. Landlocked countries in the geographic centre of Europe represent 24 million citizens, Romania a further 22 million. Opportunities to expand the current catchment of countries serviced by Constanta will develop. Improving rail links and strategic use of the Danube will facilitate Westward links and challenge the current supply network servicing central Europe. Establishment of the DP World facility has facilitated rapid growth in the Black Sea container volumes. The terminal opened in 2004 and quickly expanded will handle approx. 1.2m TEU in 2007, 1.5m in 2008

The potential of the Danube river for Romanian logistics

Throughput

Constanta Container Traffic - TEU

DP World 1400000 1200000 1000000 800000 600000 400000 200000 0 2000 2001 2002 2003 2004 2005 2006 2007 Others

The potential of the Danube river for Romanian logistics

Supply/Demand Imbalance
102.3%
14% 12.0% 12% 10.1% 10% 8.7% 8% 6.2% 6% 4.0% 4% 2% 0.1% 0% Oceania Far East and South East Asia Middle East and Africa South Asia North America, Central Americ a/Caribbean and South America North Europe, South Europe and East Europe 3.4% 4.9% 3.7% 6.4% 7.0% 10.2%

105.0%

103.0%

105.4%

85.2%

87.6%

Capacity Utilisation 2012E

Annualised Throughput Growth (2006-12E)

Annualised Capacity Growth (2006-12E)

Substantial capacity constraints expected

Sourc e: Drewry Annual Review of Global Contai ner Ter m nal Operators 2007, based on c onfir m i ed expansion plans

The potential of the Danube river for Romanian logistics

Working Example of Success in Multimodal Services Germersheim Inland terminal
Germersheim offers a different operation compared to all other DPW Terminals

The potential of the Danube river for Romanian logistics

DP World Germersheim

The potential of the Danube river for Romanian logistics

Danube- Regional location

The potential of the Danube river for Romanian logistics

POTENTIAL OF INTERMODAL TRANSPORT ON THE DANUBE

Shorter ocean route for Europe Asia services: Avoids more than 2,400 nautical miles (almost 4,500 km) versus North Sea ports and thus shortens travel time by 3 to 4 days.

The potential of the Danube river for Romanian logistics

Inland Waterways
Advantages Danube: the second largest river in Europe. Navigable over 2,300 km Prime prospect for a major transport corridor Direct access to Rhine-Main-Danube corridor Intermodal Connections Modern handling capacities Water depth for vessels up to 200,000 dwt Dedicated river/maritime basin for Danube-Black Sea Canal direct link Disadvantages Current traffic strongly imbalanced from geographical view point Traffic mainly concentrated on the Western and Eastern extremities, whilst virtually non-existent concentration in the central part. Channel fee structure in the Danube/ Constanta channel Water depth Danube Custom regulations ( not compliant with EU regulations)

The potential of the Danube river for Romanian logistics

Barge services handled by DP World Constanta

Currently DP World Constanta handles two barge services: Constanta Giurgiu Free Zone : domestic transit Constanta Belgrade : international transit *new barge service starting June/July 2008 Ukraine via Galati/Constanta

The potential of the Danube river for Romanian logistics

There needs to be innovation and risk acceptance to drive change New barge service to Ukraine via Galati/Constanta

Starting June/July one 90 TEU barge twice per week Constanta-Galati

Galati Direct rail connections to Ukraine (Kiev and Odessa) Giurgiu Undergoing modernisation works to meet same sailing schedule as Galati Potential of becoming intermodal solution for Bucharest cargo

The potential of the Danube river for Romanian logistics

Constanta The gate of Central East Europe assembly and distribution
Three connected and dependent elements hold the key:

Port and terminal infrastructure High quality logistics services, rail and road infrastructure Collaboration between nodes and service providers dont have to be all one company, chain efficiency the objective

Thank you