Associated British Ports - keeping Britain trading

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Associated British Ports

Keeping Britain Trading

Philip Coombes, Commercial Manager, ABP Hull & Goole

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ABP Overview

Troon

Ayr

Silloth

Barrow

Fleetwood

Garston

Newport

Cardiff

Swansea

Port Talbot

Barry

Teignmouth

Plymouth

Southampton

Ipswich

Lowestoft

King’s Lynn

Grimsby

Immingham

HullGoole

Humber

Southampton

South Wales Ports

Shortsea Ports

ABP Port Groups:

Number 1 port company in UK – 120 million tonnes of cargo in 2013 (24% of UK’s seaborne trade) generating >£500m revenue

Owned by long-term, infrastructure investors – Goldman Sachs, Prudential, Borealis, GIC

21 ports handling every conceivable type of cargo and generating 25% of UK’s rail freight

Planned investment of >£837m over next 5 years, with potential to generate up to £1.75bn in Gross Value Added (GVA) for UK economy each year

Full range of facilities accommodating needs of major sectors - energy, cruise, containers, agribulks, automotive, forest products and steel

Dedicated, committed industry experts providing world-leading solutions and managing operations Subsidiaries include the Hams Hall Rail Freight Terminal, environmental consultancy ABPmer,

UK Dredging and four marinas (2 of which have been awarded 4 Gold Anchors rating by TYHA)

Hams Hall Rail Freight Terminal

ABP Rail Terminals:

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ABP’s Contribution to the Economy

Contributes £5.6bn GVA to UK each year

Supports 84,000 jobs

Critical component of supply chain for industry e.g. energy, construction, agriculture, food & drink, automotive

>£2m contribution to charity over last 5yrs

ABP Humber makes up

1.65%

of regional GVA

ABP South Wales makes up

2.10%of regional GVA

Prime Minister David Cameron and Secretary of State for Energy visiting ABP Hull after Siemens’ announcement

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Energy – Biomass

ABP operator of world’s largest biomass-handling facility - Immingham Renewable Fuels Terminal (IRFT) - due to start operations Q4 2014 with initial 3mt p.a. throughput

Panamax-sized bulk carriers discharged via 1.2km of conveyors and 2 continuous ship unloaders at rate of 2,500t per hour

200k tonnes of storage in 8 silos linked to new Immingham rail facility, with Hull and Goole providing additional capacity

Drax (supplies 8% of UK’s electricity) will become one of largest renewable energy generators in Europe

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Energy – Bulk Fuels

Coal

No.1 in coal sector - 42% of UK market

Immingham’s highly automated and efficient coal import facility (Humber International Terminal - HIT) handles 17mt p.a., over double its closest port competitor

Also significant volumes at Hull and South Wales’ ports

Customer examples: Drax, SSE, E.ON, EDF, GDF Suez, Hargreaves, Tata Steel

Gas/Other Bulk Fuels

ABP proposal to build £36m Immingham Western Deepwater Jetty (IWDJ) for liquid bulks such as LNG, LPG and aviation fuel

IWDJ site will enable import of liquid bulks for onward distribution via nationally significant Government Pipeline and Storage System (GPSS), thus protecting vital energy supplies

Coal being discharged into hopper at HIT

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Energy – Liquid Bulk Fuels

Oil

30% of UK’s fuel produced from crude oil imported at ABP’s Immingham Oil Terminal (IOT)

IOT throughput of 20mt p.a. and tanker capacity up to 280,000 DWT

Immingham customer examples: Phillips 66*, Total, Simon Storage

* Refining division of ConocoPhillips** IOT also has 2 finger berths for coasters and 2 finger berths for barges

Oil tanker at Immingham Oil Terminal

IOT Main Berth Capacities**

Main Berths

Max DWT

Max Draft (m)

1 & 2 280,000 14

3 80,000 12.8

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Energy – Wave, Tidal, Solar Wave, tidal and solar initiatives through customer projects/prototypes and embedded generation

within ABP ports

Swansea Tidal Lagoon (320MW) proposed for Severn Estuary – 2nd highest tidal range globally. Would be world’s first artificial, energy-generating lagoon - connected to UK’s National Grid electricity transmission system and providing major employment and economic benefits for Wales

Highly skilled and experienced specialists at environmental consultant subsidiary ABPmer offer complete range of services supporting ABP and wider port, marine and energy industries

ABP’s extensive in-house capability for planning process, EIAs (Environmental Impact Assessments), compliance with legislation (e.g. Habitats Directive), stakeholder and community engagement

Image of proposed visitor centre for Swansea Tidal Lagoon

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Energy – Offshore Wind/Green Port Hull No.1 in offshore wind

Green Port Hull (GPH) UK’s first offshore wind turbine construction, assembly and service facility - £310m investment by ABP and leading turbine manufacturer Siemens

Designed to service proposed R3 offshore wind farms zones (3 largest zones all within 12 hours sailing time from Hull) and European projects

Preparatory works on site with blade production commencing mid-2016 and site fully operational mid-2017

GPH huge boost to UK’s offshore wind ambitions, and also expected to create up to 1,000 direct jobs, plus significant additional jobs during construction and indirectly through wider supply chain

Image of original Green Port Hull project

Installation near Barrow Port for Walney Offshore Wind Farm

Energy – Offshore Wind/Construction, Installation, O&M No.1 in O&M

Extensive sector knowledge and experience through successful development of R1 & R2 offshore wind farms, especially Barrow and Lowestoft

Grimsby’s excellent location, reputation and experience has seen it develop into UK’s leading hub for offshore wind operations and maintenance (O&M)

Customers examples: Centrica, DONG Energy, E.ON, Vattenfall, Scottish Power Renewables, RWE, RES

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Agribulks No.1 in agricultural products - 34% of UK market

Widest range of agribulk facilities in UK, from deep sea to short sea

15 of ABP’s 21 ports involved in sector

Over 150,000 sq ft of new warehousing at short sea ports to handle growing demand for agribulks

GAFTA and COMAH approved warehousing

ABP also able to offer value-added services e.g. bagging

Customer examples: Arkady, Rank Hovis, Carrs, Frontier Agriculture, Origin Fertilisers, Cefetra, Openfield, Yara, Gleadell, Feed Factors

Frontier grain vessel being unloaded at Hull

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Cruise

No.1 cruise turnaround port in Europe at Southampton

80% Southampton share of UK turnaround market, with 1.7m passengers welcomed to the port in 2013

Turnaround (where passengers start or end their journey) has the most significant local economic benefits

No.4 cruise port in Europe including port of call passengers

P&O fleet of 7 cruise ships arriving at Southampton Port (Oceana/Adonia/Azura/Oriana/Aurora/Arcadia/Ventura)

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Cruise Cruise sector in Southampton generates >3,500 jobs in regional economy* and each

cruise ship visit injects £2.5m into local, regional and national economies

Gateway to some of top UK tourist attractions and benefits from deep water, sheltered location, excellent transport links, proximity to main international cruise routes and 4 dedicated cruise terminals

£27m upgrade to 4 cruise terminals to accommodate largest ever built cruise ships e.g. P&O Cruises’ Britannia (3,600 passengers) and RCCL’s Anthem of the Seas (4,200 passengers)

Customer examples: Carnival**, Royal Caribbean Cruise Lines (RCCL), Fred Olsen, Saga, MSC

* Including Carnival HQ, passenger and crew expenditure pre-boarding and post-disembarkation and supply chain impacts into goods and services procured to support the cruises** Carnival’s brands include P&O, Cunard, Princess, Aida, Seabourne, Costa, Holland America and Carnival

Ocean Terminal, Southampton

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Containers

No.2 in containers - 22% share of UK market, supporting 15,000 jobs and contributing £1bn to economy each year

No.1 UK container terminal for productivity (No.3 in Europe)*

1.5m TEU at Southampton Container Terminal (JV with DP World) - mainly deep sea traffic on Far East-North Europe trade routes

ABP’s investment in new £150m, deeper, longer berth at Southampton (SCT5) accommodating 18,000 TEU+ vessels

40% of containers at Southampton transported to/from port by rail

Hull Container Terminal services Samskip – leading multimodal, intra-European logistics company

Immingham Container Terminal a common-user facility for intra-European shipping lines and companies operating feeder services for deep sea shipping lines

Customer examples: CMA CGM, G6 Alliance (Hapag-Lloyd, NYK, OOCL, APL, HMM, MOL)

* Journal of Commerce (JOC) Port Productivity Rankings, July 2014

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Sustainable Development ABPmer has >60 years marine environmental research and consultancy experience,

including facilitating the successful design and operation of ports, harbours and marinas

ABP’s ports actively manage their environment – 80% of our waste recycled or recovered in 2013, and 40% of our electricity sourced from green supplies

ABP also creates green energy to power operations, such as solar panels on warehouses and offices and wind turbines on the port estate

ABP protects the local environment, for example we own the land on which the 122 acre RSPB Blacktoft Sands nature reserve is located within the Humber Estuary Site of Special Scientific Interest (SSSI) and have worked closely with the charity to ensure its success

One of 270 bird species found at Blacktoft Sands, near GooleIntertidal habitat scheme at Chichester Harbour created by ABP in 2013 to compensate for extensive dredging in Southampton Water and the Solent

Cobnor Point

Blacktoft Sands

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Port Regeneration

Ipswich Marina

Cardiff Bay

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The Humber is the UK’s major trading gateway

Busiest in the UK by tonnage and the fifth busiest in Europe

Humber Ports:

Largest automotive logistic complex in UK

1/3 of all coal imports generating 17% of the UK’s energy

25% of all UK rail freight generated at Port of Immingham

25% of all steel imports and exports

25% of all forest products

Nearly 1 million passengers

Nearly 30% of all UK fuel refined on the Humber

Centre for Bio-fuel production in the UK

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The Humber UK’s Energy Estuary: Alexandra Dock Today

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The Humber UK’s Energy Estuary: Alexandra Dock early 2017

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Green Port Hull

Adjacent to a natural deep water channel

130 acres (54ha) site

Turbine assembly facility and service base

Rotor blade manufacturing

Linked to existing port facilities in King George and Queen Elizabeth Docks

£310m investment by ABP and Siemens

Fully operational from 2017

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The Humber UK’s Energy Estuary: GPH supply chain industrial cluster at Paull

Developing a competitive and innovative supply chain

Delivering economic growth and jobs

Generating UK exports

Priority sub sectors

Towers

Foundations

Cable laying

Substations

Developers need to demonstrate UK content

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Humber Ports Supports Key UK Industrial Sectors:Chemical Processing and Supply Chain

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Humber Ports Supports Key UK Industrial Sectors: Fuel Supply

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Humber Estuary Services

Spurn to Gainsborough on Trent and above Goole on Ouse

Manages over 30,000 vessel movements plus oil barge traffic

Harbour Master Humber

oversee the safety of all activities within the harbour area

wide ranging statutory powers

Team of 200 provide Pilotage and Hydrographic services

Thank you and Questions?