Efficiency of Export Logistics for Vegetable oils

Efficiency of Export Logistics for Vegetable oils BLACK SEA OIL TRADE 16 SEPTEMBER 2013

General Information Ton Huls CFO Allseeds SA

Allseeds SA Ukrainian origin

Trader and Exporter of sunflower oil from black Sea origin

Owner of new vegetable oil transshipment terminal in Port Yuzhny – Odessa Oblast.

Processor of sunflower seeds through tolling agreements

Overview Market Overview

Selection Criteria for Ports

Market Developments & Impact on transshipment

Allseeds Investment

Overview

Market Overview

Vegetable Oil Export

0 0,5 1 1,5 2 2,5 3 3,5 4

2009/10

2010/11

2011/12

2012/13

2013/14*

2,69

2,7

3,33

3,47

3,74

Export of Vegetable Oil from Ukraine, MMT

Source: Foreign Agricultural Service / USDA

Factories and Ports

Overview

Selection Criteria for Ports

Selection Criteria

Transshipment Costs = Terminal Costs

+

Location

Capacity

Market

Terminal Costs

Transshipment Fee per metric ton

Storage costs

Other expenses / fees charged by the Terminal

Transshipment losses

Location

Distance from factory to terminal

Accessibility of terminal for rail cars & truck

Differential in inland transport costs between terminals

Capacity

Storage capacity at Terminal

Vessel size capacity of Port

Potential additional costs if Terminal can not handle large vessels

Capacity

Unloading capacity / speed Loading capacity / speed Potential demurrage costs for trucks / railcars / vessel in case of low speed Potential savings on shipping costs in case of high speed loading

Market

Market Price vs Terminal Location

Consignment size

Premium or discount on sales price of oil

Different Choices

No perfect terminal, choice depends on:

-Location of factory

-Type of transport used to Terminal

-Volumes

-Target client preferences

-Target sales markets

Overview

Market Developments

&

Impact on Transshipment

Market Developments

Sales markets are shifting from Mediterranean Basin to Middle East and Asia

Vessel / consignment size is increasing from 3 – 6,000mt to 10 – 25,000mt

Increased emphasis on environmental impact of trucks driving through city (centers) and/or queuing in city centers

2007-2008 2010-2011 2012-2013

Mediterranean 648,8 KMT (49%)

1035,4 KMT (39%)

1090 KMT (36%)

Middle East / Asia

73,9 KMT (6%)

883,4 KMT (33%)

1491,8 KMT (49%)

Impact on Transshipment Larger storage allocation required in terminals

Longer average storage periods of oil in terminals

Higher concentration of shipments via limited number of ports

Berth length and draft is important selection criteria

24hours and easy access is preferred

High demand for capacity of efficient terminals located in deep sea ports outside city centers

Overview

Allseeds Investment

Allseeds Investment

Investment Opportunity :

Accommodate this changing market demand for vegetable oil transshipment capacity

Decision :

Construction of new Terminal in Port Yuzhniy

Allseeds Terminal

Location Yuzhniy : deepest port in Ukraine

located remotely from habited areas

easy access from Odessa – Nikolaev highway

opportunities to expand

Operations : State-of-the-art equipment & control systems

High efficiency (speed) in unloading and loading

Extensive quality control through independent laboratory

Allseeds Terminal

THANK YOU Ton Huls

Allseeds Allseeds Terminal

Boulevald Druzhby Narodov 19 Komintern District

Kiev 01042 Odessa Oblast 67543

Tel : +380 44 495 49 19 Tel : +380 44 495 49 19

Email : [email protected]