Potential of Danube River for Romanian Logistics2

7/29/2019 Potential of Danube River for Romanian Logistics2

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Global Ports Connecting Global Markets



DP World – Global Reach

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 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

The potential of the Danube river forRomanian 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 Black Sea has seen remarkable growth and is likely to see similar patterns in theshort term.

Constanta is now the largest EU port in the East.

Former Eastern Bloc countries form the renewed Central Europe – Hungary, CzechRepublic 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 willdevelop.

Improving rail links and strategic use of the Danube will facilitate Westward links andchallenge the current supply network servicing central Europe.

Establishment of the DP World facility has facilitated rapid growth in the Black Seacontainer volumes.

The terminal opened in 2004 and quickly expanded– will handle approx. 1.2m TEU in 2007, 1.5m in 2008

Background DP World Constanta



Throughput


0

200000

400000

600000

800000

1000000

1200000

1400000

2000 2001 2002 2003 2004 2005 2006 2007

Constanta Container Traffic - TEU

DP World Others



Supply/Demand Imbalance

Substantial capacity constraints expectedSource: Drewry Annual Review of Global Container Terminal Operators 2007, based on confirmed

expansion plans

6.2%

10.1% 10.2%

12.0%

7.0%

8.7%

0.1%

4.0%

4.9%

6.4%

3.4% 3.7%

0%

2%

4%

6%

8%

10%

12%

14%

Oceania Far East and South

East Asia

Middle East and

Africa

South Asia North America,

Central

America/Caribbean

and South America

North Europe, South

Europe and East

Europe

Annualised Throughput Growth (2006-12E) Annualised Capacity Growth (2006-12E)Capacity Utilisation 2012E

102.3% 105.0% 103.0% 105.4% 85.2% 87.6%




Working Example of Success in Multimodal ServicesGermersheim – Inland terminal


Germersheim offers a different operation compared to all other DPW Terminals



DP World Germersheim




Danube- Regional location




POTENTIAL OF INTERMODAL TRANSPORT ON THE DANUBE


Shorter ocean

route for Europe –Asia services:Avoids more than2,400 nautical

miles (almost4,500 km) versusNorth Sea portsand thus shortens

travel time by 3 to4 days.



Inland Waterways

Advantages

¾ Danube: the second largest river in Europe.

¾ Navigable over 2,300 km¾ Prime prospect for a major transport corridor

¾ Direct access to Rhine-Main-Danube corridor

¾ Intermodal Connections

¾ Modern handling capacities

¾ Water depth for vessels up to 200,000 dwt¾ Dedicated river/maritime basin for Danube-Black Sea Canal direct link

Disadvantages

¾ Current traffic strongly imbalanced from geographical view point¾ Traffic mainly concentrated on the Western and Eastern extremities, whilst virtually

non-existent concentration in the central part.

¾ Channel fee structure in the Danube/ Constanta channel

¾ Water depth Danube

¾ Custom regulations ( not compliant with EU regulations)




Barge services handled by DP World ConstantaBarge services handled by DP World Constanta

Currently DP World Constanta handles two barge services:

¾Constanta – Giurgiu Free Zone : domestic transit¾Constanta – Belgrade : international transit

*new barge service starting J une/J uly 2008 Ukraine viaGalati/Constanta




There needs to be innovation and risk acceptance to drive change

New barge service to Ukraine via Galati/Constanta

• Starting J une/J uly 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 asGalati

• Potential of becoming intermodal solution for Bucharest cargo




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 – don’t have to be

all one company, chain efficiency the objective




Thank you

Potential of Danube River for Romanian Logistics2

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