Barcelona Europe South Terminal

BEST

BREAKING PARADIGMS GUILLERMO BELCASTRO CEO BARCELONA, NOVEMBER 24 2017

Hutchison Ports

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OUR BUSINESS DIVISIONS PORTS AND RELATED SERVICES

49 ports, 26 countries

81.4 million TEU throughput in

2016

Our growth

3

8 10 11

13 14 18

25 27

36

42

48 52

59

66 68

66

75 75,1 76,8 78,3

82,9 83,8 81,4

0

10

20

30

40

50

60

70

80

90

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Grand total (in million TEU)

-3%

HUTCHISON PORTS

18% 48% 10% 16% 7.5%

27%

40% 6%

32%

16%

15% 8%

15%

12% 2%

-3%

15% 0% 2% 2%

6% Growth over previous year

The world of Hutchison Ports

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HUTCHISON PORTS

United Kingdom

Netherlands Belgium

Poland

Spain

Sweden

Germany

Tanzania

Egypt

Indonesia

Malaysia

Thailand

Saudi Arabia

Oman United Arab

Emirates Myanmar

Pakistan

South Korea

Hong Kong

China

Vietnam

Australia

Bahamas

Panama

Mexico

Argentina

49 Ports in 26 Countries

Iraq

DEFINITION OF PARADIGM

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A framework containing the basic

assumptions, ways of thinking, and

methodology that are commonly

accepted by members of any discipline

or group.

BREAKING PARADIGMS

1. There is not enough infrastructure in Southern

Europe.

2. 80% of the cargo that passes through the MED

is being handled by North European Ports.

3. Rail is not an option in Spain.

4. The Mediterranean corridor is not crossing the French

border.

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THERE IS NOT ENOUGH

INFRASTRUCTURE IN

SOUTHERN EUROPE

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PORT DE BARCELONA

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PRIVILEGED MARITIME ACCESS

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HINTERLAND LOCATION

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240 HA

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OPERATIONAL MODEL

0,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

GCR

UNRIVALED PERFORMANCE

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* Real Data of the Last 15 days of April 2017

Average 41,59 mph

Europe 25 mph

Asia 27 mph

Africa & Middle East 21 mph

America 28 mph

BERTH DESIGN

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Next Generation

OUTSTANDING SERVICE LEVEL

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MSC JADE

19,000 TEU CAPACITY FEBRUARY 2017

BERTH DESIGN

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0,00

50,00

100,00

150,00

200,00

250,00

0 500 1000 1500 2000 2500 3000 3500 4000 4500

SERVICE LEVEL ACHIEVED

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* Real Data of 2015 and 2016

Average VOR: 47,4 mph

Peak VOR: 129,4 mph

Average VOR: 74 mph

Peak VOR: 142,8 mph

Average VOR: 113,7 mph

Peak VOR: 167,7 mph

Average VOR: 132,9 mph

Peak VOR: 214 mph

Average VOR: 139,8 mph

Peak VOR: 169,3 mph

Average VOR: 156,8 mph

Peak VOR: 201,3 mph

VOR

80% OF THE CARGO THAT

PASSES THROUGH THE

MED IS BEING HANDLED

BY NORTHERN EUROPEAN

PORTS

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Source: HPH

Lisbon

Toulouse

Montpellier

Lyon

Barcelona

Zaragoza Madrid

South

Europe

35% EU Far

East Traffic

North

Europe

65% EU Far

East traffic

BARCELONA AS A GATEWAY TO SOUTHERN EUROPE

• Transit Time reduction (in days)

Shanghai – Barcelona 26

Shanghai – Hamburg 31 -5 Days

Shanghai – Antwerp 34 -8 Days

Shanghai – Rotterdam 35 -9 Days

• Lower CO2 emissions

• Fuel savings

Advantages of BCN vs North Europe

• Imports from Asia to Spain +30% in 4 years.

• The growth rate of Maritime Transport in the Mediterranean in 2017 is 5,7%; one

of the fastest actual and projected growth in Europe.

• Spain is in the Top 5 in Europe of the Liner Shipping Connectivity Index (LSCI),

with a significant increase since 2004 (+50%),

• Barcelona currently receives 5

weekly services from Far East and

the vessels deployed are larger

than in the past years with lower

transit times.

THE TREND IS ALREADY CHANGING

Sources: Drewery, Cadena de Suministro, Diario del Puerto and Port de Barcelona

• Barcelona port volume increased

+70% in 5 years.

+70%

RAIL IS NOT AN OPTION

IN SPAIN

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RAIL TERMINAL

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8 RAIL TRACKS

750 EFFECTIVE LENGTH

2 GAUGE SYSTEM

2 RAIL CRANES

OCR SYSTEM

750.000 TEU

+135,000 TEU IN 2016

+ 3,000 TRAINS IN 2016

15% OVER LOCAL VOLUME

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(*) By Road from BEST to Perpignan

From To Frequency Transit Time

BEST Perpignan 3/ Week AB

BEST Bayonne 3/ Week AB

BEST Bordeaux 3/ Week AB

BEST Lyon 3/ Week AB

BEST Toulouse 3/ Week AB

BEST Paris 3/ Week AC

BEST Lille 3/ Week AC

BEST has set up a rail operator that offers connections with Bayonne

and Bordeaux from Noain (Pamplona).

BEST Pamplona (Noain) 3 / Week AB

BEST Zaragoza 15 / Week AB

BEST Madrid 5 / Week AB

BEST Tarragona 4 / Week AB

BEST Miranda de Ebro 2 / Week AB

BEST Burgos (Villafría) 2 / Week AB

BEST Selgua 2 / Week AB

(*)

Transit Time reduction BCN vs. North of Spain

Shanghai – Barcelona 26 days

Shanghai – Pamplona (Noain) 27 days

(by rail from BCN)

Shanghai – Bilbao 36 days

BEST has interest in 3 different inland terminals: TMZ (Zaragoza), TIN

(Noain) and Miranda de Ebro.

HINTERLAND CONNECTIVITY

MARKET POSITION

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15% LOCAL TRAFFIC BY RAIL

65% CONTAINER RAIL MARKET SHARE

7,2

%

9,4

%

8,7

%

10

,0%

11,

2%

15,

0%

15,

1%

0%

10%

20%

30%

40%

50%

60%

70%

- 5

0.0

00

10

0.0

00

150

.00

0 2

00

.00

0 2

50.0

00

2010 2011 2012 2013 2014 2015 2016

RAIL TEU Evolution

BEST Port de Barcelona Market Share

GREEN TERMINAL

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REDUCTION OF 4 KG CO2/TEU

57% LESS EMISSIONS

THE MEDITERRANEAN

CORRIDOR IS NOT

CROSSING THE FRENCH

BORDER

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Our Hinterland, Your Attractive Inland Market

Inland terminal / dry port Logistic area Intermodal rail terminal Port of Barcelona

Motorways of the sea with Italy Motorways of the sea with Maghreb

Ebro corridor Transversal Iberian corridor South of France corridor European corridor

East Iberian market European market Italian market

Catalonia market

Maghreb market

North Iberian market Central Iberian market

Other rail destinations

Port representatives

Coslad

a

Azuquec

a

tmZ Perpignan El Far

Toulouse

Lyon

Port of Barcelona

ZAL

Source Barcelona Port Authority

Rail Freight Services

at BEST

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The Barcelona Advantage. A New Market Trend

• Most of the Infrastructure ready for intermodal maritime cargo / double gauge

from Barcelona through the border completed.

• Hutchison Ports set up a rail operator to expand the hinterland of Barcelona Port.

• 10,000 trucks crossing the border every day.

Main Bottlenecks

• Lack of rail players/competition is delaying the development of this corridor.

• Regulatory issues (electrical power systems, safety, etc,)

• Intermodal trains with Maritime containers: shipping line agencies are not

promoting cross-border traffic due to the current BU/country structures.

• Customs/Phytosanitary: Differences in procedures and flexibility among

countries. Not the same level playing field.

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The Barcelona Advantage. A New Market Trend

• Shorter Transit Times: new services saving up to 9 days. Fuel savings and lower

CO2 emissions on routes to/from Far East compared with North European Ports.

• Potential hinterland of more than 7 million TEU within a radius of 1,000 km.

International rail operators are interested.

• Multimodal corridors connecting the port with major industrial and consumer

areas in Europe.

• Cross border issues: we need the same playing field level as the ports of

Northern Europe.

• Spanish Customs are improving by implementing some initiatives such as the

One-Stop-Shop Procedure, but speeding-up Customs processes is still

necessary in order to significantly reduce logistic costs.

• Shipping lines are addressing this opportunity by switching from a country by

country operations to a regional view.

We encourage EU legislators to keep supporting this new trend

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THE WORLD’S LEADING PORT NETWORK

THANK YOU