case study: expanding the patrick terminal at port botany
DESCRIPTION
Murray Vitlich, Director Strategy & Business Development, Asciano delivered this presentation at the 2012 Ausintermodal conference. For more information on the annual event, please visit the website http://bit.ly/18MD4XMTRANSCRIPT
Expanding the Patrick Terminal at Port BotanyAusIntermodal 2012, Melbourne, 30-31 October
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• This presentation includes “forward-looking statements.” These can be identified by words such as “may”, “should”, “anticipate”, “believe”,
“intend”, “estimate” and “expect”. Statements which are not based on historic or current facts may be forward-looking statements.
• Forward-looking statements are based on assumptions regarding Asciano’s financial position, business strategies, plans and objectives of
management for future operations and development and the environment in which Asciano will operate.
• Forward-looking statements are based on current views, expectations and beliefs as at the date they are expressed and which are subject to
various risks and uncertainties. Actual results, performance or achievements of Asciano could be materially different from those expressed
in, or implied by, these forward-looking statements. The forward-looking statements contained in this presentation are not guarantees or
assurances of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the
control of Asciano, which may cause the actual results, performance or achievements of Asciano to differ materially from those expressed or
implied by the forward-looking statements. For example, the factors that are likely to affect the results of Asciano include general economic
conditions in Australia; exchange rates; competition in the markets in which Asciano does and will operate; weather and climate conditions;
Disclaimer
conditions in Australia; exchange rates; competition in the markets in which Asciano does and will operate; weather and climate conditions;
and the inherent regulatory risks in the businesses of Asciano. The forward-looking statements contained in this presentation should not be
taken as implying that the assumptions on which the projections have been prepared are correct or exhaustive.
• Asciano disclaims any responsibility for the accuracy or completeness of any forward-looking statement. Asciano disclaims any responsibility
to update or revise any forward-looking statement to reflect any change in Asciano’s financial condition, status or affairs or any change in the
events, conditions or circumstances on which a statement is based, except as required by law.
• The projections or forecasts included in this presentation have not been audited, examined or otherwise reviewed by the independent
auditors of Asciano. Unless otherwise stated, all amounts are based on A-IFRS and are in Australian Dollars. Certain figures may be subject to
rounding differences. Any market share information in this presentation is based on management estimates based on internally available
information unless otherwise indicated.
• You must not place undue reliance on these forward-looking statements.
• This presentation is not an offer or invitation for subscription or purchase of, or a recommendation of securities. The securities referred to in
these materials have not been and will not be registered under the United States Securities Act of 1933 (as amended) and may not be
offered or sold in the United States absent registration or an exemption from registration.
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Asciano at a Glance
PN CoalBulk & Automotive
Port Services
Bulk PortsSouth East
Australia
AscianoFY12 Revenue: $3,456.7 million
FY12 EBITDA: $907.7m
Total Employees: 7,446*
PN Rail
Intermodal
Terminals & Logistics
East Swanson Dock
(Melbourne)
FY12 Revenue - A$492.92m
FY12 EBITDA - A$82.0m
At 30 June the division operated
17 sites located throughout
Australia. The division has joint
venture interests in a number of
port operations.
1,762 employees*
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Autocare
FY12 Revenue - A$690.4m (net of
access)
FY12 EBITDA – A$327m
FY12 NTKs - 19,988m
At 30 June 2012 had 246
locomotives & 5,596 wagons: total
insured value of A$1.92 bn.
1,274 employees*
FY12 Revenue - A$1,323m
FY12 EBITDA – A$316m
FY12 NTKs – 28,620m
At 30 June 2012 had 350
locomotives & 6,995 wagons.
2,349 employees*
Australia
North East
Australia
* Full Time Employees employee numbers as at 30 June 2012
FY12 Revenue - A$781.2m
FY12 EBITDA - A$225.6m
FY12 TEUs (‘000) – 2,912
At 30 June 2012 had 20 cranes,
112 straddle carriers, other
equipment & facilities: total
insured value of A$1.4 bn.
1,818 employees*
Bulk RailFisherman Islands
(Brisbane)
Fremantle
(West Australia)
(Melbourne)
Port Botany
(Sydney)
Patrick Ports Overview
Value Proposition
The Patrick Ports portfolio comprises containers terminals, port logistics services for
landside management of import/export containers, an end-to-end supply chain offering
for automotive manufacturers, bulk port management and stevedoring for general cargo
� Well established, long history, respected and strong brand awareness in industry
� Privileged container terminal assets in key port locations in major Australian capital cities
� Weighted average length of service for top 5 container terminal customers is 17 years
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� Weighted average length of service for top 5 container terminal customers is 17 years
� Diverse customer base consisting of major FMCG players, global shipping companies,
automotive manufacturers and resources sector
� Only existing national container terminals operator with landside logistics capability
� World class container yard automation technology successfully installed in Brisbane and
significant expansion plans
� Exposure to growth in resources and oil & gas sectors via bulk ports and stevedoring
Patrick Terminals and Logistics
Overview of Port Logistics
Port Logistics Supply Chain Opportunities
Land transport
Consolidation hub and
value added processing
EXPORT activitiesports, stevedoring and freight forwarding
Export clients
• Patricks only operator with a
role in all elements of supply
chain
– Terminal
– Container Parks
– Transport
– Logistics
Land transport
De/consolidation hubs, cross dock
and value added processing
Land transport
Import clients/warehouses
freight forwarding
IMPORT activitiesports, stevedoring and customs clearance
Container storage, repair and service
Empty container delivery
– Logistics
– Rail
• Synergy value and operating
model under development
• Potential value-add for
shipping customers and lock-
in to Patrick’s services
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Land transport
Patrick Terminals and Logistics
Sydney - Port Botany
• Port Botany is Australia’s largest container port
• Patrick annual throughput capacity of approximately 1.2m TEUs, increasing to 1.6m TEUs by
mid 2014.
• Additional capacity expansion beyond 2014 to 2.8m TEUs with introduction of ASCs
• Land area covering circa 44 hectares (increasing to 61 hectares by mid 2014 with the
development of the “the Knuckle”)
• 5,500 yard slots (increasing to 8,500 slots by mid 2014)• 5,500 yard slots (increasing to 8,500 slots by mid 2014)
• Berth length: 1,000m (increasing to 1,400m by mid 2014)
• Re-development:
– Approved capital investment of $348m including full development of the Knuckle and
introduction of Autostrad technology.
– 400m extension of berth and up to an additional 18 hectares of terminal area, once the
Knuckle is developed by mid 2014
– Re-development to roll-out AutoStrads by mid 2014
• Lease tenure to at least 30 June 2043
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3.13.0
2.82.7
2.52.4
2.32.1
2.02.0
Terminal starts to become inefficient
(2014)
Terminal at capacity(2017)
Without Port Botany expansion:
Port Botany Throughput TEU (millions)FY06 to FY20
Historical throughput Forecast
Patrick Port Botany Re-Development
Key offering within our Australian Network
FY06
1.9
FY09
1.8
FY08
1.8
FY07
1.61.4
FY20FY19FY18FY17FY16FY15FY14FY13FY12
2.0
FY11
2.0
FY10
Knuckle completion
(Expected mid 2014)
� Provides additional capacity for the next 10 years
� Provides the option for future expansion up to 2.8m TEU
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� 17.6 Ha area with a 400m
quay line
� $348m redevelopment
� Design, civil works,
Investing $350m to comprehensively expand,
redevelop & automate Port Botany Terminal
Port Botany “Knuckle”
“Knuckle”
(400m)
� Design, civil works,
construction: $242m
� 44 new straddles and
other equip: $75m
� IT fees and other costs:
$31m
� 3 Cranes already delivered:
$35m
Capacity will increase8
Patrick Port Botany Re-Development
Video
Entire Terminal as at May’12
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Truck Grids Ramp D
Workshops
Rail
The “Knuckle” delivers flexibility to expand,
but with minimal disruption to customers
Proposed Layout
Admin
Building
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� Automated 10 metre high, 65 tonne straddle carriers
� Sophisticated motion control and navigation systems
� Moving and stacking containers from quay line into holding
yards and onto vehicles and back to quay cranes
What are Autostrads?
How do they work?
The Port Botany Terminal will be transformed
into a world class AutoStrad™ Terminal
More efficient, consistent and safe operations
� Two important concepts:
� Positioning through DGPS and millimetre wave radar,
accurate to 2 centimetres
� Movement through use of node paths on a virtual map
(nothing in the ground)
� Anti-collision functionality operates at various levels
� Eminently flexible, scalable and deployable
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Our safety record at Fisherman Islands has
significantly improved since automation
100
120
140
160
LTIFR
Post-AutomationPre-Automation
Fisherman Islands LTIFR(before and after automation)
0
20
40
60
80
100
Year
-94%
4321Automation-1-2-3-4
� Nearly half of the current LTIFRs are due to Straddle injuries (Port Botany)
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Fisherman’s
Island
75
125
100
%
Our performance in Fisherman Islands
Leader in the industry
Window Performance ComparisonFeb 10 to Aug 12
� Drives a significantly better and more reliable performance outcome for our customers
� Enables 24 hour operation regardless of weather and labour availability
13
75
0
50
25
Port
Botany
Apr/10 Jul/10 Oct/10 Jan/11 Apr/11 Jul/11 Oct/11 Jan/12 Apr/12 Jul/12 Oct/12
� Patrick is aiming to become the market share leader in Container Terminals
........ but we are competing against two global Container Terminals leaders
� Port Botany is pivotal within our Port Network and we are investing $348m
Patrick Port Botany Re-Development
Positioning Patrick as a market leader
…….. to comprehensively expand, redevelop & automate the Terminal
� A world class AutoStrad™ Terminal provides Safety and Performance benefits
........ but we need to ensure all stakeholders are aligned
� Provides Patrick with the ability to deliver on its value proposition
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Patrick Port Botany Re-Development
Conclusion
Investment
� Operational
Performance� Investment
� Labour & IR
� Innovation
� Process
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Operational
PerformanceLabour
& IR
Innovation
Process� Collaboration
� Stevedore
� Shipper
� Road
� Rail
� Stakeholders� Government
� Community
� Port Owners
� Shareholders
Questions
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