Gulftainer Company Ltd

Proposal to Develop and Operate a New Container Terminal at JaxPort

Port of Jacksonville

Contents

Gulftainer Company Overview Jax Port Proposal Summary Contact Questions

Gulftainer Company Overview

Top 10 International Port Operator Operates container terminals and general cargo 3.5 million TEU and about 2 million tons of general cargo Has developed inland ports to support its operations Has created its own logistics arm, Momentum Transformation from regional operator into highly regarded international port operator Operates the fastest terminal on the planet 7 years of consecutive growth

Industry Leaders

Drewry World Average for Container Terminals > 1 mTEU in 2011 Gulftainers Khorfakkan Terminal in 2011

Independently Verified

Excellent Customer Relations

18 of the 20 largest shipping lines are customers of Gulftainer The top 3 shipping lines are in our top 5 customers Long term relationships are paramount:
Line CMA-CGM UASC MSC Hanjin Customer since 18 years 22 years 10 years 20 years

Maersk

10 years

Working to the highest standards

Gulftainer is a founding member of the Pearl Initiative

Gulftainer supports the WWF

ISO 9001, 14001 & OHAS 18001

Global Footprint

JaxPort

Jax Port

Competitors Panama Expansion Jax Port Restrictions

Expansion & Vision

Vision & Development

Winning Formula

Direct Competitors

JaxPort Vs. Competitors

Containers (thousand TEU's) Savannah = 11%
3,000
2825 2616 2356 2944

2,000 1,500

2008
1371

2009

2010

2011

1277

1292

Charleston = - 5.7%

1119

1,000

2008 2009

2010

2011

JaxPort Vs. Competitors

Containers (thousand TEU's)
Miami = 8.6%
1,000
828.3 807.1 847.2 906.6

500 1,000

2008

2009

2010
827 900.4

JaxPort = 22%

698

754

500

2008 2009

2010

2011

Market Share

JaxPort handled 900,433 TEU in 2011. 9.7% of the contestable market Florida State trade is balanced between imports/exports. Around 70% of JaxPort containerized volumes are exports JaxPort has one of the biggest Foreign Trade Zone in U.S.A and 3rd in the world behind only Shanghai and Tangiers

Consolidation of Facilities

JaxPort currently has 4 container terminals in 3 locations plus 1 under construction

This results in loss of concentrated effort Is not the most efficient use of space and equipment as dedicated terminals

Savannah Advantages

Report on dredging expected imminently with works beginning 2013. (Subject to challenge) Already has established links with large companies Aggressive marketing resulting in rapid growth in recent years

Savannah Disadvantages Transport links require improvement to deal with increase in flow Expected to reach capacity by 2020 resulting in a new port in Jasper County Widening also required to allow larger vessels to pass in the channel Requires government funding

Charleston Advantages

Charleston Disadvantages

Already deep water with 45 feet depth at low water and +50 feet at high tide Large expansion programme for Port facilities in place. Capacity to reach 4 million Teu Super Post Panamax cranes already in place

Total state control of the port with no private operators Doesnt fully utilise the natural advantages it has Requires government funding

Miami Advantages

Miami Disadvantages

Already starting dredging First major stop after Panama Canal $1 billion tunnel under Biscayne Bay to speed up truck traffic

Too far south for far reaching transportation Rail link to the port is still in the build phase Restricted in storage area for containerized cargo Requires government funding

JaxPort Advantages/Disadvantages
To follow

Comparison with GTL

JaxPort Gulftainer

TEU per crane (est.)

69,000

185,219

TEU/m of berth (est.)

TEU/yard sqm (est.)

324
18,710

1,621
64,826

Market Summary

JaxPort has a large growth but the amounts are relatively low.
Less than 10% of regional market Imbalanced trade between import & export

Loss of efficiency due to dilution of efforts

Panama Canal Expansion

Panama Canal Expansion

Currently 37% of Container vessels cannot pass through the Panama, on completion of expansion only 6% will be unable to pass Due to be completed in 2014 Panamax size vessels being built to maximum expansion capacity Increase Asia/Pacific traffic direct to East Coast Increased throughputs for those major ports who rise to the challenge

New Panamax Dimensions

Market Trade Routes

Market Trade Routes

Market Trade Routes

Gulftainer Advantage

JaxPort feeds predominantly into the Caribbean and South Americas GTL has a port in Recife Brazil Actively looking to invest further into Brazil and other South American countries Strategic links would be greatly beneficial to JaxPort

TEU Vessel Breakdown

Size
4,000 TEU 6,000 TEU 8,000 TEU 10,000 TEU 12,000 TEU

Max Draft
39 feet 7 inches

Average Draft on Call

34 feet 7 inches

Airdraft fully laden

138 feet 151 feet 190 feet 195 feet

Average Airdraft on call

143 feet 159 feet 3 inches 175 feet 194 feet 11 inches 196 feet

47 feet 10 inches 39 feet 7 inches 49 feet 6 inches 51 feet 1 inch 44 feet 6 inches 50 feet 1 inch

47 feet 10 inches 42 feet 11 inches 165 - 190 feet

Averages taken for Khorfakkan Terminal Airdraft at Dames Point Bridge 175 feet

Vessels to be expected

It is not expected for the New Panamax vessels to call on many, if any, East Coast ports. However it will cause a vessel string shift Large vessels are unlikely to call fully laden due to prior stops:

We are contemplating vessels up to 8200 TEU on this service CMA VP Terminal Strategy & Development Ian Cairns
Size Max Draft Average Draft on Call Airdraft fully laden Average Airdraft on call

8,000 TEU

47 feet 10 inches 42 feet 11 inches 190 feet

175 feet

8000 TEU = 18 rows across

Jax Port Restrictions

JaxPort Restrictions

Depth of water Requirement to dredge the channel to approx 47 feet. At least to Blount Island. This will allow for a 10% clearance even at low water Current draft at berth of 40 feet at Blount Island and 36 38 feet elsewhere

JaxPort Restrictions

Airdraft Panamax and New Panamax airdraft is 190 feet on average with airdraft of Dames point bridge & the power lines to the east of Blount Island is only 175 feet. Requirement to heighten to 200 feet

What is Airdraft?

Air draught (or draft) is the distance from the surface of the water to the highest point on a vessel.

What is Air Draft

Kentucky 2012

Kentucky 2012

Expansion & Vision

Expansion

Mayor Alvin Brown stated:

JAXPORT is vital to our economic vitality and is part of what defines us as a city. The port has a $19 billion annual economic impact. It generates 65,000 jobs in Jacksonville, with an average salary of $43,980 compared to the average city salary of $27,215.

Expansion

The expense of dredging the entire St Johns river is estimated at $500 million. Plus associated infrastructure costs will increase the funding needed Length (approx) 21 miles
Is it really necessary?

Expansion

Dredging to full 50 feet not required. 47 feet from chart datum up to Blount Island. Develop more of the Island itself Moving or increasing the clearance of the Power lines to the East of Blount Island necessary Completing the works at Mile Point to ensure that all the berths can be used 24/7 for the sizes of vessels intended at all ports Expansion into other half of Blount Island

Expansion

By utilizing Blount Island for mainly container traffic, greater efficiency of space could be achieved Currently using chassis for the movement of containers rather than stacking as done in Savannah and Charleston By evolving the ways of working you can make best use of the space available and maximize potential This could lead to a large saving in current funding request in the region of $250 million

Expansion

Expansion creates Jobs.

Jobs boosts consumer market.

Consumer market drives the economy.

Vision & Development

Vision for Blount Island

Gateway Port: First stop, or one of, for the trade vessels transiting through the canal North/South relay transshipment Development of regional ties to the South American market Ability to attract the larger vessels

Vision for Blount Island

Expansion of container traffic Increase feeder services from Blount Island to the South Americas and the Caribbean Bringing containers destined for Jacksonville into Jax Port To drive Jaxport forward into a major player on the East Coast. Increasing market share and import/export rates

Development with Gulftainer

We would require the following:

25 year concession + 10 year extension 3000 Linear feet of berth space 50 Ha of lay down area

In return we would:

Development with Gulftainer

Invest up to $250 million Target 1 million additional TEUs by 2018 If necessary reinforce the quayside Supply RTGs Supply Terminal tractors Supply Reachstackers Supply MT Handlers Create jobs for local workforce Increase TEU targets year on year Offer Royalties on growth over projected forecast

Winning Formula

Winning Formula

Matching equipment with requirements Avoiding high service costs of under-utilised equipment

Efficiency, Productivity and resulting Competitiveness are Gulftainers hallmarks

A partnership with the Fastest terminal operator in the world

Winning Formula

Most importantly. Putting people and the local community first

A successful, efficient and expanding port creates employment

Gulftainer can assist in driving JaxPort forward in the New Age of shipping

Summary
Gulftainer best suited strategic partner to manage a high performance Blount Island based on:

Experience Knowledge Reputation Performance Ambition

Contacts
For further details and enquires please contact:

Simon Dixon Gulftainer Company Limited sdixon@gulftainer.ae PO Box 225, Sharjah, UAE +971 5 04633245

Any Questions?