PORTS AND TERMINALS INSURANCE 1 CONFERENCIA OAB/RJ DIREITO RIO DE JANEIRO, BRAZIL Geoffrey Conlin, Senior Associate, HFW LLP, Sao Paulo T: +55 (11) (Mob) T: +55 (11) (Office)

Agenda  Introduction  Structure of P&T market  Trends in last 30 years  Concession Agreements  Major Incidents  Consequences  The Policy  Conclusion

Introduction: trends in last 30 years and structure  Historically ports were state owned and run entities  Move towards privatisation – growth through external investment  Expansion driven by manufacturing and container trade  Concession agreements (normally about 25 years)  Port Authorities and Specialist terminal operators

Container damage during loading and discharge

Damage to Reefer Cargo

Major Incidents - Mumbai, August 2010

Guayaquil - April

Consequences 1.Operational problems  Port closure, congestion and missed calls, stranded and perishable cargoes, pollution, floating objects, etc. 2.Expenses and financial losses  Terminal property damage (cranes, berths, etc.), vessel damage, wreck removal, death and personal injury, cargo loss and damage, third party claims, increased operational costs 3.Reputation risk and loss 4.Wasted management time

Consequences 5.Legal proceedings  Mandatory investigations  Harbour Master  Health and safety enquiries  Criminal prosecutions  Public bodies  Civil claims  Jurisdiction  Applicable law 6.Insurance claims management  Local and global policies  Management of relationships  Prompt notification  Early deployment of experts

Ports and Terminals Insurance Policy  Complex range of risks when handling, storing and managing the secure onwards journey of goods  Insuring Provisions  Property  Customer Liabilities  Third Party Liabilities  Errors and Omissions  Fines and Duties  Conditions Precedent  Standard Trading Conditions

The Policy  Normal Exclusions  Event must occur during the policy period  Event must occur during the ordinary course of the insured operation  Strikes, labour disturbances  Terrorism, acts of violence, political risk  Any breach of SOLAS, MARPOL  Seepage and Pollution  Other Provisions  Duties to minimise loss  Claims Notifications  Claims Control

Conclusion  Complex package of different product lines  Additional products available at extra premium  Growth market  Privatisation  Global Trade  Complexity  High values  More development

Lawyers for international commerce hfw.com Geoffrey Conlin HFW LLP, Sao Paulo, Brazil