2. MUUGA CT First in the World Igor Zimin, Commercial Director Muuga Container Terminal

3. Igor Zimin, Muuga CT Introduction The container turnover of Baltic Sea region in 2006 was 7.5 mln TEU. According to some forecasts this figure could be 8 mln in 2010 and 11 mln TEU in 2015. That growth of turnover is mainly because of the natural growth of containerisation in that region (more than 15%). Moreover, the containerisation in post Soviet countries is a relatively young part of transportation operations and its growth here is higher than in Europe. The reason is that the development of container shipment in this region has begun only in the beginning of 90s.

4. Igor Zimin, Muuga CT Introduction In addition, high growth of economy in Russia (6.6%) and in Baltic State countries (up to 10.2% in Latvia) helps container transport to move up. In Estonia we had 9.8% growth of GDP last year; however, it can slow down up to 4-6% this year, and that can reflect on container shipment via Estonia. Furthermore, RO-RO shipment has very strong position in Estonia and that is also considerably slowing down the growth of container shipment for local market.

5. Igor Zimin, Muuga CT Introduction The container turnover handled in the ports of our Baltic region (Kaliningrad, Klaipeda, Liepaja, Ventspils, Riga, Tallinn, Kotka, Hamina, St. Petersburg) was 2.8 mln TEU in 2006 (that is 23.7% more than in 2005).

6. Igor Zimin, Muuga CT Introduction Apart from handling local cargo, those ports are more or less connected with transit containers. During the last several years, the container turnover in those ports had a very stable growth tendency. The average growth rate for the last 5 years was 22.4%.

7. Igor Zimin, Muuga CT Introduction Taking this fact into account, feeder lines are constantly increasing the capacity of their container vessels (average vessel call in 2006 was 700 TEU/call in the Baltic Sea) and call frequency (in 2006 it was about 10000 calls) so as to maintain effective sea shipment.

8. Igor Zimin, Muuga CT Handling of vessels with capacity under 1000TEU in October 2006 Average time in the port (hours) Number of vessel calls Average quantity TEU for handling Helsinki13.958755 Aarhus1143641 Gothenburg15.260600 St. Petersburg40.691815 Antwerp19.858724 Bremerhaven13206663 Hamburg27.8357667 Rotterdam18.92701209 Muuga CT14.2634382 Source: Lloyd's Register Fairplay

9. Igor Zimin, Muuga CT Growth of container turnover of the Baltic Sea ports (%) Ports 1997199819992000200120022003200420052006 Growth 1997-2006 (+/-)% St.Petersburg TEU 170,023 236,450 226,320 289,730 480,659 580,639 649,812 776,576 1,119,346 1,449,9581,279,935 change 39.07%-4.28%28.02%65.90%20.80%11.91%19.51%44.14%29.54%753% incl. FCT TEU 161,500 212,805 203,700 231,800 325,500 438,020 432,951 531,231 723,519 888,889727,389 change 31.77%-4.28%13.79%40.42%34.57%-1.16%22.70%36.20%22.86%450% incl. others TEU 216,861 245,345 395,827 561,069 change 13.13%61.33%41.75% Kaliningrad TEU 11,136 16,235 14,381 16,280 21,313 27,871 44,687 72,489 112,528 151,047139,911 change 45.79%-11.42%13.20%30.92%30.77%60.34%62.21%55.23%34.23%1256% Total RussianTEU 181,159 252,685 240,701 306,010 501,972 608,510 694,499 849,065 1,231,874 1,601,0051,419,846 portschange 39.48%-4.74%27.13%64.04%21.22%14.13%22.26%45.09%29.96%784% Kotka TEU 192,326 161,913 134,028 192,108 201,004 242,697 264,400 325,729 366,666 461,874269,548 change -15.81%-17.22%43.33%4.63%20.74%8.94%23.20%12.57%25.97%140% Hamina TEU 101,168 114,366 92,958 96,345 93,851 89,958 106,995 144,066 159,783 166,98365,815 change 13.05%-18.72%3.64%-2.59%-4.15%18.94%34.65%10.91%4.51%65% Total FinnishTEU 293,494 276,279 226,986 288,453 294,855 332,655 371,395 469,795 526,449 628,857335,363 portschange -5.87%-17.84%27.08%2.22%12.82%11.65%26.49%12.06%19.45%114% Riga TEU 132,506 129,580 85,911 84,928 101,077 127,459 132,109 150,016 168,978 176,82644,320 change -2.21%-33.70%-1.14%19.01%26.10%3.65%13.55%12.64%4.64%33% Klaipeda TEU 36,736 32,328 28,668 39,955 51,135 71,589 118,366 174,673 214,307 231,548194,812 change -12.00%-11.32%39.37%27.98%40.00%65.34%47.57%22.69%8.05%530% incl. KLASCO TEU 20,800 16,000 16,920 22,800 30,100 39,800 54,465 70,200 change -23.08%5.75%34.75%32.02%32.23%36.85%28.89% Ventspils &TEU 5,225 1,756 4,188 21,541 Liepajachange -66.39%138.50%414.35% Tallinn TEU 54,585 55,471 65,689 76,692 78,072 87,912 99,940 113,081 127,585 152,39997,814 change 1.62%18.42%16.75%1.80%12.60%13.68%13.15%12.83%19.45%179% Tot. BalticTEU 223,827 217,379 180,268 201,575 230,284 286,960 355,640 439,526 515,058 582,314358,487 state portschange -2.88%-17.07%11.82%14.24%24.61%23.93%23.59%17.18%13.06%160% TOTAL TEU 698,480 746,343 647,955 796,038 1,027,111 1,228,125 1,421,534 1,758,386 2,273,381 2,812,1762,113,696 change 6.85%-13.18%22.85%29.03%19.57%15.75%23.70%29.29%23.70%303% AS MCT TEU 24,907 25,970 39,268 51,184 66,410 87,051 94,822 111,599 126,933 152,063127,156 change 4.27%51.21%30.35%29.75%31.08%8.93%17.69%13.74%19.80%511% %from Total3.57%3.48%6.06%6.43%6.47%7.09%6.67%6.35%5.58%5.41%1.84% % from Baltic 11.13%11.95%21.78%25.39%28.84%30.34%26.66%25.39%24.64%26.11%15.0% ports %from Baltic 4.81%5.26%9.64%10.45%12.65%14.05%13.04%12.27%12.19%12.56%7.7% & Finnish ports % from 14.65%10.98%17.35%17.67%13.82%14.99%14.59%14.37%11.34%10.49%-4.2% St.Peterburg

10. Igor Zimin, Muuga CT What is expected from container terminals? High vessel productivity; Possibility of accepting and handling several vessels at a time; Readiness to handle vessels which are out of schedule, and today almost every feeder line is out of schedule; High truck and railway productivity; All that requires high level of investments!

11. Igor Zimin, Muuga CT Muuga CT Investments 1993 – 2010 1993-19981999-20002001-20042005-20062007-20082009-2010Total Buildings 12,888 7 4,906 3,868 33,373 11,000 21,669 Equipment 21,794 101,124 7,937 7,283 20,023 42,000 138,138 Storage yard 43,948 24,833 32,557 31,623 59,500 101,338 Warehouse 8,595 - 11,350 - 8,595 Other 2,670 371 9,960 7,245 14,895 16,000 20,246 Leasing equip. 64,244 161,488 95,290 153,540 225,732 TOTAL 37,352 145,450 120,475 212,441 206,554 282,040 1,004,312

12. Igor Zimin, Muuga CT Utilization of container terminals Year 2005 in comparison with year 1996 Ports/Terminals CapacityDifferenceActualDifference Utilization thou TEU/year %Turnover%MIN-MAX thou TEU/year St.Petersburg14501700573%1119699%82%100% incl. FCT9001000422%724483%91%105% PLP300350 1250% 190 3950%71%93% MobyDik100150110 others15020095 Kaliningrad150200778%1131130%71%98% ∑ Russian Ports16001900588%1232725%81%100% Kotka45050073%367110%92%106% Hamina25030057%16068%67%83% ∑ Finland70080067%52795%82%98% Riga25030022%16935%70%88% Ventspils150175929%4200%3% Klaipeda300400560%214648%67%93% Tallinn185225234%128246%71%90% incl. MCT (FT)160200424%127577%79%103% ∑ Baltic States8851100253%515243%59%76% Total31853800306%2274349%75%93%

13. Igor Zimin, Muuga CT What is necessary for a container terminal? Sufficient area for container storage and quay length. The current situation showing that 25% capacity margin is not enough, this margin should be 35%; Adequate amount of modern equipment and skilled labour; Usage of newest solutions in the technology of container handling and IT.

14. Igor Zimin, Muuga CT AS Muuga CT In January 2005 the Council of Muuga CT accepted the Program of Container Terminal Development up to 2015. In accordance with that Program the capacity of Muuga CT in 2015 should be 750 000 TEU. However, this capacity might be reached already in 2011 – 2013 if Port of Tallinn should start reclaiming new territory as soon as possible.

15. Igor Zimin, Muuga CT AS Muuga CT A fundamentally new technological scheme was implemented on Muuga CT in the frame of that project, using…

16. Igor Zimin, Muuga CT AS Muuga CT... Kalmar E-One RTG cranes...

17. Igor Zimin, Muuga CT AS Muuga CT... and Kalmar Shuttle Carriers

18. Igor Zimin, Muuga CT AS Muuga CT Advantages of RTG cranes: Productivity of 1m 2 Capacity – 9.5 -10м 2 /TEU versus18 - 20м 2 /TEU for Reach Stacker Coefficient for additional operations with container while everything been equal (H=4+1) – 1.5 instead of 1.8 – 2.1 for Reach Stacker

19. Igor Zimin, Muuga CT AS Muuga CT Advantages of Shuttle Carriers: Speed Safety Lowering labour cost No idle time when waiting for completion of work of other equipment (STS/RTG), i.e. absolutely independent element of transportation and storage.

20. Igor Zimin, Muuga CT AS Muuga CT The Terminal is the first in the world to use such RTG – Shuttle carrier technology

21. Igor Zimin, Muuga CT AS Muuga CT Vessels productivity in August 2006 and in IV quarter of 2006 Period AmountTime, (hours, minutes)Productivity, unit/hour CallsCont + shiftingsΣ GrossActual GrossNetΣ GrossActual GrossNet August36.08089 + 154606.49519.17405.2813.5815.8720.33 8243 / 228,9716.5114.2511.16 October34.08096 + 46485.05430.36355.3216.7818.9122.90 8142 / 239,4714.1612.4010.27 November36.58632 + 272658.17466.26382.1213.5319.0923.30 8904 / 243,9418.0212.4710.28 December32.07305 + 196462.51411.56295.9616.2118.2125.36 7501 / 234,414.2812.529.15 IV Q-r.102.524033 + 5141606.131308.581033.3015.2818.7523.75 / 34,224547 / 239,515.4012.4610.05 Change-5.1%4,59%-7.02%-11.46%-10.53%12.5%18.15%16.83%

22. Igor Zimin, Muuga CT AS Muuga CT Truck Productivity in August 2006 and in IV q-r of 2006 Average Time for Trucks TotalWork CompleteEquipment August01:4001:0900:09 October00:5500:3500:06 November00:5700:3600:07 December00:4200:2200:07 IV q-r00:5100:3100:06 Change-48.67%-55.07%-25.93%

23. Igor Zimin, Muuga CT AS Muuga CT

24. Igor Zimin, Muuga CT AS Muuga CT Port of Tallinn has accepted the proposed project of Development of AS Muuga CT and already this year they can start reclaiming new territories for the Terminal. In the near future the terminal shall look as follows...

25. Igor Zimin, Muuga CT AS Muuga CT development plan

26. Igor Zimin, Muuga CT Summary However, let us not forget that the success in such swift process of containerisation depends not only on production potentialities of container terminals, but also on the readiness of each and every link of the logistical chain.

27. Igor Zimin, Muuga CT Summary That means an adequate amount of trucks and railway platforms, a well-developed road infrastructure, sufficient amount of covered warehouses and logistical centres, modern border passages, also equipped for admission of large amounts of vehicles, etc.

28. Igor Zimin, Muuga CT Summary Only coordinated activities of all participants of the logistical chain: shipping lines, terminals, forwarders, trucking and railway companies, shall allow successful development of this business.

29. Igor Zimin, Muuga CT Summary A special role in that business should be given to the State, which has to comprehensively support and develop this perspective direction of international transport logistics.

30. Thank You for Your attention! Igor Zimin, Commercial Director Muuga Container Terminal