1. Port-Centric Logistics – Our Experience

2. Life before Teesport Our principal deep sea ports were Southampton and Felixstowe In 2004, 90% of ASDA imports came through these two ports. But experienced significant operational issues: o Southampton was severely congested o Felixstowe was expensive and suffers from weather disruption The result for ASDA was: o Extended lead times and high failure rates leading to poor availability o Wasted DC capacity and high costs

3. The Site -PD Ports Teesport Depot

4. o Build commenced 1 st October 2005 o Over 2,500 job applications for positions at Teesport o Opened 1 st March 2006 The Site -A Brief History

5. o 360,000 sq ft warehouse o Parking for over 160 cars o 2,600 sq ft Admin Office o 48 Narrow aisles o 55,468 storage locations o 30,000 sq ft of flexible space o Situated on Teesport 200 metres from Container Terminal o Access to major road networks The Site - Infrastructure

6. 33 Depots & 5 Main ports Tilbury & Thames port Via Feeder Where We Go

7. General Merchandise To Teesport via Deep Sea Ports 34% Via Antwerp 30% Via Felixstowe 30% Via Zeebrugge 6% Via Rotterdam Modal Activity Shipping Lines feeder from their nominated ports. Frequency Typically once per week based on preferred operators or nominated 3 rd Parties Import Flows

8. GM Volume Number of Containers -350 weekly Number of Pick Units -810,000 weekly Outbound Pallets-17,000 weekly

9. Clothing 64% of Total Clothing product is delivered into North East 18% Stoke on Trent 18% Northampton Modal Activity East Coast Feeder, FXS to Teesport – 32% Rail from Sou to Cleveland – 32% Rail from Sou to Man/Bgh – 5% Rail from Fxs to Man/Bgh – 5% Frequency Twice weekly by feeder Rail depends on service varies between 3 and 7 days Import Flows

10. George Volume o 5 Day operation o Combination of stock pick & X-Dock o Peak volume- 350,000 cases weekly

11. Handling Methods

12. Operations – Goods In o Goods scanned onto the system using RF technology o Putaways done by VNA truck o All movement is on GDS o Coming soon GLS

13. Achievements so far o Continued YoY Growth o ROSPA Bronze Award For Safety o British Safety Council International Award o 5* Health & Safety Audit o RIDDOR Free Days 325 o Depot of the Year 2008 o 1.3m volume peak week (week)

14. Benefits of PD Ports Teesport - Weather – Teesport is winded off only 1% per annum. - Relationship – Close and dedicated team at PD - Proximity – Teesport Port has a Fast Gate for Import Containers - Value Added Services – Rework locality Opportunities - UK Exports would improve regional reloads - Frequency of feeder service aligned to Mainline vessels - Late Mother Vessels have to be supported by Road/Rail connections Summary & Opportunities