1. ABRATEC Private operators boost Brazilian ports Ministry of External Relations Trade and Investment Promotion Department Trade Promotion Programmes Division Brazilian Embassy Rome – May 26, 2011 Andreas Klien ABRATEC Associação Brasileira dos Terminais de Contêineres de Uso Público

2. ABRATEC 1. Brazil’s Port Modernization Program 2. Private operators boost public ports 3. Bulk cargos predominate in privately owned terminals 4. Challenges and opportunities ahead Ministry of External Relations Trade and Investment Promotion Department Trade Promotion Programmes Division Brazilian Embassy Rome – May 26, 2011 Private operators boost Brazilian ports

3. ABRATEC Brazil's exports grow 38% and imports 34% - more than China's! Surprise: Brazil leads in export and import growth Source: World Trade Organization

4. ABRATEC ANTAQ* published new General Concession Plan** Source: ANTAQ * ANTAQ – National Waterways Agency ** PGO – Plano Geral de Outorgas (General Concession Plan)

5. ABRATEC SEP executed ambitious dredging program Source: SEP – Ministry of Ports Investments: PAC 1 R$1.8 billion and PAC 2 R$2.9 billion New Berths New quay length Expansion of current quay Expanded quay length: 1,960m

6. ABRATEC Successful and unique port model Public ports Privately operated Privately owned terminals Implementation Mandatory public bidding process Authorization granted by the Government (no need for public bidding process) Term Up to 50 years (including renewal) Required to provide uninterrupted service Unlimited term for the specific economic activity Possibility of interruption of service Assets Return of the assets (reversão de bens) at the expiry of the concession agreement No return of assets to the government (reversão de bens) Services Public service Available to any and all users Price supervision Private service For exclusive use (own cargo) or For mixed use (predominance of own cargo complemented by third party cargo) Free to choose users Free to set prices Labor Restricted to specific regulation (OGMO)Employed according to national labor laws Regulation Res. 55/2002 – Regulates the lease of the areas and of its facilities and unifies the terms and conditions applicable to the lease agreements Res. 1,695/2010 – Regulates the operation of the private use terminals; applicants must demonstrate predominance of own cargo, and third party cargo must be of the same nature of own cargo only on a complementary basis Public ports operated by private operators (landlord model) and creation of mixed-use privately owned terminals

7. ABRATEC President Lula confirms regulatory framework... Brazilian Constitution 1988 Port operation: by the Government –directly or through the grant of authorization, concession or permit –article 21 Government has exclusive powers to regulate ports –article 22 Mandatory tendering of public services –article 175 Port Modernization Law No. 8,630/1993 and Law 11.518/2007 Law establishes two different types of port terminals: I – Public/Common Use II – Private Use –Exclusive, relating to the handling of own cargo –Mixed, relating to the handling of own cargo and third party cargo –Tourist, relating to passengers –Transshipment Creation of ANTAq Law 10.233/2001 National Waterway Transport Agency (Agência Nacional de Transportes Aquaviários -ANTAQ): in charge of regulating and supervising port activities of Waterway Transportation Creation of SEP Law 11.518/2007 Special Ministry of Ports (Secretaria Especial de Portos -SEP): empowered to set forth the policies and principles for the port sector Presidential Decree 6.620/2008 Reinforces current Brazilian Port Industry Regulation and establishes rules for granting concession rights for the exploration of new public port complexes (Portos Organizados) Portaria 108, 2010 SEP-PR Specifies guidelines for granting concession for new public marine ports Portaria 131, 2010 SEP-PR Specifies procedures for establishing, preparation and selection of the basic design for public marine ports able for concession and establishes rules for concession of new public ports

8. ABRATEC 1. Brazil’s Port Modernization Program 2. Private operators boost public ports 3. Bulk cargos predominate in privately owned terminals 4. Challenges and opportunities ahead Ministry of External Relations Trade and Investment Promotion Department Trade Promotion Programmes Division Brazilian Embassy Rome – May 26, 2011 Private operators boost Brazilian ports

9. ABRATEC Private operators boost general cargo Source: ANTAq and Ministério dos Transportes Cargo handled in Brazilian ports Million tons General CargoDry BulkLiquid BulkTotal 19992009%19992009%19992009%19992009% Public ports 3572106%66148124%314029%13226097% Privately owned terminals 1330131%17628562%11415839%30447356% Total 48102113%24243378%14519834%43673376% …and privately owned terminals expand bulk cargo throughput Public ports Privately owned terminals

10. ABRATEC Container terminal throughput grows 391% Billion dollars Source: ABRATEC e BACEN Million containers Container throughputInternational trade flow … and trade flow rises from US$100 billion to US$355 billion

11. ABRATEC 3 IPO´s raised R$2.5 billion and funded second phase of expansion program Company Share/Unit Price (R$) Equity Value (R$ Million) Enterprise Value (R$ Million) Current52-week high52-week low Santos Brasil29.8531.3014.00 3,992 4,350 Log-In8.4410.506.00 780 1,121 Wilson Sons30.0133.1618.752,2052,489 Total 6,9777,960 * IBOV - São Paulo Stock Exchange Index

12. ABRATEC US$2.85 billion invested in public container terminals Source: ABRATEC and additional US$4 billion to be invested by 2015 * Productivity (mph) refers to container moves per hour per ship.

13. ABRATEC TECON Santos + TEV: 1,290m quay = 1,351,107 TEU in 2010 Source: Santos-Brasil – Guarujá, São Paulo Current capacity 2,200,000 TEU

14. ABRATEC Source: Libra Terminais Santos – Santos, São Paulo Libra Santos: 1,094m quay, 766,187 TEU in 2010 After expansion, 1,700m quay, capacity 1,800,000 TEU

15. ABRATEC BTP: Santos’ new public container terminal MSC and APM Terminals announce mid 2013 opening with estimated capacity of 1,100,000 TEU and 1.2 million tons of liquid bulk Source: Brasil Terminal Portuário – Santos, São Paulo

16. ABRATEC TCP Paranaguá: 564m quay, 677,623 TEU in 2010 Source: Terminal de Containers de Paranaguá – Paranaguá, Paraná After expansion, 880m quay, capacity 1,200,000 TEU

17. ABRATEC TECON Rio Grande: 850m quay, 666,242 TEU in 2010 Source: TECON Rio Grande – Rio Grande, Rio Grande do Sul Current expanded capacity 1,500,000 TEU

18. ABRATEC TECON Sepetiba: 540m quay, 295,429 TEU in 2010 Source: TECON Sepetiba – Itaguaí, Rio de Janeiro After expansion, 810m quay, capacity 670,000 TEU

19. ABRATEC TECON Vila Velha: 450m quay, 249,072 TEU in 2010 Source: LOG-IN – Vila Velha, Espírito Santo Current capacity 340,000 TEU

20. ABRATEC TECON SUAPE: 935m quay (660m private + 275m public), 340,396 TEUs in 2010 Source: TECON SUAPE S/A. – Suape, Pernambuco Current capacity 600,000 TEU

21. ABRATEC Rio’s TECON 1 and 2 + Ro-Ro: 1,258m quay, 443,001 TEU in 2010 After expansion: 1,960m quay, capacity 2,000,000 TEU Source: Libra Terminal Rio and Multiterminais – Rio de Janeiro, RJ

22. ABRATEC 1. Brazil’s Port Modernization Program 2. Private operators boost public ports 3. Bulk cargos predominate in privately owned terminals 4. Challenges and opportunities ahead Ministry of External Relations Trade and Investment Promotion Department Trade Promotion Programmes Division Brazilian Embassy Rome – May 26, 2011 Private operators boost Brazilian ports

23. ABRATEC Bulk cargos dominate privately owned terminals Data: Q1 2010 Source: ABTP Dry Bulk 60% Liquid Bulk 33,5% General Cargo 6,5%

24. ABRATEC New Thyssen-Krupp CSA privately owned terminal 3.8 km access bridge, dedicated to coal imports and steel exports Source: Stahllog – Itaguaí, Rio de Janeiro

25. ABRATEC LLX’s Superporto Açú under construction Inauguration planned for 2012 Source: LLX – São João da Barra, Rio de Janeiro

26. ABRATEC Another privately owned terminal: LLX’s Porto Sudeste Inauguration of iron-ore export terminal announced for 2012 Source: LLX – Itaguaí, Rio de Janeiro

27. ABRATEC Mearim: forecast 30 million tons of bulk cargos 1,180 meters quay natural deep-water terminal Source: Terminal Portuário Mearim – Mearim, Maranhão

28. ABRATEC 1. Brazil’s Port Modernization Program 2. Private operators boost public ports 3. Bulk cargos predominate in privately owned terminals 4. Challenges and opportunities ahead Ministry of External Relations Trade and Investment Promotion Department Trade Promotion Programmes Division Brazilian Embassy Rome – May 26, 2011 Private operators boost Brazilian ports

29. ABRATEC Brazil’s huge cabotage market 7.367 km of coastline 80% of the population living within 200 km of the coast Industrial activity concentrated along the coast Source: IBGE, CNNT Suape Fortaleza Salvador Manaus Santos Paranaguá Itajaí Itaguaí Rio Grande Rio de Janeiro Vitória NY – Miami 1,751 Km Distance Cabotage is Brazil’s logical transportation mode… Pecém North America Europe Far East

30. ABRATEC Significant upside potential remains… Source: World Bank Economy Openness 2009 (Merchandise Trade / GDP) 19962009 India ArgentinaIndonesia Venezuela MexicoChinaChile South Korea Russia vis-à-vis Latin American peers and BRICs

31. ABRATEC Port reform enables Brazil’s economic openness Source : Brazil’s Central Bank / IBGE International Trade GDP ≈ 2.09x 199620102011* GDP (US$ billion)84016791755 International Trade (US$ billion)101355443 Openness of the economy (%)122125 ≈ 4.38x *Estimated figures 2011 – AEB Brazilian Exporters Association * * * ≈ 3.55x ≈ 2.00x

32. ABRATEC Links Thank you Andreas Klien andreas@klien.net Private operators boost Brazilian ports Link to this presentationHTTP://WWW.TINYURL.COM/3BLZ3UW ABRATEC homepageHTTP://WWW.ABRATEC-TERMINAIS.ORG.BR Multi-Rio Operações Portuárias S/AHTTP://WWW.MULTITERMINAIS.COM.BR Tecon Salvador S/AHTTP://WWW.TECONSALVADOR.COM.BR Libra Terminais Santos S/AHTTP://WWW.T37.COM.BR Santos Brasil S/AHTTP://WWW.SANTOSBRASIL.COM.BR Tecon Rio Grande S/AHTTP://WWW.TECON.COM.BR Libra Terminal Rio S/AHTTP://WWW.TERMINAL1RIO.COM.BR TCP – Terminal de Contêineres de Paranaguá S/AHTTP://WWW.TCP.COM.BR Terminal de Vila Velha S/A HTTP://WWW.LOGINLOGISTICA.COM.BR/SERVICO/TERMINAL- PORTUARIO.ASPX Tecon Suape S/AHTTP://WWW.TECONSUAPE.COM.BR TECONDI – Terminal para Contêineres da Margem Direita S/AHTTP://WWW.TECONDI.COM.BR Sepetiba Tecon S/A HTTP://WWW.CSN.COM.BR/IRJ/PORTAL/ANONYMOUS?GUEST_ USER=USER_TECON_PT TESC – Terminal Santa Catarina S/AHTTP://WWW.TERMINALSC.COM.BR CONVICON – Contêineres de Vila do Conde S/AHTTP://WWW.SANTOSBRASIL.COM.BR ABRATEC