1. ACCC Regulation Conference The changing face of the terminal operator business: discussion July 2007 Steve Meyrick

2. 2 Terminal operators in Australia DPWAsciano Specialist in container terminals Spin-off from integrated transport company Ultimately owned and controlled by government Entirely private and always been Major global operatorNo terminal interests outside of Australia No rail interests in AustraliaSignificant rail presence Terminals in all five major container ports Terminals in four of the five major container ports Coming soon to Brisbane: HPH

3. 3 Global consolidation - lines Source: Meyrick and Associates, based on Containerisation International, various issues

4. 4 Global consolidation - impacts Market components Relevance of global consolidation LocalLargely irrelevant GatewayCan be important if it leads to presence in a number of ports within a port range TranshipmentVery relevant, but not likely to lead to regulatory concerns

5. 5 Terminal networks Pure terminal operators Hutchison PSA Corporation DPW Eurogate SSA Marine Self-service shipping lines Cosco Evergreen MSC Affiliate of shipping line APM Terminals

6. 6 A range of companies from historically distinct industries all see their future in the provision of value added logistics services Liner Shipping Companies -Maersk -APL -P&O Nedlloyd Terminal Operators -PSA Corporation -HPH -Patrick Land transport operators -CSX -Toll Holdings Freight forwarders/ NVOCC -Kuehne & Nagel -Schenker -DANZAS/DHL The Logistics Market Vertical integration…

7. 7..or disintegration Road Acquire a number of road transport companies, including Finemores Acquired FCL Over 4,200 vehicles operating Together with Patrick acquire rail assets of NRC and FreightCorp Acquired CRT Group and part of ARG, Largest rail operator in Australia Rail Terminals Patrick acquisition gives Toll 100% of PN, additional road and forwarding business and major terminal holdings Restructures to separate infrastructure and logistics business Acquires P&O Ports and related businesses Spins off general stevedoring and logistics businesses

8. 8 Barriers to entry Regulatory/institutional Reputation Lack of physical opportunity Partnerships with port authorities Networked terminal