AgendaAgenda

• Wine OverviewWine Overview• StakeholdersStakeholders• Export & Import regulationExport & Import regulation• Mode of Transportation AvailableMode of Transportation Available• Handling regulationHandling regulation• Transportation ProcessTransportation Process• CostCost• Risk assessmentRisk assessment

Wine OverviewWine Overview

• Bulk WineBulk Wine

• Australian Wine CommunityAustralian Wine Community Map

• BW Inc.BW Inc.

StakeholdersStakeholders

• SuppliersSuppliers

• GovernmentGovernment

• Logistics ProvidersLogistics Providers

• DistributorsDistributors

• ConsumersConsumers

• CompetitorsCompetitors

Export from AustraliaExport from Australia

• Shipment Size QualifiesShipment Size Qualifies

• Approval ProcessApproval Process

1. Export Licenses1. Export Licenses

2. Product Testing and Approval2. Product Testing and Approval

3. Export Permit3. Export Permit

4. Bulk Wine Additional Process4. Bulk Wine Additional Process

Import into the USImport into the US

• Import License

• Warehouse License

• Import Documentation

Mode of TransportationMode of Transportation• Air Air Pros: QuickPros: Quick Cons: High cost, Limited sizeCons: High cost, Limited size

• TruckTruck Pros: Flexible, Transmit timePros: Flexible, Transmit time

Cons: High costCons: High cost

• RailRail Pros: Low cost, Large shipmentPros: Low cost, Large shipment

Cons: Transmit time, Less flexibleCons: Transmit time, Less flexible

• MaritimeMaritime Pros: Low cost, Large shipmentPros: Low cost, Large shipment Cons: Limited flexibility, SlowCons: Limited flexibility, Slow

Mode We RecommendMode We Recommend

• Rail Transportation

- Murray Bridge Murray Bridge --Port of MelbournePort of Melbourne - Port of Oakland Port of Oakland -- Portland Portland T2 T2

• Maritime Transportation - Port of MelbournePort of Melbourne - Port of Oakland Port of Oakland

• Air Transportation - - sending small sample sizessending small sample sizes

Handling RequirementHandling Requirement

• WarehouseWarehouse

- Murray Bridge- Murray Bridge• ContainersContainers

- Flexitanks- Flexitanks

- Reefers- Reefers• Distribution CentersDistribution Centers

- Portland T2- Portland T2

Transportation ProcessTransportation Process

Third Party LogisticsThird Party Logistics• Melbourne-Adelaide Rail Corridor (MARC)Melbourne-Adelaide Rail Corridor (MARC)

--AlternativeAlternative: Truck: Truck

• Primary Primary Carrier Carrier : : Hapag-LloydHapag-Lloyd

--Alternative CarrierAlternative Carrier: APL: APL

• Union Pacific Railroad (UP)Union Pacific Railroad (UP)

--AlternativeAlternative: Truck: Truck

Australia United StatesAustralia United States

Grape Growers

Warehouse In Australia

Port of Melbourne

DC in Portland

Port of OaklandCustomers

Port of L.A./Long Beach

Flow ChartFlow Chart

Schedule

• Hapag-Lloyd

• APL

CostsCosts

• Shipment Size: 5–10 TEUs (100-200,000 litersShipment Size: 5–10 TEUs (100-200,000 liters ))

-Twice per month-Twice per month

• Cost: $20,000 per TEUCost: $20,000 per TEU

• Transportation Cost: Transportation Cost: $2,500 $2,500 -- $3,500 $3,500

Risk Assessment

• Infrastructure

• Consumption Trend

• Capacity

• Security