TRANSMODAL 2012 03 KOG Markus Schaub

Trends for the break bulk industry

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presentación Transmodal - tendencias

en la industria de cargas de proyectos

� 1. present situation for

� Shippers

� Carriers/Forwarders

� 2. outlook forShippers

� Carriers

� Forwarders

� Freight rates

� 3. Conclusions

Trends for 2011/2012 based on

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1.1. Present situation for shippers

�Worldwide financial crises had a large

impact on shippers worldwide. A lot of

government contracts were cancelled or

delayed. Private investors decided to

postpone their projects. Also the decline

of the oil price stopped the growth.

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1.2. Present situation for carriers and

forwarders

� The depression for the break bulk shipping

industry is about 18 months behind the

Container traffic. Shipping volumes have fallen

by about 20-50% depending to the area.

� except: China, South America, Australia and

parts of Africa. Rate level has fallen in certain

areas by 50%

� Increasing competition by container carriers

and Ro/Ro operators up to 100 tons per piece

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1.3 World map showing present rates

situation

- North America

-30%

- Central America

-15%

- South America

+60%

- Europe -20%

- Africa -20%

- Middle East -50%

- Asia -30%

- Australia +20%

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2.1. Outlook for shippers

� Market situation is improving slowly. With higher oil prices andwith the end of the financial crisis countries are investing in:

� Power generation

• (many power stations are over 40 years of age in Europe, North America and India and need to be refurbished)

• Wind energy will 6 fold by 2020

� Infrastructures, Mining, Oil and Gas on & offshore to follow

� Higher Government spending

� Carriers and forwarders are being invited much earlier to participate in tenders with costs and ideas to give added values.

� Sourcing is already shifting away from India ** and China to Vietnam, Thailand, Malaysia and Near East.

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2.2. Outlook for carriers

� Older vessels are being replaced by the new orders. 71% older than 25 years. Not really an overcapacity. (see next page)

� Rate levels go up slightly. (see chart of the world)

� Increasing number of ships with more than 500 tons lifting capacity. Pieces are getting bigger and heavier.

� Risks for political unrest and piracy.

� Presently 42 ships can lift over 500 tons. 89 such ships are on order. (see next page)

� Suez Channel: 15000 vessel pass the Suez channel every year. If the channel is closed the distance between Singapore and Rotterdam will be 30% more.

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Orders of heavy lift vessels 2010

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new Building geared at 300 tons

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2.3. Outlook

� 2010 was a terrible year for project operators, 2011 was alreadybetter. Market studies show 2012-2014 as a very good period.

� Operators must give added values to shippers, such as e.g.

�Optimizing project coordination >> new methods

�Not just look at a single sector for transportation but looking at the whole process

�Knowledge of local laws, conditions & market situations

�Giving jobsite logistics/including putting on foundation and erection

�Organizing workshops on “lessons learned” and other project related services.

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2.4. Impact on freight rates

� Freight level was stable in 2011, 2012 we anticipate an increase up to 30%

� Adjustments possible due to fuel increases

� Adjustments possible due to changes in tariff currency.

� Additional costs for piracy protection

� Cargo volume will pick up by 20-30%. Just Korea will have 8 Mio. freight tons of cargo to be shipped to Abu Dhabi. Several large nuclear power plants are planned in Turkey and the C.I.S. countries.

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World map showing future rates situation

- North America

+10%

- Central America

+/-0%

- South America

+10%

- Europe +/-0%

- Africa +10%

- Middle East +30%

- Asia +10%

- Australia +20%

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Example: C 3 SPLITTER / BOILER

� CLIENT REQUESTED US TO SHIP TWO SECTIONS OF C3 SPLITTERS FROM KOREA TO ABU DHABI

� TWO PIECES OF 45 M AND 47 M LENGTH

� WE SUGGESTED SHIPMENT IN ONE PIECE !!

>>> with the following benefits:

� ONLY ONE TEST AT SUPPLIER

� SHORTER PRODUCTION TIME

� FASTER ERECTION AT JOB SITE

� COST REDUCTION EVEN CONSIDERING THE HIGHER OCEAN FREIGHT: EUR 780’000.00

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Example: C 3 Splitter

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Example: Boiler

� Boiler: 15.0 length x 14.5 width x 15.0 height m 490 to weight

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Example: Boiler / project benefit

� Client instructed shipment by Ro/Ro exclusive.

� We came up with idea to build a separate steel frame around the unit. In order to ship the unit on hook / hook basis. (boiler itself not possible to lift)

� Costs for Ro/Ro shipment: 1.2 million €

� break bulk shipments: 0.4 million €

� Costs for frame 0.2 million €

� Reduction of shipping costs: 0.60 million €

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3. Conclusions: outlook bright for

2012 to 2014

� No overcapacity

� Rates rather stable

�More heavy lift ships

� Added values by carriers/forwarders

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consultation services from Greenfield up to Delivery onto

Foundation.•Two years prior project execution client requested KOG TRANSPORT

INC. personnel to help determine viable construction site in Mexico for the

building of 2 X HRSG Units.

Each unit with the following data:

37.97 length X 17.43 width X 36.08 height meters

2676 metric tons KOG TRANSPORT, INC. made it’s recommendations to the client:

in order to have the site ready for load out & transportation onto barges

for ocean transportation to New York. For the New York site, elevations

and grading to allow roll-off and delivery to foundation by SPMT’s.

Project Planning and Consultation

EXAMPLE: ASTORIA PROJECT –

2 HRSG UNITS

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en la industria de cargas de proyectos 18

ASTORIA PROJECT –

HRSG UNITS

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THANK YOU..eskerrik asko..gracias !! ☺☺☺☺

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Contact Details:

Ph +34 946540544 / +34 647827279

[email protected]

TRANSMODAL 2012 03 KOG Markus Schaub

Business

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