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DP World IndiaFocus on India
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Agenda
1. India overviewa. GDPb. Container trafficc. Port capacity & utilizationd. Containerization outlooke. NMDPf. Tariff environmentg. Key regulatory initiatives
h. DMIC2. DP World India overview
a. Equipmentb. Infrastructurec. Ancillary servicesd. Responsible Business Practicese. Awards & recognitionf. QHSEg. HR initiativesh. Customersi. Key statistics
j. Expansion plansk. Concession status
3. Summary
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India overview
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India Is Worlds Fastest Growing Economy
India is the worlds second largest country by population size and is currently the fourth largest economy measuredby GDP in PPP terms, expected to outgrow the globally top 12 largest economies over the next 10 years.
1.3
1.4
1.8
2.1
2.2
2.2
2.2
2.9
4.1
4.3
10.3
14.5
2.3
2.2
2.6
3.3
3.4
4.4
4.1
4.6
11.0
6.2
26.8
24.8
051015202530
Canada
Spain
Italy
France
United Kingdom
Brazil
Russia
Germany
India
Japan
China
United States
2010E 2020E
22
46
60
63
62
83
127
142
193
310
1,184
1,339
26
49
60
65
67
83
122
136
207
337
1,362
1,407
0 200 400 600 800 1,000 1,200 1,400 1,600
Australia
Spain
Italy
France
ited Kingdom
Germany
Japan
Russia
Brazil
United States
India
China
2010E 2020E
Population (m) Second and Growing GDP (Nominal PPP GDP, US$ trillion) Leading in Growth2010E-20ECAGR
0.5%
1.4%
0.8%
0.7%
-0.4%
-0.4%
0.0%
0.7%
0.4%
-0.1%
0.6%
1.4%
5.5%
10.1%
3.7%
10.3%
4.8%
6.2%
7.3%
4.6%
4.5%
3.7%
4.4%
5.5%
Source: EIU.
2010E-20ECAGR
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with a Strongly Growing Port Infrastructure
Kandla (78.0)
Mumbai (49.7)
JNPT (58.0)
Marmagoa (37.1)
Mangalore (44.2)
Cochin (29.9)
Tuticorin (22.8)
Chennai (69.3)
Ennore (16.0)
Vishakhapatnam (62.2)
Paradip (76.5)
Calcutta (67.0)
India has an extensive coastline populated with a growing network of major and non major ports. Major ports handlethe majority of port traffic, although non major ports are increasing their share. Throughput demand is outgrowing
capacity additions and will require investments into port infrastructure in the future.
Port Infrastructure Increasing Private Participation
13 major and c. 200 minor and intermediate ports
Major ports are managed by Port Trusts regulated by thecentral government (except Ennore Port, which is corporatized)
Non major ports are regulated by the state government andmany of these ports are private or captive ports
Ports handle c. 95% of the total volume and 70% of the total
value of India's cargo(1)
Major ports handle 70% of traffic, but share of minor ports isincreasing
Historically, non major ports have been feeder ports, playing asupporting role to the major ports
Major ports are already saturated in terms of capacity
Continental India Major Ports Balanced Network
Port Name (Capacity in mnte)
Split of Traffic Increasing Share of Minor Ports(Share in %)
8876 75 75 75 74 74 71 70 72 68
12 24 25 25 25 26 26 29 30 28 32
0%
20%
40%
60%
80%
100%
1997-98
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
Major Ports Minor Ports
(1) Source: Indias Ministry of Shipping 2009-10 Annual Report.
Source: Citi Research, Crisil Research 2010 Report.
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Container Traffic Growth Outpacing
Economic Growth
Container traffic has grown at a multiple of GDP
2000-2010 GDP CAGR was 7.5%
2000-2010 trade CAGR was12.1%, which represents a 1.6xmultiple of GDP growth
2000-2010 container traffic CAGR was 19.4%, supposing a1.60x multiple on trade growth and 2.6x multiple on GDPgrowth
Government is incentivising construction of new port capacity
XI Five Year Plan initial goal to increase major ports capacity to1,000 mnte by 2011-2012
Current lower expectations of reaching 743 mnte by March2012 E
Special emphasis on increasing road and rail connectivity
Container traffic growth has picked up strongly since 2000 and has grown on average at a 1.6x multiple of foreigntrade and a 2.6x multiple of GDP. Recent surge in container throughput has lead to an increase in utilisation rates to
come close to capacity and will require further new building and expansion in the future.Container Growth Rapid Growth Straining Capacity India GDP, Trade and Container Traffic Multiplier Effect
(GDP = Real GDP in US$, Trade = Exports FOB + Imports CIF in US$, Container Traffic = TEUs)(Rebased to 100 in 1995)
-
200
400
600
800
1,000
1996 1998 2000 2002 2004 2006 2008 2010
Real GDP Trade Container Traffic
Major Indian Ports Capacity Utilisation(Capacity Utilisation in % of Tonnes)
0%
20%40%
60%
80%
100%120%
140%
Kan
dla
Mum
ba
i
JNPT
Mormugao
New
Manga
lore
Coc
hin
Tu
ticorin
Chenna
i
Ennore
Visa
khapa
tnam
Para
dip
Ko
lka
ta
TOTAL
2009 2010
Source: EIU.
Source: Indias Ministry of Shipping, India Ports Association.
Throughput and Capacity in South Asia(Throughput and capacity in 000 TEUs)
0
5
10
15
20
25
30
35
2009 2010 2011 2012 2013 2014 2015
65%
70%
75%
80%
85%
90%
Thorughput Capacity Utilisation
Source: Drewry 2010 Annual Review. South Asia: Bangladesh, India, Pakistan, Sri Lanka.
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GDP Forecasted to Maintain Growth
Momentum
8.8%
24.9%
14.8%
51.5%
13.5%
24.2%
13.5%
48.7%
11.1%
24.9%
14.4%
49.6%
India Economic Growth Amongst the Worlds Highest India is expected to lead the way in GDP growth in the near future
Similar growth rate as China and significantly higher than thecurrently booming Brazilian economy
Europe and US clearly lagging behind
Population is expected to grow at a 1.5% until 2014
Industrial production expected to grow slightly faster than the overallGDP
Slight expected increase of manufacturing share in a servicesdominated economy with decreasing relevance of agriculture
Net importer with rising demand for containerised finished goodsdue to strong growth in disposable income
GDP Growth Forecast Indias Growth is Here to Stay(Real GDP in US$)
The Indian economy is expected to grow at near double digit rates in the future. The services sector is expected tocontinue being the key driver of economic activity.
0%
2%
4%
6%
8%
10%
12%
2010 2011 2012 2013 2014
India China Brazil US EU27
India GDP Breakdown Growing Weight of Manufacturing
2007 2010 2014
Agriculture Industry Manufacturing Services
Industrial Production Forecast Just Behind China(Manufacturing Index, Rebased to 2009)
2009 2010 2011 2012 2013 2014
India China Brazil US EU27
CAGR
India 8.8%China 13.0%
Brazil 5.9%
US 2.8%EU27 3.0%
Source: EIU.
Source: EIU.Source: EIU.
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Generating Increasing Trade Activity
India Trade Growth - Recovery and Beyond
Exports have rebounded in many Asian countries whiledomestic demand remains resilient
Less dependant on exports than the other BRICs, and moredependant on domestic consumption (driven by purchasesof consumer durables and automobiles)
Higher industrial output will increase the imports of rawmaterials and exports of finished goods
Raising disposable income will increase imports of goods Product mix will experience growth in containerisable
products, such as engineering goods, electronic goods andmachinery
Trade Forecast High Double Digit Growth(Exports FOB + Imports CIF in US$, Rebased to 2009 )
Foreign trade is expected to continue growing at above 15% until 2014 with imports outweighing exports. Petrolproducts still dominate Indias trade but demand forcontainerisable goods is rising.
2009 2010 2011 2012 2013 2014
India China Brazil US EU27
CAGR
India 15.4%
China 16.7%
Brazil 16.5%
US 10.8%EU27 6.1%
Source: EIU.
India Trade Industry Breakdown More Containerisables2005 2009
Export
Im
port
11%
21%
16%15%
37%
14%
23%
12%14%
37%
29%
9%8%7%
47%
29%
9%
9%8%
45%
POL
Engineering Goods
Textile
Gems & Jew ellery
Other
POL
Electronic Goods
Gold & Silver
Machinery
Other
Source: EIU.
India Trade Origin/Destination Breakdown2005 2009
6%
16%
8%
4%66%
5%11%
12%
3%69%
7% 6%
3%
83%
1%
74%
10%
6%
5%
5%
Source: EIU.
China
US
UAEHong Kong
Other
China
US
Australia
Saudi Arabia
Other
$103.1bn
$149.2bn
$218.6bn
$340.3bn $149.2bn $340.3bn
$103.1bn $218.6bn
Export
Im
port
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and Translating into Sustained
Container Traffic Growth
2009 2010 2011 2012 2013 2014
India China Brazil US EU27
South Asia Container Throughput Forecast(000 TEUs)
15,95917,727
19,30121,004
22,82324,740
13.4%11.1%
8.9% 8.8% 8.7% 8.4%
2010 2011 2012 2013 2014 2015
Volume Growth
Recent container throughput growth will continue into the future thanks to the combination of economic growth andkey favourable macro trends.
India Container Throughput Backed by MacroTrends
Container growth in India to be driven by
Considerable upside in containerisation levels to catch up withfully developed economies
Expected over 25% growth in textiles over the next 5 years afterMulti Fibre Agreement
Expected decrease in rail freight rates after industry liberalisation High growth in auto component export to continue in the future
Emergence of larger size vessels and requirement of deeperdroughts at ports
Growth in intermodal logistics and improved infrastructure
Cargomix at Indian Ports Upside for Containerisation(% of Total Tonnes)
Source: Drewry forecast for South Asia region including: Bangladesh, India, Pakistan, Sri Lanka.
Source: IPA.
Private Consumption per Head Forecast CatchingUp(US$, Rebased to 2009 )
Source: EIU.
CAGR
India 11.7%China 17.0%
Brazil 9.4%
US 2.6%EU27 -0.2%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2009 RealUS$
14.3% 17.6%
70%33.0% 33.2%
19.9% 17.7%
13.8% 13.3%
19.1% 18.2%
2005 2009 Developed Economies
Cointainer POL Iron Ore Coal Other
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NMDP
The National Maritime Development Programme (NMDP) envisages large scale
planned investments, but its success depends on effective private sectorpartnership
Launched in 2005 with a total proposed investment of US $ 20.9 billion (INR1,003 billion) covering 387 projects by FY12
Out of the 251 port projects that were to be completed only 50 projects havebeen completed as of March 2010
Source: Ministry of Shipping, EY report
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Tariff environment
Tariff Authority for Major Ports (TAMP)
Set up under Major Port Trust Act, 1963
Regulatory authority
12 major ports fall under TAMP, 1 is corporatized
Non major ports (state ports) 187 non major ports in India
50 active
Governed by state maritime policies
Freedom to set their own tariffs
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Key regulatory initiatives
Draft Coastal policy by MoS
The MoS has announced its plans to create the New Perspective Plan (NPP) forthe countrys maritime sector up to 2020
Corporatization of major ports
Electronic Data Interchange (EDI)
- e-trade project to centralize web-based port community system
Radiation monitoring portals in all major ports by 2012
Source: EY report, Maritime Gateway magazine
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Dedicated Freight Corridor (DFC)
13
MUMBAI
DELHI
CHENNAI
KOLKATA
LUDHIANA
VIJAYAWADA Sanctionedprojects
Unsanctionedprojects
VASCO
DELHI
LUDHIANA
MUMBAI
DELHI
Currently, eastern & western corridors are
highly saturated with line capacityutilization varying between 115% and150%
3,300 km freight only network
High speed trains ~ 100 km/hr
Heavier axle load upto 15,000 tons
Western corridor timeline
Phase I commissioning of Rewari toVadodara by March 2016
Full commissioning of J.N. Port to Dadri by
March 2017
Eastern corridor timeline
Phase I commissioning of Ludhiana to Kanpurand Sonnagar to Mughalsarai by March 2016
Full commissioning of Ludhiana to Dankuni
March 2017MAHARASHTRA
MADHYAPRADESH
UTTARPRADESH
HARYANA
RAJASTHA N
GUJRAT
ARABIAN SEA
PAKISTAN
VASAI
GOTHANG
AM
MAKARPURA
SANAD
MAHESANA
PALANPUR
MARWAR
PHULERA
REWARIPIRTHALAREWARI
JNPT
NIM KA THANA
RINGAS
PHULERAAJMER
SENDRA
MARWAR
SIROHI
ABU RD.
PALANPUR
MAHESANA
AHMADABAD
VADODRA
BHARUCH
SANJALI
SURAT
VALSAD
SANJANDAHANU
PANVEL
VASAI
EXISTINGLINE
DFCLINE(PARALLEL)
DFCLINE(DETOUR)
DFCJUNCTIONSTNS.
EXISTINGSTNS.
LEGEND
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DMIC
Delhi-Mumbai Industrial Corridor is a megainfra-structure project of USD 90 billion withthe financial & technical aids from Japan,covering an overall length of 1483 KMsbetween Delhi and Mumbai
Nine mega industrial zones of 250 sq km each
High speed freight line
3 ports, 6 airports
4000 MW power plant
Six lane expressway
Logistics parks
Source: www.delhimumbaiindustrialcorridor.com
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Summary
Foreign trade is expected to continue growing at above 15% until 2014 withimports outweighing exports
Demand for containerization is rising
Capacity is constrained putting pressure for new developments and betterproductivity
Many government initiatives to make ports more attractive as an investment
Support infrastructure is growing
DP Worlds presence throughout India
Focus on containers
Presence in the Intermodal business and ancillary services
Active participation in new projects
DP World is in a unique position tocapitalize on Indias growth projections
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DP World India overview
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First privatized container terminal in India
Nhava Sheva at JNPTMumbai, Maharashtra
State of the art facility at the alternativegateway to India at Mundra, Gujaratincluding CFS facility
Successful takeover of brown field project
at Chennai including CFS facility Container Rail Road Services connecting
the hinterland to ports via trains
Partnership in Visakhapatnam on theEast coast of India
International Transshipment hub
(Vallarpadam) at Cochin: our latestoffering to the trade
New development in Kulpi, West Bengal
DP World India
Mundra
Nhava Sheva
Delhi (CRRS)
Kulpi
Chennai
Cochin/Vallarpadam
Vizag
With the largest portfolio in the country, DP World supports 47% of Indias container trade
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State of the art equipment
Reach Stacker 12
Empty Container Handler 5
Rail Mounted Gantry Crane 5
Rakes 7
Quay Crane 29
Rubber Tyre Gantry Crane 94
Mobile Harbour Cranes 4
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Excellent infrastructure
Nhava Sheva
Quay length (meters) 600
Berths 2
Capacity (million TEU)* 1.5
Depth alongside (meters) 12.5
Terminal area (hectares) 29
Mundra
Quay length (meters) 632
Berths 3
Capacity (million TEU)* 0.9
Depth alongside (meters) 14.5
Terminal area (hectares) 25
Cochin (RGCT)
Quay length (meters) 540
Berths 3
Capacity (million TEU)* 0.5
Depth alongside (meters) 12.5
Terminal area (hectares) 9
Chennai
Quay length (meters) 885
Berths 4
Capacity (million TEU)* 1.5
Depth alongside (meters) 13.4
Terminal area (hectares) 21.1
Visakhapatnam#
Quay length (meters) 450
Berths 2
Capacity (million TEU)* 0.3
Depth alongside (meters) 16.5
Terminal area (hectares) 24
# 26% partnership
Cochin (Vallarpadam)
Quay length (meters) 605
Berths 2
Capacity (million TEU)* 1.0
Depth alongside (meters) 14.5
Terminal area (hectares) 65
*Capacity data sourced to Drewry Global Container Terminal Operators 2010
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DP World Intermodal, also known as ContainerRail Road Services
7 rakes
Connecting the hinterland to the ports
Beyond the gate initiatives
Container Freight Station (CFS)
Chennai
Mundra
Ludhiana
Delhi
Mumbai
Daurai
Mundra
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Responsible Business Practices
Township at Mundra
State of the art township
360 families stay here
Latest amenities like in-house doctor,automatic bottling and filtration plantfor water, club house, movie facilities,bus facilities, etc.
Phunde school
NSICT adopted the Veer Wajekar ASC College and T.H. WajekarSchool, in Phunde Village
Rebuilding and refurbishing of the school and college
A new school building with 25 class rooms, a computer hall, library
and staff office has also been added
Heart surgery for underprivileged children
Memorandum of Understanding with the Malabar Institute of Medical Sciences Ltd (MIMS)Charitable Trust, Calicut in Kerala
Support the complete medical treatment of 20 children diagnosed with major heart conditions
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2010 Lloyds List Awards
DP World Chennai wins Terminal Operator Award
National Safety Award under Scheme XI
DP World Chennai received the award from Labour & Employment Minister, at National SafetyAwards in New Delhi on September 27, 2010
2010 Maritime and Logistics Awards
MICT: Container Terminal Operator in a non-major port
DP World Nhava Sheva: Health, Safety and Environment
DP World Subcontinent: Container Terminal Operator pan India
2009 CNBC Infrastructure Excellence Awards
MICT: Port of the year
2009 Seatrade Middle East and Subcontinent Awards
DP World Nhava Sheva: Environmental Protection
Awards & recognition
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DP World has been at the forefront of ensuring the highest standards of security atits terminals and follows stringent international procedures:
Only global marine terminal operator to be certified ISO 28000:2007 for SupplyChain Security in India
Only global marine terminal operator to be validated by C-TPAT (Customs -
Trade Partnership Against Terrorism) in India
Pride in security, quality and welfare
Certification CT PAT ISO 9001 ISO 14001 OHSAS 18001 ISO 27001 ISO 28000 ISPS *
Location
Custom-Tradepartnership
againstterrorism
QualityManagement
System
EnvironmentalManagement
System
OccupationalHealth and
SafetyManagement
System
InformationSecurity
Supply ChainSecurity
ManagementSystem
InternationalShip and Port
FacilitySecurity Code
Nhava Sheva Mundra Cochin Chennai Visakhapatnam CRRS * The ISPS certificate is obtained as part of the respective Port Trust Certification
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We care about our people
DP World Institute
Comprehensive set of learning and development tools and programmes
Highest employee engagement level within DP World regions at 87%
My World survey done on a global level to gauge employee satisfaction
Talent management scheme for growth, development and succession planning Strong HR policies and guidelines to attract and retain talent
Rewards and recognition culture
Simulator
Induction and refresher training provided toall crane operators
Trains operators for real life situations and hazards
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Our top ten customers
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Key statistics
2009 Throughput for India in '000 TEUs*
2008 2009
DP World 3,473 3,730
Others 4,327 3,770
Market share 45% 50%
DP World is the single largest container
terminal operator in India with significantmarket share
Vallarpadam will augment our capacity andcapture additional market share
Cochin and Mundra are the new gateways toIndia
ICTT being the only transhipment hub willretain Indias volume in India
DP World handles around 50% of Indias
containers with less than 25% of Indias container
quay length
New developments will ensure that DP Worldremains a leader for enabling container trade in
India
DP World
PSA/ABG
Government
APMT
MPSEZ
*Capacity data sourced to Drewry Global Container Terminal Operators 2010
2009
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Expansion plans
Current Pipeline
Vallarpadam phase 1B and 2
Kulpi, West Bengal
Around 60 km south of Kolkata in Indias Bay of Bengal
900m quay line and 34 hectares of paved yard, providing a capacity of 1.35 million
TEU
Subject to Regulatory Approval
Mundra container terminal 2
Chennai iron ore berth conversion to container terminal
Qualified bidders for:
Chennai Mega Terminal
JNPT 4th Terminal
JNPT extension of 330 meters
In addition, active participation in ancillary services like CFS, ICD and rakes
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Concession status
Location License agreement date PeriodNhava Sheva July 3, 1997 30 years
Chennai August 9, 2001 30 years
Mundra January 7, 2003 28 years
Kulpi August 9, 2004 99 years
Cochin (Vallarpadam) January 31, 2005 30 years
DP World Indian concessions are almost all in excess of 30 years
Utilization rates are some of the highest in the world
DP World has a presence in all Indias Gateway terminals
Nhava Sheva has set new benchmarks for efficiency based on which thegovernment has raised the performance level of license agreement parameters
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Thank You
DP World's investments in India have been one of our major success stories. Our developments andexpansion in five major ports on India's east and west coasts follow a unique pattern of integratedmanagement that promote the port business and bring direct benefits to the local communities. As a globaleconomic power with a rapidly expanding domestic market, India offers immense potential for growth in themaritime sector. DP World is privileged to be a partner in this progress.
Mohammed Sharaf, Chief Executive Officer, DP World
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