EUROPE CONSORTIUM

By Port Investor

Debt levels with European governments at record levels – significant asset sell off is expected

This may also lead to a second wave of privatizations including fully privatizing port facilities that today are semi-privatized

Significant further transportation infrastructure is planned for Europe not least to meet green targets for the EU

For new developments Public Private Partnerships are an option mitigating commercial risk for investors

Outside of the core EU countries opportunities in amongst other the Mediterranean, Russia and Black Sea offer substantial growth opportunities

>15% Of world container

throughput

>30% Of the world

Economy

EUROPE IN THE WORLD TODAY(a few key numbers on the European economy and its Port Sector)

733Million people

20Trillion USD

Nominal GDP

Opportunities in the European Port Sector

>1/3 Of world assets

Under management

Deal

Leaddevelopment

Focusedmarket engagement

Market scanning and intelligence

1 - 5

10 - 50

100 - 500

1,000 – 5,000

Many believe they can avoid building the pyramid – it’s an illusion, the deals you get access to are only as good as your pipeline.

The deal pyramid illustrates a few key rules of the marketplace:

a) The quality of the output is determined by the input – poor market scanning and market intelligence leads to poor leads

b) The most valuable deal leads are created pro-actively through focused market engagement

c) Each deal lead requires a strong contact and engagement base to develop into an actual investment

d) Only a few of the potential market targets will end up as deals - without a substantial pipeline no investments or deals

Typical challenges in securing investments

Deal

Leaddevelopment

Focusedmarket engagement

Market scanning and intelligence Mixed visibility for new projects

and PPP opportunities – close to none for acquisitions

The viability of many projects are challenged by

growth outlook and size, many require different

models or more players to make feasible

Most markets are very local as are the decision makers often requiring local presence to make inroads

Many constituents not at the core of the sector or the local market are too

late in the market

Once a tender is released it may well be too late to position – in many cases participating requires knowing ahead of time

For any government involvement developing leads can be a lengthy process, but often has reasonable

structure

Getting the last step to close the deal can require several rounds both

towards competing parties as well as government

Several legislative requirements are common after the closing on main

agreements or main terms and can take a long period

Challenges in the European Port Sector

WHAT A group of operators, investors, and

developers many of which have world leading technology, experience and funding capability

Not a consortium in the traditional sense – there is no forced collaboration just collaboration opportunities in the many markets and sectors

WHY Combined leverage makes it possible to

create better and more valuable solutions for individual projects

Complementary skill-sets from major port infrastructure fields that will allow synergies as each seek to develop in the market

Our team has been active in the European port market for decades – the market and its constituents are well suited to engage with this form of “consortium”

The purpose of Europe Consortium

DEVELOPERS OPERATORSINVESTORS

Free ZoneMarine Infra.Construction

ContainerOil & LiquidDry Bulk

CONSORTIUM

Pension FundPrivate EquitySovereign Fund

CARGO OWNERS

Shipping linesPort industriesEnergy and resources

PORT PARTNERS

AsiaLatin AmericaMiddle East

Status and how to participate

We have cooperation with global as well as local European operators, funds, developers, port groups and many others.

As development and collaboration opportunities emerge we involve clients that we have formalized cooperation with and (if relevant) parties that may benefit our existing client network for specific developments or acquisitions.

Europe Consortium is already in motion in several locations. If you would like to be part of it please contact us at contact@port-investor.com and we would be glad to discuss your needs and relevant scope for the European infrastructure market. For more information about developing markets with Port Investor see appendix or go to:

www.port-investor.com/marketdevelopment

APPENDIXThe European Port Markets

Appendix – Biggest European ports

Note: All figures in million tonnes

Appendix – Biggest container ports

Note: All figures in million TEU

APPENDIXMarket Development with Port Investor

Why?Thousands of ports, assets and projects…

…hundreds of different investment models……an infinite amount of opportunities!

The challenge – how to tap the potential?

Too little time – too few resources…Too big – too small…

Too expensive – too risky…Too early – too late…

The solution – risk free market engagement and effective deal creation!

+Deal

Develop

Engage

Market intelligence

and scanning

1-5

10-20

50-100

1,000-5,000Matching propositions

500 investment models

5,000 markets

50,000 targets

What?

Greenfield Brownfield

Acquisition

Container

Bulk

Oil & Liquid

Logistic Zone

Free Zone

Majority

Minority

Financial investor

Developer

Operator$10+ million

$100+ million

$1+ billion

Seed investor

Whether it is acquisitions, green fields, majority, minority, mature assets, high upside propositions, oil, container or bulk…

Whether in China, Middle East, Europe, Latin America or any other nation or region…

The opportunities exist or can be created!

Singapore Dampier Corpus Christi London SouthamptonShanghai Hamburg Gladstone Bergen WilhelmshavenRotterdam New York Primorsk Taichung CalaisTianjin Nantong Bremen Bombay BaltimoreNingbo Vancouver Long Beach Barcelona Forth PortsGuangzhou Yantai Corpus Christ Sao Sebastiao BilbaoQingdao Nanjing Algeciras Lake Charles PittsburghHong Kong Kitakyushu Pohang Trieste YanbuQinhuangdao Tangshan New Orleans Texas City KarachiDalian Itaqui Grimsby Baton Rouge New MangaloreBusan lianyungang Beaumont Saldanha Bay TampaNagoya Tubarao Huntington Paradip Milford HavenShenzhen Marseilles Constantza Jeddah OdessaSouth Louisiana Newcastle Mobile Tees LeghornHouston Kobe Hampton Roads Manila ParanaguaAntwerp Amsterdam Ports St. Petersburg Alexandria PaulsboroUlsan Osaka Valencia Taranto TarragonaChiba Tanjung Pelepas Plaquemines Gothenburg ValdezPort Hedland Sepetiba Dunkirk Tampa Texas CityPort Kelang Richards Bay Madras Jubail LiverpoolRizhao Hay Point Jawaharlal Nehru Tanjung Priok SavannahYingkou Novorossisk Los Angeles Zeebrugge BrisbaneKaohsiung Tokyo Genoa Mormugao LubeckInchon Santos Calcutta Durban PascagoulaYokohama Le Havre Izmit Duluth-Superior Angra dos Reis

Who?Pension funds, terminal operators, free zone developers, insurance funds, oil storage

operators, shipping lines, sovereign wealth funds, bulk operators, logistics zone operators, private equity funds, construction companies, industrials, general

investment funds, port groups…

…that wish to invest…that wish to operate…that wish to develop…that wish to partner

…that wish to collaborate

The great thing about this?

There are many more potential partners to cooperate and find solutions with than there are competitors!

How?

Deal

Develop

Engage

Market intelligence

and scanning

1-5

10-20

50-100

1,000-5,000

Purpose Target PropositionStep 0Create the foundation

Step 1Focus among the many

Step 2Engage the most relevant

Step 3Deal development

Step 4Closing the deal

Now!

Contact us on contact@port-investor.com...

…and let us help you start developing the propositions you want!

For more information on our market development process and the opportunities in the market place please refer to the appendices.

APPENDIXChoosing your scope

All constituents have different needs as concerns the target locations and the type of investments. These are just a small handful of examples.

Greenfield Brownfield

Acquisition

Container

Bulk

Oil & Liquid

Logistic Zone

Free Zone

Majority

Minority

Financial investor

Developer

Operator$10+ million

$100+ million

$1+ billion

Seed investor

How can we help you……relevant scope (1)

Singapore Dampier Corpus Christi London SouthamptonShanghai Hamburg Gladstone Bergen WilhelmshavenRotterdam New York Primorsk Taichung CalaisTianjin Nantong Bremen Bombay BaltimoreNingbo Vancouver Long Beach Barcelona Forth PortsGuangzhou Yantai Corpus Christ Sao Sebastiao BilbaoQingdao Nanjing Algeciras Lake Charles PittsburghHong Kong Kitakyushu Pohang Trieste YanbuQinhuangdao Tangshan New Orleans Texas City KarachiDalian Itaqui Grimsby Baton Rouge New MangaloreBusan lianyungang Beaumont Saldanha Bay TampaNagoya Tubarao Huntington Paradip Milford HavenShenzhen Marseilles Constantza Jeddah OdessaSouth Louisiana Newcastle Mobile Tees LeghornHouston Kobe Hampton Roads Manila ParanaguaAntwerp Amsterdam Ports St. Petersburg Alexandria PaulsboroUlsan Osaka Valencia Taranto TarragonaChiba Tanjung Pelepas Plaquemines Gothenburg ValdezPort Hedland Sepetiba Dunkirk Tampa Texas CityPort Kelang Richards Bay Madras Jubail LiverpoolRizhao Hay Point Jawaharlal Nehru Tanjung Priok SavannahYingkou Novorossisk Los Angeles Zeebrugge BrisbaneKaohsiung Tokyo Genoa Mormugao LubeckInchon Santos Calcutta Durban PascagoulaYokohama Le Havre Izmit Duluth-Superior Angra dos Reis

Deal

Lead development

Focused market engagement

Market intelligenceand scanning

1-5

10-20

50-100

1,000-5,000

Step 1Focus among the many

Step 2Engage the most relevant

Step 3Deal development

Step 4Closing the deal

How can we help you……relevant scope (2)

Each constituent have different needs as concerns the deal pyramid. Some look for solutions all the way from market intelligence to closing actual deals, others only up to and including engagement of the relevant authorities and potential partners.

APPENDIXJust a few of the many opportunities

Market development……port expansion and new ports potential

Bio Fuel

Cruise

Dry Port Oil Storage

In-Port Industries

BulkLogistic Zone

Free Zone

Port Property

Intermodal Hub

Energy Hub

Trade Hub

Port zones are natural growth engines for the economy. The potential to develop and expand to generate economic growth and trade for most ports far exceeds their current footprint.

This includes the development of trade hubs, free zones, industry zones and other concepts.

For investors this gives potential to invest in some of the most valuable industry property and port infrastructure.

Market development……acquisition potentialAmong the big acquisition opportunities are the portfolios of many shipping lines that are expected to face a difficult period and port owners - some of which are looking to do a.o. PPP type deals that essentially are asset sales.

Many single asset owners also sit with acquisition opportunities, some with full ownership of a terminal or a port and some with majority or minority holdings in specific assets.

…just a few examples…

Target Transaction value Acquiring partyPortek portfolio $146mn MitsuiTin Can Container Terminal (Zim lines 47.5% share)

$154mn China Merchants

Malta Freeport (CMA CGM's 50% share) $285mn Yildirim GroupDPW Australia portfolio (75% share) $1.5bn Citi Infrastructure InvestorsChennai International Terminals (Sical's 27% sare)

Not reported PSA International

ACS Dragados Spanish port portfolio €720mn JP Morgan led consortiumYantian International Container Terminals (APM Terminals' 9.7% share)

$520mn Cosco Pacific

Poti Sea Port (80% share) Not reported APM TerminalsSantos - BTP (50% from MSC) Not reported APM Terminals

Market development……collaboration potential (1)

MATCHING Over the course of a port infrastructure project the nature of the investment changes from stage to stage. Investors (as well as operators and developers) all have different preferences, some are more suitable for green-field whereas others look for mature facilities. Likewise each constituent brings its own set of strengths and skills to the table that amongst others can allow the undertaking of larger projects.

SYNGERGIZING (1 + 1 = 3)Ultimately this is all about finding synergies between parties with different skills and needs to accelerate development that may not otherwise have been possible or less attractive.

Greenfield$1bn

Port Group

Oil Operator

Container Operator

Bulk Operator

Investment Fund

Development

•Private Equity

•Construction Company

Growth •Investment Fund

•Operator

Maturity •Pension

Fund

Market development……collaboration potential (2)

TERMINAL OPERATORSAPM TerminalsOiltankingICTSIVopak

PORT OWNERSPort of RotterdamShanghai International Port GroupAbu Dhabi Terminal CompanySantos Port Group

CARGO OWNERSShipping linesMining and mineral companiesEnergy companiesIndustrial Zones

The port industry has thousands of different operators and port owners that are ready to collaborate for different types of projects at different stages of the project in different geographies.

Likewise on the side of the parties actually owning cargo there are many that either have a need to get better market access on the sea side or have existing facilities that they wish to outsource.

Market development……collaboration potential (3)

INVESTMENT FUNDS AND PRIVATE EQUITYMacquarie Infrastructure GroupBrookfield Infrastructure PartnersJP Morgan Infrastructure FundCiti Capital Advisors

SOVEREIGN FUNDSAbu Dhabi Investment AuthorityChina Investment CorporationGovernment of Singapore Investment CorporationMalaysia Mining Corporation

PENSION AND INSURANCE FUNDSPing An (2nd biggest Chinese insurance fund)Ontario Teachers Pension FundATP (biggest Danish fund)APG (biggest Dutch fund, 3rd biggest globally)

The global investment fund sector manages more than $100 trillion. Many want to “get real” (assets) and “go direct” (ownership) - they want real assets with real purpose. Owners or developers of port assets are in an ideal position to tap into that.

Many of the major funds prefer getting in after the development and optimization of a given port asset and want substantial deal size - often $100+ million.

DEVELOPERS OPERATORSINVESTORS

Free ZoneMarine Infra.Construction

ContainerOil & LiquidDry Bulk

CONSORTIUM

Pension FundPrivate EquitySovereign Fund

CARGO OWNERS

Shipping linesIndustrialsFabrication

PORT PARTNERS

AsiaLatin AmericaMiddle East

IMMEDIATE COVERAGE FOR INVESTORSFor those with an interest to enter, expand or invest in a specific region (e.g. China) and covering all the key markets within months.

REAL ENGAGEMENTOur on the ground network directly engages the local decision makers

COMPLEMENTARYA group of leading firms with complementary skills and objectives enabling a strong proposition towards ports.

SYNERGISTIC AND NO RISKNo heavy regional setup or local office before you start running

The PI ConsortiumA new model for investors, developers and operators

Market development……collaboration potential (4)

APPENDIXThe deal pyramid step by step

The PI Deal Pyramid……an overview

Deal

Develop

Engage

Focus

$1bn

10-20

50-100

1,000-5,000

Purpose Target PropositionStep 0Create the foundation

Step 1Market intelligence and scanning

Step 2Engage the most relevant

Step 3Deal development

Step 4Closing the deal

Step 0……defining purpose

Purpose

What is the purpose? Why are you looking for an acquisition, developments or partnerships?

Step 0……identifying the target

Purpose Target

What specifically is relevant for you to target, who to partner with or what to develop?

Step 0……creating the proposition

Purpose Target Proposition

With the target in mind what is your proposition to them? Why should someone welcome your investment, collaborate or partner with you?

Step 1……focus

Deal

Develop

Expose and Engage

Focus

1,000-5,000

Purpose Target Proposition

This is about getting your market intelligence and scanning in place. It is about getting the right targets in sight. Without it you are going to be wasting valuable time and resources while others cut deals.

Step 2……engagement

Deal

Develop

Engage

Focus

1,000-5,000

Purpose Target Proposition

50-100

This is about creating true engagement – it is not about desk research it is about on the ground direct contact with the real decision makers and getting your proposition out there in the right form.

Step 3……development

Deal

Develop

Engage

Focus

1,000-5,000

Purpose Target Proposition

50-100

10-20

This is about fast-tracking and developing real leads, creating substantial opportunities and creating real leverage to close the deal.

Step 4……deal

Deal

Develop

Engage

Focus

1,000-5,000

Purpose Target Proposition

50-100

10-20

$1bnGoal! Now use all the great efforts you did in step 0 to 3 to make many more!

APPENDIXAbout Port Investor

InduStreams was founded in 2011 with a mission to create a more transparent, connected and informed infrastructure market place.

We launched Port-Investor.com in July 2011, a specific sector pilot with focus on port investing and the global port industry.

Current state of affairs

200+ port groups and 1,000+ executives and decision makers in the network and increasing China Port Investor and other regions are being launched Specific concepts in development with select investors and port groups

The Vision

Connecting all substantial port markets (5,000+ globally) with investors (1,000+ globally) Creating a transparent and informed market place driven by industry leaders and experts Unleashing the potential inherent in this sector by creating thousands of new investment

opportunities (we expect investment potential to exceed $1 trillion)

Want to know more or simply engage……contact us on:

contact@port-investor.com