ACCELERATING PORT DEVELOPMENT

By Port InvestorOctober 2011

Why is this important?

Because ports are natural growth engines for their respective economies around the world. And the world

needs economic growth more than ever.

Because the potential is tremendous for more development. Trillions of dollars, thousands of operators, developers, cargo

owners, and hundreds of concepts and models. Whichever way you measure it, the potential is huge.

Because the challenge is substantial. Most have little appreciation for what infrastructure investing is about let

alone port infrastructure and decision makers are scattered all around the globe

What is Port Investor doing about it?

The Port Investor community has hundreds of ports, investors, operators, developers, cargo owners and thousands of decision makers.

With our initiative to accelerate port development around the globe we want to:

Expose you to the right people with the right propositionCreate commitment and engagement with high value constituents to cooperateDeliver a platform that fast-tracks cooperation from engagement to investmentEstablish a continuous process that keeps producing new opportunities

This is really about leverage and effectiveness. Every port has its own valuable market, customers, skills and leadership to move forward. This is about leveraging that in the most effective and complimentary manner.

Finally, all ports have existing relations and activities to develop, this is not a replacement for that, we only wish to accelerate not impede.

A brief outline of what comes next…

The Potential

The Challenge

The Solution

Step 0 – foundation Step 1 – exposure Step 2 – engagement Step 3 – development Step 4 – deal

Covers the vast potential for ports to attract customers, partners and investors as well as fast-tracking development and expanding scope

Covers the challenges to tap this potential including global coverage and how decision makers discriminate

Lays out the Port Investor solution explained as a simple 5-step process

The Potential

To Develop new and expand existing segments, footprint and concepts

To Fast-track and achieve your 10-year vision now

To Collaborate with and create collaboration between operators, developers, investors etc.

To Tap the global investment sector and the appetite for port infrastructure

To Attract new customers, investors and partners

The Potential……to attract

NEW:Investors

CustomersPartners

CARGO OWNERSContainer shippingOil shippingBulk shippingMineral companiesEnergy companiesAgriculture companiesEtc.

OPERATORSContainer terminalOil and liquid terminalBulk terminalFree zonesLogistic zonesPort propertyEtc.

FUNDSPension fundsInsurance fundsPrivate equity fundsSovereign wealth fundsSeed investorsEtc.

DEVELOPERSConstructionMarine infrastructureEconomic zonesPort industry zonesPort logistic zonesEtc.

PARTNERSSouth American portsAsian portsEuropean portsMiddle Eastern portsEtc.

The Potential……to develop

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 hub, free zone, industry zone and other concepts.

The Potential……to collaborate

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.

Too big, too risky, too early, too complex… Many projects and investment opportunities have never made it into the real world simply because the right match or collaborative model could not be found.

The Potential……to tap into the global investment sector

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. Ports are in an ideal position to tap into that.

However, the investment sector is hard to navigate and gets bombarded with investment proposals. The potential lies in getting the right exposure to the right people with the right proposition.

The Potential……to fast-track

Some of the common answers are:

BIGGEROur port zone would have a much bigger footprint with substantial more activity and impact to the economy.

BETTERWe would be in a much better position to service our customers.

CLEANERBetter use of resources, a more connected infrastructure and newer technology would have allowed us to be substantially cleaner.

What difference would it make if you were where you are now 10 years ago? Where would that put you today?

Investments in port infrastructure are very important and often more cumbersome than investments in other sectors. This however does not mean they have to take years, with the right process, connections and knowledge they can be fast-tracked by several years. This is about the potential to reach your 10-year goal now.

The Challenge

Ports are by nature local

Investors, operators, developers, cargo owners etc are global - there are

thousands and they are spread all across the globe

The Challenge is very real because……the world is a big place

7 continents

24 time zones

> 50 common languages

193 countries

1,000+ investors

5,000+ ports

50,000+ decision makers

The Challenge is very real because……decision makers discriminate

“I suggest we send a team … we have heard of substantial port development opportunities there!”

“What is it going to cost? What are you going to achieve? Does it fit the strategy? Should you focus elsewhere?”

“I can’t really tell you before I have been there…”

“Make a paper to outline all the key variables, the project cost and the potential return, then we can review…”

BUT YOU CAN’T BLAME THEM, WE ALL:

Like what we know

Like what is close to us

Like what is easy

Like what is in-expensive

Like what takes little time

Like what is easily justifiable

Like what is fast and effortless

DEVELOPERS OPERATORSINVESTORS

Free ZoneMarine Infra.Construction

ContainerOil & LiquidDry Bulk

PORT DEVELOPMENT

Pension FundPrivate EquitySovereign Fund

CARGO OWNERS

Shipping linesIndustrialsFabrication

PORT PARTNERS

AsiaLatin AmericaMiddle East

GLOBAL EXPOSURE FOR PORTSAn exclusive platform that allows a port to develop investment propositions and opportunities with invited investors, operators, developers, cargo owners etc

FOCUSED AND CONFIDENTIALInvitees sign NDA’s before gaining access to an online data room and forum to create win/win constellations usually exploring opportunities with 5-10 other invitees

SYNERGISTIC AND RESULT-ORIENTEDInvitees gain access to a synergistic environment with exclusivity and support

IMMEDIATE INVESTMENT POTENTIALInvitees can at any time decide to proceed with an exploration agreement for a specific proposition directly with the port and/or with other members

PI Port Development 2.0A new model for ports and project owners

Our solution……bring the world to your port

Our solution……an overview

$1bn

10-20

50-100

1,000-5,000

Purpose Target PropositionStep 0Create the foundation

Step 1Get exposure to thousands

Step 2Engage the most relevant

Step 3Deal development

Step 4Closing the deal

Step 0……defining purpose

Purpose

Question: What is the purpose? Why are you looking for customers, partners and investors?

Example: Expanding the port area to stimulate economy and trade in the region. The preference is for….

Step 0……identifying the target

Purpose Target

Question: Who are you targeting as customers, partners and investors and how would you ideally like to see them invest and cooperate?

Example: We are looking for 1 new oil storage operator, 50% increase of the bio fuel developed area etc. We expect this to require a total of 3,000m of quay, 400ha and between €1-2 billion.

Step 0……creating the proposition

Purpose Target Proposition

Question: With the target investors in mind what is your proposition to them? Why should they invest in your port?

Example: Highlighting all the key market, investment and concession-related items for each investor type e.g. one specialized for oil, one for bio fuel etc.

Step 1……exposure

1,000-5,000

Purpose Target Proposition

This is about creating awareness, getting your proposition out there in the right form

Step 1……exposure

Dedicated space on network website port-investor.com/Name

Proposition and related material uploaded

Network alerted

Exposure to thousands of investors, operators, developers and cargo owners will create the foundation for a wide pull strategy

Step 2……engagement

1,000-5,000

Purpose Target Proposition

50-100

This is about creating true engagement – a website or commercial that is available for everyone to read will not do that.

Investors, operators, developers and cargo owners only take the time to get involved with projects where they feel chosen and see commitment from the other side.

Step 2……engage

Based on market interestand careful selection 5-10 investors are engagedto gauge interest

NDA is signed Exclusive platform is populated with data andinitial propositions based on market feedback

Pull from network and non-network members as well as carefully selected connections create base for initial 5-10 serious potential investors

Step 3……development

1,000-5,000

Purpose Target Proposition

50-100

10-20

This is about fast-tracking and developing real opportunities with investors, operators, developers, cargo owners etc.

This requires creating a frame that gives all sides the tools and trust to get real intentions on the table and talk specific options.

Step 3……developmentThe challenge: Realizing investments requires options to the investor of significant value as well as sufficient insight to commit to an investment.

The saving grace:As insight and option value increase they positively impact each other creating an increasing number of investment opportunities.

Option value(no of options x value)

Degree of insight (info x relevance)

1

2

3

20

Step 3……developmentCreating insight: Most information has no value to investors. Only the investors themselves know what they need, a process starting without them will not create insight, only noise.

Creating options:Is very much an interdependent process and requires the right proposition to the right people at the right time

Step 3……develop

Is available 24/7 from anywhere in the world

Provides full confidentiality for all material and members

Allows you to follow and track progress whenever you need it

One dedicated online platform that:

Step 3……develop

INSIGHT

OPTIONS

Oil market

Dry bulk market

Container market

Bio fuel market

Port access

Hinterland connectivity

Project infrastructure

Sea connectivity

Container

Oil

Bulk A

Bulk B

Consortium A

Consortium B

Seed investor

Landlord model

each option and topic has a dedicated space

Step 3……develop

Port Group(owner)

A B C D E F G H I J(members)

Port Investor(facilitator)

Options Insight

Members get access on select basis to the different options

All members benefit as the collective insight grows

You are the owner, you decide who, what and when. We facilitate and engage.

Step 3……develop

Why does this make sense to you?

All insight and options created can be leveraged continuously, creating a constant flow of opportunities.

Why does this process make sense to members?

Early birds have to spend more effort building insight and options, but have early access to opportunities. Subsequent joiners benefit from insight and options already created.

Some investors will based on insight and options wish to proceed to invest, others will decide not to - leaving room for new participants.

Step 4……deal

1,000-5,000

Purpose Target Proposition

50-100

10-20

$1bnAny party that has decided to go ahead and invest will continue separately outside the platform.They now know you, the market and their preferred options. Deals can close quickly.

Port Investor’s role?That all depends on you, this is not about creating restraints. It is about creating opportunities and fast-tracking development.

1. Expose you to the right people with the right proposition

2. Create commitment and engagement with high value constituents to cooperate

3. Deliver a platform that fast-tracks cooperation from engagement to investment

4. Establish a continuous process that keeps producing new opportunities

Deal

Develop

Engage

Exposure

$1bn

10-20

50-100

1,000-5,000

Insight Options New membersConstant flow

of opportunities

Port Development 2.0 - Summary

Unique access + unique platform

=more options

more transparent more efficientbetter deals