43rd Meeting Fonasba12 October 2012

UGO SALERNOCEO RINA GROUP

The price of greatness isThe price of greatness isresponsibilityresponsibility

W. Churchill W. Churchill

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CONSCARBON FOOTPRINT REDUCTION

FUEL SAVING

MORE CARGO PER SINGLE VOYAGE

MORE PEOPLE WITH HIGH COMFORT

SCALE ECONOMIES

RISK CONCENTRATION

FINANCIAL/INSURANCE RISK

LACK OF FLEXIBILITY

LIMITED PORT INFRASTRUCTURE

TRANSHIPMENT OPERATIONS RISK

PROS

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Beyond the sea,even the land

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Neckar OreBuild Year 1973Length 338.15 mDWT 282,462

Phoenix StarBuild Year 1993Length 332DWT 291,435

Vale BrasilBuild Year 2011Length 362DWT 402,347

FROM ’70 TO TODAY: DWT INCREASE + 42%

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Berge StahlBuild Year 1986Length 342.08DWT 364,767

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IRON ORE ROUTE FROM BRAZIL TO CHINA

Dry Cargo 400,000 DWT VLOC

Reduce freight costs Keep iron ore price competive

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Ore Fabrica

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S.A. HelderbergBuild Year 1977Length 258,50 mCapacity 3,101 TEU

Susan MaerskBuild Year 1997Length 347 mCapacity 9,578 TEU

Maersk ’’Triple E Class’’Build Year 2013Length 400 mCapacity 18,000 TEU

FROM ’70 TO TODAY: TEU INCREASE + 480%

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Lowering Cost base

Conquering ever growing market shares

Next order:STX Mega-containers: 22,000 TEU design project and 18,000-20,000 TEU expected orders

Mega containers18,000 TEU Maersk

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Jolly DiamanteBuild Year 2011Length 240 mDWT 46,635 T

Eurocargo ValenciaBuild Year 1999Length 196 mDWT 15,500 T

Nedlloyd RochesterBuild Year 1979Length 196 mDWT 22,564 T

FROM ’70 TO TODAY: DWT INCREASE + 107%

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ACL GRIMALDI: 5 world largest RO/RO containerships in 2015

Scale EconomyEnergy Saving

Ro-RoACL Grimaldi

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RaffaelloBuild Year 1965Length 276.20 mGT 45,933 TN° Pax 1,775

Costa VictoriaBuild Year 1996Length 251 mGT 75,166 TN° Pax 2,394

Oasis of the SeasBuild Year 2009Length 360 mGT 225,282 TN° Pax 6,300

FROM ’70 TO TODAY: PAX INCREASE + 255%

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Cruise shipsOASIS SERIES 6,300 PAX

Increased competition

Change in consumer preferences

Demand for a total experience

Next Order: ROYAL CARIBBEAN third Oasis class cruise ship to come

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LNG AriesBuild Year 1977Length 285 mCapacity 126,750 cbm

Hyundai TechnopiaBuild Year 1999Length 288 mCapacity 134,524 cbm

ZargaBuild Year 2010Length 345 mCapacity 261,104 cbm

FROM ’70 TO TODAY: CBM INCREASE + 106%

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Lowering cost transportVery expensive ships owned by big companies

Gas carriers 250,000 Mc Lng Qatargas

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But is it an irreversiblephenomenon ?

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BatillusBuild Year 1976Length 414.22 mDWT 553,662 T

Olympic LegacyBuild Year 1996Length 332 mDWT 302,789 T

BW LotusBuild Year 2011Length 332 mDWT 320,142 T

FROM ’70 TO TODAY: DWT DECREASE – 42%

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Ship sizes have reduced compared to ‘70s and have never increased again. Why?

Wet Cargo (Ulcc 560,000 Dwt in ’70s-’80s, today max 300,000 Dwt Vlcc)

Environmental, financial and insurance factor

1975: Suez Canal re-openingProduction sites and final destinations more widespread Big players (oil majors) no longer shipowners

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So it is a convincing case for gigantism in the maritime world?

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Do exagerate, but with balanceAlberto Schön

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