grey asset management 2010 scoping document
TRANSCRIPT
4/21/20101Private and Confidential
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The worlds top 20 Container Lines are looking for new creative ways to reduce operating costs while driving greater efficiencies. New schemes such as asset redeployment is starting to play a key role – by selling off assets and then leasing back improves a company's financial position and helps to maintain higher credit ratings".
THE CONCEPT
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Container Ownership
Asset Management
The Benefits to Asset Management
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Carriers will sell their container assets to the financial investors these will then be leased back at an agreed rate over a fixed period time. These leased amounts might
vary depending on the type and age of the equipment – and the capital interest payments being made.
CarrierGroup
Equipment Fleet
20 Ft Dv
40 Ft Dv
Specialized Equipment
FinancialAccounts
Owned Equipment
Financial Investment
Group
Investment portfolio
Purchase Container Fleets
IMS Ltd Container
ManagementGroup
The Bigger Picture
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IMS Ltd Container Mgt
Group
CarrierGroup
IT Technology
Network and
Comms
Experienced MGTTeam
Global Networks
Provide a Global Service to the Carriers
-IMPROVED REPORTING STRUCTURE
-REDUCED OPERATING COSTS- REDUCED STAFFING LEVELS
-NEWER TECHNOLOGY -REDUCED EQUIPMENT FLEET
-ADVANCED TECHNOLOGY- FORECASTING TOOLS
-EQUIPMENT OPTIMIZATION- EMPTY REPOSITIONING
SERVICES
CarrierGroup
CarrierGroup
CNTRFLEET
CNTRFLEET
CNTR FLEET
OWNED AND LEASED EQUIPMENT
Acquisition of owned Container Fleetsservices provided to manage the leasedEquipment. Expanded services to multipleCarrier groups – creating a larger more cost effective
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CurrentLease Rates US$
Equipment Type20ft DV
Equipment Type40ft Dv
Special
Equipment
40ft RF
New DailyRates US$
0.80 1.15 6.00
ManagedService PlanUS$
0.10 0.10 1.25
Current Market Rates - Example Rates
CurrentLease Rates US$
Equipment Type20ft DV
Equipment Type40ft Dv
Special
Equipment
40ft RF
Standard DailyRates US$
0.70 0.95 5.00
DPP Plans US$ 0.10 0.10 1.25
Asset Managed Rates - Examples New Rates will reflectinterest repayment schemeplus Damage Protection Plan and the new level Management Fee Structure
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The Grey Asset Management Company - Type of Savings
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The Grey Asset Management Company - Type of Savings
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Global Size of World Container
MID-2002 MID-2003 MID-2004 MID-2005 MID-2006 MID-2007 MID-2008
DRY FREIGHT STANDARD
TEU 13,551,810 14,588,209 15,956,179 17,834,713 18,931,553 21,284,398 23,526,267
Unit 9,010,619 9,682,748 10,531,707 11,729,721 12,447,179 14,011,967 15,487,368
DRY FREIGHT SPECIAL
TEU 808,497 799,859 787,288 796,374 818,392 869,006 916,406
Unit 591,194 585,700 574,889 580,382 593,931 623,008 649,521
INTEGRAL REEFER AND INSULATED
TEU 1,018,319 1,056,656 1,152,559 1,252,261 1,325,606 1,445,322 1,617,241
Unit 600,400 615,752 662,236 709,646 742,394 799,550 886,700
TANK
TEU 149,632 157,769 164,906 173,011 179,811 191,603 199,039
Unit 147,329 155,384 162,497 170,585 177,340 189,071 196,562
TOTAL
TEU 15,528,258 16,602,493 18,060,932 20,056,359 21,255,362 23,790,329 26,258,953
Unit 10,349,542 11,039,584 11,931,329 13,190,334 13,960,844 15,623,596 17,220,151
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YEAR
FLEET
ADDITION ADDITION (%)
FLEET
REPLACED
REPLACED
(%)
WORLD
OUTPUT
END-YEAR
FLEET SIZE
MID-YEAR
FLEET SIZE
1990 415,000 7.0 390,000 6.5 805,000 6,375,000 6,261,734
1991 530,000 8.3 390,000 6.1 920,000 6,905,000 -
1992 725,000 10.5 410,000 5.9 1,135,000 7,630,000 7,472,391
1993 480,000 6.3 495,000 6.5 975,000 8,110,000 -
1994 690,000 8.5 460,000 5.7 1,150,000 8,800,000 8,535,542
1995 930,000 10.6 465,000 5.3 1,395,000 9,730,000 9,371,445
1996 820,000 8.4 470,000 4.8 1,290,000 10,550,000 10,184,309
1997 935,000 8.9 545,000 5.2 1,480,000 11,485,000 11,214,137
1998 960,000 8.4 520,000 4.5 1,480,000 12,445,000 12,036,171
1999 1,025,000 8.2 515,000 4.1 1,540,000 13,470,000 13,002,694
2000 1,405,000 10.4 525,000 3.9 1,930,000 14,875,000 14,332,452
2001 655,000 4.4 625,000 4.2 1,280,000 15,530,000 15,365,404
2002 1,030,000 6.6 710,000 4.6 1,740,000 16,560,000 16,299,852
2003 1,525,000 9.2 875,000 5.3 2,400,000 18,085,000 17,429,819
2004 1,880,000 10.4 1,080,000 6.0 2,960,000 19,965,000 18,938,231
2005 1,450,000 7.3 1,150,000 5.8 2,600,000 21,415,000 20,994,953
2006 1,920,000 9.0 1,180,000 5.5 3,100,000 23,335,000 22,252,860
2007 2,900,000 12.4 1,350,000 5.8 4,250,000 26,235,000 24,843,070
Change in World TEU Container Fleet For Period 1990-2012
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PROJECT PROFILE
2008 1,950,000 7.4 1,500,000 5.7 3,450,00028,185,00
0
27,343,71
7
2009 500,000 1.8 1,700,000 6.0 2,200,00028,685,00
0
2010 1,030,000 3.6 1,670,000 5.8 2,700,00029,715,00
0
2011 2,100,000 7.1 1,550,000 5.2 3,650,00031,815,00
0
2012 2,680,000 8.4 1,620,000 5.1 4,300,00034,495,00
0
Projected Growth in World Container Fleets
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Container Usage during its Life-Span
Containers are built to be durable since they can be exposed to all possible conditions, from tropical to sub arctic. They are also subject to potential damage when loaded, unloaded, trans shipped or carried. The lifespan of a container ranges between 10 to 15 years depending on its level of usage and the conditions it has been exposed to. A well maintained container not exposed to harsh conditions can even have a lifespan up to 20 years. Still, a container can spend on average 56% of its lifespan either idle or being repositioned while empty. This represents a non revenue generating part involving additional costs (such as warehousing and repositioning) that are assumed either by the shipping or the leasing company. Such a cost is thus part of the leasing rate. Growing trade imbalances can have a notable impact as more containers will spend additional time idle or being repositioned.
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GLOBAL CONTAINER FLOWS – 2000 – 2007
As world trade increases, so box
imbalances become a big concern - the
advanced services of the Asset
Management Company will help to off-
set these costs
and obtain better container control
over the smaller fleet
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For More Information on the Grey Asset ManagementConcept. Contact
Richard A Butcher – Sales and Marketing [email protected] Cell # - +44 0796 964 1487
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