HALTERM CONTAINER TERMINAL LIMITED OPERATING A CONTAINER TERMINAL IN A GLOBALLY COMPETITIVE ENVIRONMENT

Ashley Dinning

Chief Executive Officer and Managing Director,

Halterm Container Terminal Ltd

What is a Sea Port?

A sea port facilitates the movement of cargo to and from that state/province/territory/country and it’s markets.

Characteristics:

1.Berths

2.Channels

3.Navigational aids

4.Materials Handling Equipment

5.Storage Facilities

6.Rail and Road Access

7.Pilots/tugs

8.Provisions of water/fuel (not always)

The principal customers of a sea port are importers & exporters.

Cargo moving through ports

1. Containers

2. Dry bulk

3. Liquid bulk

4. Break bulk

5. Automotive

6. Cruise ships

1. A port is typically overseen by a Port Authority

2. Some are private, some federal, and some state or provincially owned

3. The most common types of Port Authorities are: – Comprehensive Port: One that owns and manages the channels, berths, cranes, and operates

the terminals.

– Tool Port: One that owns the channels, owns and manages the berths, and owns the cranes, but a stevedoring company operates the terminal.

– Landlord Port: Owns and manages the channels, usually owns the berths, but a private sector company comes in, buys the cranes, and operates the terminal.

4. In last 30 years, there has been a shift from Comprehensive to Landlord, with most of the world’s ports belonging to the latter category. The advantages of this are:

– Requirement for specialist expertise and significant investment

– Competing demands for investment.

– It is proven that the private sector can do this better, and it allows the govt to focus on social infra like schools, hospitals etc.

– Also, they could offer a networked business around the world and better bargaining power

Port Ownership

What do we have here in Halifax?

Landlord Port Authority

Comes under the jurisdiction of the Federal Government

Apart from aforementioned segments, Halifax also has shipbuilding

General Structure of a Landlord Port Authority

1. Typically run by a CEO

2. Also have a CFO

3. Principle focus being a landlord, they need to have a senior position looking after the property

4. Needs to have a senior planning position

5. Infrastructure engineering - maintaining the wharves, waterways, etc.

6. Sometimes berth repair

7. The port owns the pavement/hardstand in the terminal

8. Sometimes there are also private berths within a port, and usually in these cases, they could be liquid bulk berths, they do the stevedoring and shipping, and the charter is their own, so there is normally only an access fee

Customers of a Landlord Port Authority

1. The primary customers are importers and exporters

2. The secondary customers are the tenants: – Whom it leases land to, because that’s where the majority of their income normally comes

from

– Who provide a low risk income stream for the port authority

– Whom the Shipping Lines enter into Service Level Agreements with

*Compare this to a comprehensive port authority, for whom the shipping lines are the secondary customers

Container Terminals

1. Most Container Terminal leases/concessions globally are BOOT - Build, Own, Operate and Transfer.

2. The global big four and fifth fast growing port operators are: – PSA

– Hutchison

– APMT

– DP World

– COSCO

3. Together, they represent just under 30% of the world’s port market share(in equity terms).

Characteristics of a Container Terminal

1. Gates

2. Cranes

3. Ships

4. Draft

5. Handling Equipment for different cargo types

6. Contracts

Factors influencing Container Terminal Investment

1. Location

2. Stable government

3. Good access to intermodal linkages

4. Local Market

5. Unrestricted waterways

6. Potential for growth

7. Competitive environment

8. Length of lease

9. Lease costs

10. Stable industrial relations environment

11. Most terminal operators now focusing on developing economies, like India, South America and Africa

12. In developed economies rents are too high, payback period too long * The Primary customers for the terminal are the shipping lines, in comparison to the landlord port

authority, whose primary customers are the tenants

Stakeholders

1. Transport companies that deliver cargo

2. Pilots

3. Tugs

4. Rail Operators

5. Sometimes overlooked, the local communities in which we operate

6. Media

Factors influencing Shipping Lines when selecting a Container Terminal

1. Capacity to serve them into the future

2. High levels of service

3. Safety

4. Sustainability

5. Triple bottom line focus - Financial, Environmental and Social

Halterm Terminal Specifications

Type Specifications/Comments

Area 72.0 acres currently Expanding to 74.5 acres

Quay length 1047 meters Berth 36 – 383 metres; Berth 42 & 43 - 664 metres

On-Dock Rail 2440 metres 480 teu

STS Cranes

Super Post Panamax 64 tonnes lift, 36 metres clearance, 22 containers wide

Super Post Panamax 64 tonnes lift, 36 metre clearance, 22 containers wide

Panamax 36 tonnes lift, 27.6 metres clearance, 13 containers wide

Panamax 41 tonnes lift, 24.1 metres clearance, 13 containers wide

Panamax 41 tonnes lift, 29.0 metres clearance, 13 containers wide

RTG’s

KoneCranes (4) (1 over 5)

ZPMC (2) (1 over 4)

Paceco (2) (1 over 4)

Fork lifts Taylor (7) (5 high)

Yard Tractors 28 units

Reefer Plugs Currently 483

Equipment on Order 2 SPPX ship to shore cranes 64 tonnes lift, 43 metres clearance, 23 containers wide

Questions?