juan carlos croston, manzanillo international terminal-panama, vice president of marketing
TRANSCRIPT
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MANZANILLO INTERNATIONAL TERMINAL – PANAMACONTAINERS • RO-RO • BREAKBULK • PROJECT CARGO
Juan Carlos CrostonVP Marketing – MIT Panama
April 19th, 2010
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SSA INTERNATIONAL
SSA International operations in Latin AmericaMexico, Colombia, Chile and Panama
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SHIPPING INDUSTRY ‐REALITIES
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CURRENT ECONOMIC SITUATION
What recovery?...
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Shipping lines / shipowners are expected to leverage slow steaming and ship idling to offset the gap between supply and demand
CONTAINERSHIP TONNAGE GROWTH…AND MEASURES TAKEN TO OFFSET IT
charts by Alphaliner
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FREIGHT RATES / UTILIZATION KEEP IMPROVING…
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… ALTHOUGH THERE ARE CLOUDS IN THE HORIZON…
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… AND THERE’S STILL THE “SMALL” ISSUE OF IDLE OVERCAPACITY
Shipping lines lost around $20B during 2009Strong pressure on vendors to assist with financial bleedOvercapacity/financial situation not likely to be solved until 2013
Currently, close to 10% of the containership fleet is currently idle/laid up:
$15B in unused assets
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ANY MORE SURPRISES?
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RELEVANT ITEMS IN THE AREA
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CARIBBEAN NETWORK
??
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REGIONAL CHALLENGES
WHERE WILL THE CARGO COME FROM?Europe/USA: Previous traditional sourcing marketsAsia: Has replaced traditional marketsIntra-regional commerce: A lot of mid-term potential (Brazil, Mexico, Colombia)Places like Panama and Jamaica building/upgrading distribution/logistics areas that will create additional cargo flows
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PANAMA?
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MIT DEVELOPMENT
19931993 2010
MIT: $550M invested up to date
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CUSTOMERS & CONNECTIVITY
MOLNYKOOCLSeafreightWWL
CSAVChina ShippingEukorHamburg‐SüdHapag‐Lloyd
APLAntillean MarineCCNICMA‐CGMCrowley
Hyundai MarineK‐LineKing OceanMaersk LineMarfret
REGIONAL COVERAGE FROM MIT
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Ports Container ThroughputPanama 1989 – 2009 (TEUs)
1989‐1994 12% a.g.
1994‐2001 26% a.g.
2001‐2009 14% a.g.
MIT starts operations
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MIT LOGISTICS PARK
50,000 m² of current warehouse capacity90,000 m² of projected total warehouse capacity
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VALUE-ADDED AREA
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PANAMA CANAL EXPANSION PROJECT
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COLON – PANAMA: A GROWING LOGISTICS HUB
RAILROAD
MIT LOGISTICS PARK
COLON FREE ZONE
HEAVY EQUIPMENT STORAGE &
REFURBISHMENT
FUTURE AIRPORT…
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OK… PANAMA!
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A WHOLE NEW ANCILLARY SERVICES BUSINESS MODEL
Container repairShip repair and maintenanceShip crewingShipchandlersWaste management and disposalWater provisionAgencies and representatives
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MARITIME AND LOGISTICS-RELATED COMPANIES WITH REGIONAL OFFICES IN PANAMA
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GREATLY IMPROVED CONNECTIVITY FOR PANAMA
Port handling fees lowered by 50%Investment up to date of $1.5B in marine terminals in PanamaTerminal productivity has increased 350% (from 10mph to an average of 35mph)Lower maritime freight rates, more direct connections and increased capacityPanama has more gantry cranes than either Mexico or Brazil!
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A REAL DISTRIBUTION PLATFORM
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HALF FULL…OR HALF EMPTY?
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PERCEPTION IS REALITY
Consumers still need to perceive the recovery is getting to them…
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ALWAYS LEAVE SOME IN THE TANK FOR THE LONG RUN…
“… if you're a leader putting 100% of yourself into the present, you could certainly shift 11th that to something like 75% or 80% and throw some time and energy into figuring out what your company's future could and should look like… inventing the future is one crucial definition of leadership.”
Jack Welch, BusinessWeek, May 11th 2009
V:\logos\MIT\MIT...2007 a.jpg THANKS