DP World India Trip Monday 6 December

8/6/2019 DP World India Trip Monday 6 December

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DP World IndiaFocus on India


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Agenda

1. India overviewa. GDPb. Container trafficc. Port capacity & utilizationd. Containerization outlooke. NMDPf. Tariff environmentg. Key regulatory initiatives

h. DMIC2. DP World India overview

a. Equipmentb. Infrastructurec. Ancillary servicesd. Responsible Business Practicese. Awards & recognitionf. QHSEg. HR initiativesh. Customersi. Key statistics

j. Expansion plansk. Concession status

3. Summary


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India overview


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India Is Worlds Fastest Growing Economy

India is the worlds second largest country by population size and is currently the fourth largest economy measuredby GDP in PPP terms, expected to outgrow the globally top 12 largest economies over the next 10 years.

1.3

1.4

1.8

2.1

2.2

2.2

2.2

2.9

4.1

4.3

10.3

14.5

2.3

2.2

2.6

3.3

3.4

4.4

4.1

4.6

11.0

6.2

26.8

24.8

051015202530

Canada

Spain

Italy

France

United Kingdom

Brazil

Russia

Germany

India

Japan

China

United States

2010E 2020E

22

46

60

63

62

83

127

142

193

310

1,184

1,339

26

49

60

65

67

83

122

136

207

337

1,362

1,407

0 200 400 600 800 1,000 1,200 1,400 1,600

Australia

Spain

Italy

France

ited Kingdom

Germany

Japan

Russia

Brazil

United States

India

China

2010E 2020E

Population (m) Second and Growing GDP (Nominal PPP GDP, US$ trillion) Leading in Growth2010E-20ECAGR

0.5%

1.4%

0.8%

0.7%

-0.4%

-0.4%

0.0%

0.7%

0.4%

-0.1%

0.6%

1.4%

5.5%

10.1%

3.7%

10.3%

4.8%

6.2%

7.3%

4.6%

4.5%

3.7%

4.4%

5.5%

Source: EIU.

2010E-20ECAGR


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with a Strongly Growing Port Infrastructure

Kandla (78.0)

Mumbai (49.7)

JNPT (58.0)

Marmagoa (37.1)

Mangalore (44.2)

Cochin (29.9)

Tuticorin (22.8)

Chennai (69.3)

Ennore (16.0)

Vishakhapatnam (62.2)

Paradip (76.5)

Calcutta (67.0)

India has an extensive coastline populated with a growing network of major and non major ports. Major ports handlethe majority of port traffic, although non major ports are increasing their share. Throughput demand is outgrowing

capacity additions and will require investments into port infrastructure in the future.

Port Infrastructure Increasing Private Participation

13 major and c. 200 minor and intermediate ports

Major ports are managed by Port Trusts regulated by thecentral government (except Ennore Port, which is corporatized)

Non major ports are regulated by the state government andmany of these ports are private or captive ports

Ports handle c. 95% of the total volume and 70% of the total

value of India's cargo(1)

Major ports handle 70% of traffic, but share of minor ports isincreasing

Historically, non major ports have been feeder ports, playing asupporting role to the major ports

Major ports are already saturated in terms of capacity

Continental India Major Ports Balanced Network

Port Name (Capacity in mnte)

Split of Traffic Increasing Share of Minor Ports(Share in %)

8876 75 75 75 74 74 71 70 72 68

12 24 25 25 25 26 26 29 30 28 32

0%

20%

40%

60%

80%

100%

1997-98

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

Major Ports Minor Ports

(1) Source: Indias Ministry of Shipping 2009-10 Annual Report.

Source: Citi Research, Crisil Research 2010 Report.


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Container Traffic Growth Outpacing

Economic Growth

Container traffic has grown at a multiple of GDP

2000-2010 GDP CAGR was 7.5%

2000-2010 trade CAGR was12.1%, which represents a 1.6xmultiple of GDP growth

2000-2010 container traffic CAGR was 19.4%, supposing a1.60x multiple on trade growth and 2.6x multiple on GDPgrowth

Government is incentivising construction of new port capacity

XI Five Year Plan initial goal to increase major ports capacity to1,000 mnte by 2011-2012

Current lower expectations of reaching 743 mnte by March2012 E

Special emphasis on increasing road and rail connectivity

Container traffic growth has picked up strongly since 2000 and has grown on average at a 1.6x multiple of foreigntrade and a 2.6x multiple of GDP. Recent surge in container throughput has lead to an increase in utilisation rates to

come close to capacity and will require further new building and expansion in the future.Container Growth Rapid Growth Straining Capacity India GDP, Trade and Container Traffic Multiplier Effect

(GDP = Real GDP in US$, Trade = Exports FOB + Imports CIF in US$, Container Traffic = TEUs)(Rebased to 100 in 1995)

-

200

400

600

800

1,000

1996 1998 2000 2002 2004 2006 2008 2010

Real GDP Trade Container Traffic

Major Indian Ports Capacity Utilisation(Capacity Utilisation in % of Tonnes)

0%

20%40%

60%

80%

100%120%

140%

Kan

dla

Mum

ba

i

JNPT

Mormugao

New

Manga

lore

Coc

hin

Tu

ticorin

Chenna

i

Ennore

Visa

khapa

tnam

Para

dip

Ko

lka

ta

TOTAL

2009 2010

Source: EIU.

Source: Indias Ministry of Shipping, India Ports Association.

Throughput and Capacity in South Asia(Throughput and capacity in 000 TEUs)

0

5

10

15

20

25

30

35

2009 2010 2011 2012 2013 2014 2015

65%

70%

75%

80%

85%

90%

Thorughput Capacity Utilisation

Source: Drewry 2010 Annual Review. South Asia: Bangladesh, India, Pakistan, Sri Lanka.


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GDP Forecasted to Maintain Growth

Momentum

8.8%

24.9%

14.8%

51.5%

13.5%

24.2%

13.5%

48.7%

11.1%

24.9%

14.4%

49.6%

India Economic Growth Amongst the Worlds Highest India is expected to lead the way in GDP growth in the near future

Similar growth rate as China and significantly higher than thecurrently booming Brazilian economy

Europe and US clearly lagging behind

Population is expected to grow at a 1.5% until 2014

Industrial production expected to grow slightly faster than the overallGDP

Slight expected increase of manufacturing share in a servicesdominated economy with decreasing relevance of agriculture

Net importer with rising demand for containerised finished goodsdue to strong growth in disposable income

GDP Growth Forecast Indias Growth is Here to Stay(Real GDP in US$)

The Indian economy is expected to grow at near double digit rates in the future. The services sector is expected tocontinue being the key driver of economic activity.

0%

2%

4%

6%

8%

10%

12%

2010 2011 2012 2013 2014

India China Brazil US EU27

India GDP Breakdown Growing Weight of Manufacturing

2007 2010 2014

Agriculture Industry Manufacturing Services

Industrial Production Forecast Just Behind China(Manufacturing Index, Rebased to 2009)

2009 2010 2011 2012 2013 2014


CAGR

India 8.8%China 13.0%

Brazil 5.9%

US 2.8%EU27 3.0%

Source: EIU.

Source: EIU.Source: EIU.


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Generating Increasing Trade Activity

India Trade Growth - Recovery and Beyond

Exports have rebounded in many Asian countries whiledomestic demand remains resilient

Less dependant on exports than the other BRICs, and moredependant on domestic consumption (driven by purchasesof consumer durables and automobiles)

Higher industrial output will increase the imports of rawmaterials and exports of finished goods

Raising disposable income will increase imports of goods Product mix will experience growth in containerisable

products, such as engineering goods, electronic goods andmachinery

Trade Forecast High Double Digit Growth(Exports FOB + Imports CIF in US$, Rebased to 2009 )

Foreign trade is expected to continue growing at above 15% until 2014 with imports outweighing exports. Petrolproducts still dominate Indias trade but demand forcontainerisable goods is rising.

2009 2010 2011 2012 2013 2014


CAGR

India 15.4%

China 16.7%

Brazil 16.5%

US 10.8%EU27 6.1%

Source: EIU.

India Trade Industry Breakdown More Containerisables2005 2009

Export

Im

port

11%

21%

16%15%

37%

14%

23%

12%14%

37%

29%

9%8%7%

47%

29%

9%

9%8%

45%

POL

Engineering Goods

Textile

Gems & Jew ellery

Other

POL

Electronic Goods

Gold & Silver

Machinery

Other

Source: EIU.

India Trade Origin/Destination Breakdown2005 2009

6%

16%

8%

4%66%

5%11%

12%

3%69%

7% 6%

3%

83%

1%

74%

10%

6%

5%

5%

Source: EIU.

China

US

UAEHong Kong

Other

China

US

Australia

Saudi Arabia

Other

$103.1bn

$149.2bn

$218.6bn

$340.3bn $149.2bn $340.3bn

$103.1bn $218.6bn

Export

Im

port


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and Translating into Sustained

Container Traffic Growth

2009 2010 2011 2012 2013 2014


South Asia Container Throughput Forecast(000 TEUs)

15,95917,727

19,30121,004

22,82324,740

13.4%11.1%

8.9% 8.8% 8.7% 8.4%

2010 2011 2012 2013 2014 2015

Volume Growth

Recent container throughput growth will continue into the future thanks to the combination of economic growth andkey favourable macro trends.

India Container Throughput Backed by MacroTrends

Container growth in India to be driven by

Considerable upside in containerisation levels to catch up withfully developed economies

Expected over 25% growth in textiles over the next 5 years afterMulti Fibre Agreement

Expected decrease in rail freight rates after industry liberalisation High growth in auto component export to continue in the future

Emergence of larger size vessels and requirement of deeperdroughts at ports

Growth in intermodal logistics and improved infrastructure

Cargomix at Indian Ports Upside for Containerisation(% of Total Tonnes)

Source: Drewry forecast for South Asia region including: Bangladesh, India, Pakistan, Sri Lanka.

Source: IPA.

Private Consumption per Head Forecast CatchingUp(US$, Rebased to 2009 )

Source: EIU.

CAGR

India 11.7%China 17.0%

Brazil 9.4%

US 2.6%EU27 -0.2%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2009 RealUS$

14.3% 17.6%

70%33.0% 33.2%

19.9% 17.7%

13.8% 13.3%

19.1% 18.2%

2005 2009 Developed Economies

Cointainer POL Iron Ore Coal Other


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NMDP

The National Maritime Development Programme (NMDP) envisages large scale

planned investments, but its success depends on effective private sectorpartnership

Launched in 2005 with a total proposed investment of US $ 20.9 billion (INR1,003 billion) covering 387 projects by FY12

Out of the 251 port projects that were to be completed only 50 projects havebeen completed as of March 2010

Source: Ministry of Shipping, EY report


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Tariff environment

Tariff Authority for Major Ports (TAMP)

Set up under Major Port Trust Act, 1963

Regulatory authority

12 major ports fall under TAMP, 1 is corporatized

Non major ports (state ports) 187 non major ports in India

50 active

Governed by state maritime policies

Freedom to set their own tariffs


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Key regulatory initiatives

Draft Coastal policy by MoS

The MoS has announced its plans to create the New Perspective Plan (NPP) forthe countrys maritime sector up to 2020

Corporatization of major ports

Electronic Data Interchange (EDI)

- e-trade project to centralize web-based port community system

Radiation monitoring portals in all major ports by 2012

Source: EY report, Maritime Gateway magazine


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Dedicated Freight Corridor (DFC)

13

MUMBAI

DELHI

CHENNAI

KOLKATA

LUDHIANA

VIJAYAWADA Sanctionedprojects

Unsanctionedprojects

VASCO

DELHI

LUDHIANA

MUMBAI

DELHI

Currently, eastern & western corridors are

highly saturated with line capacityutilization varying between 115% and150%

3,300 km freight only network

High speed trains ~ 100 km/hr

Heavier axle load upto 15,000 tons

Western corridor timeline

Phase I commissioning of Rewari toVadodara by March 2016

Full commissioning of J.N. Port to Dadri by

March 2017

Eastern corridor timeline

Phase I commissioning of Ludhiana to Kanpurand Sonnagar to Mughalsarai by March 2016

Full commissioning of Ludhiana to Dankuni

March 2017MAHARASHTRA

MADHYAPRADESH

UTTARPRADESH

HARYANA

RAJASTHA N

GUJRAT

ARABIAN SEA

PAKISTAN

VASAI

GOTHANG

AM

MAKARPURA

SANAD

MAHESANA

PALANPUR

MARWAR

PHULERA

REWARIPIRTHALAREWARI

JNPT

NIM KA THANA

RINGAS

PHULERAAJMER

SENDRA

MARWAR

SIROHI

ABU RD.

PALANPUR

MAHESANA

AHMADABAD

VADODRA

BHARUCH

SANJALI

SURAT

VALSAD

SANJANDAHANU

PANVEL

VASAI

EXISTINGLINE

DFCLINE(PARALLEL)

DFCLINE(DETOUR)

DFCJUNCTIONSTNS.

EXISTINGSTNS.

LEGEND


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DMIC

Delhi-Mumbai Industrial Corridor is a megainfra-structure project of USD 90 billion withthe financial & technical aids from Japan,covering an overall length of 1483 KMsbetween Delhi and Mumbai

Nine mega industrial zones of 250 sq km each

High speed freight line

3 ports, 6 airports

4000 MW power plant

Six lane expressway

Logistics parks

Source: www.delhimumbaiindustrialcorridor.com


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Summary

Foreign trade is expected to continue growing at above 15% until 2014 withimports outweighing exports

Demand for containerization is rising

Capacity is constrained putting pressure for new developments and betterproductivity

Many government initiatives to make ports more attractive as an investment

Support infrastructure is growing

DP Worlds presence throughout India

Focus on containers

Presence in the Intermodal business and ancillary services

Active participation in new projects

DP World is in a unique position tocapitalize on Indias growth projections


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DP World India overview


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First privatized container terminal in India

Nhava Sheva at JNPTMumbai, Maharashtra

State of the art facility at the alternativegateway to India at Mundra, Gujaratincluding CFS facility

Successful takeover of brown field project

at Chennai including CFS facility Container Rail Road Services connecting

the hinterland to ports via trains

Partnership in Visakhapatnam on theEast coast of India

International Transshipment hub

(Vallarpadam) at Cochin: our latestoffering to the trade

New development in Kulpi, West Bengal

DP World India

Mundra

Nhava Sheva

Delhi (CRRS)

Kulpi

Chennai

Cochin/Vallarpadam

Vizag

With the largest portfolio in the country, DP World supports 47% of Indias container trade


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State of the art equipment

Reach Stacker 12

Empty Container Handler 5

Rail Mounted Gantry Crane 5

Rakes 7

Quay Crane 29

Rubber Tyre Gantry Crane 94

Mobile Harbour Cranes 4


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Excellent infrastructure

Nhava Sheva

Quay length (meters) 600

Berths 2

Capacity (million TEU)* 1.5

Depth alongside (meters) 12.5

Terminal area (hectares) 29

Mundra


Berths 3




Cochin (RGCT)


Berths 3




Chennai


Berths 4



Terminal area (hectares) 21.1

Visakhapatnam#


Berths 2




# 26% partnership

Cochin (Vallarpadam)


Berths 2




*Capacity data sourced to Drewry Global Container Terminal Operators 2010


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DP World Intermodal, also known as ContainerRail Road Services

7 rakes

Connecting the hinterland to the ports

Beyond the gate initiatives

Container Freight Station (CFS)

Chennai

Mundra

Ludhiana

Delhi

Mumbai

Daurai

Mundra


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Responsible Business Practices

Township at Mundra

State of the art township

360 families stay here

Latest amenities like in-house doctor,automatic bottling and filtration plantfor water, club house, movie facilities,bus facilities, etc.

Phunde school

NSICT adopted the Veer Wajekar ASC College and T.H. WajekarSchool, in Phunde Village

Rebuilding and refurbishing of the school and college

A new school building with 25 class rooms, a computer hall, library

and staff office has also been added

Heart surgery for underprivileged children

Memorandum of Understanding with the Malabar Institute of Medical Sciences Ltd (MIMS)Charitable Trust, Calicut in Kerala

Support the complete medical treatment of 20 children diagnosed with major heart conditions


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2010 Lloyds List Awards

DP World Chennai wins Terminal Operator Award

National Safety Award under Scheme XI

DP World Chennai received the award from Labour & Employment Minister, at National SafetyAwards in New Delhi on September 27, 2010

2010 Maritime and Logistics Awards

MICT: Container Terminal Operator in a non-major port

DP World Nhava Sheva: Health, Safety and Environment

DP World Subcontinent: Container Terminal Operator pan India

2009 CNBC Infrastructure Excellence Awards

MICT: Port of the year

2009 Seatrade Middle East and Subcontinent Awards

DP World Nhava Sheva: Environmental Protection

Awards & recognition


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DP World has been at the forefront of ensuring the highest standards of security atits terminals and follows stringent international procedures:

Only global marine terminal operator to be certified ISO 28000:2007 for SupplyChain Security in India

Only global marine terminal operator to be validated by C-TPAT (Customs -

Trade Partnership Against Terrorism) in India

Pride in security, quality and welfare

Certification CT PAT ISO 9001 ISO 14001 OHSAS 18001 ISO 27001 ISO 28000 ISPS *

Location

Custom-Tradepartnership

againstterrorism

QualityManagement

System

EnvironmentalManagement

System

OccupationalHealth and

SafetyManagement

System

InformationSecurity

Supply ChainSecurity

ManagementSystem

InternationalShip and Port

FacilitySecurity Code

Nhava Sheva Mundra Cochin Chennai Visakhapatnam CRRS * The ISPS certificate is obtained as part of the respective Port Trust Certification


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We care about our people

DP World Institute

Comprehensive set of learning and development tools and programmes

Highest employee engagement level within DP World regions at 87%

My World survey done on a global level to gauge employee satisfaction

Talent management scheme for growth, development and succession planning Strong HR policies and guidelines to attract and retain talent

Rewards and recognition culture

Simulator

Induction and refresher training provided toall crane operators

Trains operators for real life situations and hazards


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Our top ten customers


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Key statistics

2009 Throughput for India in '000 TEUs*

2008 2009

DP World 3,473 3,730

Others 4,327 3,770

Market share 45% 50%

DP World is the single largest container

terminal operator in India with significantmarket share

Vallarpadam will augment our capacity andcapture additional market share

Cochin and Mundra are the new gateways toIndia

ICTT being the only transhipment hub willretain Indias volume in India

DP World handles around 50% of Indias

containers with less than 25% of Indias container

quay length

New developments will ensure that DP Worldremains a leader for enabling container trade in

India

DP World

PSA/ABG

Government

APMT

MPSEZ

*Capacity data sourced to Drewry Global Container Terminal Operators 2010

2009


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Expansion plans

Current Pipeline

Vallarpadam phase 1B and 2

Kulpi, West Bengal

Around 60 km south of Kolkata in Indias Bay of Bengal

900m quay line and 34 hectares of paved yard, providing a capacity of 1.35 million

TEU

Subject to Regulatory Approval

Mundra container terminal 2

Chennai iron ore berth conversion to container terminal

Qualified bidders for:

Chennai Mega Terminal

JNPT 4th Terminal

JNPT extension of 330 meters

In addition, active participation in ancillary services like CFS, ICD and rakes


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Concession status

Location License agreement date PeriodNhava Sheva July 3, 1997 30 years

Chennai August 9, 2001 30 years

Mundra January 7, 2003 28 years

Kulpi August 9, 2004 99 years

Cochin (Vallarpadam) January 31, 2005 30 years

DP World Indian concessions are almost all in excess of 30 years

Utilization rates are some of the highest in the world

DP World has a presence in all Indias Gateway terminals

Nhava Sheva has set new benchmarks for efficiency based on which thegovernment has raised the performance level of license agreement parameters


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Thank You

DP World's investments in India have been one of our major success stories. Our developments andexpansion in five major ports on India's east and west coasts follow a unique pattern of integratedmanagement that promote the port business and bring direct benefits to the local communities. As a globaleconomic power with a rapidly expanding domestic market, India offers immense potential for growth in themaritime sector. DP World is privileged to be a partner in this progress.

Mohammed Sharaf, Chief Executive Officer, DP World

Documents

DP World India Trip Monday 6 December