Drewry Capability Statement

Drewry Maritime Services Pvt Ltd 209, Vipul Square, Sushant Lok-I, Gurgaon, India-122009 Tel: +91 (0) 124 4047631/32 Fax: +91 (0) 124 4047630 E-mail: shailesh@drewry.co.uk www.drewry.co.uk

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Drewry Capability Statement

Company Profile

1. Company profile
Drewry is an independent research organisation offering extensive and highly experienced business and economic services in all sectors of the international maritime industry. The company also produces an extensive range of maritime publications covering a broad spectrum of commercial and economic topics. Drewry's consultancy services extend from the provision of data and information to large assignments calling for a broad mix of disciplines. Typical commissions encompass such diverse remits as strategic planning; market research; forecasting; management consultancy; feasibility studies and project evaluation. Since the founding of the company in 1970 Drewry has grown into one of the world's leading independent international maritime consultancy and publishing organisations. Today, Drewry publications are sold in more than 90 countries and consultancy services have been commissioned by clients in over 70 countries. Since 1970 Drewry has built up an extensive data library on trades, shipping costs, ship prices, fleets and freight rates. Computer based forecasting systems are used to project trade flows, ship demand and supply, freight rates, costs and prices. The company's staffs include experienced market analysts, economists and financial planners who have had top-level exposure to wide aspects of the maritime industry. Drewry is also able to call on the services and expertise of a number of freelance consultants for projects requiring specialist knowledge. Drewry's offices are well equipped with excellent computer back-up support facilities for its professional staff, while its location offers convenient access to the world's maritime industries. Today the company enjoys worldwide recognition as a leading authority on maritime economics, with an ever-growing international reputation for the thoroughness and reliability of its work, and the integrity of its client relationships. Many of the world's major maritime companies, together with international and domestic organisations in shipping and finance, are amongst Drewry's regular clients. The Drewry imprint upon any report or consultancy work is accepted throughout the global shipping industry as a sign of high quality, thorough, authoritative and objective analysis. In 1997 Drewry responded to the growing industry need for authoritative and independent consultancy expertise by expanding its capabilities in the area of liner shipping and ports. It has since undertaken numerous major assignments covering a wide range of institutional, operational, market and investment tasks for a broad range of blue chip clients. The range of services provided in this sector fall into two main categories. Firstly, Drewry carries out detailed analyses of key issues influencing the liner and port industry, allowing a thorough and independent appreciation of current and future factors affecting any particular project. Secondly, Drewry offers advisory services in relation to privatisations, strategic reviews and restructuring processes. Clients benefit from the consultancy teams first-hand practical knowledge of such processes.

Drewry

Drewry Capability Statement

Company Profile

1.1

Analytical services
Trade flows and characteristics. Capital expenditure projections & recommendations. Traffic forecasting. Identification of trends and opportunities. Shipping economics. Inter-port and intermodal competition. Port and terminal costs and revenues. Capacity and resource issues.

1.2

Advisory services
Strategic options. Concession alternatives. Institutional and organisational restructuring. Legislative drafting. Tariff level and structure. Performance indicators. Operational audit and review. Business plan production or review Investment appraisal.

Drewry

Drewry Capability Statement

Capability Statement

2. Capability statement
Drewry has worked with over 4,000 clients in more than 100 countries. Drewry publishes well-known quarterly research reports including the Container Forecaster, Dry Bulk Forecaster, Tanker Forecaster, Chemical Forecaster, LPG Forecaster and Multipurpose Shipping Annual. Drewry forecasts are frequently cited in business and specialised trade media.

2.1

Maritime and Logistics Subcontinent and global

India

industry

domain

knowledge

Indian

Drewry consultants are knowledgeable about Indian subcontinent market dynamics and logistics scenario, port industry sectors, having carried out many consultancy assignments. Drewry has done traffic projections for containers/RoRo, port expansion studies, dry bulk cargo, chemicals and liner market studies in the ports in the Indian Subcontinent.
Jamnagar outbound logistic study - Container & bulk traffic assessment - Feasibility study for a new shipyard Jamnagar traffic assessment Traffic assessment for proposed new ICDs

Salalah
Port market study

Sonipat
Container traffic review & forecast Traffic assessment for Pipavav port

Bawal

Container traffic review & forecast

Kandla Mundra

ICD traffic study

Jamnagar Baroda Nagpur Pipavav Hazira

Traffic assessment

Kolkata Paradip Kulpi

Traffic assessment

Bulk traffic review Market & traffic study for Dharamtar port

Dharamtar

JNP Machilipatnam Krishnapatnam

Strategy & traffic study for Machilipatnam port Container & bulk traffic assessment Iron ore traffic assessment Container traffic & tariff assessment

Goa
Due diligence study for existing shipyard

Ennore Mangalore Chennai

Detailed market study

Traffic assessment for proposed ICD at Nagpur Bulk traffic review

- Feasibility of CFS

Colombo
Port container market study

- Feasibility study for second container terminal

Drewry

Drewry Capability Statement

Capability Statement

Global
At Drewry, we can advise on all major sectors of shipping with research analysts and business consultants in every field see matrix below. Drewry is recognised as a leading international shipping and port consultant. Drewry has access to research teams covering every maritime sector globally.

2.2

Macro- and micro-economic analysis

Drewry knows that demand in each shipping sector is driven by its own set of macro and micro-economic underlying factors. Typically, projects require macroeconomic analysis involving forecasts of GDP, state GSP or domestic product and other macroeconomic variables, whereas microeconomic analysis requires industry analysis for the ports and its hinterland and commodity trade forecast. Micro-economic analysis may require cost comparisons to assess where major bulk exporters are positioning in the international cost curve vis--vis their international competitors. Some of the relevant consultancy assignments spanning on all the areas mentioned above are as follows:

Container/Roro
Client/Country Private Container Train Operator UK-based private equity firm Indian Infrastructure development company Indian Infrastructure development company International Finance Corporation Tokyo-based Shipping line UAE-based Port operator UK-based private equity firm United Arab Emirates International Terminal Operator Investment bank Year 2011 2011 2011 2010 Various years 2009 2009 2009 2008 2008 2008 Description of Assignment Hinterland and commodity mapping, competitive analysis and traffic forecast for a proposed new ICD in Haryana Container traffic forecast for a new container terminal on the west coast of India Container traffic forecast for a proposed new container terminal on the east coast of India Container traffic forecast for a proposed new container terminal on the west coast of India Drewry has carried out market due diligence for numerous investments in the port sector by the IFC. Hinterland and port competitiveness analysis of container traffic handled at North-west Indian ports. Traffic forecast of dry bulk, container and general cargo for UAE port. Container and tariff analysis & feasibility study for a proposed new container terminal on the East coast of India. Emirates Steel Industries. Market and operational advisor to a bidder for 2 East Mediterranean container terminals handling significant volumes of Black Sea cargo. Due diligence market study on a greenfield terminal development in Russia (Baltic Sea). The terminal was expected to handle containers, RoRo and breakbulk cargoes. Market and operational analysis and Business Plan review for a Russian transport company ahead of a planned IPO Market analysis and terminal valuation for a major dry bulk port operator based in the Russian Far East.

Investment Bank Investment Bank

2008 2008

Drewry

Drewry Capability Statement

Capability Statement

Client/Country Investment Bank London-based ship owner Major global port operator Major global port operator Major global port operator Private Port Developer

Year 2008 2008 2008 2008 2008 2008

Description of Assignment Due diligence and market study for Thi vai/ Cai Mep Port in South Vietnam. Coastal traffic estimation for India. Review of market prospects and projected volumes of container throughput for container terminals in Tokyo Bay. Review of market prospects and projected volumes of container throughput for container terminals in Cambodia. Review of market prospects and projected volumes for container terminals in North East China. Strategic advice and support to developer of King Abdullah Economic City port. Scope of work included market assessment, traffic study, institutional and organisational structure and regulation, concession agreement terms, and competition. Feasibility for a greenfield port development in the Arabian Gulf. Scope of work included development of traffic projections, operational and capacity assessment, capex and opex assessment and development of detailed financial model. Due-diligence study for assessing and reviewing container and bulk traffic and operating costs for selected ports on the West and East coast of India. Pulau Muara Besar, Brunei Darussalam: the preparation of the corporate plan, market outlook, the business plan, the bid documents, the draft licence and concession terms. The bids have been received and evaluated and the project is in the final stage of detailed negotiations with the preferred respondent. Detailed traffic and tariff study for a Greenfield port on east coast of India. Container traffic analysis & feasibility study for a proposed Inland Container Depot in Vadodara, Gujarat. The study analysed total market potential of containerisable export and import and domestic cargoes in the region. This study involved strategic, traffic and tariff assessment for a greenfield port on the east coast of India. The main aim was to estimate the bulk and container traffic potential and assist in the formulation of core strategy for port development. Salalah Port Container Market Study, Salalah Port Services Co. Jeddah North Container Terminal Due Diligence And Market Appraisal / Jeddah South Container Terminal Due Diligence, Famco. Aden Container Terminal Market Study, International Finance Corporation. The privatisation of El Sokhna container terminal under a BOT scheme. Negotiations with DP World are currently underway. Concession documents for Damietta concerning renegotiations with the major investor KGL (Kuwait). The privatisation of the Port of Alexandria container terminal operations. Bids to be offered by the end of 2008. Acting as market advisor to DP World in its pursuance of port privatisation and investment opportunities in Turkey Dry bulk and shipbuilding market review. The aim of the study was to identify major cargo centres in India and flow of traffic between these centres and proposed port. The study examined the potential of transhipment and present logistics infrastructure and their impact on the traffic flow over the next 15 years time frame. The aim of the study was to identify major cargo centres in India and flow of traffic between these centres and proposed port on the western coast of India. The study examined the present logistics infrastructure and the proposed development plans and their impact on the traffic flow over the next 20 years time frame.

Private Port Operator

2008

Singapore based private Equity Firm The Brunei Economic Development Board

2008 2008

UK-based private equity firm UK-based private equity firm Promoter of the Greenfield Port on East Coast of India

2008 2008

2007/2008

Oman Saudi Arabia Yemen Government of Egypt

2007 2007 2007 2007

DP World IDFC PE Indian Infrastructure development company

2007 2007 2007

International Container Terminal Construction and Consulting Company

2007

Drewry

Drewry Capability Statement

Capability Statement

Client/Country Investment Bank Major conglomerate Major infrastructure investor

Year 2007 2007 2007

Description of Assignment Due diligence and market study for Pusan port. Analysis of containerised cargo & LNG growth potential for a greenfield port project on the West Coast of India. Acting on the buy side for a major infrastructure investor bidding to purchase a stake in a major international container terminal operator with assets and new projects in the Americas and Far East. Commercial and operational due diligence on Montreal Gateway terminal on behalf of Morgan Stanley. Analysis and insight into Novorossiysk port for an investor in the IPO. Review of liner network strategies and future vessel sizes; implications for draft requirements of a US East Coast port. Container & break bulk traffic estimation for a greenfield port project in Gujarat. Market Study - Expansion of Port Sultan Qaboos, Halcrow / Port Services Corporation

Morgan Stanley Infrastructure Fund Private equity house US Port Operator Major Indian Conglomerate Oman

2007 2007 2007 2005 Pre 2005/06

Note: For reasons of confidentiality reference contact details and detailed summaries cannot be provided.

Dry bulk market

Client O&M contractor for greenfield port in Oman Moscow based mineral and chemical company London based ship-broking and ship-owning firm Private and Project Equity firms Leading Aluminium producer in Europe Canal authority Shipping company based in the Arabian Gulf Promoter of the Greenfield Port on East Coast of India London based ship-broking and ship-owning firm Special Economic Zone in the Arabian Gulf UAE-based Port operator Electric utility based in Hong Kong Private equity fund based in India London-based shipowner Singapore based private Equity Firm UK-based private equity Year 2011 Description of Assignment Detailed traffic forecast for dry bulk, container and liquid bulk cargoes. It also involved detailed freight cost estimation to/from most of the important locations in the GCC countries. Dry bulk freight market outlook from 2011 to 2020 Non-coking coal import forecast for India and Coal and iron ore vessel call analysis Dry bulk and container traffic feasibility study for multiple ports in India Dry Bulk Freight Market Strategy Route competitive analysis for Dry bulk, Liquid bulk, Container and Vehicles Dry bulk shipping study Strategic, traffic and tariff assessment for a greenfield port on the east coast of India. Non-coking coal import forecast for India and Coal and iron ore vessel call analysis Feasibility study for setting up economic zone Traffic forecast of dry bulk, container and general cargo for a leading UAE port. Strategic study on freight procurement options Global and Indian dry bulk shipping market study Coastal traffic estimation Due-diligence study for assessing and reviewing container and bulk traffic and operating costs for selected ports on the West and East coast of India. Detailed traffic and tariff study for a Greenfield port on east coast of India.

2011 2010 Various years 2009-10 2009-10 2008-09 2007-08 2009 2009 2009 2008 2008 2008 2008 2008

Drewry

Drewry Capability Statement

Capability Statement

Client firm Goldman Sachs, Tokyo Indian Shipping line Port promoter Major Indian Conglomerate Port operator in India Major Indian logistics player Leading limestone producer Major Singaporean financial institution Mining company, Australia Mining company, Brazil Mining company, Australia Shipping company, UAE Moscow based shipping company Global private equity firm Confidential shipping company, Middle East

Year 2008 2008 2008 2007 2006 2006 2005 2005 Pre 2005/06 Pre 2005/06 Pre 2005/06 Pre 2005/06 Pre 2005/06 Pre 2005/06 Pre 2005/06

Description of Assignment Strategic advisory for equity investment in a fleet of 14 vessels Dry bulk industry overview for IPO prospectus Detailed traffic and tariff forecast for the East coast greenfield port in India Container & break bulk traffic estimation for a greenfield port project in Gujarat. Iron ore study for Ennore port Container Traffic potential for Dharamtar port. Limestone logistics study for India Investment grade market study for a West Coast port in India Iron ore fleet study Strategic study on freight procurement options Iron Ore freight cost analysis Strategic planning and Operational evaluation Strategic planning and Operational evaluation Introduction to dry bulk and oil tanker market Evaluation of divestment options

Note: For reasons of confidentiality reference contact details and detailed summaries cannot be provided.

Tanker and related market

Client Korean Shipping company Investment Bank Investment bank Major Chemical Shipping Company AG (Arabian Gulf) Tanker company Shipowner Private Investment Fund AG Transport Group Ship Management Company Noroil Kuwait Oil Tanker Company S.A.K. Large Japanese bank Two largest Russian tanker owning shipping companies IRISL, Iran Large listed shipping 2008 2008 Investment appraisals for various market sectors Strategic advice on earnings forecasts and fleet valuation 2009 2008 Aframax tanker study Strategy formulation for crude and product tanker fleet 2009 2009 VLCC market projections VLCC market study 2009 2009 2009 2009 Tanker TC Assessment MR Market Study Vessel Acquisition Study Tanker Safety Benchmarks 2009 Advice on recommended shipyards for building tankers Year 2011 2010 2010 2010 Description of Assignment Oil tanking study for the Port of Busan Due diligence study for formation of subsidiary of major tanker company Advisory on crude and product tanker market Feasibility study for fleet expansion and AG chemical tanker market entry

Drewry

Drewry Capability Statement

Capability Statement

Client company involved in crude oil tanker, LPG and offshore sector Goldman Sachs, Tokyo Global energy major Russian shipping company Global private equity firm JP Morgan, Hong Kong Confidential shipping company, Middle East Adnatco Albazie Oil Major Shipping Group

Year

Description of Assignment

2008 2008 2008 2007 2007 2007 2007 2007

Strategic advisory for equity investment in a fleet of 14 vessels Freight rate forecasts for the crude oil, petro-products and LPG markets Strategic planning and benchmarking for crude/petro-product and LPG tankers Introduction to dry bulk and oil tanker market Detailed due diligence for equity investment in a shipping company Evaluation of divestment options Fleet strategy development Oil tanker market entry strategy Tanker Operating Cost Indication Strategic Planning of Fleet Development

Note: For reasons of confidentiality reference contact details and detailed summaries cannot be provided.

Supply chain logistics

Client/Country US chemical major Bunge Port Authority of Jamaica Russian investor Endeka Ceramics Maersk India Year 2011 2010 2009 2008 2008 2007 Description of Assignment Review of shipping routes (Indian Subcontinent and South East Asia) Freight consultancy (container shipping from different sourcing locations) Forecast of demand and market potential for Kingston after Panama Canal expansion. Assessing feasibility and competitive environment of East West rail corridor Advisory on international restructuring of production and sourcing related to zircon products Distribution of Value Chain Costs for Exports from India and China

Chemical market
Client Tanker company Investment Bank Major Chemical Shipping Company Arabian Gulf Tanker Co. Shipowner Shipowner Global energy major Russian shipping company Shipping Group Investment Bank 2009 2009 2008 2008 2008 2007 2007 Advice on recommended shipyards for building tankers Tanker TC Assessment Chemical Tanker Shipping Market Entry Freight rate forecasts for the crude oil, petro-products and LPG markets Strategic planning and benchmarking for crude/petro-product and LPG tankers Strategic Planning of Fleet Development Chemical Tanker Market Study for an Offering Document Year 2011 2010 2009 Description of Assignment Freight rate analysis for trade lanes Due diligence study for formation of subsidiary of major tanker company Chemical Tanker M&A Advisory

Note: For reasons of confidentiality reference contact details and detailed summaries cannot be provided.

Drewry