ANZ Box Trades & the GFC

1. ANZ Box Trades & the GFC

2. Contentsof Presentation • Global Context • Regional Economic Context • ANZ Container Port Performance • ANZ Trade Lane Performance • Impact on Service Offerings • Latest Trends & Conclusions

3. Long Term Global Economic Trend (CLARKSON)

4. GlobalContainer Industry Trends 2009 “2009: a disastrous year for container shipping” Platou • Ship charter rates at lay up levels most of the year • 11.4% of industry capacity reported laid up at year end • Container volumes down 6 – 7%, but in H1 volumes down 30% - 57% v. 2008 • H1 8 of top 20 lines lost US$4b or $264 per Teu carried • Fleet capacity up 8% • Vessel utilisation down 14 – 15% v 2008 • H2 Box rates up somewhat due cuts in capacity

5. TopAsianContainer Ports Teus m. 2009 -14.7% -12.2% -16.3% -15.9% Source: Lloyds List

6. 2009 Container Ship Charter Rates (PLATOU)

7. Box Fleet Trends & Orders Teus ‘000s (PLATOU) New Orders: Jan – Nov 2009: 73.2 v. 1,105.6 in 2008

8. Singapore CST 380 US$/Tonne 2008 - 9

9. A$ v US$ 2008 - 9

10. NZ$ v US$ 2008 - 9

11. ANZ Economies Sources: the Economist; Reserve Banks

12. Australian Box Ports Overseas Trade m. Teus -5.1% +0.1% -4.9% -1.9% -3.8%

13. New Zealand Top Box Ports ‘000s Teus +0.3% -6.2% -2.0% +3.7% -3.9% -8.0%

14. ANZ Box Ports in 2009 • Australian ports box volumes all dropped by >10% in H1 2009 v. H1 2008 • In H2 all were less negative other than Fremantle, with MEL and SYD only - 1% • In NZ POAL improved from -7.5% decline in Q1 2009 to -5% in Q3 v 12 months earlier • Tauranga declined 6% overall in 2008/9 but was nearly 25% weaker in Q3 2009 v. 2008

15. Australian Full Box Trade by Area 2008/9 (Teus) 3,814,800Teus 9.0% 10.8% 8.7% 17.7% 12.0% 41.8%

16. NZ Full Box Trade by Area 2008/9 (Teus) 1,244,200 Teus source: NZSC 11.6% 6.7% 21.3% 7.7% 15.7% 37.0%

17. Australian Full Box Flows 2008/9 ‘000s Teus

18. NZ Full Box Trade Flows 2008/9 ‘000s Teus Source: NZSC

19. Australian Export Box Rate US$ Index(2008 = 100)

20. AustralianImport Box Rate US$ Index(2008 = 100)

21. Australian Major Box Services: 1 Trade Lanes: NE AsiaNorth America* also serves SE Asia

22. Australian Major Box Service Port Coverage 1 Trade Lanes: NE AsiaNorth America * also serves SE Asia

23. Australian Major Box Services: 2 Trade Lanes: SEAsia Europe

24. Australian Major Box Service Port Coverage 2 Trade Lanes: SE Asia Europe

25. Key Australian Service Changes since 2008 • Consoliation of Maersk SE & NE Asian services in Boomerang • 10 other significant changes in NE Asian consortia alignments and service loops in the period • Consolidation of CMA Nemo & HL Suez services to Europe • Consolidation of Maersk OC1 and Hamburg Sud Trident USEC service and direct operation to Europe foregone • Integration of ANL/USL in VSA USWC service

26. NZ Long Haul Deep Sea Box Services Trade Lanes: SE Asia NE AsiaNorth AmericaEurope/USEC

27. NZ Deep Sea Service Major Port Calls Trade Lanes: SE Asia NE Asia North AmericaEurope/USEC

28. Key NZ Service Changes since 2008 • CMA & Hapag replace direct Europe services via Suez with feeder to Australia/SE Asia • Maersk & Hamburg Sud merge USEC/Europe services via Panama and abandon direct service to Europe • USL USWC service absorbed into VSA and PNW service reduced to fortnightly • Maersk & MISC establish joint service to SE Asia and NYK & MOL join PIL service • NE Asian services of H Sud, Cosco, & Japanese Lines consolidated

29. Positive Signs Industrial production up Consumer confidence up Box volumes improve Freight rates improve Port Infrastructure upgrades Negative Signs Interest rates rising Surplus ship capacity PRC bust? – inflation Dec 2009: 18% annualised US/EU recovery? Withdrawal of stimulus? Conclusions on Regional Outlook World Bank Global Economic Prospects 2010: 2009 Growth -2.2%; 2010 + 2.7%; 2011 +3.2% ….. But jury still out on double dip recession?