6. helwig (5) (1)
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helwigTRANSCRIPT
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DB Schenker
RLF
Kelsterbach, June 28, 2012
- Rail based transports between China and Europe
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2DB Schenker | June 2012
Agenda
Introduction DB & DB Schenker
Rail advantage
DB Schenker advantage
Our offer today
China-Europe train activities
Discussion
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3Global transportation and logistics network
Today
A rail freight company operating in Germany has become a global transportation and logistics group
3.5 EUR bn revenue
Rail freight network
Primarily national services
Nationalrail freight network
Until 2001
Acquisitions, organic growth
1 as of: 31.12.2011
19.8 EUR bn1 revenue
Solutions along the wholelogistics chain
Global network with intermodal services
DB Mobility Logistics AG, Transport and Logistics division appro
ved
(DB 201
1)
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4Today around 95,000 employees represent DB Schenker worldwide in 130 countries
DB Schenker locations and employees
Date: 31.12.2011, FTEs
PartnersOwn locations
Employees according to BU
DB Mobility Logistics AG, Transport and Logistics division
Europe (incl. Russia)approx. 71,500 employees
Asia-Pacificapprox. 12,500
employeesNear MiddleEast / Africaapprox. 1,200 employees
America approx. 9,200 employees
DB Schenker LogisticsDB Schenker Rail
66%
34%
approve
d
(DB 201
1)
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5 Rail FreightNo. 1 in Europe1)
Land transportNo. 1 in Europe2)
Air No. 2 worldwide3)
Ocean No. 3 worldwide4)
CL/SCM No. 6 worldwide5)
Global transport networks for all modes of transportstrengthen the market position of DB Schenker
Source: DB 1) according to tkm 2) according to revenue 3) according to t 4) according to TEU 5) according to revenue
Rail Freight CL/SCM
Ocean Air
Land transport
Worldwide land, sea, and air transport networks
DB Mobility Logistics AG, Transport and Logistics division appro
ved
(DB 201
1)
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6In our network we move tons of freight - worldwide, 24 hours a day
Air freight
1.1 m t Transport volume p.a.
Weight of 240,000 elephants=
Contract logistics
> 6.0 m m2
of storage area
1,100 football fields=
Ocean freight
1.8 m TEU
Transport volume p.a.
Length of a row of containers stretchingfrom Hamburg to Shanghai
= HHSHA
Rail freight transport
412 m tTransport volume p.a.
Twice as much as Germanyscoal production in 2010=
Land transport
95 mshipments p.a.
2 shipmentsper second=
Source: DB ML AG, figures rounded 1) Twenty-foot Equivalent Unit
DB Mobility Logistics AG, Transport and Logistics division appro
ved
(DB 201
1)
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7DB Schenker | June 2012
Agenda
Introduction DB & DB Schenker
Rail advantage
DB Schenker advantage
Our offer today
China-Europe train activities
Discussion
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8DB Schenker | June 2012
There are currently two main rail routes used by DB Schenker between China and Europe
= Northern Route (leadtime: 26 days)1
= Southern Route (lead time: 22 days)1
RU
BY
KAZMN
PL
CN
Manzhouli (CN) -Zabaykalsk (RU)
Alashankou (CN) -Dostyk (KAZ)
Brest (BY) Malaszewicze (PL)
1
2
3
1
Gauge change
1435 mm gauge
1520 mm gauge
2
3
Overview of main rail routesILLUSTRATIVE
1) Based on block trains
Explanation
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DB Schenker has been investigating regular China-Europe train services since 2007 service professionalization since 2011
9DB Schenker | June 2012
Numberof trains
TimeUntil2010
2011 2012
First train between Beijingand Hamburg 2007
Test services on Northern and Southern route in 2010
11 company trains run on a non-regular basis from Chongqing to Duisburg (IT products)
Start of regular company train service (Automotive) on the Northern route from Leipzig to Shenyang (eastbound)
Since March regular company trains run on westbound route on weekly basis
Further trainsplanned on eastbound route
Track record DB Schenker China Train
Additional efforts to realize a multi-customer train on the Northern route from China to Europe
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10DB Schenker | June 2012 1010
Case study: Chongqing Duisburg train for IT customerOperated since spring 2011, weekly service March 2012
Dedicated train for a customer from the IT industry with reliable door-to-door time of 22-23 days
1 pilot train and 4 qualifying trains followed by 6 weekly trains in August / September in 2011
Regular weekly service since March 2012
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11DB Schenker | June 2012 11
Case study: BMW trains Leipzig to ShenyangIn operation since late 2011
Daily trains planned
Approx. 40 containers per train
Transportation time < 25 days
Packing of containers with Completely Knocked Down (CKD) parts in new logistics center in Leipzig
Block train transportation from Leipzig to Shenyang in North-Eastern China
Capacity of 40 containers (40`) per block train
Transportation time of 23 days (door to door)
Use of 40 feet high cube containers
Currently exclusive service for BMW
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12DB Schenker | June 2012
Agenda
Introduction DB & DB Schenker
Rail advantage
DB Schenker advantage
Our offer today
China-Europe train activities
Discussion
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13DB Schenker | June 2012
Customers chose from different transport modes according to their needs cost and time as major decision factors
Available trade lanes Asia-Europe (lead times1)) Comparison of transport modes CN-EU
Transsibirische EisenbahnTrans-Siberian Railway (20 days)
Sea route (35 days)
Sea route (45 days)
Air route (4 days)
Southern Route (16 days)
35
40.000
Transit time
CostUSD/FEU
Days25155
10.000
20.000
30.000
Sea/Air
Sea
Air
Rail
1) Terminal-to-terminal lead times
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14DB Schenker | June 2012
Rail is positioned between Ocean and Air offering customers an interesting alternative to traditional modes
USD / notebook 1.41) 4.31) 9 16
Lead Time 38 days 22 days 22 days 4 days
1) Depends on number of units per 40 Ct Assumption here is 2.500 units
Comparison of transportation costs / lead time door-door One notebook from Chongqing The Netherlands
Ocean Rail Ocean/Air Air
Rail offers a 16 day lead time advantage. However, price is three times that of ocean Ocean Rail
Rail offers > 70 % price reduction. However, lead time is 18 days slower Air Rail
Rail offers > 50 % price reduction with same lead time Ocean/ Air Rail
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15DB Schenker | June 2012 15
Apart from economic advantages Rail offers the most environmentally friendly transport mode
Rail service between China and Europe makes sense from an environmental as
well as a business perspective
From an environmental perspective Rail transport is the preferred choice for shipments between China and Europe
Rail is not only the most ecological mode of transport in terms of CO2 emission but also regarding other pollutants1)
5.727
4.052
391270
AirRail Ocean+AirOcean
CO2-Emission
kg CO2 / ton
1) e.g. PM (particulate matter), NMHC (non-methane hydro carbons), SO2 (sulphur dioxide), NOx (nitrogen oxide)
Source: Eco Transit tool DB Schenker
Example: Door-to-Door transport from Beijing to Duisburg
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16DB Schenker | June2012
Agenda
Introduction DB & DB Schenker
Rail advantage
DB Schenker advantage
Our offer today
China-Europe train activities
Discussion
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17DB Schenker | June 2012
DB Schenker is in an excellent position to develop rail services from China to Europe and vice versa
Participation in railway conferences (CN/EU land bridge)
Three joint ventures with China and Russian Railway
TEL (RU)
CRIntermodal (CN)
YuXinOu (CN, RU)
Well-established block train system in Europe
Pre- & on-carriage by truckfeasible in China and Europe based on dense branch network
Outstanding operational expertise
Deep operational insights regarding booking, container provisioning and customs
Comprehensive security concept from container loading to unloading destination
Excellent relationship with railway operators
Vast distributionnetwork by rail and truck
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18DB Schenker | June 2012
Our joint venture CRIntermodal provides us with directaccess to a large terminal network in China
Source: CUIRC China, DB Intermodal Services 2010, DB Schenker Logistics China 2010
Terminal locations
Xi'an
Dalian
Qingdao
Urumqi
Lanzhou
Chengdu Zhengzhou
Tianjin
Guangzhou Kunming
Harbin
Beijing
Chongqing Wuhan
Shanghai Ningbo
Shenzhen
Shenyang
Terminals (as of October 2011)Planned Terminals
Offers intermodal container transportation in China
5 shareholders that combine local and overseas expertise in transport and logistics (CRCT, NWS Holding, CIMC, Luck Glory and Deutsche Bahn)
9 terminals already completed, 9 more planned)
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19DB Schenker | June 2012
Agenda
Introduction DB & DB Schenker
Rail advantage
DB Schenker advantage
Our offer today
China-Europe train activities
Discussion
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20DB Schenker | June 2012
In rail transportation there are two transport modes:Single wagon and block train transportation
Single Wagon
Booking of a single container possible
Departure possible every day
Block Train
Advantages
Disadvantages
Short transit time with high reliability
Lower price per containerthan single wagon
Long transit time with low reliability
Higher price per container than block train
Minimum of 41 x 40containers required
Low frequency (e.g. perhaps only once per week)
Fixed departure dates
Comparison single wagon versus block train
Key feature
Container is transported in several trains from shunting station to shunting station longer breaks and detours likely
Container is transported in a single train without unnecessary stops and on the shortest route
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21DB Schenker | June 2012
Currently we offer single wagons and company block trains multi-customer trains are still under development
Company Train (Block train for one
customer)
Multi-customer Train
(block train for several customers)
Single WagonSingle containers or container groups do not have prioritized transit as complete block train
Available (for CN-EU onlyon Northern route)
Product Availability Comments
Available
Not yet available
Block train consisting of at least 41-50 FEU containers from one customer
Block train consisting of at least 41-50 FEU containers carrying volume of several customers
X
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22DB Schenker | June2012
All along the route, the respective railways have a vast set of modern security measures in place
Modern terminal facilities with qualified staff
Terminal areas are fenced in
The railway police are mostly located directly at the terminals
The terminal and station areas are under video surveillance
Entry to the terminal only for customs, railway stuff or with authorization (identification card)
The cargo on the terminal territory is guarded by the local railway police and security personnel
Armed guards partially on the train, in terminal and stations
Overview of selected security measure along the route
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23DB Schenker | June 2012
Temperature can affect cargo safety - sensitive goods require a solid winter solution for year-round transport
Often, temperature sensitive goodstransported
Extreme low temperatures on the routefrom China via Kazakhstan and CIS during the winter months
Winter container solution required to avoid the temperature falling below -20 C
DB Schenker is actively working on a winter solution and already well advanced
RU
BY
KAZPL
Chongqing
Duisburg Dostyk
IlezkIlezkIlezk
Brest Ost
RU
BY
KAZPL
Chengdu
Duisburg Dostyk
IlezkIlezkIlezk
Brest Ost
MN CNB
Kazakzhstan Dostyk -35
Beskol -40
Karaganda-Sort. -43
Kandyagach -45
Aktobe -48
Russia Ilezk-1 -40
Orenburg -37
Kinel -30
Rusaevka Penz. Park -28
Kustarevka -29
Rybnoe -28
Bekasovo -27
Vjazma -27
Smolensk -26
Belorussia Krasnoe -25
Orsha-C -23
Baranovichi-C -22
Brest Ost -23
MN CNB
Kazakzhstan Dostyk -35
Beskol -40
Karaganda-Sort. -43
Kandyagach -45
Akto -48
Russia Ilezk-1 -40
Orenburg -37
Kinel -30
Rusaevka Penz. Park -28
Kustarevka -29
Rybnoe -28
Bekasovo -27
Vjazma -27
Smolensk -26
Belorussia Krasnoe -25
Orsha-C -23
Baranovichi-C -22
Brest Ost -23
Minimum temperatures
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Advantages of the DB Schenker China train product at a glance
24DB Schenker | June 2012
DB Schenker China trainkey success factors
Foto: Rdiger Nehmzow
Excellent relationship with railway operators along the route
Well-established distribution system in China and Europe
Outstanding operational expertise based on past and current solutions
DB Schenker
Speed Much faster than Ocean freight
Costs Less expensive than Air freight & Sea-Air products
Environment Environmentally most friendly transport mode
China train
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SMGS Waybill for test container from 2007Progress in paper work has been made since then
DB Schenker | June 2012 25
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26DB Schenker | June 2012
Agenda
Introduction DB & DB Schenker
Rail advantage
DB Schenker advantage
Our offer today
China-Europe train activities
Discussion
-
27
Rail A new product for DB Schenker in China with large potential
DB Schenker | June 2012