COHESION Freight (HK) Ltd.COHESION Freight (HK) Ltd.

2008 Beijing Olympics Business Impact

Date: 4th August, 2008

Key Highlights

Beijing

Tianjin

Qingdao

Shanghai

Hong Kong

Extend of Impact

HKG

Shanghai

Qingdao

Tianjin

Beijing

The 29th Olympic Games

From Aug/08 to Aug/24Main Venues : BeijingSailing Competition : QingdaoFootball : Tianjin, Shenyang, Qinhuangdao, ShanghaiEquestrian : Hong Kong

Beijing Paralympics

Sep/06 to Sep/17

Control MeasuresAir Quality ControlTraffic ControlPort Security ControlDG Cargo Control

Affected Geography

BeijingBeijing

Traffic Control – Local vehicle usage restriction Meet Euro-1 emission standard Odd/Even # license plates operate

six-hour window on alternate days

Cargo movements Skirt around Beijing Longer transit time between XGN & PEK area

Cargoes in, out & within PEK Extremely restrictive Much more costly

Air Quality Control – Heavy-polluting industries Suspension or reduction of production activities

metallurgy, steel production, chemicals, glass, cement, etc

Minimal impact

Policies Impacts

Tianjin

Traffic Control – during extreme weather condition Suspension of oil production Closure of gas stations Odd/Even # license plates operate

on alternate days

Limited impact, as: Only during extreme weather conditions Less chance for effective several days in a row

Buffer on shipment time is suggested

Air Quality Control – Heavy-polluting industries Suspension or reduction of production activities

metallurgy, steel production, chemicals, glass, cement, etc

Minimal impact

Policies Impacts

Qingdao

Tightened Port Security Control Special administration & regulation on Maritime Safety, with limits on:

Vessel traffic Vessel speed Vessel type Passing time

Ships delay in calling TAO Some carriers drop Qingdao

New World Alliance Withdrawn 3 services from Qingdao temporarily

Air Quality Control – Heavy-polluting industries Suspension or reduction of production activities

metallurgy, steel production, chemicals, glass, cement, etc

Minimal impact

Policies Impacts

Shanghai

DG Cargo ControlLocal Security Measures

Prohibits several categories of DG From July/18 to Aug/25 Applies to:

Export Import Transship In transit at SHA

DG importers not able to get sufficient raw materials for production DG exports suspended

Policies Impacts

Regions around BeijingRegions around BeijingHebei, Shanxi, Shandong & Inner MongoliaHebei, Shanxi, Shandong & Inner Mongolia

Traffic Control – moving goods to Tianjin Not allow passing through

Beijing Needs to diverted

Cargo movements Skirt around Beijing Adding distance Extra fuel consumption Longer transit

Air Quality Control – Heavy-polluting industries Suspension or reduction of production activities

metallurgy, steel production, chemicals, glass, cement, etc

Minimal impact

Policies Impacts

All Mainland China

DG Cargo Control

Disallowed to enter the Olympic Games cities Stringent control of DG transportation

Challenge for manufacturers in transporting :

raw materials finished products

Heightened Security ControlCustoms Declaration & Quality Inspection

Both import and export Tight customs inspection Increase of frequency

Customers need to pay more attention to :

documentation compliances buffer time for shipment

Policies Impacts