medaports16 | jordi torrent

Mediterranean and China

meet

9th MEDA PORTS SUMMIT 2016:

Mediterranean bridges

Barcelona, 8th June

Jordi TorrentStrategy Director

Contents

1Global logistics trends and the new role of Mediterranean ports

What does Barcelona offer as an Euro- Mediterranean distribution center?

Port of Barcelona, main logistics hub in the Mediterranean

2

3

Logistics costs include all costs of maritime transport (port passage, sea freight), land transport and inventory costs

1. Global logistics trends & new role of Mediterranean ports

The impact of logistics costs on the price of products

Slow steaming

Environmental restrictions

Freight & connectivity volatility

Bigger vesselsConcentration and bigger alliances

Less bunker costs,

less carbon

footprint, longer

shipping times &

more ships on

service

Notteboom and Carriou 2009

Inland transport : carrier vs. merchant haulage

Fuel price volatility


Trends 1: unstable market in the shipping business

Rotation and calls constantly changing

Overcapacity in vessels and ports

Source: http://en.sse.net.cn/indices/scfinew.jsp

Unit: USD/TEU

2014 2015 2016

EDC: European

Distribution Center

RDC: Regional

Distribution Center

NDC: National

Distribution Center

DD: Direct Delivery LDC: Local

Distribution Center

Which is the best? Which is the market trend?


New distribution models in the supply chain

Artic route (North East path & North West path)

Tran Siberian

Landbridges (Nicaragua, México, Panamá,…)

Bigger capacity in Panama & Suez Canal

Cape of Good Hope route

Imagen: J.P. Rodrigue, C. Comtois, B. Slack , The Geography of Transport Systems (2009)

Year 2012 Suez Panama Artic (PNE)

Nº ships 19.000 15.000 46


Possible new future routes

The Suez canal will still be the

main Europe/ MED – Asia trade

route for decades

Transpacific

Europe-Asia

Intra Asia59.3* MTEU

* Drewry Maritime Research 2014

(data 2013 )

source: UNCTAD, Review of maritime transport 2015

6.6 MTEU

22.4 MTEU

22.4 MTEU 14.7 MTEU7.5 MTEU

7 MTEU

15.4MTEU

2.7 MTEU

3.9

MTEU

Transpacific

Europe-AsiaTransatlantic

Containerized cargo flows on major East-West trade routes 2014 (full TEUs)

Evolution major East-West routes . 1997-2014

0.0

5.0

10.0

15.0

20.0

25.0

Mill

ion

TEU


The present European logistics system

Transatlantic

Land distribution

Maritime distribution

Europe

Africa

Asia

America

To /

From

America To /

From

Europe

Europe

Barcelona


The role of Mediterranean ports in a sustainable and more efficient logistics

Relevance of the Mediterranean in international trade, specially in

Asia-Europe trade and in Europe-American trade

Advantage of MED ports as distribution center in the Mediterranean

and as interlining ports for east-west routes

Reduction of navigation days, CO2&NOx emissions. Reduction of

emissions up to 15% aprox in the Far East-Europe route

Slowsteming: better transit time through the Mediterranean

Reduction of congestion in Northern European infrastructures

Take advantage of the Mediterranean and North and West African

potential

Reduction of logistics costs

• Shorter maritime route: -3.434 km

• Better transit time: up to 5 days

• Less fuel consumption and CO2

emissions (-16%)

• No SECA regulation

• Excellent maritime weather

• Savings in CO2 emissions even the

farther European destinations

Barcelona

Benelux Port

Total CO2Distance

Time

Savings trough Port of

Barcelona in comparison with

Benelux port

From Shanghai

- 3.434 km through

Barcelona

Shanghai – Europe & Mediterranean through

Port of Barcelona or a Benelux Port

Calculations made with the Port of

Barcelona Ecocalculator. Hypothesis :

7,000TEU Container vessel

Land transport by truck: EUROV of 2TEU

KgCO2eq/TEU Km Days

Madrid

-24% -19% -6

Milano

-13% -15% -5

Munich

-5% -13% -4

Toulouse

-23% -18% -6

Lyon

-14% -16% -5Bordeaux

-18% -17% -6

Paris

-4% -13% -4

Geneva

-12% -15% -5

Lisbon

-22% -18% -6


Savings in distance, CO2 emissions and time

Schneider Electric has built an integrated logistics centre in Sant Boi del Llobregat

(greater area of Barcelona). The company has other logistics centres in

Cornellà and Pallejà.

Ikea has recently located its Southern European logistics

centre in Valls (Tarragona) with an investment of 46 €M. The centre counts on 72.000sqm.

New logistics centre in Barcelona with 330.000 m2 of warehouses handling 80% of the company’s

internationals flows. “The proximity to the port was a decisive factor in choosing the location of our new

logistics park”.

“Our terminal in Barcelona, BEST, is the Hutchison ‘s strategic investment in the West Mediterranean region…

The number of maritime services, rail connections and the labor skills have been other important strength that

allows BEST to become one of the most efficient Terminal in the World.”

Mr. Guillermo BelcastroBEST General Manager

Bayer,Novartis and Boehringer, have built a joint logistics and distribution centre for their products in Rubí. The new company, Disalfarm, handles 170 millions units a year

and distributes pharmaceutical products to 62 countries.

MANGO IKEA

Schneider

Electric,

BAYERNOVARTISBoehringer

Ingelheim


International companies are already chosen Barcelona as their logistics hub

In Barcelona since 2011

In Barcelona

since 2010


Chinese companies are already chosen Barcelona as their logistics hub

China Construction Bank opens

office in Spain at Barcelona

Opens a

technological

center in

Barcelona for

its European

clients

Bright Food buys Miquel

Alimentació to become a platform

for international distribution (2015)

Huayi Compressor buys Cubigel

in Barcelona.

Opens in Barcelona one of

the 7 office & labs they

operate in Europe to

provide their services to

industries across Europe

http://www.google.es/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwij_a_95OPMAhWHDxoKHWO5ApgQjRwIBw&url=http://www.rcdespanyol.com/es/actualidad/_n:1902&psig=AFQjCNEijp1ErTmpTaqgNYX1ykIYPjDa6Q&ust=1463666558634492

http://www.google.es/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwij_a_95OPMAhWHDxoKHWO5ApgQjRwIBw&url=http://www.rcdespanyol.com/es/actualidad/_n:1902&psig=AFQjCNEijp1ErTmpTaqgNYX1ykIYPjDa6Q&ust=1463666558634492

The goal of BARCELOC is to support Chinese

enterprises to use Barcelona as a hub for their

logistics and commercial operations in Europe

and/or the Mediterranean area.

BARCELOC is a business-oriented public service,

offering customized and tailor-made orientation on

your potential investments in Barcelona/Catalonia.

The service is free-of-charge and rendered

neutrally and confidentially.

BARCELOC is a platform at your service completely free,

that can help you through the whole process of developing your distribution

network in Europe and the Mediterranean/Africa.


About BARCELOC program

Chinese testimonials


About BARCELOC program

Contents




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A) Biggest industrial & consumption in the MED & Southern Europe

B) Logistics specialization

D) An integrated logistics hub with port, airport and logistics facilities

C) Distribution capacity to

Europe/MED/Africa

2. What does BARCELONA offer as an Euro- Mediterranean distribution center?

Industrial specialization, sectorial clusters & powerful partnership opportunities

Headquarters of Global Companies

SEAT, MANGO, Desigual, E-dreams, TOUS...

Global clusters Automotive, chemical, pharmacy, fashion….

2 Business schools among the 10 best in

Europe and in the top 25 worldwide

5th biggest metropolitan area in

Europe with more than 5 million

inhabitants. (source:Eurostat)

3rd city in Europe and 10th in the

world as tourist destination

BARCELONA1,5% Spanish area and 10% Spanish

population, account for:

15 % Spanish GDP

Spanish industry

Spanish exporting companies

Spanish foreign trade

Spanish tourists

±20%



ELECTRONIC PRODUCTS:FUJITSU / HAIER / HUAWEI/ IBM / SIEMENS / SUNFOR

FASHION AND FOOTWEAR:ZARA / MANGO / DESIGUAL

CHEMICAL PRODUCTS: BASF / BAYER / DOW/ HENKEL / SOLVAY

INDUSTRIAL PRODUCTS

AND CONSUMER DURABLES:

HAIER / SUNFOR

AUTOMOBILES:

CONTINENTAL / HONDA / KEEWAY /

NISSAN / VOLKSWAGEN

BARCELONA

OTHER SECTORS:PHARMA

STEEL PRODUCTSPERISHABLES

E-COMMERCE:EDREAMS

LETS BONUSPRIVALIA

PARABEBÉS



Lower logistics costs allow an easy access to markets

improving your products competitiveness

Stock costs Warehousing &

labor costs

Transportation &

distribution costs

Short maritime transit

times and high

frequency of ships

reduce stock costs.

Low warehousing

cost (2,5 to 6 €/ m2)

and low labour

costs for preparing

orders (picking).

Competitive road

costs (1 €/km) and

connectivity with Short

Sea Shipping

services with Italy and

north Africa


B) Reduced & competitive logistics costs

From Barcelona, you can reach a market of

400 millions consumers in less than 24/ 48 hours.

Latin America Western

Africa

By all modes

of transport:


C) Distribution capacity to Europe/MED/Africa

• Only location in Southern Europe hosting all together a port, airport, free and logistics zones with warehousing capacity.

• Strong synergies among all transport modes for inbound and outbound flows and global

distribution.

• In Barcelona, Chinese’s companies can find a unique integration of world-class infrastructures,

services and top commercial and logistics partners.

• The Port of Barcelona is Spain’s main transport and services infrastructure.

• In the last 10 years, the port has received more than 1 billion $ of foreign investment, among which

a 400 million € investment by Hutchison in its new semi-automated container terminal.

• Barcelona has a good connectivity in the Mediterranean with Asia and has been recently awarded as

the third most productive port in Europe.

Freight Airport

Logistics & Free zone areas &

warehousing capacity next to port

& airport

Port


D) An integrated logistics hub with port, airport and logistics facilities

Contents




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3

European & Mediterranean logistics hub serving our clients located in Spain, France, Italy, Portugal and North Africa

Location of the Port’s customers

Bordeaux

Paris

Basel

Milano

Expansion of the Port and Logistics areas

Improved connectivity with hinterland and foreland

Excellence in the provision of services+

Largest part completed Hinterland strategy Port services

New investments: Hutchison & Carnival,

Grimaldi, Salamanca group

Direct services with Far East with excellent

transit time

3rd most productive port in Europe

JOC's Port Productivity Report 2014

+

EXAMPLES

GENERAL MOTORS

Import of spare parts fromKorea for MOKKA productionin Zaragoza and distributionin Europe.

INDITEX (ZARA)

Import from Shanghai toZaragoza & Madrid to bedistributed all over theworld.

MANGO

Distribution hub in Barcelonafor the whole world. Inboundflows by vessel, air and truckfor distribution.

Export of animal fooder to China.

Madrid

Lyon

3. Port of Barcelona, main logistics hub in the Mediterranean

Port strategy

www.portdebarcelona.cat

Thank you.

medaports16 | jordi torrent

Economy & Finance