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T CMA CGMGROUP MAGA ZINEWINTER 2013

JACQUES R.SA ADÉChairman and CEO of CMA CGM Group

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THE EXPERTSBaltic States3 CMA CGM women in driving seats

FACE-TO-FACEBula Fiji waterThe next best thing to a trip to Fiji

CMA CGM FLEETCMA CGM Marco PoloRound the world in 77 days

GROUP LIFEBe at the heart of shipping with CMA CGM

FOCUS From RUSSIA to the world

AROUND THE WORLD

Editorial and publication director : Tanya Saadé Zeenny Editor: Thierry Conte, Marianne Lacroix Coordination: Marianne Lacroix Graphic design : CMA CGM STUDIO – David Darmon, Damien Boulanger, Bastien Régis Printing and distribution supervision : Christine Nunes Contributors : Isabelle Brechot, François Caulier, Ludovic Gerard, Lars Kastrup, François Laf� tte, Sabine Lemaire, François Loisel, Michael Pochtarev, Coralie Thuillier Editing : Rachel Bennett, Thierry Conte Photo credits : CMA CGM, Thierry Dosogne, Shutterstock, Philip Plisson, Fiji Water, Exmagina, Patrick Landmann, Christian Dresse Number of issues : 22,000 – Quarterly ISN : 1287-8863

Printed on paper manufactured using a minimum of 60 % recycled � bre and 40 % virgin pulp from certi� ed sources.

CMA CGM Marseille Head Of� ce4, quai d'Arenc 13235 Marseille cedex 02 France Tél : +33 (0)4 88 91 90 00 www.cmacgm.com

Dear CMA CGM Magazine Readers,

CMA CGM started 2013 with two important events for our Group. In January, we sold a minority share in Terminal Link to China Merchants Holding, a move which will give us the means to strengthenour positions in this strategic activity and also to forge strong relationships with an important Asian partner.

Just a few weeks after, we also satisfactorily � nalized our � nancial restructuring, namely the closing of the agreement with our Banks pertaining to the restruc-turing of our debt, the signing of a binding agreement with the French Fonds Stratégique d’Investissement and � nally the agreement with the Yildirim Group to further invest in our own group. All this will result in a signi� cantly more resilient and � exible � nancial structure.

After the delivery at the end of 2012, of the largestcontainer vessel in the world, the 16.020 TEU CMA CGM MARCO POLO, this year, we will receive her two sister ships which will be deployed in our FAL Service and I have full con� dence in the ability of our teams to successfully rise to the challenge.

CMA CGM will continue to proactively adjust its strategy and to integrate the ever changing parameters of World Economy; we will continueour cost reduction program with renewed and increased ambitions; we will bolster our positions

in countries with signi� cant untapped potential and will increase our participation in reefer trade; we will pursue the development of our intermodal services worldwide to complement service to customers.

The 18.000 skilled professionals who work for CMA CGM, whether ashore or at sea, all around the globe, are all striving to meet our customers’ expecta-tions, to reach excellence whatever the circumstancesand to make sure that we are our customers’ first choice.

I hope you will enjoy reading this Magazine which reflects the dynamism of CMA CGM and which connects our Group with its customers and partners.

I am looking forward to our continuous development and success in 2013 and beyond.

The 18.000 skilled professionals who work for CMA CGM, whether ashore or at sea, all around the globe, are all striving

to meet our customers’ expectations.

WINTER 20132 3

AROUND THE WORLD

CMA CGM RECOGNISED FOR EXCELLENCE

IN THE COMPLIANCE AND SAFETY OF ITS FLEET

As part of inspections carried out by state ports (Port State Control) aimed at verifying vessels’ compliance with

international regulations regarding safety at sea, technical / regulatory compliance

and pollution prevention, the Group-owned CMA CGM � eet was awarded the highest

score, according to the rating implemented since 2010 by the Paris Memorandum of Understanding, one of the strictest in the

world.

Recognition of this performance by the authorities proves the level of excellence

achieved by the CMA CGM Group’s vessels and teams. It is the direct result

of team work over several years between the teams at CMA Ships and the SSE

Department and the crews, enabling us to reduce the de� ciency rate by around 20%

between 2011 and 2012.

AROUND THE WORLD

CMA CGM AND CHINA MERCHANTS SIGN AN AGREEMENT FOR THE SALE OF 49% OF TERMINAL LINK

CMA CGM and China Merchants Holdings (International) Company Limited (“CMHI”) have signed on 25th January 2013, the Share Purchase Agreement regarding the sale of 49% of

Terminal Link. Terminal Link, 100% subsidiary of the CMA CGM Group, operates, develops and invests in a global network of terminals located on the world’s key shipping routes.

This signi� cant transaction is the initial cornerstone of a mutually, highly bene� cial strategic partnership between CMA CGM and CMHI in operating and developing container terminals

on a global basis and extending their relationships as business partners while capitalizing on favorable global macro trends.

CMA CGM has been pioneering container shipping industry growth on the Asia – Europe and Mediterranean Basin trading routes. In the continuity of the successful partnerships created with world-class terminal operators through shared control of terminal assets, this important

operation constitutes a unique opportunity to accelerate its development into and strengthen exposure to emerging markets-driven trade � ows, and in particular inbound and outbound

China container traf� c.

CMHI offers port business and services, as well as port-related business in 8 ports across China (including Tianjing, Qingdao, Shanghai, Ningbo, Zhangzhou, Shenzen, Hong Kong and Zhanjiang); and has, in recent years, been actively exploring capturing available opportunities

overseas as one of the means to effectively add new growth drivers to its existing and sustainably growing ports business.

CMA CGM Chairman and Chief Executive Of� cer, Mr.Jacques R. Saadé comments: “CMA CGM is very confi dent about this partnership with CMHI, which represents a unique opportunity to accelerate the Group development into terminals investments internationally. Since the beginning of CMA CGM presence in China, 21 years ago, the Group has always

appreciated to work with Chinese Groups and this strong alliance confi rms CMA CGM willingness to pursue. The complementarity of CMA CGM and CMHI offers could allow

both of us to develop international businesses.”

THE CMA CGM CORPORATE FOUNDATION AWARDS

ITS 2012 PRIZE

The Arts and Development Association was awarded last December the 2012

CMA CGM Corporate Foundation Prize for France. “Offering children

from disadvantaged background an initiation into artistic creation gives

them the opportunity to change their ways of looking at their environment and envisage their future differently”,

explains Mrs Naïla Saadé, President of the CMA CGM Corporate Foundation.

The Foundation also awarded the 2012 Prize for Lebanon to the Association “Foyer de l’Enfant Libanais” (AFEL).

The association has been helping for over 36 years, children with social

or educational dif� culties as well as abused children.

THE GROUP WINS A PLACE IN CHINA SHIPPING GAZETTE’S TOP 10 LIST OF

MOST EFFICIENT PORT AND SHIPPING COMPANIES

CMA CGM was named as one of Top 10 most reliable port and shipping companies

by China Shipping Gazette, one of the largest transport and logistics media outlets

in China, during its annual prize giving ceremony at the beginning of January.

This prize rewards CMA CGM’s values of Courage, Initiative, Imagination and

Integrity which have made it possible for the company to develop and deliver these

exceptional performances.

WINTER 20134 5

Okpo, South Korea, November 12th, 2012. It is an important date for both the CMA CGM Group and the DSME Shipyard for it is today that the CMA CGM MARCO POLO, the largest container vessel in the world, is being named and offi cially joins the CMA CGM fl eet. A bottle of Champagne later, with her 24 crew members on board, she leaves the yard to sail to Ningbo, her fi rst port of call in the FAL 1 schedule, day one of a 77-day voyage which will take her to North Europe and back.

Her crew has actually been on board for the past 4 weeks, testing her at sea, � ne tuning the equipment, testing the 110.000 HP engine capabilities… They were kept very busy indeed as in less than 24 hours she will berth in Ningbo to load her � rst containers and everything must be shipshape. All crew members went through a thorough training course and deck of� cers worked on the Marseilles navigation simulator which faithfully reproduced their future environment. Her master, Captain Velibor Krpan told us, “I started as a 22 years old cadet on Croatia lineset vessels and joined CMA CGM in 2002 on board the 350 TEU CMA CGM ORAN. At that time, I never dreamt of one day being the Master of the largest container vessel in the world. Now, there is no great difference between the 13.800 TEU vessels and this 16.020 TEU vessel in spite of her additional 31 m length. Longer and broader than any other vessel in the fl eet, she nevertheless requires constant attention particularly during port operations, berthing and leaving berth.” Under deck, by the engine, of� cers also went through special training to master the enormous Wartsila engine as well as high-voltage electric installations.

Ningbo, China, November The � rst container has been loaded on board and the CMA CGM MARCO POLO is now fully operative on the FAL 1 service, the Flagship of CMA CGM Services connecting Asia with Europe. The master and the crew know that this � rst voyage will be different from all subsequent ones in as much as all along her itinerary, CMA CGM of� ces and Port Authorities are eager to celebrate the opportunity of the CMA CGM MARCO POLO � rst call in their respective ports. The harbor master offers capt. Krpan a commemorative plaque, as is customary in the merchant marine and back to business. Less than 24 hours later, she sails off to her next port of call.

Shanghai, November The largest container ship in the world calls the largest container terminal, Shanghai which has just succeeded in becoming the #1 container port in the world, taking over arch-rival, Hong Kong. Gorden GUO, CMA CGM China Vice President notes that “from January to September 2012, more than 250 vessels of the group called at Guangdong Terminal handling 0.75 M TEU” Shanghai is the seat of CMA CGM China which celebrated its 20th anniversary in 2012.

Xiamen, November

CMA CGM MARCO POLO called at Xiamen XHDT Terminal, one of the three Asian terminals in which TERMINAL LINK, subsidiary of the CMA CGM Group, has invested, and is strategically located on the China Coast. During her call in Xiamen, the CMA CGM MARCO POLO will handle more than 1500 containers, a good omen for her forthcoming voyage.

Hong Kong, November The crew is ready, dressed up in its of� cial uniform to welcome customers onboard. The CMA CGM Regional Of� ce in Hong Kong which supervises CMA CGM activities in Asia from Japan to Bangladesh, had organized the � rst formal event of this inaugural rotation. The vessel is impressive and the crew is proud to guide the visitors in the depths of this giant. Claude Lebel who heads the Regional of� ce said that “we were very proud to welcome the CMA CGM MARCO POLO in Hong Kong, a superlative vessel… Our customers were impressed not only by her size, but also by her innovative design and technology.”

CMA CGM FLEET

WINTER 20136 7

After Hong Kong, the CMA CGM MARCO POLO called at the ports of Chiwan, the exit gate for the Pearl River Delta and its huge Industrial area and to Yantian. After the � rst week of this voyage, Ante Pezelj, the chief engineer, expresses his � rst impressions: “It is a great honor to be working on the biggest and most powerful engine ever built. The mechanics on the Group’s vessels is of a very high level! Electronically controlled to optimize fuel consumption and load power, it is specially designed for slow-steaming. The reduction in fuel consumption is signifi cant (-3% on average). The engine is also fi tted with a system to optimize the combustion and engine settings at low load. To master all these technologies, I had to do some specifi c training courses before embarking: a course on Wartsila electronic engines, a high voltage course, as the electrical switchboard is 6,600V, and another on Resources Management (managing technical and human resources).”

The vessel leaves Yantian and the crew can for the � rst time enjoy 3 days at sea in a row after the Chinese Tour which is always very tightly scheduled.

Port Kelang, Malaysia, November Port Kelang is key in CMA CGM strategy in Asia. It is CMA CGM # 1 port in volume, where all South East Asia and Bay of Bengal cargo is being transshipped. With nearly 2.4 M TEU handled in Port Kelang, CMA CGM represents more than 56 % of the port volumes. 20 main Line services call weekly Port Kelang fed by a network of 12 feeder services. This port announces the end of the Asian calls and the vessel now leaves for quite a long sailing to join the Mediterranean Sea via the Suez Canal. 11 days at sea and the vessel will reach the mythic Suez Canal.

Sailing up the Red Sea, the CMA CGM MARCO POLO will soon join her convoy for the crossing of the Suez Canal, the mandatory causeway to reach the Mediterranean and Europe. Contrary to the Panama Canal, the Suez Canal offers no particular nautical constraints, no locks, but requires an expensive toll-fee which should approximate 800.000 US$ / passage for the CMA CGM MARCO POLO, an amount which weighs heavily on the bottom line of the Line which may justify, in particular circumstances, a return voyage by the Cape of Good Hope.

Tangier, December After Port Said, the CMA CGM MARCO POLO calls at Tangier, more precisely The EUROGATE Tanger-Med Terminal 2, and another Terminal of which TERMINAL LINK is a shareholder. In Tangier, she will discharge local cargo but also the DELMAS and CMA CGM boxes loaded in Asia and destined to the West Coast of Africa. The Tangier call illustrates the synergies within the Group and the optimization of loading opportunities.

The vessel lefts the Mediterranean sea and sails toward Northern Europe, where the cargo is awaited.

Southampton, December

After Tangier, The CMA CGM MARCO POLO sailed nonstop to Southampton, her � rst port of call in Europe, offering record transit times to our British customers. Flying the Red Ensign, she received a particular welcome in her “Home country”.

Hamburg, December the giant vessel sails back up the Elbe River to reach the port of Hamburg, the Hanseatic metropolis, our gateway to 20 ports in Scandinavia, the Baltic and Russia relayed by a network of 10 dedicated feeders. Entering and Leaving Hamburg, in addition to the welcome flotilla organized by the Port Authorities, she received the “Wilkomm Hôft” salute a tradition dating back to 1952 whereby every vessel approaching from the river Elbe coming from the estuary is being ceremoniously saluted with the Hamburg � ag being lowered and the national � ag of the vessel being hoisted. The welcomed vessel can in return dip her � ag and blow her fog horn. For a large vessel such as the CMA CGM MARCO POLO, the national anthem of the registration country of the vessel is being played.

Zeebrugge, December Leaving Hamburg, she continued her itinerary, calling Bremerhaven, Rotterdam and Zeebrugge where a formal Christening ceremony took place. Mrs. Naila Saadé, the vessel’s godmother, broke the traditional bottle of champagne and wished all the best to the vessel and her crew.

Le Havre, December Her last port of call in Europe, berthing at Terminal de France, another Terminal in the portfolio of TERMINAL LINK, where she completed her loading to Asia. The vessel then left Northern Europe to sail back to the Mediterranean waters and called Malta, Khor Fakkan and Jebel Ali, before calling again in Port Kelang on January 17th. Her call coincided with the discharge of the 50 Millionth TEU handled at Westports Terminal since its opening in 1996, the 52th anniversary of Port Kelang Authority and the breaking of the 10 M TEU mark in 2012.

On January 24th, the vessel is back to Ningbo to start her second voyage...

• Longer than 4 football pitches or 5.5 Airbus A380 aircraft

• Bigger than the Empire State Bulding (381m at the roof) or the Eiffel Tower (324m)

• Engine as powerful as 1.100 x 100hp cars

• A 21-knot thrust equivalent to that of jet engines in 10 Airbus A380s (3,000KN)

• Power production for a town of 16.000 inhabitants, equivalent to a dozen wind turbines (14MW)

• 16.020 TEU capacity, or 97km of containers end to end

ARE YOU AWARE?

(72.72m)(261.5m)

CMA CGM MARCO POLO

(381m at the roof) or the Eiffel Tower (324m)

CMA CGM FLEET

WINTER 20138 9

If you drink bottled water you have probably tasted FIJI® Water, a natural artesian bottled water popular with A-list celebrities, world renowned chefs and consumers worldwide. And yes! FIJI Water really does come from Fiji, a tropical archipelago of over 300 islands located in a remote corner of the South Pacifi c. On Viti Levu, one of Fiji’s largest islands, is the remote Yaqara Valley. Here, on the edge of a pristine rainforest, is the underground source, a deep artesian aquifer which hosts the origins of FIJI Water, and the location of their ISO 14001-certified bottling plant. Welcome to the world of FIJI Water.

“The next best thing to a trip to Fiji”

The production process spreads across two factory � oors, blowing, � lling, capping, labelling, and shrink-wrapping 24 hours a day, � ve days a week. The state-of-the-art bottling facility was designed to protect the water at every step of the production process, and as part of that strict commitment to quality, no human hands are allowed to touch it. In fact, the facility was built directly on top of the FIJI Water aquifer, where a completely sealed delivery system draws the water up from the protected chamber and places it directly into FIJI Water’s iconic square bottles. From here, the bottles are shipped to the four corners of the globe, reaching over 40 countries worldwide stretching across Asia, Northern & Latin America, Europe, Africa and the Middle East and Australasia.

FIJI Water was acquired by Roll Global, a private holding company owned by Stewart and Lynda Rae Resnick in 2004. Roll also own Paramount Citrus and Paramount Farms, the world's largest growers and processors of citrus, almonds and pistachios. Appreciated for its unparalleled taste, FIJI Water is the United States’ leading premium imported water, outselling the next premium imported bottled water competitor by more than 1.5 times in retail sales dollars and is purchased by 1.1 million more households than the nearest premium water competitor.

A meteorological feature known as the South Paci� c Convergence Zone means Fiji receives some 3,000 millimeters of rain a year. The jungle-clad mountains of the interior are often wrapped in heavy cloud and Fiji's isolation ensures rainfall is untainted. Scientists have even dated the water to more than 450 years old. The composition of Fiji’s volcanic rock is different from that found in other locations around the world because it is rich in colloidal silica and it is this that contributes to FIJI Water’s soft, smooth “mouthfeel”. It is the unique mineral pro� le that it picks up as the water � lters down through the island’s volcanic rock that makes the water the choice among discerning consumers and top chefs. Widely available at � ne restaurants and hotels, all major retail channels including grocery and convenience, and through a convenient delivery service.

FACE TO FACE

WINTER 201310 11

FIJI Water is also known for its iconic square bottle available in 330ml, 500ml, 1 litre and 1.5 litre bottles. The standardised shape makes Fiji Water more ef� cient to transport and the high-grade PET (polyethylene terephthalate) plastic used is fully recyclable. In 2010 the company even redesigned its packaging to use 10% less PET (17% less for its 500ml and 330ml bottles) in order to reduce the weight and promote sustainability.

Committed to preserving the purity and biological wealth of this virgin region, FIJI Water has partnered with Conservation International, a leading environmental organization, and implemented a large-scale rain forest conservation project in Fiji. The company is also dedicated to providing access to clean water, health care, and education for the people of Fiji as well as preservation of the 50,000-acre Sovi basin community and environments. Fiji’s largest remaining unprotected rain forest.

To manage its environmental impact, FIJI Water monitors its products’ lifecycle emissions from the manufacture and transportation of raw materials to product consumption and implements and promotes sustainable practices throughout its operations and supply chain. In terms of shipping, FIJI promotes their square bottle design as allowing them to use 10% less trucks when transporting their bottles. Also, their decision to ship their products to New York via the Panama Canal instead of shipping to L.A. and trucking across the United States means 55% less greenhouse gas emissions.

FIJI Water’s strict commitment to environmental stewardship is on par with CMA CGMs well known leadership and commitment to sustainable transport and development. Each offers parallel proactive and innovative products which are compatible in quality and high performance. Both companies have enjoyed a working relationship since 2008. We interview FIJI Water’s Ariel Winton, Strategic Sourcing Manager based in Sydney, Australia about this partnership. Ariel is responsible for setting procurement strategies, packaging management and ocean transport.

What are your main challenges shipping a product produced so remotely to global destinations? With long lead times of 3 months or more there is a huge logistics challenge. Flexible planning is key as forecasts can change at an instant. The use of two distribution models is used to maximise supply channels and warehousing facilities. First, a hub model uses warehouses throughout the globe, based in UK, Canada, Australia and East and West Coast America contracted through 3PL’s. A second model allows for direct selling to the distributor in markets such as Asia and the Middle East. Another challenge is shipping a product from the hot humid climate of Fiji across the globe to more temperate zones causes a problem with temperature fl uctuations. To minimise this effect we use an insulator known as a “thermal blanket” commonly used in the wine industry. These are designed to deliver a sound thermal environment for freight transportation. In addition to trapping air, insulating blankets work by refl ecting radiant heat and preventing air from escaping. A single blanket prevents product inside a shipping container from absorbing the sun’s rays in the summer and prevents warm air from escaping a shipping container during the cold winter months.

Being so far away also means increasing carbon emissions. How do you manage that?FIJI Water primarily transports via water. We are optimizing our logistics to keep the product on container ships for more of the distance to market. Of the major transport modes - ocean freight, air freight, truck, and rail - ocean freight is the most fuel-effi cient and produces the fewest emissions per ton carried and distance travelled. Transport mode decisions have a big impact on emissions. For example sending FIJI Water to New York City, while the route through the Panama Canal takes about three times as long to get to New York City, it results in 55% fewer greenhouse gas emissions.Beyond carbon emissions, FIJI Water has been committed to doing business in responsible ways since its early days and ensuring that both the environment and society are better off as a result of its actions. We strive to operate as a truly sustainable business and look continuously for opportunities to do a little better by our planet and our communities. That means that we are making investments in major environmental projects, changing the lives of tens of thousands of people through our philanthropic work and contributions, and advancing the growth and economic opportunities of the developing nation of Fiji by enabling its much needed participation in our global economy.

Are there any specifi c requirements for transporting premium water?The square bottle shape allows for the maximum utilisation of container space. Using slip sheets instead of wooden pallets allows for 12% – 15% more products in material handling containers. These sheets also signifi cantly reduce material handling costs, decrease loading/unloading time by up to 60% and weighs 1/20 as much as wooden pallets, thus reducing shipping costs. As well as being reusable, recyclable and cost-effective.As the largest containerised exporter in Fiji, FIJI Water has strict operational and quality requirements. It is very important to us that our transport partners understand the supply chain and the planning process. Something that we really appreciate about CMA CGM is the consistent demonstration of an understanding of the brand’s logistical requirements and supply chain and of course ensures its proper execution.

INTERVIEW

FIJI Water’s strict commitment to environmental stewardship

FACE TO FACEBULA FIJI® WATER

WINTER 201312 13

As the largest country in the world with a territory of over 17 million square kilometers, more than twice as large as the United States and sharing borders with 14 countries both in Europe and Asia, Russia is a country of superlatives. With considerable reserves of hydrocarbons and important raw material resources (gold, coal, nickel...), Russia holds incredible wealth. G20 presidency for 2013, entry into the WTO, organization of the Olympic Games in 2014 in Sochi… Russia establishes itself as a major player on the international scene. Overview of this vast country for whom many challenges still lie ahead.

ECONOMIC GROWTH AND TRADE FACILITATION

Overall, the economy expanded 4.5% in the � rst half of 2012 and performed well relative to other regions. GDP will continue to grow by 2.3% in the fourth quarter of 2012 and for 2013 growth is forecast at 3.6%. Year-on-year growth currently stands at 0.4% and the World Bank has acknowledged progress made by Russian Government stating that “Russia improved business regulatory climate in 2011-2012 “.

Furthermore after 18 years of negotiations, Russia joined the World Trade Organisation (WTO) as its 156th member on 22 August 2012. This accession is a major step for Russia's further integration into the world economy and will facilitate investment and trade, help to accelerate the modernisation of the Russian economy and offer plenty of business opportunities for both Russian and its trading partners. It also offers tremendous potential for growth in the container market. As a consequence of the WTO accession, Russia will lower its import duties, limit its export duties, grant greater market access for services providers and facilitate rules and procedures in many areas affecting bilateral economic relations. Of particular importance will be regulations on customs procedures, the use of health and sanitary measures, technical standards and the protection of intellectual property. In all, Russia concluded 57 bilateral agreements on market access for goods. According to Michael Pochtarev, “Russia's WTO membership will give a major boost to further development of the economic relationship worldwide and also prevent Russia from adopting unilateral tariff hikes as has been the case in the past“.

To support the economic expansion of Russia, the country is facing an important challenge: the modernization of its transport infrastructures. With a population of over 150 million, 90% live on the European side representing only 10% of its territory whilst the main production sites are scattered on the Asian side off the Ural Mountains, hence the need to have all the logistics in place ready to move equipment. Since the Soviet Union era, railroads have been the dominant mode of transport with over 90,000 km of track totalling 12% of the world’s railways. In many parts rail transportation is the only way for a container to reach its destination. Whereas the 1,145,000 km road network, is concentrated in the European part of Russia and accounts for only 3% of the world’s roads. So providing intermodal solutions is a challenging business. One cannot write about transport in Russia without mentioning the Trans-Siberian which is the longest railway line in the world. The main route of the Trans-Siberian originates in Moscow at Yaroslavsky Vokzal, runs through Yaroslavl, Chelyabinsk, Omsk, Novosibirsk, Irkutsk, Ulan-Ude, Chita and Khabarovsk to Vladivostok via southern Siberia, 9289 Km long, and was built from 1891 to 1916. CMA CGM uses the Tran-Siberian for the on-carriage of its containers, essentially those downloaded in the Russian Far East ports of Vostochnyy and Vladivostok.

The Russian market, as a consequence of its sheer size, bene� ts from three access gates with the additional feature of one of the Trans-Siberian.

Russia stretches from Kaliningrad, the enclave within the EU borders, to the Sea of Japan. Its land mass touches twenty-two bodies of water and holds twelve seas within its borders. “It is this diversity which makes our business so interesting but also incredibly complex with goods often having to travel up to 8,000 km from the port along the Trans-Siberian Rail, the world’s longest rail link, to reach their fi nal destination“, explains Michael Pochtarev, CMA CGM Russia Managing Director. In terms of economy, the Russia of today has its foundations built on a strong market economy, an economy of enormous

diversity and tremendous vitality. Russia is in the top ten of the world’s biggest economies, with a wealth of natural resources and strong growth. It is backed by a trade surplus, mainly due to oil exports, which makes consumer purchasing power and business investments one of the highest in the world. While growth is stalling in Europe and slowing in other emerging economies Russia’s economy has performed well and as a result, in the last three quarters, year-on-year growth exceeded those of other emerging economies for the � rst time since the global � nancial crisis started.

FOCUS

15WINTER 2013

14

Baltic Sea - The Main Entry To Russia

St Petersburg is the most important port on the Baltic Sea thanks to its proximity to EU countries and their major ports. The Group started a regular service to the port of St Petersburg in 1997 and opened an of� ce in 2004. Our � xed-day weekly services serve the port of St Petersburg five times a week from North Europe (Antwerp, Rotterdam, Hamburg, Dunkirk, Zeebrugge), offering connections to the Group’s global network of lines; the Baltic line also offers services to destinations in the Russian enclave of Kaliningrad and the Baltic countries (Lithuania-Latvia-Estonia) and Finland which also serve as entry gates to the Russian market. The Group recently commenced weekly services to Ust Luga and Kronstadt.

Novorossiysk - On The Shores Of The Black Sea

Novorossiysk is the main and strategic gateway to the South of Russia and an important alternative to the port of St Petersburg, servicing Central and Southern regions of Russia. In 2008, CMA CGM was the first carrier to establish a direct line with the Far East using the BOSPHORUS EXPRESS (BEX) service, showing its keen interest in developing services on this promising market. In October we launched a new service, the CITRUS EXPRESS, connecting Novorossiysk to Turkey and Egypt offering second to none transit time for perishable goods, in addition to the current multi-port Black Sea feeder with Malta being the main hub connecting Novorossiysk with the rest of the world. We also serve the Azov Sea Russian port of Taganrog through Constanta via a connection with our BEX service.

Nakhodka/Vladivostok/Vostochnyy - The Russian Far East

Vostochnyy is in the Russian Far East at the start of the Trans-Siberian Railway which allows smooth delivery of cargo throughout Russia and to neighbouring countries. In September 2011, CMA CGM launched its weekly RUFEX (Russian Far East express) service with a rotation that includes the main Chinese and Korean ports and the Sea of Japan. Given the importance of this key region and its potential to grow, CMA CGM has made a strategic decision to upgrade the Russian Far East coverage in partnership with FESCO, one of the biggest Russian transportation groups. As from January 2013, CMA CGM operates � ve different services directly connecting Vladivostok and Vostochny with all main ports in China and Korea and the rest of the world through a number of transshipment hubs.

The geographical position of Russia is ideal between Europe and Asia and for several years now, with the global warming and the melting of the pole ice, interest has been raising about a new maritime route: the North-East route, linking Europe to Asia via the North of Russia. If this route remains very little used for the moment compared to the Suez Canal (46 vessels in 2012 compared to 50 vessel per day for the Suez Canal), the bene� ts are quite huge as it shortens the transit by 10.000 km. Opened to the international navigation since 2010, this option is carefully studied by many maritime companies but remains very

constraining: the vessels must be Ice-Class and escorted by one of the Russian ice-breaker vessels which are equipped with an onboard hospital and all the equipment to control oil slicks. Russia believes in this project and decided to heavily invest with brand new nuclear ice-breaker vessels and attractive prices. But the IMO might change it all with their “Polar Code” that could ban the use of heavy fuel as it is already the case in the Antarctic. Once the main questions are solved, the North-East route might become the new maritime revolution.

THE NORTHERN ROUTE – THE NEXT HIGHWAY OF THE SEAS ?

THE 3 GATEWAYS

INDICATORS

Popultation

Surface area

GDP (purchasing power parity)

GDP - real growth rate

GDP - per capita (PPP)

Export

Export goods

Main export partners

Imports

Import goods

Main import partners

2011 ESTIMATES

142,517,670 (July 2012 est.)

17,098,242 sq km

$2.383 trillion

4.3%

$16.700

$520.9 billion

Petroleum and petroleum products, natural gas, metals, wood and wood products, chemicals, and a wide variety of civilian and military manufactures.

Netherlands 12.3%, China 6.5%, Italy 5.6%, Germany 4.6%, Poland 4.3%.

$322.5 billion

Machinery, vehicles, pharmaceutical products, plastic, semi-� nished metal products, meat, fruits and nuts, optical and medical instruments, iron, steel.

China 15.6%, Germany 10%, Ukraine 6.6%, Italy 4.3%.

CMA CGM Russia has 13 offices scattered across this vast Russian territory. At its center is the CMA CGM Head Offi ce situated in Moscow. Since our fi rst call to St Petersburg in 1997, the Group has walked a long and successful road. The CMA CGM Russia agency was established in 2004 and within three years became a 100% owned subsidiary of CMA CGM and now has over 220 staff members. Today the Group offers its customers services trough all the main gateways to Russia serving eight ports in total with the most comprehensive territorial and maritime coverage, and unrivalled transportation solutions inland. As a result of all these factors CMA CGM is one of the leading shipping companies ranking 3rd on the Russian market .

FROM RUSSIA TO THE WORLD FOCUS

17WINTER 2013

16

The three Baltic States, Estonia, Latvia and Lithuania were in 2011 the fastest growing economies in the European Union with, for example, Estonia at 7.6% growth giving it the highest growth rate within the EU... Exchanges have have taken a new dimension over the last decade backed by a free trade agreement between Estonia, Latvia and Lithuania known as the Baltic Free Trade Area (BAFTA) which existed between 1994 and 2004 as well as by the strong growth of their neighbor, Russia. Today the three nations are members of the European Union and became World Trade Organisation (WTO) members in 1999 (Estonia/Latvia) and in 2001 (Lithuania).

The three Baltic States are therefore strategically important for CMA CGM the more so as they are also a gateway to the huge Russian market( Ref article on Russia). The CMA CGM Baltic States of� ces are managed by three women, Julia Bichulova in Estonia, Larisa Maskova in Latvia, Irina Michailova in Lithuania, three “experts” to whom we asked to share their vision of the trade and its opportunities.

JULIA BICHULOVA is the General Manager of CMA CGM Estonia which was established in 2006 with its Head Office in Tallinn and is seconded by a team of ten young professionals dedicated to providing containerized transport solutions to their export and import customers over Scandinavia, Baltic and the CIS countries.

IRINA MICHAILOVA is the General Manager of CMA CGM Lietuva (Lithuania), fully owned by CMA CGM with its Head Of� ce in The Port city of Klaipeda and a second office in the Capital city of Vilnius. She is seconded by 16 dedicated and highly quali� ed professionals.

LARISA MASKOVA is the General Manager o f CMA CGM La tv ia which has been a fu l ly owned CMA CGM office since 2011 even though CMA CGM has been active in Latvia since the early 90’s. She manages a dynamic 14 strong team of professionals all striving to meet CMA CGM customers.

“As a member of the European Union, Estonia is considered a high-income economy by the World Bank. The country is ranked 16th in the 2012 Index of Economic Freedom, with the freest economy in Eastern Europe and the former Soviet Union.

Because of its rapid growth, Estonia has often been described as a Baltic Tiger. Beginning 1 January 2011, Estonia adopted the euro and became the 17th

Eurozone member state”.

“In 1990, Lithuania was the fi rst to break away from the Soviet Union and become an independent capitalist economy.

Lithuania soon implemented liberal reforms and became one of the fastest growing countries in the world over the last decade”.

“Latvia successfully completed its 3-year IMF and EU-supported program this year which places the nation within reach of qualifying for euro adoption. Its Euro pegged economy grew by 5.5% in 2011 underpinned by export growth and a recovery in domestic demand.

That growth momentum has continued into 2012 despite deteriorating external conditions, and the economy is expected to expand by 3.5 percent this year with strong growth forecasts of 4 percent for 2013”.

Ladies, can you give us a brief introduction to the economics of your respective countries ?

“CMA CGM offers a weekly service to / from the deep-sea port of Muuga, near Tallinn. Muuga Harbour is one of the few ice-free ports in the Baltic Sea and among the deepest (up to 18 m).

The cargo volume handled accounts for around 90% of the transit cargo volume passing through Estonia. This multifunctional container terminal has a capacity of 450,000 TEU per annum.

In addition to being the main entry point for Estonia trade, Tallinn port is considered to be one of the main gateways for transit cargo to Russia thanks to its free zone facility and its highly developed and well-organized road and rail infrastructure”.

“Lithuania, the largest of the three Baltic countries, has become a well-developed transport corridor between the East and the West.

CMA CGM offers a weekly service to Klaipeda, the northern-most and ice-free seaport on the eastern shore of the Baltic Sea. Klaipeda handles 30 million tons of cargo every year, and accepts large-tonnage Panamax-type vessels. Klaipeda is the best transshipment port for Belarus with on carriage options by road and rail transport.

In fact in 2003 Lithuanian, Ukrainian and Belarusian Railways signed an agreement to enhance the competitiveness of rail delivery-project based on VIKING combined train. The train carries 20 and 40-foot containers as well as semitrailers and trailer-trains (contrailers) from Iljichovsk – Koliadichi (Minsk) – port of Klaipeda”.

“CMA CGM offers a regular dedicated feeder service between Riga and Hamburg where it connects with all the main worldwide CMA CGM ocean services.

With its central geographic position Riga is the largest city of the Baltic States and an important hanseatic seaport. The Freeport has seen containerized cargo increase by 17% (445,000 tons) in the fi rst 10 months of 2012 compared to the same period last year.

The main traffic handled is destined for Russia, Belarus and Central Asian countries. Due to its geographical location, transit services are highly-developed. As the infrastructural hub of Latvia several national roads begin in Riga including the European route E22 and Via Baltica and corridors are backed by a wide warehousing network”.

Can you tell us more on CMA CGM’s offer to its local customers, and beyond?

THE EXPERTS

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BE ATTHE HEART

OF SHIPPINGWITH CMA CGM

Initially, the CMA CGM organization was focused on the ”Line”, the back bone of the company, and each line was a “Business Unit” responsible for its bottom line and as such regrouped all the necessary functions to perform autonomously, with its commercial, operations and support functions. Lines are deciding their pricing policy, they are either directly or through the network selling their services to customers whom they have previously identi� ed, they run their Customer Service, they supervise documentation and invoicing processes. Lines are also responsible for the operations of the vessels they have been entrusted with and imbedded controllers kept the Line Management abreast of results.

To run the line, CMA CGM is a vessel operator but also a Ship-owner and as such employs engineers to conceive, build and maintain the new vessels, crew specialists to man the vessels and manage the crews, etc. As a vessel operator, it needs to charter in vessels that best meet the Lines’ requirements, a task which is the responsibility of the Chartering Department. Bunkers which provide the vessels energy exceed 50% of vessels running cost, hence the importance of managing bunker consumption on board as well as skills in bunker procurement. As a Ship-Owner, CMA CGM employs Seafarers which are obviously manning and running the vessels but their job has also signi� cantly evolved. They need to master new technologies, to integrate a growing number of environmental constraints and a growing number of economical factors linked amongst others to the fuel consumption of the vessel. A Master today can have the responsibility of 186,500 Dwt, 395m long and 54m broad

leviathans costing more than 150 M US$ and carrying cargo of which value also exceeds 150 M US$, a totally different ball game from what prevailed be it 10 years ago. Some seafarers, mostly of� cers, still opt after some years at sea to come ashore where their skills are much appreciated, to join the Lines’ operation Department.

CMA CGM is also a container operator and as such must buy, lease, position, maintain and repair a fleet of containers of all type and need the professionals to handle these tasks. Their primary task is to make sure that the right type of containers are made available to the customers where and when they have been instructed and ensure that these containers meet the highest quality standards. Containers have to move fast and most trades being imbalanced, empties need to be repositioned. Repositioning requires optimum coordination with lines integrating the fact that some times their respective priorities might diverge.

The “Line”, the backbone of CMA CGM

Container shipping has been instrumental in the development of globalization and CMA CGM is one of its leading drivers. The filling ratio on our vessels is a sure indicator of global trade health and it is one of our responsibilities to keep world trade going! Shipping is essentially a “Service Industry” though to provide these services, vessels need to be deployed and each of them is costing the price of a small or medium factory.

CMA CGM is a company of opportunities for those who join it. Being a Global Company, it reaches far beyond the Marseilles Head Office and its 650 strong office network spread over 160 countries needs to be part of the broad picture; hence, some of the jobs

which are available in the Marseilles Head Of� ce, may also be available in one or other countries where CMA CGM has one or more of� ces or agencies as well as more speci� c jobs attached to the agency processes.

Life at CMA CGM has significantly changed in its 35 year existence and the scope of opportunities has grown and diversified tremendously together with the growth of the company which very early promoted the “Spirit of imagination”. From Line operator to global shipping player, that’s what it’s all about.

“But what do you exactly do at CMA CGM?” No doubt we have heard this question asked many times and answering it is more diffi cult that one thinks, one reason being that there is so much to say about what we do. Another reason is that maritime transport does not have a great visibility within the general public. Yes, we do carry our customers’ cargo in containers loaded on a containership from one port to another port, but we are far more than this restrictive picture and CMA CGM spectrum of activities has grown and diversifi ed with the Company.

GROUP LIFE

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Today, whilst the Lines remain the “raison d’être” of the company, the business has grown and incorporate new � elds of activity, Intermodal, Supply Chain Management, Container Terminal management, most of these activities being managed through autonomous subsidiaries. CMA CGM is one of the major global shipping operators to have control over the whole logistics chain offering customers a door-to-door service that integrates inland waterway transport and railways, as well as port handling facilities and logistics on land. Working in both pre and post transportation such as barge, rail, truck as well as in sea freight we deal daily with international sellers and shippers based in perhaps Brazil or China throughout the logistics chain right up to the buyer or consignee who could be as far away as India or New Zealand.

Services which were considered as side business are now strategic priorities such as Reefers and Project and Special Cargo. The handling of both temperature-controlled Cargo into Reefer containers and the handling of Special cargo of which dimensions do not allow carriage into closed containers, require special skills and dedicated organizations have been put in place within Head Of� ce with correspondents worldwide.

Being global, CMA CGM has developed strong relationship with the key shippers, major Corporate Brands, who, most of them are also global and span the world with their products. To manage these customers, a strong customer’s satisfaction culture has been deeply ingrained in the group.

CMA CGM has set up a transversal Global Accounts department catering for these global customers, managing Tenders, Customer Service and Customer daily relationship to secure their cargo on board CMA CGM vessels. This department also runs the Marketing Department which is analyzing market data, providing Senior Management and Lines with decision making information; it also provides sales enhancement tools to the sales Force and the Network. To differentiate itself from the rest of the pack and to remain its customers’ � rst choice, CMA CGM has had to adopt an innovative approach to pricing, introducing objective parameters in the negotiation process with our customers aiming at securing long term partnership, a mutual winning proposal. This in turn requires from the sales force and the line pricing teams new skills and new discipline. CMA CGM is also developing state-of-the-art operation systems including an highly productive website dedicated to eCommerce.

Likewise, growth has also be external, CMA CGM has acquired other Carriers, each of them being a specialist in its own � eld such as DELMAS, ANL, MacAndrews, USL, COMANAV, Cheng Lie Navigation and all of them, in a way duplicate in their respective overseas head Of� ce some of the functions performed by CMA CGM.

Beyond the Lines and their attached hardware, vessels and containers, CMA CGM provides for all the classical supporting fields, Human Resources, Finance and Administration, Legal, Corporate Communication, Information Systems, Agency, etc.

Being Global, CMA CGM and its subsidiaries rely on a worldwide structure, its 650 strong of� ce Network covering 160 countries, employing altogether more than 18.000 Staff. Initially, a third party agency network, it has evolved wherever it was economically or legally feasible into a fully owned Office Network, local staff becoming CMA CGM staff which naturally gave a new dimension to the Human Resources department who has had to developed a comprehensive in-house multi lingual training program to enhance the skills of all our employees taking into account their cultural diversity.

Evolution is the essence in career’s management but opportunities to move upwards are not always available when one feels like moving. The great thing about CMA CGM is its diversity and its size, combining global business

culture with a sustainable commitment to local business knowledge. CMA CGM is committed to staff internal mobility, inspired by the complexity of our business. To continue growing and prospering, CMA CGM must see to it that the people it employs reflects this diversity. Geographical diversity, there are always opportunities to increase one’s experience abroad either in an overseas office or within a subsidiary. Functional diversity also with plenty of opportunities to give a new direction to a career, learn new skills through positive horizontal mobility. Actually, Interpersonal Management is one of the most important skill required in our business.

Hopefully, the above lines will make it easier to all of us to better answer the opening question. To increase our industry visibility and to better promote the CMA CGM Brand, one should always link Ocean Transport with things we value. The good things in our lives are brought to us by ships. These ships give us the ability to live and enjoy life to the full! These ships obviously are CMA CGM Group ships!

Growing beyond the borders of CMA CGMGlobalization and new activities

BE AT THE HEART OF SHIPPING GROUP LIFE

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