F L I N D E R S L O G I S T I C S1

2019 SAFC Conference FREIGHT 2030

Channel Widening and Future Development Opportunities

Randall Bonner, GM Group Assets

F L I N D E R S L O G I S T I C S2 F L I N D E R S L O G I S T I C S2

Agenda

1. Who is Flinders Port Holdings?

2. What do we do?

3. Channel Widening Project

What does this mean for

freight in SA?

4. Master Planning

5. Key takeaways

Investment &

Future Drivers / Opportunities

What does this mean for

freight in SA?

F L I N D E R S L O G I S T I C S3

Our Mission

To provide port infrastructure,

stevedoring and logistics services

that exceeds the expectations of

our shareholders, customers,

people and communities.

V

Vision

Connecting

South Australia

to the World

Flinders Port Holdings – Our Vision / Mission

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Flinders Port Holdings Pty Ltd –Shareholding Structure

29%

19%21%

17%

14%

Infrastructure Capital EquipSuper

MTAA State Super NSW

StatewideSuper

• Australian-based boutique infrastructure

investment manager with over AUD1.2bn of

funds under management

• Shareholder since 2010

• National industry based superannuation fund

• Shareholder since 2001

• One of Australia’s oldest superannuation funds

with AUD5bn of investments

• Shareholder since 2001

• One of the largest superannuation funds in

Australia with over AUD37bn of funds under

management

• Shareholder since 2012

• South Australian industry fund with AUD5bn in

funds under management

• Shareholder since 2010

All Australian Ownership - superannuation or investment funds

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2. What do we do?

Group Positioning Statement

Marine Control

Pilotage Towage Ship Arrival Mooring EquipmentStorage &

warehousingIntermodal /

Land Transport

Marine ControlPilot

VesselsTugs Channels Berths Equipment

Warehouse

capabilityPeople

Road, Rail, inland

hubs

Land

Land

Handling & cargo management

Customer Service, Shared Partnerships, Successful Outcomes

F L I N D E R S P O R T H O L D I N G S6

Where do we operate?

Thevenard

Port Pirie

Port Lincoln

Wallaroo

Port Giles

Adelaide

Klein Point

Whyalla

GFG Alliance

Bonython

Santos

Ardrossan

Viterra

3. Channel Widening Project• Short Summary Video of the Project

• What does this mean for freight in SA?

Outer Harbor Channel Widening - Site Location /

Scope of Work

Environment & Technical

▪ 170m (currently 130m)

▪ 14.2 metre depth remains

▪ Between 1.5-2M cubic metres of material removed

▪ Navigational Aids movement

Commencement

▪ Navigational Aids Dec 2018

▪ Dredging Mar 2019

▪ Completion Aug 2019New Location of existing of existing beacons

Existing Beacons

Dredge Material Placement area

Proposed Channel Widening Footprint

Existing Channel Footprint

Additional Width

LEGEND

F L I N D E R S P O R T H O L D I N G S9

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4. Master Planning

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Key Focus Areas

* Timeline / Horizon

* Who will we engage with?

* Will you get to see our Master Plan?

Timeline & Planning Horizon

$24B → $38B TRADE - Rail, Road, Sea

25-50 years ahead – We are a long term business

Technology Disruptors

Global Trends – Environmental, Community, Safety, Defence etc.

Customer / Stakeholder Needs

Policy Drivers

Shareholder Interests

Who will we engage with?

Industry Representation

Government

Other Ports Internationally

Internal teams / Board / Shareholders

Recognised Technical Experts

Financial / Macro Economics Experts

Will you get to see our Master Plan?

Yes, it will not sit on a shelf!

We expect discussion / challenge

It will inform our long term strategic direction

Public release circa Nov 2020

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5. Key Takeaways

F L I N D E R S P O R T H O L D I N G S16

Where have we invested?

Recent Investments

Channel Widening Outer Harbor $80M

Terminal Land Expansion Outer Harbor $5.5M

New Northern Rail into Container Terminal Outer Harbor $6M

Common User Berths 18-20 Inner Harbour $6M

Hardstand / Electrical Berths 18-20 Inner Harbour $4M

Port Giles Wharf Port Giles $3M

Thevenard Wharf Thevenard $8M

Port Lincoln Terminal/Wharf Port Lincoln $3M

New Rail Spur + Warehousing Opportunities

Intermodal - 2 x 620m rail spurs

20,000m2 Warehouse

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Where are we investing?

Future Investments – 5 Year look ahead

Thevenard $13-15M

Port Lincoln & Kirton Point $12-16.5M

Port Pirie $6-12M

Wallaroo $3-6M

Klein Point $2-4M

Port Giles $1-2M

Inner Harbour and Outer Harbor (All Assets) $40-60M

Container Terminal – Efficiency Projects $6-8M

Terminal Layout / Current & Future Development

Current Empty Park (4.5ha) Proposed Expansion (6ha+)

Flinders Warehousing & Distribution (3ha)

2 x 620m Spurs

FWD 20,000m2

Warehouse

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Terminal Container Movement - Regular Vs HPV’s

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Q1 11

Q3 11

Q1 12

Q3 12

Q1 13

Q3 13

Q1 14

Q3 14

Q1 15

Q3 15

Q1 16

Q3 16

Q1 17

Q3 17

Q1 18

Q3 18

Q1 19

Q3 19

Regular Vehicles (TEU per Quarter)

HPV (TEU per Quarter)

Liner Rationalisation 2014 - 2018

Regional Container Line (RCL) withdrew from Australian Trades in late 2014

Hapag to merge with UASC likely to take effect in Australia from 1st Qtr 2017.

Cosco and China Shipping merge.=+

Merger of the 3 Japanese Carriers to form a new Japanese liner entity effective April 2018.

Maersk announced takeover of Hamburg Sud in December 2016. Effective 4th Qtr 2017

Hyundai Merchant Marine withdrew from Australian Trades in Feb 2015.

NYK withdrawing from Australian Trades effective October 2015 / Complete by March 2016

Hanjin Shipping filed for bankruptcy in September 2016

APL buyout by CMA-CGM creating the 3rd largest carrier in the world. Ramifications in Australia.

Liner Consolidation + M&A Activity 2014 - 2018

Q4 2016

Q4 2014

Q1 2016

OOCL 90% acquired by Cosco. Completed mid 2018

Q2 2018

=

2019 →

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Future Drivers

Sustainability

Internal Efficiencies

Shipping line consolidation – MANAGING THE PEAKS

Infrastructure is SUPERSIZED

Bulk commodities remain key to this state

Future Drivers

Containers volumes – flatter growth

Working more closely with our customers / stakeholders

Agility

Planning for the future