THE CHINESE                             OIL SECTOR  INVESTMENT OPPORTUNITIES IN OIL PORTS, STORAGE         AND OTHER DISTR...
The Chinese Port Sector at a glance        Massive container, dry bulk, oil and                         CHINA IN THE WORL...
The Chinese Oil Market – an overview   2005-2015 China refinery capacity                                                  ...
The Chinese Oil Market – long term outlook                                                                               ...
China’s main Oil Ports and SPR’s                            2010 Port Oil & Liquid                                    Capa...
China Consortium and how to participate                   We have cooperation with global as well as local Chinese        ...
APPENDIX                Chinese oil ports – a few of our focus areascontact@port-investor.comwww.port-investor.com
Some of our focus areas in 2012  REGIONS       North: Caofeidian       East: Zhoushan       South: Jiangmen/Taishan/Zha...
Focus area example: Zhoushan  The map shows                                              Lvhuashan                        ...
APPENDIX                 Developing port markets and investmentscontact@port-investor.comwww.port-investor.com
Why?                                              Thousands of ports, assets and projects…                                ...
What?              Bulk                     Financial investor                                                            ...
Who?        Pension funds, terminal operators, free zone developers, insurance funds, oil storage          operators, ship...
How?                                                                           Step 4                                     ...
Now!                            Contact us on contact@port-investor.com...     …and let us help you start developing the p...
APPENDIX                             Choosing your scopecontact@port-investor.comwww.port-investor.com
How can we help you…                                            All constituents have different needs as concerns         ...
How can we help you…                                           Each constituent have different needs as                   ...
APPENDIX                            Just a few of the many opportunitiescontact@port-investor.comwww.port-investor.com
Market development…  …port expansion and new ports potential  Port zones are natural growth  engines for the economy. The ...
Market development…  …acquisition potential  Among the big acquisition  opportunities are the  portfolios of many shipping...
Market development…  …collaboration potential (1)     Greenfield             MATCHING         $1bn               Over the ...
Market development…  …collaboration potential (2)  The port industry has              TERMINAL OPERATORS  thousands of dif...
Market development…  …collaboration potential (3)  The global investment fund           INVESTMENT FUNDS AND PRIVATE EQUIT...
Market development…  …collaboration potential (4)  IMMEDIATE COVERAGE FOR INVESTORS  For those with an interest to        ...
APPENDIX                            The deal pyramid step by stepcontact@port-investor.comwww.port-investor.com
The PI Deal Pyramid…                                                                Step 4                                ...
Step 0…     …defining purpose     What is the purpose?     Why are you looking for     an     acquisition, developmen     ...
Step 0…     …identifying the target     What specifically is     relevant for you to     target, who to partner     with o...
Step 0…     …creating the proposition     With the target in mind     what is your proposition     to them? Why should    ...
Step 1…     …focus                                            Deal     This is about getting     your market intelligence ...
Step 2…                                                  Deal     …engagement     This is about creating                  ...
Step 3…                                                        Deal     …development     This is about fast-              ...
Step 4…                                                                     Deal     …deal                                ...
APPENDIX                             About Port Investorcontact@port-investor.comwww.port-investor.com
InduStreams was founded with a mission to create a more transparent, connected and                           informed infr...
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The Chinese Oil Sector

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The Chinese Oil Sector

  1. 1. THE CHINESE OIL SECTOR INVESTMENT OPPORTUNITIES IN OIL PORTS, STORAGE AND OTHER DISTRIBUTION FACILITIEScontact@port-investor.comwww.port-investor.com
  2. 2. The Chinese Port Sector at a glance  Massive container, dry bulk, oil and CHINA IN THE WORLD TODAY liquids markets - representing an (a few key numbers on the Chinese economy and its Port Sector) immense share of world throughput 1.3 >400  New segments such as bio fuel and Billion people >30% Mill. tons others in rapid development Of world container of crude oil demand + throughput target to further increase oil supply  Limited competition - many ports with reserves one controlling port group 10% Consistent growth  Strong interest with local governments last 30 years – may overtake the US by 11 to attract “multinationals” 2030 Of the worlds 20 biggest ports  Negotiated deals are the norm (vs open and 50+ large tender) 10 >60% “secondary” ports  Less competition for developments Trillion USD Of world iron PPP adjusted GDP ore demand  More deal flexibility Tapping into this potential requires a significantly different approach than most take - it requires a new model that engages local stakeholders in a positive way. For investors just bringing money the window of opportunity may well have passed in China.contact@port-investor.comwww.port-investor.com
  3. 3. The Chinese Oil Market – an overview 2005-2015 China refinery capacity 2005 2009 2010 2015 E Total Capacity (1,000 tonnes) 324,490 478,000 504,800 696,800 Sinopec 163,500 50.4% 216,000 45.2% 237,800 47.1% 314,300 45.1% Petro China 119,390 36.8% 149,000 31.2% 154,000 30.5% 214,000 30.7% Cnooc 500 0.2% 32,100 6.7% 33,500 6.6% 56,000 8.0% Sinochem and others 41,100 12.7% 80,900 16.9% 79,500 15.7% 112,500 16.1% China crudeoil China Oil Exp & Imp consumption and production 300,000 250,000 500,000 60 200,000 ,000 TONS 400,000 50 150,000 40 300,000 100,000 30 200,000 50,000 20 - 100,000 10 2005 2006 2007 2008 2009 2010 - 0 2005 2006 2007 2008 2009 2010 Import Export Consumption Produced in China Dependence for Import %contact@port-investor.comwww.port-investor.com
  4. 4. The Chinese Oil Market – long term outlook  China expected to become the biggest crude oil importer by 2020  By 2035 China import crude oil volume may have tripled  China will be driving global oil demand (not least through growing transportation need)  Growing consumption and dependence on import will drive increasing demand for storage and oil logistics and distribution facilities  Continued support and intention to grow the domestic oil reserves will further drive this trend Notes: Source for above charts is the International Energy Agencycontact@port-investor.comwww.port-investor.com
  5. 5. China’s main Oil Ports and SPR’s 2010 Port Oil & Liquid Capacity for SPR Port SPR Locations Phase Operator Throughput (,000 tons) (mill CBM) Ningbo 80,542 Zhoushan (Zhejiang) I 5 Sinochem Qingdao 65,080 Zhenhai (Zhejiang) I 5.2 Sinopec Tianjing 61,510 Huangdao (Shandong) I 3.2 Sinopec Dalian 61,121 Dalian (Liaoning) I 3 Petro China Zhoushan 45,034 Zhoushan (Zhejiang) II 2.5 Sinochem Huizhou 39,642 Tianjin II 5 Sinopec Nanjing 33,400 Shanshan (Xinjiang) II 8 Petro China Shanghai 25,295 Dushanzi (Xinjiang II 5.4 Petro China Zhanjiang 23,890 Huizhou (Guangdong) II 5 Cnooc Yingkou 21,192 Lanzhou (Guansu) II 3 Petro China Quanzhou 17,130 Jinzhou (Liaoning) II 3 Petro China Yangpu 15,600 Jintan (Jiangsu) II 3 Petro China Total 51.3 Shenzhen 14,469 Laizhou(Shandong) 14,000  4 Strategic Petro Reserve zones are operational Maoming 13,610 (starting in 2008 for Phase 1) Beibu Gulf 12,220  8 SPR zones in Phase 2 are now under construction Zhuhai 12,100  Locations for Phase 3 are being explored and Jinzhou 10,800 planned to add another 43 million cbm of storage Nantong 9,500 capacity Qinhuandao 8,720contact@port-investor.comwww.port-investor.com
  6. 6. China Consortium and how to participate We have cooperation with global as well as local Chinese operators, funds, developers, port groups and many others. As development and collaboration opportunities emerge we involve clients that we have formalized cooperation with and (if relevant) parties that may benefit our existing client network for specific developments or acquisitions. China Consortium is already in motion in several locations. If you would like to be part of it please contact us at contact@port-investor.com and we would be glad to discuss your needs and relevant scope for the Chinese infrastructure market. For more information about developing markets with Port Investor see appendix or go to: www.port-investor.com/marketdevelopmentcontact@port-investor.comwww.port-investor.com
  7. 7. APPENDIX Chinese oil ports – a few of our focus areascontact@port-investor.comwww.port-investor.com
  8. 8. Some of our focus areas in 2012 REGIONS  North: Caofeidian  East: Zhoushan  South: Jiangmen/Taishan/Zhanjiang  Middle: Wuhan  West: Yunnan/Sichuan TARGETS  Private acquisitions  Local greenfield opportunities  Port group partnerships  Energy company partnerships  Consortiums for development zones with oil relevancecontact@port-investor.comwww.port-investor.com
  9. 9. Focus area example: Zhoushan The map shows Lvhuashan Zhoushan prefecture: part of the current Existing oil storage  Thousands of islands, part facilities and the of Zhejiang province, close Developments potential future Yangshan to Ningbo, Shanghai and developments in Planned mouth of Yangtze: major Zhoushan. location for oil port and Shengshan transshipment.  SPR ph1 and ph2.  In 2011 central government Taipingyang (MaAo) Shuangzishan named it “Zhoushan New Area” with strong Tianlu (Dinghai) Guangxia (Huangzeshan) government support.  Existing and new facilities in Sinopec (Cezi) Dachangtu development range from 0.5 to 2.5 million cbm. Sinochem ph2 (Cezi) Gaoting MaAo East Port throughput: Guanghui (Waidiao) (in million tonnes) Sinochem (Aoshan) Haiyue (Damao) Year Total Oil & Liquid SPR ph1 (Aoshan) 2011 260.5 52.0 Damao 2010 220.8 45.0 Wanxiang (Aoshan) 2009 193.0 42.2 Ningbo Jinrun (Liuheng)contact@port-investor.comwww.port-investor.com
  10. 10. APPENDIX Developing port markets and investmentscontact@port-investor.comwww.port-investor.com
  11. 11. Why? Thousands of ports, assets and projects… …hundreds of different investment models… …an infinite amount of opportunities! The challenge – how to tap the potential? Too little time – too few resources… Too big – too small… Too expensive – too risky… Too early – too late… The solution – risk free market engagement and effective deal creation! Deal 50,000 targets 1-5 5,000 markets + Develop 500 investment 10-20 models Engage 50-100 Market intelligence and scanning Matching propositions 1,000-5,000contact@port-investor.comwww.port-investor.com
  12. 12. What? Bulk Financial investor Singapore Dampier Corpus Christi London Southampton Shanghai Hamburg Gladstone Bergen Wilhelmshaven Container Rotterdam New York Primorsk Taichung Calais $10+ million Operator Tianjin Nantong Bremen Bombay Baltimore Ningbo Vancouver Long Beach Barcelona Forth Ports Guangzhou Yantai Corpus Christ Sao Sebastiao Bilbao Greenfield Brownfield Qingdao Hong Kong Nanjing Kitakyushu Algeciras Pohang Lake Charles Trieste Pittsburgh Yanbu Qinhuangdao Tangshan New Orleans Texas City Karachi Dalian Itaqui Grimsby Baton Rouge New Mangalore Developer Majority Busan lianyungang Beaumont Saldanha Bay Tampa Nagoya Tubarao Huntington Paradip Milford Haven Shenzhen Marseilles Constantza Jeddah Odessa Acquisition Oil & Liquid South Louisiana Houston Newcastle Kobe Mobile Hampton Roads Tees Manila Leghorn Paranagua Antwerp Amsterdam Ports St. Petersburg Alexandria Paulsboro Ulsan Osaka Valencia Taranto Tarragona Logistic Zone $100+ million Chiba Port Hedland Tanjung Pelepas Sepetiba Plaquemines Dunkirk Gothenburg Tampa Valdez Texas City Port Kelang Richards Bay Madras Jubail Liverpool Rizhao Hay Point Jawaharlal Nehru Tanjung Priok Savannah Yingkou Novorossisk Los Angeles Zeebrugge Brisbane Seed investor Free Zone Kaohsiung Tokyo Genoa Mormugao Lubeck Inchon Santos Calcutta Durban Pascagoula Yokohama Le Havre Izmit Duluth-Superior Angra dos Reis Minority $1+ billionWhether it is acquisitions, green fields, majority, minority, mature assets, high upside propositions, oil, container or bulk… Whether in China, Middle East, Europe, Latin America or any other nation or region… The opportunities exist or can be created!contact@port-investor.comwww.port-investor.com
  13. 13. Who? Pension funds, terminal operators, free zone developers, insurance funds, oil storage operators, shipping lines, sovereign wealth funds, bulk operators, logistics zone operators, private equity funds, construction companies, industrials, general investment funds, port groups… …that wish to invest …that wish to operate …that wish to develop …that wish to partner …that wish to collaborate The great thing about this? There are many more potential partners to cooperate and find solutions with than there are competitors!contact@port-investor.comwww.port-investor.com
  14. 14. How? Step 4 Deal Closing the deal 1-5 Step 3 Develop Deal development 10-20 Step 2 Engage Engage the most relevant 50-100 Step 1 Market intelligence Focus among the many and scanning 1,000-5,000 Step 0 Purpose Target Proposition Create the foundationcontact@port-investor.comwww.port-investor.com
  15. 15. Now! Contact us on contact@port-investor.com... …and let us help you start developing the propositions you want! For more information on our market development process and the opportunities in the market place please refer to the appendices.contact@port-investor.comwww.port-investor.com
  16. 16. APPENDIX Choosing your scopecontact@port-investor.comwww.port-investor.com
  17. 17. How can we help you… All constituents have different needs as concerns the target locations and the type of investments. These are just a small handful of examples. …relevant scope (1) Bulk Financial investor Singapore Dampier Corpus Christi London Southampton Shanghai Hamburg Gladstone Bergen Wilhelmshaven Container Rotterdam New York Primorsk Taichung Calais $10+ million Operator Tianjin Ningbo Nantong Vancouver Bremen Long Beach Bombay Barcelona Baltimore Forth Ports Guangzhou Yantai Corpus Christ Sao Sebastiao Bilbao Qingdao Nanjing Algeciras Lake Charles Pittsburgh Greenfield Brownfield Hong Kong Kitakyushu Pohang Trieste Yanbu Qinhuangdao Tangshan New Orleans Texas City Karachi Dalian Itaqui Grimsby Baton Rouge New Mangalore Developer Majority Busan Nagoya lianyungang Tubarao Beaumont Huntington Saldanha Bay Paradip Tampa Milford Haven Shenzhen Marseilles Constantza Jeddah Odessa South Louisiana Newcastle Mobile Tees Leghorn Acquisition Oil & Liquid Houston Kobe Hampton Roads Manila Paranagua Antwerp Amsterdam Ports St. Petersburg Alexandria Paulsboro Ulsan Osaka Valencia Taranto Tarragona Chiba Tanjung Pelepas Plaquemines Gothenburg Valdez Logistic Zone $100+ million Port Hedland Sepetiba Dunkirk Tampa Texas City Port Kelang Richards Bay Madras Jubail Liverpool Rizhao Hay Point Jawaharlal Nehru Tanjung Priok Savannah Yingkou Novorossisk Los Angeles Zeebrugge Brisbane Seed investor Free Zone Kaohsiung Inchon Tokyo Santos Genoa Calcutta Mormugao Durban Lubeck Pascagoula Yokohama Le Havre Izmit Duluth-Superior Angra dos Reis Minority $1+ billioncontact@port-investor.comwww.port-investor.com
  18. 18. How can we help you… Each constituent have different needs as concerns the deal pyramid. Some look for solutions all the way from market intelligence to …relevant scope (2) closing actual deals, others only up to and including engagement of the relevant authorities and potential partners. Step 4 Deal Closing the deal 1-5 Lead Step 3 development Deal development 10-20 Step 2 Focused Engage the most relevant market engagement 50-100 Step 1 Market intelligence Focus among the many and scanning 1,000-5,000contact@port-investor.comwww.port-investor.com
  19. 19. APPENDIX Just a few of the many opportunitiescontact@port-investor.comwww.port-investor.com
  20. 20. Market development… …port expansion and new ports potential Port zones are natural growth engines for the economy. The Port Property Dry Port Oil Storage potential to develop and expand to generate economic growth and trade for most Cruise Bio ports far exceeds their current Fuel footprint. Logistic This includes the development Bulk Zone of trade hubs, free zones, industry zones and other Trade Energy concepts. Hub Hub For investors this gives potential to invest in some of the most valuable industry Intermodal Hub Free Zone In-Port Industries property and port infrastructure.contact@port-investor.comwww.port-investor.com
  21. 21. Market development… …acquisition potential Among the big acquisition opportunities are the portfolios of many shipping …just a few examples… lines that are expected to face Target Transaction value Acquiring party a difficult period and port Portek portfolio $146mn Mitsui owners - some of which are Tin Can Container Terminal (Zim lines $154mn China Merchants 47.5% share) looking to do a.o. PPP type Malta Freeport (CMA CGMs 50% share) $285mn Yildirim Group deals that essentially are asset DPW Australia portfolio (75% share) $1.5bn Citi Infrastructure Investors Chennai International Terminals (Sicals Not reported PSA International sales. 27% sare) ACS Dragados Spanish port portfolio €720mn JP Morgan led consortium Many single asset owners also Yantian International Container $520mn Cosco Pacific sit with acquisition Terminals (APM Terminals 9.7% share) opportunities, some with full Poti Sea Port (80% share) Not reported APM Terminals Santos - BTP (50% from MSC) Not reported APM Terminals ownership of a terminal or a port and some with majority or minority holdings in specific assets.contact@port-investor.comwww.port-investor.com
  22. 22. Market development… …collaboration potential (1) Greenfield MATCHING $1bn Over the course of a port infrastructure project • Private Equity the nature of the investment changes from stage • Construction Development Company Port Group to stage. Investors (as well as operators and developers) all have different preferences, some Oil are more suitable for green-field whereas others • Investment Operator look for mature facilities. Likewise each Fund Growth • Operator constituent brings its own set of strengths and Container skills to the table that amongst others can allow Operator the undertaking of larger projects. • Pension Fund Bulk Maturity Operator SYNGERGIZING (1 + 1 = 3) Ultimately this is all about finding synergies Investment between parties with different skills and needs to Fund accelerate development that may not otherwise have been possible or less attractive.contact@port-investor.comwww.port-investor.com
  23. 23. Market development… …collaboration potential (2) The port industry has TERMINAL OPERATORS thousands of different APM Terminals operators and port owners that Oiltanking are ready to collaborate for ICTSI different types of projects at Vopak different stages of the project in different geographies. PORT OWNERS Port of Rotterdam Likewise on the side of the Shanghai International Port Group parties actually owning cargo Abu Dhabi Terminal Company there are many that either Santos Port Group have a need to get better market access on the sea side CARGO OWNERS or have existing facilities that Shipping lines they wish to outsource. Mining and mineral companies Energy companies Industrial Zonescontact@port-investor.comwww.port-investor.com
  24. 24. Market development… …collaboration potential (3) The global investment fund INVESTMENT FUNDS AND PRIVATE EQUITY sector manages more than Macquarie Infrastructure Group $100 trillion. Many want to “get Brookfield Infrastructure Partners real” (assets) and “go direct” JP Morgan Infrastructure Fund (ownership) - they want real Citi Capital Advisors assets with real purpose. Owners or developers of port SOVEREIGN FUNDS assets are in an ideal position to Abu Dhabi Investment Authority tap into that. China Investment Corporation Government of Singapore Investment Corporation Many of the major funds prefer Malaysia Mining Corporation getting in after the development and optimization of a given port PENSION AND INSURANCE FUNDS asset and want substantial deal Ping An (2nd biggest Chinese insurance fund) size - often $100+ million. Ontario Teachers Pension Fund ATP (biggest Danish fund) APG (biggest Dutch fund, 3rd biggest globally)contact@port-investor.comwww.port-investor.com
  25. 25. Market development… …collaboration potential (4) IMMEDIATE COVERAGE FOR INVESTORS For those with an interest to The PI Consortium enter, expand or invest in a specific A new model for investors, developers and operators region (e.g. China) and covering all the key markets within months. Shipping lines Asia Industrials Latin America REAL ENGAGEMENT Fabrication Middle East Our on the ground network directly engages the local decision makers CARGO OWNERS PORT PARTNERS COMPLEMENTARY A group of leading firms with complementary skills and objectives CONSORTIUM enabling a strong proposition towards ports. DEVELOPERS INVESTORS OPERATORS SYNERGISTIC AND NO RISK No heavy regional setup or local office Free Zone Pension Fund Container before you start running Marine Infra. Private Equity Oil & Liquid Construction Sovereign Fund Dry Bulkcontact@port-investor.comwww.port-investor.com
  26. 26. APPENDIX The deal pyramid step by stepcontact@port-investor.comwww.port-investor.com
  27. 27. The PI Deal Pyramid… Step 4 Deal Closing the deal …an overview $1bn Develop Step 3 Deal development 10-20 Step 2 Engage Engage the most relevant 50-100 Step 1 Focus Market intelligence and scanning 1,000-5,000 Step 0 Purpose Target Proposition Create the foundationcontact@port-investor.comwww.port-investor.com
  28. 28. Step 0… …defining purpose What is the purpose? Why are you looking for an acquisition, developmen ts or partnerships? Purposecontact@port-investor.comwww.port-investor.com
  29. 29. Step 0… …identifying the target What specifically is relevant for you to target, who to partner with or what to develop? Purpose Targetcontact@port-investor.comwww.port-investor.com
  30. 30. Step 0… …creating the proposition With the target in mind what is your proposition to them? Why should someone welcome your investment, collaborate or partner with you? Purpose Target Propositioncontact@port-investor.comwww.port-investor.com
  31. 31. Step 1… …focus Deal This is about getting your market intelligence Develop and scanning in place. It is about getting the right targets in sight. Expose and Engage Without it you are going to be wasting valuable time and Focus resources while others cut deals. 1,000-5,000 Purpose Target Propositioncontact@port-investor.comwww.port-investor.com
  32. 32. Step 2… Deal …engagement This is about creating Develop true engagement – it is not about desk research it is about on the ground direct contact Engage with the real decision 50-100 makers and getting your proposition out Focus there in the right form. 1,000-5,000 Purpose Target Propositioncontact@port-investor.comwww.port-investor.com
  33. 33. Step 3… Deal …development This is about fast- Develop tracking and developing real leads, creating 10-20 substantial opportunities and Engage creating real leverage 50-100 to close the deal. Focus 1,000-5,000 Purpose Target Propositioncontact@port-investor.comwww.port-investor.com
  34. 34. Step 4… Deal …deal $1bn Goal! Now use all the great Develop efforts you did in step 0 to 3 to make many more! 10-20 Engage 50-100 Focus 1,000-5,000 Purpose Target Propositioncontact@port-investor.comwww.port-investor.com
  35. 35. APPENDIX About Port Investorcontact@port-investor.comwww.port-investor.com
  36. 36. InduStreams was founded with a mission to create a more transparent, connected and informed infrastructure market place. We subsequently launched Port-Investor.com as a specific sector pilot with focus on port investing and the global port industry. Current state of affairs  200+ port groups and 1,000+ executives and decision makers in the network and increasing  China Port Investor and other regions are being launched  Specific concepts in development with select investors and port groups The Vision  Connecting all substantial port markets (5,000+ globally) with investors (1,000+ globally)  Creating a transparent and informed market place driven by industry leaders and experts  Unleashing the potential inherent in this sector by creating thousands of new investment opportunities (we expect investment potential to exceed $1 trillion) Want to know more or simply engage… …contact us on: contact@port-investor.comcontact@port-investor.comwww.port-investor.com

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