1. YANGZI PORTS
INVESTMENT OPPORTUNITIES
IN CHINA’S BIGGEST GROWTH ENGINE
Port Investor - February 2012
By InduStreams

2. The Yangtze River – An overview
The Yangtze river
stretches about
6,300km from
Tibet to Shanghai
of which 2,600km
is navigable
 The Yangtze runs through 10 provinces covering a region of 430 million
population that contributes about 25% of China’s GDP
 In 2010 more than 1300 mn tonnes of cargo and 7.3mn TEU (containers) were
transported on the Yangtze
 The combination of continuous improvement in capacity (depth and
navigability), focus on developing the Western regions and improving the
environment create strong fundamentals for continued growth in Yangtze area

3. The Lower Reach
 Lower reach covers the section between Nanjing
and Shanghai, it is the main river transportation Yangzhou
channel of the Yangtze River Delta (YRD), which
is one of the most developeded regions in China Nanjing Taizhou
Nantong
 YRD include the provinces of Jiangsu, Zhejiang Zhenjiang
and Shanghai. With 130 million people it Changzhou Zhangjiagang
contributes 22% of GDP and 28% of
Jiangyin Changshu
export/import of China. Expect to maintain as Taicang
the key manufacturing and export/import center
of the country.
 Throughput in this section is about 70% of total
Yangtze throughput In terms of cargo weight.
 A large share of the current volume in the lower Throughput (mill tons)
reach come from transshipment of bulk cargo 160
140
between ocean ports and up river ports. But…. 120
 Ocean going vessels ships can reach Nanjing but 100
80
no further up due to bridge blocked way. 60
40
 New developments continue to take place 20
0
throughout the YRD and in particular on the
north bank.

4. The Middle Reach Middle reach ports: Maanshan
Wuhan - Nanjing
 The middle reach covers the section
Wuhu
between Nanjing and Yichang city, and the
economies and provinces of Tongling
Wuhan
Anhui, Jiangxi, Hunan and Hubei.
 Hinterland provinces have a population of Anqing
total 223 million, contributing 13% of Jiujiang
national GDP.
 Throughput in this section is about 25% of
total Yangtze throughput In terms of cargo Middle reach ports:
weight. Yichang - Wuhan
 The middle provinces are gaining weight in Wuhan
Yichang
national industry output and consumption.
Transportation via Yangtze has been Jingzhou
considered as key factor of development by
all provinces in this section. Throughput (mill tons)
 Deptht varies from 3m to 9m in this section 100
allowing for vessel size of 3,000 to 5,000 50
tonnes or 100-300 TEU for container 0
Maans…
Jingzhou
Jiujiang
Yichang
Anqing
Wuhu
Yueyang
Wuhan
Tongling
shipping. Yueyang
 New development are seen in many of ports
in this section and particularly in Wuhan.

5. The Upper Reach
 The upper reach covers the section between Wanzhou
Yichang and Yibin, it is largely only Chongqing
city and part of Sichuan province Chongqing
 A population of 110 million live in the area with Fuling
an associted economy of (GDP) $328 billion or
about 6% of national GDP.
 Throughput in this section is about 5% of total
Yangtze throughput In terms of cargo weight. Luzhou
Yibin
 Rapid volume growth has been seen in this area
particularly Chongqing. The “Go West” policy
Throughput (mill tons)
and the improvement of navigation condition
100
caused by the Three Gorges Dam clearly played a 90
role. 80
 Ships from Chongqing port can be as big as 350 70
60
TEU or 5,000 tons. All ships has to pass the Dam 50
to reach lower section of Yangtze 40
30
 New development are seen in many of ports in 20
this section and particularly in Chongqing. 10
0
Chongqing Luzhou Yibin
Chongqing data include Fuling and Wanzhou

6. Who might this be relevant for?
 Infrastructure investment funds looking for investments with growth
potential or acquisitions
 Pension and insurance funds with allocation for infrastructure in Asia or
China that have potential to provide stable cash flows
 Private equity funds looking for small to medium sized investments with
high potential upsides
 Seed investors looking to place early capital for potential sell off at later
stage (e.g. to a consortium)
 Container, bulk, oil and other operators with interest to develop and
cooperate with local port groups and governments
 Developers and contractors with ability to take on large marine
infrastructure investments

7. EXAMPLE 1 – PORT WIDE PARTNERSHIP
Investment model This purely an illustrative slide for a JV formed
with a local Port Group. Most agreements are
made on a negotiated basis in China and
(an example) therefore most models are possible. Many port
areas have substantial options for further
logistics developments on the landside.
Port
50% 50% Investor
Group
Land Resource
Joint Venture
+ Equity + Equity
New Logistic
Port Area

8. 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/marketdevelopment

9. APPENDIX
China Consortium by Port Investor

10. Opportunities in the Chinese Port Sector
 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 >25% 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
But 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.

11. Typical challenges in securing investments
The deal pyramid illustrates a few key rules
of the marketplace:
Deal
a) The quality of the output is determined by the
1-5
input – poor market scanning and market
Lead intelligence leads to poor leads
development b) The most valuable deal leads are created pro-
10 - 50 actively through focused market engagement
Focused
c) Each deal lead requires a strong contact and
market engagement engagement base to develop into an actual
100 - 500 investment
Market scanning and d) Only a few of the potential market targets will
intelligence end up as deals - without a substantial
1,000 – 5,000 pipeline no investments or deals
Many believe they can avoid building the pyramid – it’s an
illusion, the deals you get access to are only as good as your
pipeline.

12. Challenges in the Chinese Port Sector
Many Chinese constituents like building on
partnerships – one deal can lead to a
larger number of leads and deals
Deal
With the blessing of local partners and
government, deals can be cut quickly
Once into a stage of exploration of Lead
cooperation there is often presumed
exclusivity for a period development Actual leads eventuate from close
dialogue and relation development –
Any real engagement requires local often very unstructured
Focused
relations and a real proposition to both
government and port market engagement Multitude of local stakeholders
including local government and port
Local presence required for any entities – wide engagement often req.
real insight – several sources Market scanning and
often required for verification intelligence No or little market intelligence
available through desk research

13. The purpose of China Consortium
WHAT
 A group of operators, investors, and
developers many of which have world
leading technology, experience and Shipping lines Asia
funding capability Port industries Latin America
 Not a consortium in the traditional sense Energy and resources Middle East
– there is no forced collaboration just
collaboration opportunities in the many CARGO OWNERS PORT PARTNERS
markets and sectors
WHY
 Combined leverage makes it possible to CONSORTIUM
create much more clout in the local
markets
 Complementary skill-sets from major port DEVELOPERS INVESTORS OPERATORS
infrastructure fields that will allow
synergies as each seek to develop in the Free Zone Pension Fund Container
market Marine Infra. Private Equity Oil & Liquid
 We have been active in the Chinese port Dry Bulk
Construction Sovereign Fund
market for nearly a decade – the market
and its constituents are well suited to
engage with this form of “consortium”

14. APPENDIX
Market Development with Port Investor

15. 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 1,000-5,000

16. 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+ billion
Whether 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!

17. 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!

18. 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 foundation

19. 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.

20. APPENDIX
Choosing your scope

21. 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+ billion

22. 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
1,000-5,000

23. APPENDIX
Just a few of the many opportunities

24. Market development…
…port expansion and new ports potential
Port zones are natural growth
engines for the economy. The
potential to develop and Port Property Dry Port Oil Storage
expand to generate economic
growth and trade for most
Bio Cruise
ports far exceeds their current
footprint. Fuel
Logistic
Bulk Zone
This includes the development
of trade hubs, free
zones, industry zones and Trade Energy
other concepts. Hub Hub
For investors this gives
potential to invest in some of Intermodal Hub Free Zone In-Port Industries
the most valuable industry
property and port
infrastructure.

25. Market development…
…acquisition potential
Among the big acquisition
opportunities are the
portfolios of many shipping …just a few examples…
lines that are expected to Target Transaction value Acquiring party
face a difficult period and Portek portfolio $146mn Mitsui
Tin Can Container Terminal (Zim lines $154mn China Merchants
port owners - some of which 47.5% share)
are looking to do a.o. PPP Malta Freeport (CMA CGM's 50% share) $285mn Yildirim Group
DPW Australia portfolio (75% share) $1.5bn Citi Infrastructure Investors
type deals that essentially Chennai International Terminals (Sical's Not reported PSA International
are asset sales. 27% sare)
ACS Dragados Spanish port portfolio €720mn JP Morgan led consortium
Yantian International Container $520mn Cosco Pacific
Many single asset owners Terminals (APM Terminals' 9.7% share)
Poti Sea Port (80% share) Not reported APM Terminals
also sit with acquisition Santos - BTP (50% from MSC) Not reported APM Terminals
opportunities, some with full
ownership of a terminal or a
port and some with majority
or minority holdings in
specific assets.

26. 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.

27. 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 Zones

28. 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)

29. 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 Bulk

30. APPENDIX
The deal pyramid step by step

31. The PI Deal Pyramid…
Step 4
…an overview Deal Closing the deal
$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 foundation

32. Step 0…
…defining purpose
What is the purpose?
Why are you looking for
an
acquisition, developmen
ts or partnerships?
Purpose

33. Step 0…
…identifying the target
What specifically is
relevant for you to
target, who to partner
with or what to
develop?
Purpose Target

34. 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 Proposition

35. 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
resources while others Focus
cut deals.
1,000-5,000
Purpose Target Proposition

36. Step 2…
…engagement Deal
This is about creating
true engagement – it is Develop
not about desk research
it is about on the
ground direct contact
Engage
with the real decision
makers and getting 50-100
your proposition out
there in the right form. Focus
1,000-5,000
Purpose Target Proposition

37. Step 3…
…development Deal
This is about fast-
tracking and developing Develop
real leads, creating
substantial 10-20
opportunities and
Engage
creating real leverage
to close the deal. 50-100
Focus
1,000-5,000
Purpose Target Proposition

38. Step 4…
…deal Deal
$1bn
Goal! Now use all the great
efforts you did in step 0 to 3 Develop
to make many more!
10-20
Engage
50-100
Focus
1,000-5,000
Purpose Target Proposition

39. APPENDIX
About Port Investor

40. InduStreams was founded in 2011 with a mission to create a more transparent, connected
and informed infrastructure market place.
We launched Port-Investor.com in July 2011, 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.com