Bas Van Helden Route Director Scotland-Belgium

1. The First MacKay Hannah Scottish Maritime Transport Conference Maritime Transport: Scotland’s Sustainable Growth Opportunity Bas Van Helden Route Director Scotland-Belgium

2. Norfolkline Group October, 2009 Developing the Motorway of the Sea between Scotland and the European Continent

3. Norfolkline Group - Historical Milestones 1998: Started ‘Daily Fresh’ as a JV with Post Kogeko & Visbeen 2000: Start of New Route ‘English Channel’ & passenger service 1950: Start of service by Dutch entrepreneur from Vlaardingen 1973: The company was sold to Unilever and re-named Norfolkline 1996: RoRo vessels Maersk Importer & Exporter 1985: The company was bought over by A.P.Moller-Maersk Group 1961: Norfolk lijn was officially founded 2005: D-class vessels introduced 2006: Killingholme route established 2007: Focus on key priorities 2005: AC Forwarding acquisition 2006: Vlaardingen Terminal operational 2004: Purchase of land in Vlaardingen 2005: Norse Merchant acquisition 2006: Sale of Container Business 2001: Purchase of Murfitts Our Future 2009: Start-up new route Rosyth - Zeebrugge 2010 & beyond Continued growth

4. Norfolkline – Ferry Division ROSYTH ESBJERG BELFAST HEYSHAM IMMINGHAM DUBLIN LIVERPOOL KILLINGHOLME SCHEVENINGEN HEAD OFFICE FELIXSTOWE HARWICH VLAARDINGEN DOVER ZEEBRUGGE DUNKERQUE RoPax RoRo

5. Characteristics European Freight ferry market • Key long term trends in freight market: • Macro-economic growth of countries • Increased trade on a regional and global level • Increased unattractiveness of road transport • Governmental stimulation of short sea transport • Hub & spoke concept in logistics • Oil price development • Containerization in some of the markets No. of freight units in million as projected in year 2016 Bridges in Western Scandinavia (around 2.2 million trailers) & the Eurotunnel (around 1.8 million trailers) are included Wild, G.P. 2007. ‘The Ferry industry to 2016, profiting from challenge and change

6. Market characteristics Scotland – Continent ferry market Economic characteristics Average GDP growth per year: 2% (until Q2 2008) Constant rise of economic export (2002 -2007: GBP 9 bln) and manufactured export Major manufacturing industries in Scotland including food & drink industry, paper mills, car tires industry and chemicals Ferry market characteristics Scottish RoRo market expected to range from 170.000 to 240.000 RoRo units in 2007 Geographical distribution: 43% Netherlands, 15% Belgium, 22% Northern France, 20% Western Germany Potential Scottish trade car market around 100,000 cars in 2007 In H1 2009 significant drop in RoRo volume - 20% to 30% YOY

7. Impression Scottish Viking NorfolklineSuperfast Pax details: Pax details: - 800 passengers - 1600 passengers - 109 cabins - 161 cabins - 57 pullman seats - 72 pullman seats Freight details: Freight details: - 2250 lanemeter (120 trailers) - 1745 lm (80 trailers) - 120 trade cars - 70 trade cars - Around 30% lower fuel consumption

8. Benefits of MoS for road industry Speed: - Comparable door-to-door transit time. - More reliable deliveries. Costs: - Lower transport costs per ton product; - Unaccompanied trailers save vehicle costs. Safety: - Low risk for damage by road accidents or for theft; - Operate legally regarding the maximum driving hours for drivers. - Reduction of many road kilometers. Location: - Geographically favorable: Opening to the Benelux, North France, the Ruhr area and North German market; - Close to the major, densely populated and industrialized cities; - Good road and rail connections to all countries of Continental Europe; - Modern port equipment, recently established. - A large potential of skilled labor achieving high productivity.

9. Benefits of MoS for environment - Reduction of congestion by substituting freight transport by road, with transport by short sea; - The new route avoids heavily populated and congested areas like Newcastle, London, Leeds, Rotterdam and Amsterdam. - Road safety: through reduction of congestion a contribution is made to the reduction of road accidents. - The vessel to be employed for the service will use low-sulphur fuel. - Reduction of CO2 and other emissions on European soil. Vessels can transport larger quantities of freight more efficiently. The total amount of CO2-emission reduction due to the reduction in road km’s could go up to: 7 million kg per year

10. Consequences MoS for modal split Average kilometer saving / unit in UK = 409.9 – 72.2 = 337.7 km Average kilometer saving / unit on continent = 235.6 – 249.6 = - 14 km Average kilometer gain / unit at sea = 750.1 – 464.1 = 286 km Average kilometer saving / unit = 37.6 km Average road kilometers saved / unit = 323.6 km

11. Consequences MoS for modal split Total ton.road kilometers saved on annual basis = 100 million tKm Road CO2 saving/year Scotland – European Continent service = 7.3 million kg Total CO2 saving/year Scotland – European Continent service = 4.7 million kg Equivalent to: Plane: 3000 flights to Australia Car: 39.2 million kilometers = 1000x around the earth

12. Corporate Social Responsibility Companies should continuously focus on the creation of long-term value in three dimensions, which are People, Profit and Planet. Social Economic Council, 2000

13. Linking this to CSR – The generation approach Soll: Ferry industry Ist: Ferry industry Swift, T and S. Zadek. 2002. ‘Corporate responsibility and the Competitive Advantage of Nations.’ The Copenhagen Centre and AccountAbility

14. MoS Scotland – European continent Thank you