Experience in Latvian and other European Port sectors Attractive Port Investments

1. Experience in Latvian and other European Port sectorsAttractive Port Investments Marin Hili Hili Company Ltd

2. Introduction Hili Company – originated in 1923; maritime industry Mariner Ltd – investor, developer and operator of terminals Current operations: • SIA Baltic Container Terminal (BCT) in Riga, Latvia • Terminal Intermodale Venezia SpA (TIV) in Venice, Italy

3. Malta Freeport Terminals Valuable experience at Malta Freeport Chairman for 15 years (from inception in 1988) Transhipment hub in central Mediterranean Redevelopment of Terminal One 1989 : commenced phased redevelopment

4. Malta Freeport Terminals 1995: Over 500,000TEUs; North quay extension and yard expansion complete. Development of Terminal Two 1994: $205m secured for financing 1997: Phase A of facility opened for business 1998: loan restructured and refinanced via 30-year $250m bullet bond 1999: Terminal Two complete

5. AttractivePort Investments Identification of qualities and potentials Successful acquisition of terminals Management interventions and operating procedures Attractive niche terminals

6. General Investment Characteristics Sought • Regional/ location perspective: • Emerging markets (especially in its hinterland) • Affluent supply areas • Size and profile not dominant criteria • Risk assessment – due diligence but not predominant • decision factor • Detailed understanding of the business • Studies to boost terminal activity

7. Intrinsic Potential for Development 1. Contiguous uncommitted areas for expansion • Thorough research • Identification of trends and ideal conditions for market growth • Dependable relationship with PA and other major stakeholders 2. Capacity to take heavy equipment loads • Load-bearing capacity of quay-side and land-side activities and structures

8. Intrinsic Potential for Development 3. Versatility of layout and physical attributes • Adaptable parameters to give terminal potential to switch from conventional operations to container handling 4. Good Transportation Accessibility • Efficient land-based connectivity from gate to hinterland • Rail or/and road

9. Acquired Experience and Feedback 1. Labour Practices • Old labour practices – opportunity to modernise 2. Human Resource Development • On-going training on all aspects of operation • Restructure terminal organisation and train local personnel 3. Synergies and Focus • Company size is to our benefit

10. Acquired Experience and Feedback 4. Individual and Stand-Alone Capability • Each terminal treated as stand-alone business • Sound operational practices within healthy financial scenario • Neatness of planning and timeliness of well-thought interventions makes a successful niche investment

11. Current Operations • 2 European container terminals • Both gateway terminals – handling import/ export cargo • Very different

12. Baltic Container Terminal • Chairman of BCT • Commenced operations in 1996; Mariner acquired full shareholding and managerial responsibility in 1999 • 47ha container terminal • Good rail and road links to large Russian hinterland and other CIS states

13. Baltic Container Terminal Specific characteristics: • Very well placed for Russian cargo • Very good work ethic Challenges: • Reorganisation from Soviet times • Gaining credibility • Political relationship with Russia

14. Terminal IntermodaleVenezia Chairman of TIV In 2003 TIV taken over by Mariner and Marinvest s.r.l. (50:50); Mariner full management responsibility Originally multipurpose; now solely containerised cargo Located at northern most tip of Adriatic Sea

15. Terminal IntermodaleVenezia Specific characteristics: • NE is the richest part of Italy • Venice good catchment area (Trieste has better port mainly due to depth) Challenges • Old labour practices • Great institutional power of unions • Cumbersome PAs

16. Thank you for your attention