Standardization of Terminal Construction and
Equipment to be Introduced by APM Terminals

March 30, 2010

Efficiencies and cost savings remain a priority as planning for post-recession emphasizes financial performance as well as operational performance at terminal level.

The Hague, The Netherlands – Standardization of terminal equipment and construction will result in improved financial performance for the APM Terminals Global Terminal Network. Improved economies of scale in consolidated orders to equipment manufacturers, and the simplification of training for equipment operators and other personnel can provide significant savings for a portfolio extending to more than 50 terminals in operation and under construction around the world. APM Terminals’ Senior Vice President and Head of New Terminals in The Hague, Peder Sondergaard stated “Customers are looking for simplified, reliable and cost-effective service to compete in the market. Our terminal design, development and procurement must reflect this”.

The streamlining of repairs and reduced investment required in spare part inventories also represent significant opportunities for cost cutting in an increasingly competitive business environment. “We will discuss practical requirements and establish standards with the functional experts such as terminal operations personnel, Crane & Engineering Services, and design engineers” said APM Terminals Head of Procurement Morten Mortensen; “Then we will take this standard commercially to market and source, negotiate and contract with suppliers”.

APM Terminals is a major purchaser and operator of such expensive and large-scale equipment as Ship-to-Shore (STS) cranes, Rubber-Tire Gantry cranes (RTG)s, stackers, terminal tractors’, reefer racks, terminal vehicles and other related machinery and vehicles, as well as computer and communications equipment. By standardizing the types, sizes and specification of these various assets, terminal savings could be realized in a number of ways.

Not yet in practice to any significant extent within the terminal operating industry, the benefits of equipment standardization for the APM Terminals Global Terminal Network would include the easy transfer of needed assets between facilities as circumstances require, and common standards for benchmarking of optimum yard design, lighting and equipment configurations. Equally important, the potential to reduce the environmental footprint through energy saving equipment is targeted. Adherence to the established standards will be the key factor in the program’s success, particularly as new terminal development projects proceed. 1

About APM Terminals

APM Terminals operates a Global Terminal Network of 50 terminals with 19,000 employees in 34 countries that provide the port infrastructure essential to international transportation and global economic growth. The company is the independent port operator of the A.P. Moller-Maersk Group. The liner shipping industry, served by APM Terminals and other operators, carries $4.6 trillion worth of international trade - approximately one third of the total value of global commerce. The company works closely with the international shipping community and national governments to reduce costs, deliver operational excellence and improve market access worldwide. Access to modern marine infrastructure drives local, regional and international market competitiveness and economic development. In 2007, the global shipping industry provided 4.2 million jobs worldwide, representing compensation of $27.2 billion, and accounted for $29.4 billion in capital investment, generating $183.3 billion to global GDP, according to a recent study commissioned by the World Shipping Council.

For logistics professionals, the Global Terminal Network plays an important role in supply chain management with location, capacity, flexibility and efficiency clearly linked to supply chain success and port-centric logistics.

APM Terminals