22

CONTENTSCONTENTS

2. How to realize Smart Port ?

3. Expected Benefits by Case Studies

1. Introduction of Smart Port 5

9

15

0. Intro: Introduce CyberLogitec 2

33

Introduce CyberLogitec0

44

Strength of CyberLogitec Strength of CyberLogitec

We know Logistics & Maritime Biz, and know how to realize it with IT Technologies

We will serve our customers continuously

Possess reliable financial structure

ca. 80 Mil. US$ sales revenue annually

Total ca. 500 employees (90% IT experts)

Possess 3 major subsidiaries (ca. 20 branches)

Start its business from Hanjin Shipping

Possess logistics business domain

Provide a wide range of logistics IT Solution

(Shipping, terminal, 3rd party logistics)

Currently providing its service in 260 countries

Able to provide IT support globally

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Red : Currently operational

Blue : Planned

Hanjin Newport Company

Total Terminal Intl’ Algeciras

Pusan Newport Company

HJS Jacksonville Terminal

Major experience in port areaMajor experience in port area

OPUS Terminal, the solution for automated terminal operation

Consider the feature(s) of automated terminal operation from the very first developing stage

Support total 3 automated terminals worldwide (ca. 23% of the world)

Possess experience of both perpendicular/parallel layout types of terminals

Our Major customers worldwide

Non - Automated Terminal TOS Experi-ence

Non - Automated Terminal TOS Experi-ence

Hansol CSN Terminal Pyongtaek Terminal (West) Pyongtaek Terminal (East) PSA Incheon Container Terminal Daeryong Shipping System Samju Terminal Busan International Container Terminal Busan Kamchun Terminal Ulsan Newport Terminal Pohang Yeongil Newport Terminal

Operation System HJS Kaoshiung Container Terminal Total Terminals Intl’ America

(LGB, OAK, SEA)

Hansol CSN Terminal Pyongtaek Terminal (West) Pyongtaek Terminal (East) PSA Incheon Container Terminal Daeryong Shipping System Samju Terminal Busan International Container Terminal Busan Kamchun Terminal Ulsan Newport Terminal Pohang Yeongil Newport Terminal

Operation System HJS Kaoshiung Container Terminal Total Terminals Intl’ America

(LGB, OAK, SEA)

Automated Terminal TOS ExperienceAutomated Terminal TOS Experience

Hanjin Newport Company Pusan Newport Company (op. DP World) Total Terminal Intl’ Algeciras==================================== HJS Jacksonville Terminal (planned)

Hanjin Newport Company Pusan Newport Company (op. DP World) Total Terminal Intl’ Algeciras==================================== HJS Jacksonville Terminal (planned)

66

Introduction of Smart Port

Crisis and New Opportunities for Ports----------------------------------------6

The Answer: Smart Port--------------------------------------------------------------7

Benefits of Smart Port ---------------------------------------------------------------8

77

Crisis and new challenges of ports todayCrisis and new challenges of ports today

Deepening

competition

Increase of labor cost

Market volatility (Economic crisis of America & Europe)Energy crisis

Environmental problem

Port oversupply(Based on each country’s policy)

High competition between ports in Northeast Asia

Bigger vessel sizeIncreasing productivity demands(Catch-up service)

• How to overcome this high competition?• Can ports be more a higher value-added business than ever?

Ports today are facing great challenges due to various factors.

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The Answer: Smart PortThe Answer: Smart Port

Smart Port: The Future Port

Intelligent energyGreen innovation (less CO2)

AutomationSmart TOSOptimization (inc. AI)

Work based on information which are effective, accurate, reliable,and provided in real time

ECO Friendly High Value Added Human Oriented

Ports should be SMARTER than ever before to overcome this situation.

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Benefits of Smart PortBenefits of Smart Port

Improve productivity : Optimize job process flow Drive down costs : Apply high efficient automated EQ Improve safety : Relocate personnel from dangerous area Optimize resources : Reduce carbon footprint Human oriented : Easy information exchange & knowledge trans-

fer

At Smart Port, eco-friendly savings, value added services, and many other benefits can be realized based on human oriented operation.

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How to realize Smart Port ?

How to realize Eco friendly port? -------------------------------------------------10

How to realize value added port? -------------------------------------------------11

How to realize human oriented port? --------------------------------------------12

Current achievement ------------------------------------------------------------------13

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How to realize Eco-friendly port ?How to realize Eco-friendly port ?

Automated Stacking Crane• Better controller, and electrically driven EQ.

CO2 Monitoring• Measure actual displacement• Set up CO2 reduction goal• Monitor continuously

EQ. Engine improvement• Use Electricity instead of Fuel• Use Hybrid Engine• Use Bio-Fuel Engine

Improve lightning infrastructure• Change Sodium Lamp to LED= ca. 75% saving (Interface with TOS, and save lightning cost based on optimized routing operation)

Improve electricity infrastructure• Smart grid• Renewable resource• Optimized energy-trading• Facilities system

IntelligentEnergy

IntelligentEnergyGreen

Innovation(less CO2)

GreenInnovation

(less CO2)

Port shall change its energy consuming mode to energy saving mode.

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How to realize valued added port ?How to realize valued added port ?

Lean managementArtificial Intelligence

Efficient Controlling

of Automated EQ

Smart TOS

• Auto plan based on experts systemSystem fully capable to support human to act as experts

• Automated Stacking Crane• Automated Horizontal Transport

• Maximize productivity

• Lean managementImprove productivity by cutting down inefficient work and time

(Terminal Operating System)

With Smart IT solutions ports will be able to provide more valuable ser-vice to the customers.

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How to realize human oriented port ?How to realize human oriented port ?

☞ Needs to support human capital (labor and customers) for higher operation improvement

Secure safety

and effi-ciency of

work

“Google-like”

24X7 self service in-formation direct to

customers

User-oriented info. & customized ser-

vice based on “my location”

Real-time in-formation ex-

change

HumanOriented

Port shall fully support human capital to avoid being degraded as an 3D work environment.

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Current AchievementCurrent Achievement

RFID

GIS

Mobile

Wire/wirelessNetwork

Artificial Intelligence

Intelligent Image

Recognition

GPS

Incremental step

towards automation

GateAuto-

mation

YardAuto-

mation

QuayAuto-

mation

FullAuto-

mation

Convergence &

Hybrid Solutio

n

Convergence

☞ However, ‘partially’ is not enough for global optimization.

Smart port technologies are partially applied already around us.

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☞ Maximize terminal productivity by Smart TOS.

Current Achievement Current Achievement

Vessel Productivity ↑Vessel Productivity ↑

Auto HousekeepingAuto Housekeeping

EQ. operation ↑EQ. operation ↑

Auto Grounding SystemAuto Grounding System

Bottleneck ↓Bottleneck ↓

Workload forecastingWorkload forecasting

Maximize

productivity

Maximize

productivity

Empty Travel ↓ Vessel Productivity ↑Empty Travel ↓ Vessel Productivity ↑ Travel Distance ↓ Waiting time ↓Travel Distance ↓ Waiting time ↓

YT Pooling(Dual Cycling)YT Pooling(Dual Cycling) Job schedulingJob scheduling

Smart TOS system today is able to forecast future operation and pre-solve issues before it becomes as a real problem.

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Expected Benefits by Case Studies

Case study1 – HANJIN TTI Long Beach in US ----------------------------- 16

Case study2 – HANJIN Newport in Busan ---------------------------------- 18

Case study3 – HANJIN TTI Algeciras in Spain ---------------------------- 20

Case study4 – SmartLo field study in Busan ---------------------------- 21

Future Port --------------------------------------------------------------------------- 22

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Case Study1 – HANJIN TTI Long Beach terminal in US (Case Study: Smart IT Technology – Partially applied)Case Study1 – HANJIN TTI Long Beach terminal in US (Case Study: Smart IT Technology – Partially applied)

Before: Without D-GPS devices

After: With D-GPS devices

Drayman got job candidates RMG driver’sJob selection

CNTR positionupdates

RMG driverUpdates CNTR position

Truck location monitoring Truck – CHE proximity

CNTR positionupdates

CNTR positionupdates

☞ No manual input by drayman and RTG driver with D-GPS

Automation at the yard (wheeled spot)

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Case Study1 – HANJIN TTI Long Beach terminal in USCase Study1 – HANJIN TTI Long Beach terminal in US

• Clerk (drayman) manning has dropped ▶ 66% reduction realized• One drayman per RTG ▶ One drayman per 3 RTGs

15% Clerk @ 10

hours a day

Trans Count

Current Manning

Future Manning

Total Reduction Daily Cost ROI per year

Day Shift / Weekend 15 18 6 12 $9,550

$11,721 $3,092,550

Night Shift 15 18 6 12 $10,997 $2,172,944

Total 36 12 24 $5,265,494

* D-GPS implementation costs for wheeled spot is less than US$ 4,000,000.

Benefits of automated yard process

Unit: US$

Case Study2 – HANJIN Newport in BusanCase Study2 – HANJIN Newport in Busan

HJNC replaces total 42 yard crane into unmanned ASCs.

* Full automated lift on/off job for internal truck

* Lift on/off job for external truck by remote controller

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Automation at the yard with ASC

* ASC = Automated Stacking Crane

2020

150 yard crane driver (3 shift based) has been replaced by 23 remote controller. (85% reduction realized)

☞ ca. US$ 10,000,000 savings in labor cost annually

Benefits of yard automation with ASCs

Case Study2 – HANJIN Newport in BusanCase Study2 – HANJIN Newport in Busan

* ASC cost vs. Manual RMG cost: only ca. US$ 300,000 difference

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Case Study3 – HANJIN TTI Algeciras terminal in SpainCase Study3 – HANJIN TTI Algeciras terminal in Spain

[OCR camera at Quay in HANJIN TTI Algeciras Terminal, Spain]

OCR camera installed at lashing platform captures automatically CNTR No., door direction, and seal in tact

☞ No tally checker needs to work at quayside

☞ No under man needs to work by automated chassis alignment

☞ Compared to other terminals in Spain, one gang is composed

of 14 labor only (normally 22 labor) at TTIA: 36% reduction realized

Quayside automation with OCR camera

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Case Study4 – ‘SmartLo’ field test in BusanCase Study4 – ‘SmartLo’ field test in Busan

Currently 1,000 trailers are using this service, and monthly 100~150 new trailers are registering continuously.

☞ Compared to other biz area, it may be slow of adapting smart devices.

BUT needs for smart apps. are definitely existing.

1) Track current location of truckby using GPS of Smartphone

2) Interface with TOS and track CNTR information

3) Receive truck booking data4) Smart EIR management → Paperless gate

Apply Smart devices (e.g. smartphones) for fast and convenient logisticsprocess for trucking companies.

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Future PortFuture Port

• Next generation of carrier ships (source : popular science, August 2011)• Super eco ship with solar panel, cleaner fuel, etc.)

What is the future port ?Current ca. 300 million container movements per year will reach 1 billion by 2020.Free accessible technology like ubiquitous WiFi .Fewer carrier’s movements but infinitely higher volume

. <Source: WorldCargoNews, June 2011>

Ports in future may be similar, or total different from the ports today.However, 3 main keywords for ports operation will never change:

☞ Eco friendly Value added Human oriented port …☞ ☞

3 main keywords for ports operation will never change: ☞ Eco friendly / Value added / Human oriented port