Background The Growth Sector Port Logistics and the decisive Role of Tires Rotterdam, 25 June, 2013. In recent years, port logistics have shown a steady market growth of seven percent per year. According to recent estimates, the global port business will double its capacity from 600 Million TEU to 1.2 billion TEU in 2024 (TEU: twenty-foot equivalent units: standard unit for describing a ship’s cargo carrying capacity). The market is characterized by intensive competition and the constant need to optimize operating costs and efficiency. This prospect reflects an immense growth potential for the port operators and for their suppliers, such as tire and equipment manufacturers. But it also indicates big operational challenges. Ports are the chokepoints of world trade and international logistic chains. Limited space often restrains additional growth potential. Constantly increasing cargo volumes have to be handled in tighter and tighter schedules. Reliable tires a key factor for efficient port operation Port fleets are a decisive factor for the smooth operation of harbors. And reliable tires are essential for their safety and operating stability. Especially tire failures frequently cause problems in the logistics chain. A tire puncture on an oversized heavy-duty vehicle such as a rubber tire gantry crane or a reach stacker can lead to severe accidents involving injuries and human fatalities and it can cause tremendous difficulties in the logistics chain. Even a simple tire related downtime of a vehicle can cost a lot of money and coordination efforts. Even though, tire related downtimes are an ongoing issue in the harbor business, a vast number of tires used on harbor vehicles simply are not designed for these challenging conditions. As a result, only a fraction of the tires used on harbor vehicles reach the end of their projected service life in the challenging working environment a harbor represents for commercial vehicles and for tires in particular: Heavy freight has to be moved and high stacks have to be reached. Constant turns and direction changes have to be performed. Your contact: Ute Weiss, Phone: +49 511 938-2131 1/2 Background Uneven surfaces with different and sometimes highly abrasive grounds, potholes, bumps and foreign objects increase tire wear as well as the risk of tire failure. Aside from the fact that tire related downtimes can be costly, tire replacement costs are an important item for managers of harbor fleets. Tires are cost factor number two, second only to fuel costs. In addition, tires have a significant influence on the fuel costs, as about 20 percent of a vehicle’s fuel consumption originates in the rolling resistance of tires. For these reasons, safety, reliability, strong performance and cost efficiency are the most significant priorities for harbor fleet operators when making a decision for their vehicles’ tires. The challenge to suppliers is to offer customized products and systems that are optimized for port operators, avoiding downtimes, offering better safety, reliability, lower rolling resistance and better performance that allows for faster loading times. Improvement of environmental sustainability through state-of-the-art tires In addition to costs and positive economic effects, tires can also contribute a great deal to optimize the environmental performance of port fleets and logistics businesses. As many other businesses, ports have an enormous potential to reduce CO2 emissions and waste accumulation. In future, ports will look to optimize their environmental performance through continuous process optimization and resource efficiency, and they will increasingly often be asked for triple bottom line figures by customers, politics and other stakeholders. Those port operators, who anticipate future customer demands properly and commit themselves to meet rising environmental standards, will achieve mid- to long-term cost savings by reducing fuel consumption and save energy, resources and waste. To sum up, sustainability is a key influencer for corporate reputation and a key influencer for future business opportunities. More and more businesses are forced to monitor their environmental and social performance across their supply-chains. As tires can have a significant impact on enhancing the environmental performance of port fleets, it is one of the major responsibilities of the tire industry today, to support their customers in reaching sustainability commitments. Your contact: Ute Weiss, Phone: +49 511 938-2131 2/2