HIGHLY CONFIDENTIAL
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Indian Coastal Barge Proposal
Stellar Ocean Transport, LLC
April 2013
HIGHLY CONFIDENTIAL
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Disclaimer
While this presentation has been prepared in good faith Stellar Ocean Transport, LLC (“SOT”) does not take responsibility for any third party representation or warranty,
explicitly or implied, as to the truth, accuracy or completeness of the information in this presentation or any other information relating to it whether written, oral or in a
visual or an electronic form. The presentation may include references to and summaries of valuations and reports prepared by third parties that have not been
independently verified by or on behalf of SOT.
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Who we are
Untangling Infrastructure Hurdles
About Stellar Ocean Transport (“SOT”)
Stellar Ocean Transport is a Owner/Manager of Dry bulk ships and barges. Our
origins go back to 1989 when we started trading in commodities into India. After
establishing ourselves as a major trading house, we decided to invest in our own
fleet of ships to meet our tonnage requirements. In 2008, the ship management
activity was made into an independent company called Stellar Ocean Transport.
SOT has a monopoly of owning a fleet of the biggest Self-Propelled barges (8,000+
dwt) in the Indian Sub-continent/Persian Gulf region and has indepth knowledge
of managing similar operations.
Track record
 SOT has prior experience managing a similar operation of barging containers
between Nhava Sheva and Mumbai ports.
 Our barges were employed by TATA Steel and S.A.I.L. to carry coal between
Haldia and Visakapatnam/Paradip as they are more economical compared to
ships or rail due to the falling draft at Haldia and shortage of rail rakes.
 We serviced the Fujairah – Mesaieed Aggregate trade through Barges
significantly increasing the quantity of cargo transported by circumventing the
congestion for the bigger ships and exploiting efficiently the economies of scale
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SOT TRACK RECORD: Case Study Dry Bulk
Performance of past shipping investments
Overview
BALTIC DRY INDEXES
20,000



In 2001, anticipating the forthcoming surge in market prices, SOT decided
to invest aggressively in the dry bulk segment purchasing 6 vessels of
different sizes.
Driven by a combination of supply and demand fundamentals in 2002 the
indexes began its 6-year climb reaching the high levels seen in 2008.
Understanding that the market had reached its peak SOT decided to begin
a monetization process of all the assets under its management,
successfully completing a full exit prior to the sudden drop experienced by
the index in 2H 2008
Over the investment period of 6 years, spanning 2002 – 2008 SOT
managed to operate its fleet of 6 vessels profitably and exit at very
attractive price levels with returns averaging 1.3x capital
18,000
SOT exit window
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
FINANCIAL PERFORMANCE OF PAST DRY-BULK ASSETS
1/4/05
1/4/06
1/4/07
1/4/08
BDI
BCI
1/4/09
BPI
BSI
1/4/10
1/4/11
1/4/12
BHSI
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SOT TRACK RECORD: Case Study Barges
Successful Experience in owning, operating and exiting Barges
Overview of Barge Investments

After an attentive and prudent analysis of shipping market opportunities, SOT
decided to deploy the capital gained in 2008 to purchase 3 new built Barges.

Specification of the Barges and operations were:
- MV Royal Star :
NET INCOME PER BARGE
Capacity 8,000 MT
Operated between UAE and Qatar| Cargo - Aggregate
- MV Majestic Star : Capacity 10,000 MT
Operated between UAE and Qatar| Cargo – Aggregate
- MV Platinum Star : Capacity 10,000 MT
Operated in East Coast India | Cargo – Coal & Iron Ore
Deployment Strategy: Taking advantage of Market inefficiencies

Constraint: Fujeirah and Mesaieed Port | Aggregates Cargo
 Mesaieed Port had two berths :
- Berth A – 12.5 meter draughts
- Berth B – 9.5 meter draughts
 Serviced by Supramax vessels with 12.5 meter draughts
 Supramax had to perform lightering of cargo and shifting before completing discharge
due to lower draughts of the Port
 In addition to lightering, due to heavy congestion these Supramax had up to 25 days of
queuing

Opportunity: SOT Management decided to service this route with Barges and handy size
vessel 9.5 meter draughts which was able to berth directly in Berth B and discharge the
totality of the cargo in only 3 days.

Results: SOT increased significantly the number of trips and cargoes per year boosting the
revenues and exploiting efficiently the economies of scale
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SOT – Who we are
Team Profile
Captain Anil Kumar Rathee, Chief Executive Officer
Captain Rathee is a Master Mariner and MICS London certified Chartered Ship Broker. He has over 26 years of
combined sailing and shore experience. Prior to joining SOT he had been working with M/s Apeejay Shipping Limited
for over 8 years. He last held the position of General Manager – Commercial and was responsible for the activities
pertaining to Ship Chartering, Sale and Purchase, Operations, Insurance and Claims.
Captain Rathee is a member of Indian Council of Arbitration, the Institute of Chartered Ship Brokers and the London
Maritime Arbitrator Association
Ihsan Habib, Director
Ihsan is a M.A. graduate from the University of Southern California and also holds a Bachelor of Business Administration
in Finance and MIS from Boston University.
Prior to joining Stellar he worked for an investment banking firm in midtown Manhattan in New York. He was
responsible for utilizing various valuation techniques such as DCF, relative valuation using earnings multiples for
strategic advisory pitches to Jewelry and discount retail companies. He is currently pursuing his CFA charter from the
CFA Institute, USA.
Captain Arijit Mukherjee, Head of Operations
Captain Mukherjee has over 25 years of sailing experience of which last 9 years as Captain of various types of ships. He
is a member of the Institute of Chartered Shipbrokers. He has been a marine surveyor for 3 years prior to joining Stellar.
As a marine surveyor, he was involved in various types of P&I, H&M and damage claims surveys.
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Unique Design
Regional Monopoly of such vessels
Self-Propelled Barges
Towed Barge
Self-Propelled Barges (SPB) are versatile Vessels; their unrestricted
deck space, shallow draft and propulsion system make them suitable
for very different markets such as lighterage, project cargo,
containers or even supply vessel for the offshore Oil & Gas industry.
Self-Propelled Barges combines the speed and maneuverability of a
ship and shallow draft of a Towed Barge. Unlike a Tug-and-Barge
combo no survey is required prior to each sailing and they can
berth/unberth anytime during the day resulting in many ports giving
them berthing priority.
The proposed SPB to be acquired and operated is unique for the
Indian Sub-continent and Persian Gulf region giving a first mover
advantage.
Self Propelled Barges
Versatile design
Our SPBs can be easily modified to carry the following:
• Dry Bulk
• Liquid
• Containers
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QHSE
Fully insured, Safe, Environment friendly operation
Classed, Certified, Insurable Operation
Our Self-Propelled Barges are properly classed by an IACS
member (American Bureau of Shipping) and fully insured
from a IG Club member (North of England P&I). So, the
container cargo carried onboard is also insurable.
Safety
Self-Propelled Barges are fitted with proper ballast system
and therefore are more stable in rough weather with less
rolling & pitching and risk of vessel capsizing is minimized.
Also, being a single unit, risk of towline parting/cargo loss is
eliminated.
Greatly reduced Emissions and Noise pollution
Due to their design, Self-Propelled Barges would deliver
better fuel economy resulting in lower CO2/NO2 emissions
per container
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Turn-Around-Time
Higher Productivity levels for cargo handling
Reliable service
Towed barges are slow and cannot provide weather-reliable transport, so schedule-wise are not dependable. Towed
barges have historically been very vulnerable to weather-induced delays. In some operations in the US Gulf, annualized
weather delays for long-term operations of some tug/barge fleets averaged 30% or more. In the US Northeast, it ran as
high as 40 to 50%, especially in the winter.
24 hours x 365 days operation
Due to safety reasons, many ports restrict Barge movements are after sunset. However, being a ship-shaped vessel, our
Self-Propelled Barges can berth/unberth at anytime. Being susceptible to weather, Barging may not provide
uninterrupted service during the monsoon season.
Speed and Maneuverability
Our Self-Propelled Barges can deliver better speed and fuel economy compared to a barging operation. Also, being
fitted with twin screw engines and bow-thruster, they are very maneuverable. So, may not require Tug-assistance and
Pilot to berth and unberth. As a result, our vessels would deliver much shorter Turn-around-Time and a reliable service.
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Deployment
Prompt positioning, Immediate improvements
Reduced Lagtime
Due to our fleet setup, proposal is based on a ready vessel and it can be
positioned with little lagtime. No time lost for vessel construction, positioning
or conversion.
Greatly Reduced Emissions
Our SPBs provide better speed and consumption compared to a Towed Barge
arrangement and greatly reduce the fuel consumed per freight ton mile by as
much as 50%
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Frees Terminal Assets
Fewer Port resources required
Tug assistance & Pilotage not required
Towed barges are slow and cannot provide weather-reliable transport, so are
not dependable schedule-wise. Towed barges have historically suffered
horrendously as far as weather-induced delays. In some operations in the US
Gulf, annualized weather delays for long-term operations of some tug/barge
fleets averaged 30% or more. In the US Northeast, it ran as high as 40 to 50%,
especially in the winter.
Dedicated Barge jetty may not be required
SOT has experience performing the intended trade previously in 2010 by
lightering coal at Haldia anchorage for TATA Group of companies.
Since our SPBs are classified as Ocean Going Vessels, they can sail to the open
sea to lighter from the Mothership at anchorage and directly deliver to the
Haldia Docks
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