Drewry 2013

1 Drewry | Indonesia Maritime Expo 2013

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Maritime Finance in Indonesia
-Staying afloat in an extremely
challenging environment
Indonesia Maritime Expo 2013
Arjun Batra | Group Managing Director
Drewry Shipping Consultants Ltd
5-7 September 2013, Jakarta
Drewry 2013
3 Drewry | Indonesia Maritime Expo 2013
Drewry
Drewry helps client organisations turn uncertainty into
opportunity. To chart the ecology of risk and reward so the
right decisions can be made, whatever the economic climate.
Enabling clients to emerge stronger than before
We achieve this through:
Our consultancy team - people with senior management
experience in strategic, financial and operational aspects
of shipping related activities. Who can apply a
multidisciplinary and tailored approach to solutions
provision.
Our range of publications covering all key maritime
sectors, keeping business leaders up to date with
trends, projections and opinions.
Drewry 2013
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Drewry
We have unique and exclusive access to a powerful,
independent research capability that underscores our
consultancy and publishing activities.
From our bases in London, Singapore, India and China,
supported by associates across the world, Drewry can deliver
world class advice anywhere and anytime. That is why the
leading shipping companies, port authorities, government
departments and financial institutions choose Drewry.

So the way Drewry sees it is: upturns, downturns, when
business leaders need intelligence, they turn to Drewry. For more
than four decades, our knowledge of shipping and logistics has
helped to transform uncertainty into opportunity, strategy into
revenue streams, vision into better business performance.
Drewry 2013
5 Drewry | Indonesia Maritime Expo 2013
Challenging market
Low freight rate
Low asset values
For whom
Traditional conservative owners
Maintained calm in 2006-2008 period
Made hay while the sun was shining
without expanding
Aggressive and speculative Owners
Expanded in 2006-2008
At high asset price
With high leverage
Current situation in low market
Traditional ship owners
Accumulated large cash reserves
Low debt
Great opportunity
Aggressive and speculative Owners
Destroyed Balance sheet
Very high debt
No ability to take advantage of opportunity
Challenging market environment: For Whom?
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Baltic Dry Index
Baltic Dry Index
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1,000
2,000
3,000
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BDTI BCTI
Baltic Tanker Index
Drewry 2013
6 Drewry | Indonesia Maritime Expo 2013
Current market: Low asset price, Dearth of ship finance
Historical perspective
Very low interest rate has caused risk off approach to investment and asset price bubbles in the ship
prices . Return on Investments requirements have fallen . High volatility in prices.
Shipping sector is being treated like real estate investment and a hedge against inflation.

Current market
Low asset price
Great time for those who have the ability to expand
Low charter rate, Low cash flow
No security for banks to lend against particularly for the small owners
Traditional shipping finance banks have downsized due to losses in shipping and other sectors and
regulatory pressures
As market recovers and cash flow improves, Banks finance will become available again , This may be the
traditional ship financiers or new banks.

Source: Drewry Maritime Research
Drewry 2013
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Drewry Maritime Equity Research
DMER, a new investment service from Drewry
Significant opportunity to deliver independent and
unbiased equity research advice to the institutional
marketplace

Strives to deliver best in quality investment service
on listed maritime companies leveraging Drewrys
market leading expertise within the maritime sector

Coverage Universe
12 Global Port Operators - 12 Ports covered,
Cosco Pacific, HPH Trust, ICTSI, DP World, CMHI,
Dalian Port, Tianjin Port Dev, Santos Brasil, Global
Ports Inv, HHLA AG

15 Global Container Companies - Neptune Orient
Lines, Orient Overseas Int Ltd, China Shipping
Container Lines, A P Moller Maersk, Evergreen
Marine, Yang Ming Corp, Hanjin Shipping, Hyundai
Merchant Marine, NYK, Mitsui OSK Lines, K line

Container Manufacturing and Leasing - CIMC,
Singamas, TAL international, Textainer,

Drewry Financial Research Services Ltd. is authorised by the Financial Services Authority (FSA). Firm FSA Ref No - 572297
Write to us at equityresearch@drewry.co.uk or call +65 - 6220 9890
Drewry 2013
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Thank you.
We have offices in
London, Delhi,
Singapore and Shanghai
enquiries@drewry.co.uk
market reports and forecasts consultancy services on the
shipping and ports industries
freight procurement benchmarking
and advice to importers and exporters
specialist research service and
forecast for maritime investors
Drewry 2013
9 Drewry | Indonesia Maritime Expo 2013
Contact
UK Office
Drewry Shipping Consultants Ltd
15-17 Christopher Street, London EC2A 2BS,
United Kingdom
t: +44 (0)20 7538 0191
e: enquiries@drewry.co.uk
India Office
Drewry Maritime Services Private Limited
209 Vipul Square, Sushant Lok-1
Gurgaon, Haryana-122002, India
t: +91 124 497 4979
e: india@drewry.co.uk
Singapore Office
Drewry Maritime Services (Asia) Pte, Ltd.
15 Hoe Chiang Road, #13-02 Tower fifteen
Singapore 089316
t: +65 6220 9890
e: singapore@drewry.co.uk
China Office
Rep office of Drewry Maritime Services
(Asia) Office 555, 5th floor Standard
Chartered Tower, No. 201 Shi Ji Avenue,
Pudong District: Shanghai, China
t: +86-2161826759
e: china@drewry.co.uk
Email : batra@drewry.co.uk
Mobile: +65 9026 7320
Arjun Batra Group Managing Director