波士顿-上海宝钢项目报告-PhaseII-Final-A-23Jul01-JS-dwl-SHI.ppt

RECOMMEND A DEDICATED LOGISTICS MGM STRUCTUREWith Centralized Support Resources Trading FG + SC Region A Mgm Warehouse Logistics mgm Ore Logistics coordinate/ monitor for region level synergy (warehouse) To coordinate with BS mills Chartering (export) Import/export paperwork International Freight Agent Co. Transport services Bao Jin Co. Bao Jiang Co. Bao Tie Co. Bao Tong Co. MJS port operation Chartering Bao Yun Co. BS Ocean shipping Co. Equipment/ Parts Scrap Logistics mgm Logistics mgm FG trading Mgm Warehouse Logistics mgm Logistics mgm Physical assets Logistics SC 1 Chartering Chartering Logistics Logistics Logistics MJS PORT ONE OF KEY LOGISTICS ASSETS OWNED BY BS GROUPA Set of Basic Data of MJS Port BaoSteel Beilun port Ningbo MJS port Shanghai Changjiang River MJS located on an SH neighboring island, close to the regional transportation hub – Beilun port MJS is invested heavily by BS Group Total investment: Total capacity: Investor: Initial investment objective: RMB 1.7 Bn 24 Mn tons, with 50% utilization in first 1-3 years BS Group To enhance BS mills ore supply/distribution Prevent the monopoly of Beilun port Ore-trading was not in the consideration MJS CURRENTLY LACKS COMPETITIVENESS COMPARED TO ITS NEIGHBORING BEILUN PORT High depreciation cost due to its huge investment RMB 1.7 Bn Limited dry bulk only located on an island mostly imported iron ore coal port need railway connection Low actual/utilizable capacity capacity: 1.2 Mn tons now, 24 Mn tons 1-3 years later 80-100 days blackout per year, due to typhoon Inexperienced to manage a port Inflexible service due to BS ownership eg. rigid payment terms Lower depreciation cost from its much lower initial investment RMB 1.0 Bn Multi-functions container, oil, dry bulk, etc located near Ninbo, with convenient ground transportation Higher utilizable capacity capacity: 20 Mn tons no significant blackout dates Experience and expertise in port management Flexible service eg. flexible p