Automation, Robotisationand the

New Industrial Revolution

5/10/2018 1

Peter McLean, Senior Vice President, Kalmar APAC

World of Artificial Intelligence

10 May 20182

Virtual Reality (VR)

Video Games Online shopping Smart home devices

Smart cars GPS Autonomous ships

Shaping corporate life

▪ Eliminate barriers

Drive economic growth

Embark on success

Lead the market

Create new customers

10 May 20183

Why innovation matters

*y/y growth, Source: Drewry 2017 annual GTO report/ Drewry container forecaster Q3 2017

Global container throughput is estimated to grow at a healthy rate APAC is the primary driver of growth

› APAC is expected stand for 60% of the global throughput

growth.

› Greater China and Southeast Asia are forecasted to account

for 40% and 11,8% of the global throughput growth at 5.3% and

3.7% CAGR, respectively.

389 412 428 447 469 490

209 218 226

235 243

253 101

107 110

114 117

120

0%

1%

2%

3%

4%

5%

6%

-

100

200

300

400

500

600

700

800

900

1,000

2016 2017 2018 2019 2020 2021

APAC EMEA AMER Global y/y change

699737

764796

863+5.4%

+3.7%+4.2%

+4.1%

Throughput development, MTEU

5/10/2018Kalmar Round Table 2018 | Peter McLean 4

829

+4.1% 5,0

4,1

3,5

2,92,6 2,5

2,1 2,12,0 1,9 1,8

0,9

South

Asia

Middle

East

North

America

Oceania

Scandinavia

& Baltic

C. America/

Caribbean

Greater

China

South East

Asia

Africa

South

America

Mediter.

& Black

Sea

North

West

Europe

North

Asia

APACAMEREMEA

3,2

% growth y/y

24 MTEU

2241

10

12 61 221

Total:

707 Mteu

Our part of the world

Cargo transportation:

◼ Represents 10% of the world’s GDP*

◼ Is responsible for 22% of global energy consumption* and 25% of fossil

fuel burning across the world*

◼ Produces 30% of global air pollution and greenhouse gases*

◼ Is getting more and more important as urbanization and globalization

continue

* Source: Center for Environmental Excellence by AASHTO, http://environment.transportation.org/environmental_issues/sustainability/

The Trend of Port Automation by 2020

Greenfields Brownfields Extensions Not known

0

20

40

60

80

100

120

140

1990 - 1999 2000 - 2009 2010 - 2015 E 2016 - 2020

Source: Kalmar Business Intelligence

Number of

brownfield

conversions

expected

to grow faster

than completely

new terminals

Exponential growth would more than double the number of

automated terminals by 2020

Numbers of terminals

6

COST OF UTILITIESCOMPETITIVE ADVANTAGE

Key drivers for automation

COST OF LABOUR

ENVIRONMENTAL BENEFITS

PERFORMANCE & SECURITY

RENEW/ UPGRADE EXISTING

SAFETY

MAINTENANCE AND DAMAGE

Myth behindautomation

Start with a

button

Faster

performance

Overall cost

reduction

Higher

productivity

Truth behindautomation

5/10/2018 9

Consistency

Predictable

Reduces Damages

Improves Planning

Delivers Accuracy

5/10/2018 10

Kalmar automation investment

• Dedicated Automation team

in Finland

• Highly qualified Robotics

team in Australia

• Joint venture in China, RCI

• Project References in Asia,

Europe and America

• Navis/ Xvela software

capabilities

In 2017, Cargotec's software

sales were EUR 159 million

Kalmar automated terminal references

5/10/2018 11

1

4

8

2

5

3

6

7

11

10

9

1. DPW, London Gateway Terminal, UK

2. DPW Brisbane Terminal, Australia

3. VICTL Melbourne, Australia

4. TraPac, Los Angeles, USA

5. ECT Delta Terminal, Netherlands

6. Patrik Terminal Brisbane, Australia

7. Patrik Terminal Sydney, Australia

8. HHLA Container Terminal, Germany

9. PSA Sines, Portugal

10. Yilport/Oslo Port Authority, Norway

11. PSA Pasir Panjang, Singapore

12. Dublin Ferryport Terminal, Dublin, Ireland

13. Noatum, Bilbao Spain

12

Kalmar ASCs and Kalmar shuttle carriers

Kalmar ASCs and Kalmar AutoShuttles™

Kalmar ASCs and Kalmar AutoStrads™

Kalmar ASCs and Kalmar straddle carriers

Kalmar AutoStrads™

Kalmar ASCs

Kalmar AutoRTGs

Kalmar AGVs

Kalmar AutoRMGs

13

Automated terminals

T1

Automated straddle

carrier terminal

• Highly flexible

concept

• Stacking and

transportation by one

type of equipment

• Relatively low initial

investment

• Short time to

realisation

T2

Automated RTG terminal

• Various degrees of

automation possible

• High capacity stack and

manoeuvrability

• Works with terminal

tractors or automated

shuttle carriers

• Both for medium-size

and large terminals

T3

Automated stacking

crane terminal

• Works with

automated shuffle

carriers to decouple

processes and

minimise apron size

• Alternatively works

with automated

guided vehicles

• Supports high stack

volume and density

• Optimised throughput

T4

Hybrid terminal

Several automation

concepts can be combined

in the same terminal,

depending on the unique

characteristics and

requirements of the site.

For example, the new

TraPac extension to the

Port of Los Angeles

features a diagonal

AutoStrad stack in a corner

of the port that would be

impossible to utilise for an

ASC stack.

Three preferred concepts for automation

5/10/2018 13

ASC & AutoShuttle or AGV Straddle Carrier RTG

“Through Kalmar, we will be able to leverage their

knowledge and experience from similar automation

projects throughout the world and get an integrated

system comprising the equipment TLS from Kalmar

and the terminal TOS from Navis. We believe that

this approach to use a key partner for equipment

and software services will help us optimise the

operational performance for the future.”

Christian R. Gonzalez

ICTSI head of the Asia-Pacific region

Case example: Greenfield automation terminalVICT, Melbourne, Australia

Ship to shore cranes

SmartQuay Autoshuttles Auto LashingPlatform

Service

Contract

Data Centre

for IT Systems

Automated

Stacking Cranes

SmartLanes

STS operation • Remote controlled

STS with semi-

automated functions

• Automated twistlock

handling using ALP

• OCR for container ID

recognition

• Exclusion between

STS and

Autoshuttles

ASC stacks• 2 crane ASC blocks

• Access Control

System that ensures

safety of the

personnel

• Own inventory

database

Gate operation• OCR for container

ID recognition

• RFID identification

and/or LPR

Landside operation• Automated truck handling using Kalmar ATH

• Remote control needed only for exception handling

N4 TOS • Holistic

optimization

functions

• Automatic

yard planning

• Automatic

vessel/berth

planning

TLSIntegrated fleet

management

solution for ASC

and

Autoshuttles

AHTS with AutoshuttlesFully decoupled container

handoffs under STS and

ASC ensures best STS

productivity with highest

utilization of the

equipment

5/10/2018 16

Case example: Big bang automation conversionPatrick Autostrad terminal

Equipment & software• 27 Kalmar AutoStrads™ – 3-high

• Inhouse TOS

• Kalmar RTCS

Patricks Brisbane, Australia

Terminal setup:

• Capacity 800 000 TEU

• AutoStrad terminal

The unmanned Kalmar AutoStrads™ can operate 24/7 in almost any weather conditions,

ensuring smooth flow of cargo and significant cost savings.

Patrick’s work force has decreased drastically, as today a crane gang of only 4 people

is needed to operate a ship-to-shore crane and the yard and stacking area

The transition to automation can be done quickly and at low cost.

“We went 12 months without a single lost

time injury among our 160 employees.”

Matt Hollamby

Brisbane manager, terminals division

Patrick

Driving to the Future

The future Port 2060 by Kalmar

20

MAKING YOUR EVERYMOVE COUNT