rail solutions international 1 Why a rail transport

rail solutions international 1

Why a rail transport connection between Asia and Europe is a good alternative? 2 High investments in railway traffic in China, Russia and Europe Go-west strategy: West China becomming logistically more independent from seaports New high-speed routes bring higher capacities in existing railway system New efficient transport solution highly sponsored by official government Railway transport as the most competitive transportation mode in Russia and Central Asia. Increasing frequencies promote own national utilization Block train service (minimum order 40 x 40“) Public train Service (single container booking) Different routes possible: northern and southern routes

Advantages of Rail Solutions International: the intelligent solution for (fast) supply chains to and from Asia. 3 Fast Reliable § Standard terms (door-to-door) approx. 20 -21 days, depending on routes, Comparison: Seafreight takes 40 -42 days § Reduced time-to-market (for seasonal goods) § Excellent reliability with a runtime variance of less than a day § No port congestions or delayed departures Low Priced Simple § Less capital lockup due to short terms § Low priced precarriage due to partial subsidization § Freight costs only ¼ compared to Airfreight § Simple an coherent solution § First-hand clearing from pick-up to customs brokerage and to delivery at destination

Main Transit Routes from China to Europe 4

Comparison of broad gauge 5 1520 mm 1435 mm Russian broad gauge: Russia as well as all other CIS-States, including Finland, Mongolia, Estonia, Latvia and Lithuania have gauges of 1524 mm. Normal broad gauge: China, Mexico and North Amerika use almost exclusively 87 percent of the track gauges of the European Union‘s rail network

Maximal loading 6 Loading max. 53*40‘ 41 -62*40‘ 41*40‘

Transit Times Turkey - Germany 7 Route Terminal-to-Terminal Door-to-Door Istanbul via Triest 6 -7 days 7 -8 days Cesme via Triest 6 -7 days 7 -8 days Mersin via Triest 7 -8 days 8 -9 days Istanbul via Prag 7 -8 days 8 -9 days

Transit Times China - Europe Route 8 Terminal-to-Terminal Door-to-Door North China to Europe 20 days 22 days East China to Europe 18 days 20 days South China to Europe 18 days 20 days Vietnam to Europe 19 days 23 days Korea & Japan to Europe 19 days 23 days

Transit Timd Europe - China 9 Route Terminal-to-Terminal Door-to-Door Europe to North China 20 days 22 -25 days Europe to East China 19 days 22 days Europe to South China 19 days 22 days Europe to Vietnam 20 days 23 days Europe to Korea & Japan 21 days 25 days

Transit Times China – Iran & Mumbai Route Port-to-Terminal Door-to-Door East China to Iran 18 days 19 days South China to Iran 20 days 21 days Vietnam to Iran 22 days 23 days Korea & Japan to Iran 23 days 24 days Mumbai to Moscow 19 days 20 days Mumbai to Almaty 16 days 17 days Mumbai to Tashkent 15 days 16 days Mumbai to Ashgabat 14 days 15 days 10

Hellmann End-to-End Service Rail transport from China to Europe offer new transportation alternatives Pre-Carriage 11 Block Train Service On-Carriage

Standard Freight Service Pre-Carriage § Block train service § Container transportation § Single container on different routes with a competitive run time (40“ / 40 HQ) § Consolidation § Hellmann-own LCL consolidation with 1 departure per week, westbound and eastbound On-Carriage § Loading planning § Transport documentation § Customs clearance Value Added Service § Container transportation § Hanging garments § Goods distribution § Temperature controlled § Unloading planing § Hazardous materials transportation § Transport documentation § Customs clearance 12

LCL IMPORT CONCEPT 13

Hellmann Rail Solutions International: LCL Consolidation Facts § Consignor can bring his goods to the respective Hellmann branch Alashankou Manzhouli Erhoten § Guaranteed weekly departures from Qingdao, Shanghai, Guangzhou, Shenzhen, and Yantian § Maximum run time of 23 days from Hellmann warehous to consignee Qingdao Shanghai Chengdu § Handling und clearing through Hellmann employees § Considerably reduced CO 2 -emission CAN/YTN/SZX § Guarded transport due to armed forces on board and live-GPS-Tracking / Monitoring Areas of production 14 Departure terminal

Hellmann Rail Solutions International: LCL Consolidation Routing Kirow Moskau Ekaterinburg Malaszewicze Nürnberg Brest Iletsk Dostyk Alanshankou Qingdao Shanghai Guangzhou Chengdu 15 Yantian

Hellmann Rail Solutions International: Workflow LCL Consolidation Departure Chengdu: Monday, Thursday and Saturday T-8 Booking Deadline 1 2 3 4 5 6 7 T-5 Container Loading 16 T-2 Export Customs Clearance Closing T-8 Booking Deadline 8 9 10 11 12 13 T+0 T-3 Terminal Train Closing Departure T+16 Import Customs Clearance Closing 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 T+15 Train Arrival T+18 Cargo Delivery

Comparison: Air Freight, Sea Freight, Air-Sea and Rail § Rail Solutions International offers the perfect solution for goods that require faster run times and reduced costs compared to airfreight, e. g. automotive, engineering, hightech or fashion products. § The environmental factor: freight trains produce considerably less CO 2 compared to airfreight. 17

Priduction in Guangzhou, delivery in Southern Germany: end-to-end 0, 20 USD 38 days 18 0, 50 USD 22 days 0, 60 USD 22 days 1, 60 USD 4 days

Volume 2014 / 2015 § Hellmann Rail Solutions International introduced in 2012 § Volume in 2015: § FCL 40“ / 40“ HC / 45“ reefer § Volume in 2014 - 703 x 40 ft. § FCL 40“ / 40“ HC / 45“ reefer § 508 export § 195 import § 1708 export (automotive, engineering parts) § 1271 import (fashion, automotive und retail) § LCL § import: 106 shipments § export: 11 shipments 400% growth from 2014 to 2015! 19

Target Industries Automotive • OEM producer CKD and 1 tier supplier Fashion • Brands, producer, seasonal goods… High-Tech • Laptop, highquality ITproducts… Retail • Sales campaigns… Conclusion: a very good alternative to reducing run times and minimize freight costs! 20 Engineering • A brand new solution for heavy goods

We’re keeping track of business… … Hellmann Rail Solutions International transports more than a thousand luxury cars from Europe to Asia every year. 21

How can we be of services to you? www. hellmann. com 22