AVE LINE. Marco Polo Information Day 10th of February AVE Line DFDS Lisco DFDS Tor Line Scandlines Transfenica Finnlains Tallink

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1 AVE LINE Latvian national ferry line Marco Polo Information Day 10th of February 2010 AVE Line DFDS Lisco DFDS Tor Line Scandlines Transfenica Finnlains Tallink

2 New ferry line AVE LINE opened on 18th of November,, 2008 Factors starting the ferry line Correctly chosen route Technical possibilities (speed, suitability, capacity, loading speed, etc. ) Business consultancy Modern marketing methods Management of customer needs Ability to adapt quickly to frequent changes in the market

3 AVE LINE basic principles starting the ferry line Ferry line part of the logistic chain To compete with a highway

4 AVE TRANS Logistic Hub

5 AVE TRANS logistic services (door to door ) International haulage service Ferrylineservice Avio service Railway service Container service Customs clearance Customs warehouse AVE TRANS additional services Real estate Insurance broker Legal consultancy Financial and business consultancy Truck s workshop

6 AVE TRANS GROUP TALLINN planned SWEDEN RĪGA МОСКВА LIEPĀJA LUEBECK planned Shanghai

7 AVE LINE basic principles starting the ferry line Ferryline partofthelogisticchain To compete with a highway Extract from the articles in the media during the opening of the ferry line Ferry Line AVE LINE that s neither the first, nor the only line in Latvia and that s positive. Existing ferry lines we consider as our partners, not competitors. We compete with existing habits to use overland routes that is more usual way for transport business. Obviously it is difficult to change habits. But exactly economic crisis is the right time to brake stereotypes and to adapt to new circumstances. To survive we should struggle and search for new solutions.

8 Ferry line effectiveness Ferry line effectiveness

9 Ferry line effectiveness Cabotage + ferry *No driver needed for part of sea route saving driver s salary *No truck tractor needed less trucks more cargoes increased work efficiency saving lower operational costs *Time efficiency grow more ŗealised trips at the same period + OR + + +

10 More than 70 % of companies didn t use ferry lines before AVE LINE customers

11 AVE Line new customers per month (more than 700 in total ) Cargo segmentation of AVE LINE 5% 10% 19% 66% Semitrailers Cars Others Long haulage trucks

12 Companies using ferry lines between Latvia and Germany Other ferry lines 48% AVE LINE 52% Ferry AVE LIEPAJA utilized capacity (%) 2009

13 AVE LINE started activities during the peak of crisis 75% of customers didn t use ferry lines before In short period reached more than 50% of market share Developed modern marketing and management system to operate the ferry line 100% increase of the fuel price (USD) during 2009 heavily influenced operation of ferry lines, logistic and transport companies

14 The budget and current status of AVE LINE project Initially planned 964 Mtkm to be shifted from the road to sea on two vessels during 18 months In 12 months 51% of planned tkm have been fulfilled only by one vessel Marco Polo II financial contribution 1.8 MEUR

15 Thanks AVE LINE customers and we, express our gratitude and appreciation to EU and Marco Polo management for the support and possibility to be involved in the project that assists to realize contemporary logistic technologies, the same time broadening the cooperation between logistic firms and transport company owners from different regions in Europe. Improved road quality, improved life quality. Marco Polo projects like Ave Line, increase the total cargo turnover thanks to optimized transportation service, decreased delivery time, increased efficiency, modern marketing.

16 AVE LINE plans 1. To introduce on Liepaja Travemunde route a ferry with bigger capacity ( l/m) 2. Open new routes 3. In case of necessity in the market, add 1 more ferry on Liepaja Travemunde route Welcome on the board info@aveline.lv Tel: Fax: Uriekstes str.3, Riga, LV