1. Panama
Latin America Gateway

2. Panama: “Hub of the Americas”
• Total Container Moves: 5.0 million TEU’s
– Atlantic Ports
• Evergreen
• Hutchinson Industrial Zones
• Manzanillo International Terminal Proposal ofInstalations
I. H TechC orateZonean A
igh orp d ggregated
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– Pacific Ports II. C stru sfor M ltipleU and
on ction u sers
In batorsfor N U
cu ew sers
• Hutchinson III. H TechL isticsw Em asisin
igh og ith ph
A T sp
erial ran ortation
• Tocumen Int’l Airport IV. Trad al an Log
ition d isticsDistribution
VI. H yM ltim alLogistics
eav u od
– COPA / Continental Airlines VII. E sionof Tradition O eration inthe
xpan al p s
C lonFreeZon
o e
– DHL Hub Futuredevelop ent w P R
m ith C C
– FedEx Hub IIIo. H T M ltim dal L istics
igh ech u o og
V Fu reE sionfo T ckTerm al
o. tu xpan r ru in
– UPS Hub V H M ltim
Io. eavy u odalLogistics
• Colon Free Trade Zone Expansion
• Multi Modal facilities Copyright by A P R C N U IN V N AG bH
IR O T O S LT G IE N m .
– Rail System
– Inter Oceanic Highway
– Port Expansion
– Free Zone Expansion

3. Colon Free Trade Zone

4. Colon Free Trade Zone
0% Import Tax
0% Export Tax
0% Income Tax
Time Limit on Storage: None
Port-Warehouse: Integrated
Customs Brokerage:1 hour maximum
Country of Origin: Unchanged
Legal Status: Foreign and Local Companies

5. Colon Free Trade Zone
2008 imports to the Colon Free Zone by CIF value
Country of origin
HONG KONG
Imports: US$8,500MM
JAPAN
8.8% 3.9% UNITED STATES
2.5% SOUTH KOREA
TAIWAN
11.6% ITALY
18.6%
SINGAPORE
FRANCE
1.5%
SWITZERLAND
0.8%
2.0% THAILAND
CHINA
UNITED KINGDOM
1.9% OTHERS
1.5%
18.9%
26.8%
1.2%

6. Colon Free Trade Zone
2008 exports from the Colon Free Zone by FOB value
Country of destination
COLOMBIA
Exports: US$9,000MM ECUADOR
PANAMA
7.3% VENEZUELA
4.5% UNITED STATES
HONDURAS
20.2% CHILE
EL SALVADOR
15.9%
MEXICO
BRASIL
COSTA RICA
GUATEMALA
3.6% NICARAGUA
CUBA
DOMINICAN REPUBLIC
OTHERS
3.0%
2.0%
2.7% 16.5%
2.3%
2.0%
4.6%
5.4%1.6% 2.9% 5.3%

7. Imports & exports to/from the Colon Free Zone by value
12000
10000
8000
Import
6000
Export
4000
2000
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Import 4661.3 5390 5211.9 4039.1 4464.6 4607 4218.5 4004 5075.3 6215.7 6753.1 7625 9335.7
Export 5523.6 6274 5985.2 4938.2 5299.6 5382.9 4843.9 4583.1 5473.6 6661.8 7604.2 8534.9 9874.2
7

8. Warehousing & Distribution
97,000 m2 Total Warehouse Space
24,000 m2 Under Construction (2009)
20,000 m2 Climate Controlled (25ºC)
600 m2 Cold Room (5ºC)
Consumer Electronics (40%)
Pharmaceutical (30%)
Cross Dock (25%)
Cold Chain (5%)
Value Added

9. MIT Logistics Park

10. MIT Logistics Park
Built to US Standards
86,000 m2 warehouse space
Fire Suppression/Prevention System
High Density Racking/Cross Dock
Climate Controlled Storage (25ºC)
Cold Storage (5ºC)
Product Conditioning/Rework Areas
Private Container Yard
24 Hour Survillance
(Electronic/Guards)
Electric Fork Trucks

11. Technology

12. Technology
WMS Features: Bar Code, Locations, WiFi
Inventory Controls: Cycle Counts, Wall to Wall
Performance: Picks per HR, Loading, Unloading
EDI Capabilities: Communicate with outside
systems (SAP, JDE, BPX, BAAN, Legacy Systems)
Internet Integration: Inventories, Orders, Custom
Reports
On-Line Documents
Order Entry: Website for order entry
(end customer/regional office)

13. Website Integration Service
Customized Website Design &
Operation
On site engineers and support
personnel
24/7 order processing
Order pre-processing
Process WorkFlow controls
Automated messaging and
e-mail alerts
Link warehouse information to
sales team in with one website
Integrate with SAP, JDE, Oracle,
SUN, Legacy, etc.
Order track & Trace

14. Value Proposition

15. Existing Distribution Network in Latin America
Origin Data
Chargeable Number of
weight (kg) Shipments
MX 384,422.50 461
NL 359,590.00 344
CR 220,222.50 422
US 35,002.00 221
FR 7,162.00 31
GB 3,547.50 11
AR 2,640.00 4
SG 1,384.00 1
PK 817.00 2
IE 632.50 7
CA 211.50 1
BR 141.50 2
Main shipping origins are US, Total Shipments Inbound CN 56.00 1
NL , MX and CR. The current 400
200 PE 5.00 1
distribution flow is composed of 0 Total
many lanes and lacking cost Main Origins (# of shipments) chargeable 1,015,834.00 1,509.00
400 – 500 weight
improvement opportunities 300 – 400
200 - 300
achieved through consolidation.

16. Possible Distribution Network in Latin America
Origin Data
Chargeable Number of
weight (kg) Shipments
MX 384,422.50 461
NL 359,590.00 344
CR 220,222.50 422
US 35,002.00 221
FR 7,162.00 31
GB 3,547.50 11
AR 2,640.00 4
SG 1,384.00 1
PK 817.00 2
IE 632.50 7
The LATAM market could CA 211.50 1
be divided into three main BR 141.50 2
Total Shipments Inbound
receiving regions, Mexico, 400
CN 56.00 1
Brazil and Panama. Brazil 200 PE 5.00 1
and Mexico will attend their 0 Total
Main Origins (# of shipments) chargeable 1,015,834.00 1,509.00
own markets and Panama will 400 – 500 weight
provide product to the other 300 – 400
200 - 300
main countries in the region.

17. Regional Inventories vs. Local Inventories
As is Model To Be Model using a Regional Hub
• Supply Chain: Direct from Plants in Europe, USA, • Distribution Center in Colon Free Trade Zone in
Mexico & Brazil to Customers Panama
• Lead Time from every mnf. point: 4 – 6 weeks • Customer Purchase Order to Delivery time: 2-7
days
Problems:
• Inaccurate forecasting Solutions:
• Different packaging requirements for products per • Standard packing for the region
countries or customers • Regional Inventory planning
• Small production runs delay delivery times • Freight reduction using sea - air
• Higher freight for smaller shipments • Immediate reaction to market changes
• Reaction time to market: very slow with low • Flexibility of inventory allocation per country
visibility of supply chain (poor service level) • Product Conditioning according to customer’s
• Creates stock-outs &/or excess inventory needs
situations • Less inventory requirements per country
• Non-compliance with bid requirements • Reduction of import and nationalization cost
• Stiff penalties by government institutions • Lower risk of financial impact from currency
• Need for high levels of inventory in each country fluctuation
• Customer credits for expired goods • Capacity of local deliveries to point of sale
• High Write off for inventory obsolescence bypassing local distributors
• Total control and visibility of the supply chain

18. Existing DHL Clients
Electronics
Consumer
Pharmaceutical
Fast Moving Consumer Goods (FMCG)

19. DHL Global Forwarding
Questions and Anwers