# Presentation: 185951

## Slide 1

## Slide 2

**Notes:**
159 msf is 14.7 m m2 is 30 % of total portfolio

## Port Metrics Driving Industrial Real Estate Demand

- Key metrics in evaluating top port markets for future investment:
- Proximity to large local population base
- Physical port capacity for growth in TEUs handled
- Good road infrastructure from the port
- Inland ports – intermodal rail connections
- For export markets, proximity to diverse manufacturing centers (e.g. Shanghai)
- Availability and cost of labor, degree of union activity, and risk of labor  strikes
- Frequency and availability of dedicated liner service

## Japan : Over Half of Portfolio Located Near Strategic Ports

- Japan : Over Half of Portfolio Located Near Strategic Ports

- ProLogis’ Port Position
- ProLogis Port Related SF	12 msf
- Port-Related Land in Buildable SF 	5 msf

## China : Leading Port Presence

- ProLogis’ Port Position
- ProLogis Port Related SF	2 MSF
- Port-Related Land in Buildable SF	23 MSF

## Chinese Infrastructure Investment

- Photo: Sea Bridge to Yangshan Deepwater Port

- Lingang
- Industrial Area

- Bridge

- Port

- Yangshan Deepwater Port opened in December 2005
- Connected to mainland near Shanghai by sea bridge
- Port will be world’s largest at full buildout
- Total capacity of ~ 25 million TEUs (exceeds combined throughput of top three US ports - LA/LB, NY/NJ & Oakland)

**Notes:**
The Chinese government is pouring money into infrastructure at a level that is unparalleled in history.
Includes investment in rail, airports, highways, seaports and power generation.
Yangshan Port near Shanghai is a great example of this trend.

ProLogis has exclusive right to provide logistics at deepwater port complex
ProLogis Park Lingang can accommodate up to 10 msf at full buildout
Completed facilities at park now 100 percent leased; strong demand from 3PLs (200 sf recently leased to DHL)

## Shanghai – Lingang - Yangshan

## China

- ProLogis Park Lingang

## Asian-West Europe trade growing in excess of 15%

- China-Europe trade greater than China-US
- Formation/expansion of EU
- Growing importance of CEE markets as distribution & light manufacturing hubs
- Shift from local distribution to regional & pan-Europe distribution
- 35-40% functional obsolescence and high oil prices accelerate need to rationalize distribution network
- Increased use of rail

## Regional distribution structure emerge to cover the expanded European region

- Growing importance of regional distribution

- RDC

- ELC

- RDC

- RDC

- RDC

- RDC

- RDC

- Timeline

- Local distribution structure

- Centralised distribution structure

**Notes:**
           Operational costs savings Smaller stocks
           Savings on inbound transport
           Simpler communications
           More efficient logistics           processes
           Faster delivery times

## Infrastructure

## Major growth opportunities in the sector

Changes to infrastructure will create opportunities 

Centre of gravity moving East 

Multi Modal Logistics 

Investors will focus on strategic locations:
Major motorway corridors
Core consumer markets for local distribution
Hub locations for regional distribution
Ports, Airports and Railheads

- Changes to infrastructure will create opportunities
- Centre of gravity moving East
- Multi Modal Logistics
- Investors will focus on strategic locations:
- Major motorway corridors
- Core consumer markets for local distribution
- Hub locations for regional distribution
- Ports, Airports and Railheads

- Implications

## European port strategy

- Europe strategy:
- provide our customer base with pan european platform of port related distribution facilities
- execution:
- continue to build presence in the leading ports
- explore new opportunities
- focus on multimodal inland terminals on TEN axes
-    (Duisburg, Nurnberg,Budapest, Bratislava,South.Poland)

## ProLogis Presenceat European Container Ports

- ProLogis Presenceat European Container Ports

- ProLogis’ Port Position
- ProLogis Port Related SF		10 msf
- Port-Related Land in Buildable SF 		  6 msf

## Intermodal Sites Europe

## Slide 16