Juggernaut - GAC

No 3 July 2005
For professionals in shipping, transport and logistics
The Subcontinent
– Accelerating

2 Editorial
Subcontinental Contradictions…
The Indian Subcontinent: it’s a phrase that
reveals and conceals – one part defi nition
and two parts deception.
The Oxford English Dictionary defi nes
the word subcontinent as “a large land mass
smaller than a continent”. So much for the
defi nition; the deception lies deeper, hid-
den more in the character of the land and
its people.
The Subcontinent contains the world’s
tallest peaks, harsh wastelands, temperate
climes and tropical forests. You can fi nd
heart-breaking poverty and incredible
riches side-by-side; lose yourself in a sea
of humanity in Delhi or Karachi, or stand
in the middle of Rajastan with no sign of
life for miles around.
Diversity of land and of people: India
alone recognises 22 offi cial languages and
845 dialects. It is a land of ancient faiths
that either embrace or ignore the trim-
mings of modernity. It is a high-tech/low-
tech region, a place where the ox cart and
the satellite share equal billing, where the
power of technology and the power of
prayer are both celebrated.
Dictated
For more than twenty years GAC has
been part of this rich mixture, growing
and changing as the times have dictated. In
the pages that follow, you will read about
what we are up to in India, Pakistan and Sri
Lanka and glimpse the range of activities
we have developed in this fascinating – and
sometimes frustrating – region.
Its very diversity has a habit of creating
challenges, either natural or man-made. At
GAC we have a tradition of overcoming
the odds.
A case in point is the way our Sri Lanka
team responded to the December 2004
tsunami (page 10). Another is the way
we are managing the infrastructure chal-
lenges of the transit trade into Afghanistan
(page 12).
You…
Both in the Subcontinent and around the
world, we are nothing without you – our
customers. We have given concrete rec-
ognition to your importance through our
commitment to Customer Relationship
Management (CRM). CRM puts you at
the centre of everything we do. You will
meet our CRM team on page 20.
Lars Peter
Heisselberg,
Editor
larspeter.heisselberg@gacworld.com

14
China – World Factory
and a New Consumer
Power
GACs' Capt. Bi Yu Ping at the Connecticut
Maritime Association (CMA) annual
shipping conference
Editorial information
Editor: Lars Peter Heisselberg,
Gulf Agency Company Ltd,
Jebel Ali, Dubai, United Arab Emirates
Production: Anna Rydén Produktion AB,
Stockholm, Sweden
Correspondence to: Amanda Millen,
TBWA\Athens, 1 Flias Street,
GR-151 22 MAROUSSI, Greece.
Tel +30-210-812 5400,
Fax +30-210-812 5480
E-mail amanda.millen@tbwa.gr
Information quoted in this publication has been
obtained from several sources. Whilst every care
has been taken to ensure that details are correct,
GAC cannot provide any guarantees thereof.
Material in this publication may be freely
quoted, provided the source is clearly identified.
Cover photo: Pressens Bild
Contacting GAC
Want the contact details for a GAC offi ce or
staff member? Go to the Direct ory section of:
www.gacworld.com
4
South Asian
Juggernaut
An Indian Subcontinent brief
GAC World No. 3, 2005
10
Galle – Recovering
from the Tsunami
After monster waves smashed through the
port on December 26 last year, an intense
salvage operation followed for GAC’s Sri
Lankan Ship Supply Service.
Editorial: Subcontinental Contradictions… Page 2
The Indian Subcontinent –
South Asian Juggernaut Pages 4 – 9
First Person Report from Sri Lanka: Recovering from the Tsunami Page 10
Insight: Transit Trade to Rebuild Aghanistan Page 12
News Beat Page 14
GAC Spotlights China at CMA Page 14
GAC Wrap Pages 16 –18
My Town: Sherine Sherif's guide to Cairo Page 19
Wherever You Go: GAC's global Customer Relationship Management team Page 20

4 Hub Agency Services
The Indian Subcontinent:
South Asian
Juggernaut
‘Juggernaut’ is one of the names of the Hindu god Krishna, a Sanskrit word
meaning, ‘Lord of the World’. It also describes an unstoppable force. It is
thus a completely appropriate term for the economic and social progress
being made in recent times in the Indian subcontinent.
From the peaks of the Himalayas to the
tropical tip of Sri Lanka, the subcontinent
encompasses more than 1.4 billion people
and almost every extreme of climate and
terrain.
This vast area stretching from the Afghan
frontier to Burma was subject to foreign rule
from the early 1800s until the demise of the
British Raj in 1947.
Since the late 1980s, when India, Pakistan
and Sri Lanka began to open up to economic
reform and foreign investment, a burgeoning
middle class has developed, prompting a rise
in domestic demand. Great strides have also
been made in a number of fi elds – including
IT – and many native-born professionals are
now returning home to contribute to and
take advantage of these developments.
Progress
Today, the countries that make up the sub-
continent have established their own place
on the international stage, both commer-
cially and politically.
And despite various disputes, the sub-
continent’s main players – India, Pakistan
and Sri Lanka – are making steady progress,
says GAC’s Regional Director Christer
Sjödoff.
More than ever, the development focus
is on transport infrastructure to help main-
tain current growth rates. This has helped
improve the means of getting goods to a vast
and increasingly sophisticated consumer
market and also boosted the region’s trade
and tourism.
Growth potential
“After China, the Indian subcontinent is per-
haps the area that offers the greatest poten-
tial for international trade growth – both
for imports to the domestic market and as
an export centre for goods destined for the
rest of the world,” says Christer.
“The opportunities it presents have not been
wasted on the international trade commu-
nity, and we are seeing steady growth in
every sector as a result.”
Demand-driven
GAC has long been established in the Indian
subcontinent, and today has extensive offi ce
networks throughout India, Pakistan and Sri
Lanka. Elsewhere, it works with sub-agents
to provide a broad range of shipping and
logistics solutions.
Customer demand has always been the
major driving force. Today, the traditional
shipping agency services that formed the
backbone of GAC’s activities in the region
are being joined by a range of new services
including third part logistics, freight, bun-
ker supplies and marine services.
“Logistics offi ces are being opened through-
out the region to accommodate the grow ing
domestic consumer market and in creasing

international trade in a wide range of com-
modities,” says Christer.
“As a leading provider of shipping, logistics
and marine services and solutions in the Indian
Subcontinent, GAC is constantly looking for
new ways to enhance its portfolio to better
serve its many clients in the region.”
Human Resource
Within the region’s massive population is a large
pool of educated and skilled professionals - a
driving force behind its development.
GAC takes advantage of that resource, com-
bining local and expatriot talent to offer the
best of both worlds. And many professionals
from the region can be found in GAC offi ces
worldwide.
Photo: Pressens Bild
Christer adds: “Currently, we have about
1,000 GAC professionals working in India,
Pakistan and Sri Lanka. That fi gure will rise as
new offi ces and services are added in response to
the demands of the region’s diverse markets.”
The Indian Subcontinent
Regional Agreement
to Boost Free Trade
In January last year, the South Asia Free Trade Agreement (SAFTA)
was signed at the 12th South Asian Association for Regional
Cooperation (SAARC) summit at Islamabad. This created the framework
for a free trade zone covering 1.4 billion people in India,
Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan and the Maldives.
The SAFTA agreement will introduce zero customs
duty on trade in practically all products
within the region by the end of 2012.
It is intended that the SAARC Preferential
Trading Arrangement (SAPTA), which provides
for concessional duty on sub-continent trade,
will make way for SAFTA at the beginning of
2006. The new agreement will become opera-
Bangladesh
Bangladesh came into existence when Bengali
East Pakistan separated from West Pakistan in
1971. It is located between India and Burma,
bordering the Bay of Bengal. Natural hazards
include frequent droughts and cyclones.
Total area: 144,000 square kilometres
Coastline: 580 kilometres
Population: 44,319,628
Main exports: Garments, jute & jute goods,
leather, frozen fi sh & seafood.
Main imports: Machinery & equipment,
chemicals, iron and steel,
textiles, foodstuffs,
petroleum products, cement.
Ports & harbours: Chittagong, Dhaka, Mongla
Port, Narayanganj
The Maldives
This low-lying group of atolls south-southwest
of India in the Indian Ocean was among
the nations to be hit by the December 2004
tsunami. Tourism in the Maldives’ largest
industry, representing more than 60% of
foreign exchange receipts and over 90% of
government tax revenue.
Total area: 300 square kilometres
Coastline: 644 kilometres
Population: 349,106
Main exports: Fish, clothing.
Main imports: Petroleum products, ships,
foodstuffs, textiles, clothing,
intermediate and capital
goods.
Ports & harbours: Gan, Male.
Nepal
Nepal is a mountain kingdom in the
Himala yas, bordering China and India.
It contains eight of the world’s highest
peaks including Mount Everest.
Total area: 140,800 square kilometres
Population: 27,676,547
Main exports: Carpets, clothing, leather
goods, jute goods, grain.
Main imports: Gold, machinery &
equipment, petroleum
products, fertilizer.
5
tional after ratifi cation by the governments of
all seven signatory nations.
Under SAFTA, the subcontinent’s three
main developing countries – India, Pakistan
and Sri Lanka – will be required to bring duties
down to 20% in the fi rst phase of the two year
period ending in 2007. In the fi nal phase ending
in 2012, that duty will be reduced to zero
in a series of annual cuts.
Bhutan
This landlocked country is strategically
located between China and India and
controls several key Himalayan mountain
passes. Its name means “Land of the
Thunder Dragon” and is derived from violent
storms in the Himalayas.
Total area: 47,000 square kilometres
Population: 2,232,291
Main exports: Electricity (to India),
cardamom, gypsum, timber,
handicrafts, cement, fruit,
precious stones, spices.
Main imports: Fuel & lubricants, grain,
machinery & parts, vehicles,
fabrics, rice.
Enquiries concerning Bangladesh, Bhutan,
the Maldives and Nepal should be directed
to GAC’s Asia Pacifi c/Indian Subcontinent
Regional Offi ce in Singapore at
christer.sjodoff@gacworld.com
Read on for more about the region’s
major players – India, Pakistan and Sri Lanka. >

6 The Indian Subcontinent
India:
Big Country, Big Market
– Bigger Potential
Photo: Pressens Bild

India’s economy is the fourth largest in the world and growing fast.
It is worth USD 600 billion and is set to have a huge impact on global
trade. Exports have clocked up annual growth of more than 15% in the
past two years, industrial output growth is estimated at 7 – 9%, and the
services sector has expanded by 8% in the past year.
Trade liberalisation, greater competition,
freer foreign investment policies and an
ambitious trade policy which aims to
double India’s share of global merchandise
trade by 2009, have secured Indian manu-
facturers an expanding slice of global mar-
kets. It is, in short, a promising economy
backed by a skilled workforce.
Low cost country
‘Made in India’ could become the next big
export success story, as the trend to man-
ufacture and source products in low cost
countries gathers momentum, particularly
in skill-intensive industries where India
has a competitive advantage.
Multinational manufacturers of auto-
mobiles, phamaceuticals and capital
goods were among the fi rst to recognise
this opportunity and have set up bases in
India, lighting a beacon that looks set to
draw in other commercial sectors.
So, it is no surprise that India is the
fourth largest oil consumer in the Asia-
Pacifi c region. Since it began deregulat-
ing its oil and gas markets, consumption
has doubled and further growth is anti-
cipated.
Celebrated
GAC India recently celebrated 20 years
of doing business in this key market. From
one offi ce in the port of Cochin, the com-
pany has built a network of offi ces to
provide shipping and logistics services
covering all major ports and key logistics
locations. It now employs more than 250
people. More offi ces are planned.
Port coverage
With such an extensive network in place
GAC India expects to handle 1,000 port
calls by the end of 2005.
In response to the growth of the coun-
try’s oil and gas sector, the company has
opened an offi ce in Hazira to handle Shell’s
shipments.
On the liner front, GAC India has long
focused on delivering agency services for
container line Principals and break bulk
liner operators, and has full liner teams in
place in Mumbai, Delhi, Kolkata, Chennai
and Cochin.
Other projects include the planned intro-
duction of bunkering services, a new con-
tainer yard, and expansion of the GAC glo-
bal network of P&I Club Representatives.
Logistics unleashed
Another expanding area is logistics.
“We are currently extending services
with new bases at Delhi, Kolkata, Tuticorin,
Tirupur and Bangalore and more to follow
in the coming months,” says GAC India’s
Managing Director Paul Haegeman. “We
are also looking into introducing logistic
services in other places where we have pre-
viously focused on shipping.
The Indian Subcontinent
7
“By offering an integrated portfolio of ship-
ping and logistics services, we provide a
more comprehensive and well-rounded
service to our many varied clients through-
out the country.”
This year brings a number of new
logistics products including the launch
of GACSure (GAC’s tailor-made insur-
ance initiative), GAC’s own Clearing and
Forwarding operation, IATA-approved
services, and International Moving.
And there will be further expansion
and penetration of new markets. Weekly
consolidations to New York, UK and Eu-
rope are now under active consideration.
New investment
– Old Advantage
Paul Haegeman says the plans for the future
show how seriously GAC takes the oppor-
tunities offered by the Indian market.
“New investment is being made in
personnel, training and marketing to
secure the expertise to provide top-
notch services and achieve a high profi le
as a major player on the Indian scene,” he
says. ”GAC has the advantage of being
resident in India for a long time. We
came here when things were quiet and
we’ve built our services in step with the
changes and growth patterns around us.
We know this country and we know how
to serve the needs of people wanting to do
business here.”

8 The Indian Subcontinent
Pakistan:
Lion about to Roar
Strong fundamentals coupled with international support are trans-
forming Pakistan into a modern and progressive economy.
Figures for 1999-2004 show reductions
in fi scal defi cit, expenditure and foreign
debt. Earnings, foreign exchange reserves,
exports and revenue collection have all
increased.
Economists now view Pakistan as a
strong, vibrant economy, and foresee
average annual growth rate of 7-8% over
the next decade. Agriculture, small and
medium-sized enterprises, housing and
construction, oil and gas, IT, tourism and
telecommunications have all been identi-
fi ed as areas pivotal to that growth.
From 2 to 365+
When GAC started in Pakistan two dec-
ades ago, it had just seven staff at its
Karachi offi ce and handled two ships in
its fi rst year.
The company is now Pakistan’s leading
shipping enterprise, handling more than
365 calls per year at Karachi, Port Qasim,
Gadani and Gwadar, and employs more
than 600 people.
It is also expanding as a logistics provider,
drawing on the GAC Group’s internation-
ally recognised expertise in the fi eld.
Container handling – in port and beyond
– represents an important area of activity,
with 20% growth witnessed in recent years
and an annual throughput of about 1.3 mil-
lion TEUs. GAC Pakistan is a leading player,
and represents some of the world’s leading
container lines. In response to increasing
demand the company has opened offi ces
at fi ve inland locations.
Central Asia
GAC Pakistan is playing a leading role
in the development of the new port of
Gwadar in the south-west of the country,
to facilitate transit trade to Afghanistan
and other land-locked Central Asia states
(see Insight on page 12).
GAC has handled shipments of con-
struction materials and an oil drilling rig
operating off Gwadar port and is devel-
oping prospects for transit trade once the
port’s second phase is ready to start full
operations in 2007.
Integrated – extensive
GAC Pakistan seamlessly links its shipping
services to a wide array of logistics serv-
ices through a network of offi ces at loca-
tions including Karachi, Lahore, Faislabad,
Islamabad, Multan and Sialkot. More loca-
tions are likely to be added.
This combination of shipping and
logistics services gives a total solution
to Principals’ transportation challenges,
both in the domestic market and for tran-
sit cargo to and from Central Asia. It also
plays an important role in supporting
Principals involved in offshore operations
such as oil exploration.
Investing in future
Capt. Javed Iqbal, Director, Shipping
Services in GAC Pakistan, says the Gwadar
Port project and positive developments in
Pakistan-India relations, will deliver mas-
sive boosts to trade in the country.
“These represent signifi cant opportu-
nities, and GAC Pakistan will invest con-
siderably in the country’s future,” he says.
“Not least, we will continue expanding our
role in Gwadar and the rollout of our logis-
tics network to meet all the demands of
our Principals as Pakistan trade grows.”
Al-Hamd International
Container Terminal
Since 2001, GAC Pakistan has been
run ning the Al-Hamd International
Con tainer Terminal (AICT) near
Karachi port, in a joint venture with
local partners.
Photo: Pressens Bild
The terminal, an 18 acre Container Yard
including a 3,000sqm CFS (Container
Freight Station), handles 4,000 TEUs per
month, a fi gure that will increase as the
economy grows.
AICT acts as a hub for FCL (Full Container
Load) containers arriving from Port
Qasim. Every day well over 100 con tainers
arrive for onward delivery to im porters.
Plans are being laid for the launch of a
consolidation service for export cargo containers
and the introduction of a complete
third party logistics services.

It is small in size and population – about
65,000 square kilometres of land
and less than 20 million inhabitants.
However, Sri Lanka plays an important
regional role due to its location close to
major Indian Ocean sea routes.
Like a teardrop laid upon the waters, the
island has been a key location for interna-
tional shipping since the late 1400s, when
Portuguese navigators fi rst found a sea
route around southern Africa. Its signif-
icance for world trade is refl ected in its
history of foreign rule by the Portuguese,
Dutch and British, until it gained inde-
pendence in 1948.
Vibrant
Today, despite internal disputes and
recent natural disasters, the country is a
major centre for growth and development.
Indeed, Sri Lanka is one of the region’s
most vibrant economies and its GDP is
expected to grow by 5.4% this year.
Traditional industries remain strong.
Tea, rubber, coconut and spice planta-
tions were established by the British more
than a century ago to take advantage of
Sri Lanka’s fertile soil and benign climate.
Tea remains the country’s major foreign
exchange earner.
However, the focus is now on new
industries like food processing, textiles,
manufacturing, insurance and banking.
Volume garments are the country’s larg-
est export commodity. Services, and the
all-important tourism trade, also play a
signifi cant role.
Enterprise philosophy
For the past 12 years, GAC has been a lead-
ing force in Sri Lanka’s shipping sector, pro-
viding a full range of services to vessels
at its major ports of Colombo, Galle and
Trincomalee.
Following the recent addition of two
boats – OMS I and OMS II – GAC now
owns and operates a fl eet of six craft serv-
ing shipping at Colombo and Galle.
In 1994, GAC set up Sri Lanka’s fi rst
Ship Supply Service (SSS) base in Galle to
serve vessels plying the major trade routes
to the south of the country. Last year the
Galle SSS team handled about 365 supply
and crew changes.
Bunkers
In March this year, an important serv-
ice was added, with the opening of the
GAC Bunker Fuels (GACBF) Sri Lanka
offi ce serving ships calling at Colombo
and Galle.
GAC Wrap
Sri Lanka:
Strategic Pearl
This was a natural expansion, as GAC
is now one of the country’s foremost ship-
ping agents, logistics providers and off-
shore marine services contractors.
Logistics
9
GAC Sri Lanka provides a wide range of spe-
cialised country-wide logistics services.
Commodities handled are diverse and
include Sri Lanka’s most famous export
– tea. Since 2001, GAC has handled the
clearing and shipping of about 12 million
kg of tea per year for Unilever.
Container hub
More recently, GAC has introduced weekly
FCL (Full Container Load) and LCL (Less
than full Container Load) liftings from
Colombo to Male in the Maldives.
GAC Colombo has established a Multi-
country Consolidation (MCC) facility and,
thanks to competitive on-carriage tariffs,
the port is now used as the GAC global
network’s cargo transhipment hub for
ports throughout the Indian subcontinent.
Colombo is also the regional hub for LCL
cargo for GAC Bahrain’s personal effects/
commercial cargo consolidation service for
worldwide destinations.
Marine
Photo: Pressens Bild
Since 1999, GAC has been contracted as
Marine consultants for Shell Gas Lanka
Limited Marine Management. Operations
on behalf of the client include pilotage,
mooring and un-mooring, serving gas tank-
ers calling at an offshore CBM (conventional
buoy mooring) and CBM maintenance.

10 First Person Report from Sri Lanka
Recovering from the Tsunami
Without precedent
“When the two massive waves hit the coast on
December 26, the devastation they wrought
was without precedent.
The fi rst wave raised the water level in the
harbour by a metre and broke our supply vessels
“GACSHIP I” and “GACSHIP II” from their
moorings.
About 20 minutes later, another monster
wave struck, sweeping the boats 500 metres
inland where they came to rest in front of
the Port Manager’s offi ce. The water just
kept on going, destroying everything in its
path, including the GAC Galle offi ce parapet
wall. Inside the offi ce, the fl ood waters rose
to within a foot of the ceiling and our local
Manager’s home was also fl ooded.
Immediate response
As soon as news of the disaster reached us in
Colombo, we scrambled to contact our Galle
colleagues to make sure everyone was safe
and to assess the impact on the SSS base. It
was no easy task as the entire island had been
thrown into chaos and telephone contact with
Galle proved virtually impossible with all networks
jammed.
An emergency relief team was put together
and set off for Galle with drinking water, dry
rations, clothes and fi rst aid supplies. Upon
arrival, the team gathered most of our local
staff at a colleague’s home where they distributed
relief supplies. Fortunately, none
of the GAC Galle team lost their lives and
injuries were relatively minor. However, some
colleagues lost loved ones and also property.
Our immediate focus was on supporting
the humanitarian relief effort and making
arrangements to continue our Ship Supply
Service. The GAC service out of Galle had to
be suspended, but we quickly made arrangements
to cater for crew changes, delivery of
spares and other emergency requirements off
port limits at Colombo.
Serious damage
When we started assessing the material damage
to our base and equipment at Galle, a
depressing picture emerged.
Both “GACSHIP I” and “GACSHIP II” had
sustained damage to their engines, propellers,
shafts and hulls; two of our storage containers
had been washed away (later to be discovered
in a ditch 15 metres away); and no trace
could initially be found of the 1,200 kg spare
boat engine which had been stored near the
containers.
After two days’ search, including the use
of divers, we fi nally found the missing engine
buried under a pile of rubble and sand in
the ditch.
Stretched resources
The biggest task we then faced was salvaging
the supply boats. With resources available
in the country stretched to breaking point, it
seemed like a mission impossible at fi rst.
The Sri Lankan port of Galle was one of
the areas hard hit when a massive earthquake
off the coast of Sumatra triggered a
tsunami in the Indian Ocean on December
26 last year. An unstoppable surge of water,
in two separate waves, swept away much
of the port infrastructure and damaged
two of GAC’s supply craft stationed at its
Ship Supply Service (SSS) base.
Preethilal Fernando, GAC Sri Lanka’s
Managing Director, describes the impact
and the recovery.
Another team was formed in Colombo to
coordinate that challenging recovery operation.
The boats were lifted in place and work
started to restore them to their previous condition.
When it became clear that the repair
and replacement of the propellers would take
longer than expected, it was decided to drydock
them and one of our Master Mariners
was temporarily stationed in Galle to oversee
the work.
When the recovery process started, the
area in front of the Port Residence Manager’s
offi ce resembled a mini dry-dock. Thanks to
the cooperation we received from the Galle
Port Authority, all the repairs were completed
within 6 weeks, despite the apparently impossible
situation we found in the immediate
aftermath of the tsunami.
Transporting the boats presented another
challenge, as there were simply no trailers
available anywhere in Sri Lanka that could
carry a 40 ton, 60 foot long load. But, in the
GAC tradition of ingenuity, custom-made
cradles were attached to trailers to accommodate
the load.
Back in business
Thanks to the dedication and hard work of
everyone and in spite of the traumatic experi-
ence they had all gone through, GAC’s Galle
Ship Supply Service was back in business by
January 17 – just 21 days after the tsunami
struck.”

First Person Report from Sri Lanka
GAC’s President, Capt. Lars Säfverström, reopens the GAC Galle offi ce after its recovery from the
devastating tsunami.
Jumbo Lift of
Beached Dredger-
Hopper
Despite the damage GAC Sri Lanka
suffered from the tsunami, it also
played a part in assisting other salvage
operations at the port of Galle.
The force of the waves had swept the
840grt, 300 cubic-metre grab hopperdredger
“Diya-Kowulla” out of the sea
and on to the piers at the harbour, leaving
it high and dry.
To get the stranded craft back into the
water, GAC Sri Lanka helped arrange for a
specialist heavy-lift ship to come to Galle
The Jumbo Javelin helped in the Galle salvage
operation.
to handle the jumbo lift. And, after an
intensive 48-hour operation in March, the
15,022grt “Jumbo Javelin” hoisted the
“Diya-Kowulla” off the concrete deck of
the jetty and placed her back in the sea.
Despite the stranding, the dredger-hopper
suffered minimal structural damage and
is now back in operation at Galle harbour.
11

12 A Mission for GAC Logistics
Insight
Transit Trade to
Rebuild
Afghanistan The
past few years have brought sweep-
ing changes to Afghanistan’s international
trade.
Almost continuously at war for 28 years
until late 2001, Afghanistan is now begin-
ning the slow but steady climb toward a sta-
ble future. Exports and imports are reviving
as the country strives to rebuild.
But Afghanistan is land-locked and so
depends on reliable trade transit routes.
Capt. Ashfaq Ahmed Asim, GAC Logistics
Business Manager in Pakistan, takes a look
at the role his country plays in the transit
business.

“Afghanistan is now emerging from a trou-
bled past. People have money once again
and the markets are being fl ooded with an
array of aid, consumer goods, luxury prod-
ucts and imported foodstuffs.
Afghan transit trade has increased four-
fold since 2001 and the latest fi gures show
that import levels rose 150% during the
fi rst two quarters of the current fi scal year
compared to the same period last year.
Though some problems still persist, on
the whole, the outlook looks bright with
the security situation in the capital, Kabul,
being given the “green light” by the United
Nations and new parliamentary elections
due in September.
The fresh air of optimism can perhaps
be felt best in Kabul where new high rise
residential apartments and glass offi ce
towers have already appeared on the city
horizon.
Friendly neighbour
32 countries are participating in rebuilding
Afghanistan, and its neighbour Pakistan is
one of the key players.
Due to its geographical position,
Pakistan is a hub for trade goods mov-
ing to and from the Central Asian states.
Karachi and Port Qasim are the closest
receiving points for sea-borne cargoes
heading to Central Asia. However, this is
nothing new: the fi rst transit agreement
between Afghanistan and Pakistan was
signed in 1956.
Much of the aid and reconstruction
materials sent to Afghanistan since the
fall of the Taleban has come through
Pakistan, and as the domestic economy
fi nds it feet, that transit route is seeing
more and more commercial shipments
heading the same way.
Now, more than ever before, Pakistan
is the main gateway to Afghanistan, and
Pakistani goods have captured almost 60%
of the market.
Good links
Good road and rail links connect the main
ports with the borders of Afghanistan and
Iran.
Pakistan offers a multi-modal transport
system for the Central Asian trade with
extensive services provided by both the
public and private sectors.
To handle expected growth, the Paki-
stan government has made a major com-
mitment to develop a port at Gwadar, 234
miles west of Karachi and 390 nautical
miles from the Strait of Hormuz. Once
operations start at this third deep-sea
port (expected in 2007), Gwadar will
A Mission for GAC Logistics
13
become an important centre for trade with
Central Asia.
Meeting challenges
Of course, there are still challenges to be
overcome. Afghanistan’s road network
is poor and there is little regulation of
import and export transit cargo.
Such a situation calls for reliable profes-
sional transit trade service providers like
GAC Logistics.
GAC Logistics is playing an active role
in Afghan transit trade using our well-
established infrastructure to meet the
challenges involved. Our staff know the
Pakistani transit trade business and what
is required to smoothly execute customs
formalities. Further, all GAC Pakistan’s
operations are supported by in-house
state-of-the-art IT systems.
We have already handled transit ship-
ments to Afghanistan for a wide range of
customers, including the United Nations,
aid organisations, construction contrac-
tors, government ministries and a variety
of international trading companies.
In doing so, GAC Pakistan has staked
a claim in the growing transit trade to
Afghanistan, and we believe that we will
play a key role in building a brighter future
for the country.”

14 GAC Wrap
News Beat
GAC Spotlights
China at CMA
When China overtook the USA to become the world’s
top consuming nation in certain commodities in 2004,
it underscored its massive importance to the shipping
industry. That was the message from GAC Hong
Kong’s Capt Bi Yu Ping, when he addressed delegates
at the Connecticut Maritime Association (CMA) annual
shipping conference in March this year.
China’s domestic and export economies have
grown spectacularly since the introduction of
its open-door policy in the early 1980s, further
stimulated by entry into the World Trade
Organisation three years ago.
Challenges and opportunities
Speaking on the challenges and opportunities
at major ports in mainland China, Capt. Bi
pointed out that 60% of the China’s import and
export cargo was carried by international shipping
companies.
“China is now the World Factory – a growing
manufacturing and assembly base for many of
the world’s products,” he said.
“It is also a new consumer power, overtaking
the US in 2004 in terms of grain, meat, coal and
steel consumption. And in 2003, China imported
148 million metric tonnes of iron ore, representing
26% of world iron ore trade and overtaking
Japan as the No.1 import country.”
One VLCC
A further indication of China’s growing consumer
demand is GAC Hong Kong’s handling an average
of one VLCC (very large crude carrier) per day
in Chinese ports.
In 2004, the country’s GDP was a staggering
USD 1.65 trillion, an increase of 9.5% on the
previous year. Foreign trade reached USD 1.15
trillion, up 35% from 2003, and the total value
of China’s exports last year soared to USD 593
billion, 16 times higher than in 1988.
Capt. Bi said that in the run-up to the 2008
Olympics in Beijing, the growth trend looks set
to continue.
Beyond capacity
However, rapid growth has brought infrastructure
problems. Many of China’s major ports are
working at or beyond capacity and ship waiting
times can range from a couple of days to several
weeks.

Truck and rail services from the ports to inland
areas are overburdened by huge increases in
imported commodities such as iron ore and coal,
but crude oil is piped from ports to refi neries and
thereby avoids the lengthy backlogs that affect
other import cargoes.
Breakthrough
However, the outlook has brightened recently,
said Capt. Bi. The fi rst law passed on port management
since the establishment of the People’s
Republic of China came into force on January 1,
2004.
In effect, that legislation aims to dilute the
Government’s role in the operations and management
of the country’s ports. And, in a breakthough
development, it allows all economic and
individual interests – including those from foreign
companies – to invest in port construction and
management. This will have a long-lasting impact
on port development and management.
Future prospects
Looking to the future, 90% of all China’s foreign
trade will be seaborne – a massive amount
of ocean-going cargo that is expected to hit 4.5
billion metric tonnes by 2010!
The government is now attempting to slow
down economic growth, reducing it to around
8%, with spending goals retreating from “proactive”
to “prudent”.
Top Ten Ports in China 2004
1. Shanghai
Throughput of 379.7 million MT
2. Ningbo
Throughput of 225.9 million MT
3. Guangzhou
Throughput of 215.2 million MT
4. Tianjin
Throughput of 206.2 million MT
5. Qingdao
Throughput of 162.7 million MT
“China is already an economic power, especially
in the maritime arena,” added Capt. Bi.
“Most dry bulk ports are currently struggling
to keep up with the demands due to the country’s
rapid economic development. But if port
management laws are implemented effi ciently
and effectively, sound development in port
operations and management will be seen in the
coming years.”
Final WFP aid shipment to China
A clear sign of China’s impressive economic
growth came in April, when GAC handled the
fi nal World Food Programme (WFP) food aid
shipment to the country.
The arrival of the M/V “Blue Dream” carrying
more than 40,000 tons of wheat at the port of
Chiwan was a milestone for the country which
will now become an aid donor after 25 years as
a recipient.
GAC Wrap
6. Qinghuangdao
Throughput of 150.3 million MT
7. Dalian
Throughput of 145.2 million MT
8. Shenzhen
Throughput of 134.7 million MT
9. Nanjing
Throughput of 94.9 million MT
10. Suzhou
Throughput of 90.4 million MT
15
GAC Hong Kong's Capt. Bi Yu Ping.
The WFP’s Beijing Shipping Offi cer, Wei
Tianrui, says that China is now considered
capable to resolving its poverty problem without
outside assistance and WFP agricultural
development projects there will be phased
out by the end of this year.
The WFP has been sending aid to China
since 1979 and has provided about 3.8 million
tons of food aid to the country over the past
quarter of a century.
GAC has handled WFP shipments in the
region since 1996.
The World Food Programme (WFP) sends
aid to developing countries and, increasingly,
to areas affected by natural disasters.
The GAC Group represents the WFP in many
countries including: Cambodia, Egypt, Hong
Kong, India, Iran, Iraq, Kuwait, Lebanon, Libya,
Myanmar, North Korea, Saudi Arabia, Syria,
Thailand, Turkey, UAE and Vietnam.

16 GAC Wrap
Two Decades and Still
’Less-
Than-
Full’
CargoGulf, GAC Logistics’ worldwide
NVOCC (Non Vessel Operating Common
Carrier), is celebrating its twentieth
year of leadership and innovation in
container consolidation and delivery
services across the Middle East, Asia,
Europe and the Americas.
LCL specialist
Established in 1985 in response to growing
demand for transporting small consignments
to, from and within the Middle East,
CargoGulf was a pioneer in sea freight consolidation.
Today, it is internationally recognised
as a global ocean cargo carrier, issuing
Full Box Service Launched
its own Bill of Lading accepted by fi nancial
institutions worldwide.
CargoGulf specialises in the consolidation
of LCL (Less than full Container Loads), using
the reach and strength of the GAC global network
to provide a comprehensive service to
major shipping lines and freight companies.
Its services include airfreight consolidations,
customs clearance, transportation, project
cargo and insurance services.
It has, since its inception, surfed the waves
of supply and demand in the LCL market,
riding high in some years and drawing in its
belt in others. TEU (Twenty foot Equivalent
CargoGulf has taken full advantage of the GAC Group’s combined
expertise in shipping and logistics to become a vigorous player in the
FCL (Full Container Load) transport industry.
Hans-Henrik Nielsen, Regional Manager,
Freight Services, for Asia Pacifi c and the
Indian Subcontinent, says the Group has
established a service that is more than just a
freight forwarder, logistics provider or liner
agent, representing main line operators in
the traditional sense.
“We are now an FCL operator in our own
right, operating our own fl eet of containers
on long-term leases and arranging purchase slots with 3rd party
feeder operators,” he says.
Market study
A series of market studies in 2004 examined port and depot structures
and cost levels, as well as potential customers.
Based on these fi ndings, the new Cargo Gulf Box Service was
launched, initially focusing on South East Asia and South East Asia
Units) operations have surged three-fold in
the past fi ve years and the momentum is
expected to continue.
Leading NVOCC
“Our customers have played a signifi cant part in
establishing our portfolio of services. It is with
their support that CargoGulf has not only developed
into a leading NVOCC, but has also set a
framework for maintaining our position in the
market,” says General Manager, Peter Orange.
“Many of our business partners have been
with us since CargoGulf’s inception and this is
as much their milestone as it is ours.”
to and from the Indian Subcontinent with participants in Singapore,
Malaysia, Indonesia, Thailand, the Philippines, India, Pakistan and
Sri Lanka.
CargoGulf’s offi ce in Singapore, headed by John Yap, coordinates
all day-to-day operations. John has created a CargoGulf Box Service
manual to clearly explain the product, its working procedures and
the duties of those involved.
Respond innovatively
“We are offering unique benefi ts to our customers,” says Hans-
Henrik.
“These include same agency network in all trade lanes, common
software and communication tools, fast and concise decision-making
as well as commercial freedom to seize initiatives and respond
innovatively to customer needs.
“We are now in the fi rst phase. But who knows where this will
take us? We are only limited by our own imagination!”

Tanker Giant
Signs GAC
for Ship Spares Logistics
The world’s largest tanker fl eet operator, Stolt-Nielsen
Transportation Group (SNTG), has signed up GAC to
handle marine logistics for its entire fl eet transiting via
Singapore and Malaysia.
GAC Singapore’s global connections and local
expertise will take care of SNTG’s ship spares
logistics needs, improving vessel turnaround
and reducing costs.
SNTG operates hubs for ship spares consolidation
in Singapore, Houston, Rotterdam and
Durban. The appointment of GAC Singapore
is part of SNTG’s long-term objective to
revamp its ship spares logistics operations
worldwide and move towards centralised
ship spares logistics control.
Model hub
Marijn Mos, SNTG Logistics Manager (Purchas
ing & Shipowning), based at the company’s
headquarters in Rotterdam, says tanker
group wanted a logistics partner to provide
warehousing in Singapore, as well as local and
global freight services.
“We wanted a competitive, quality, serviceminded
partner capable of providing high and
effi cient service levels in a time-crucial envi-
Top Awards from Emirates
Emirates Sky Cargo has named GAC
Dubai its top agent for the past fi nancial
year, recognising the Group’s performance
and long-standing business
relationship with the airline.
ronment,” he says. “What we found in GAC
Singapore matched that global vision.”
Mr Mos says he is confi dent that the ben- ben-
efi ts in effi ciencies and processes gained from
the Singapore agreement – including clearly
defi ned operating standards and key perform-
ance indicators - can be replicated in SNTG’s
other global hubs.
Focal point
“We are proud to work with SNTG. This deal
is going to help GAC take ship spares logis-
tics to an even higher level,” says Kenneth
Bybjerg, GAC Singapore’s Logistics Manager.
“This deal reinforces Singapore’s role as a focal
point for marine logistics and port agency
services to ship owners and operators with
bases here.
“The highly specialised ship spares logistics
market has a huge potential for growth. GAC
Singapore’s business volume for this sector
more than doubled in 2004.”
GAC clinched the award thanks to increased
use of the UAE national carrier’s air-freight
services to Europe and the Middle East as part
of its sea-air freight service.
The Top Agent award is part of an annual
portfolio of honours presented by Emirates
Sky Cargo senior management to agents and
GAC Wrap
17
couriers in the UAE who signifi cantly contribute
to the airline’s cargo operations.
The award was presented to Paul Lattouf,
GAC Dubai’s Business Manager – Freight
Services, at a ceremony at Dubai’s Madinat
Jumeirah hotel on March 16.

18 GAC Wrap
Moves and Appointments
Head Offi ce Dubai
Johan Janing as an Accoun t ant, responsible
for Offshore Accounts.
Johan was previously an
Auditor for Lindebergs
Grant Thornton AB in
Sweden.
GAC Russia
Valeriy Klimenko as Log ist ics Manager.
Valeriy brings 12 years of
ship ping and forwarding
ex perience to his new post.
He is based in the GAC
Russia offi ce in the Black
Sea port of Novorossiysk.
GAC Dubai
Fredrik Lindblad as Busi ness Manager
– 3PL. Fred rik has 10 years
experience in Log istics
and Business Ad min istration.
He was pre viously
Manager, Busi ness
Develop ment for DHL Solutions,
North ern Europe.
Ronnie Knowles as Business Manager
– Spe cial Projects. Ronnie
over sees the company’s
new facilities projects. Previously
he was Business
Man ager – Distribution
Ser vices in Jebel Ali.
Jean Richmond as In sur ance Admini strator
– GAC Logistics, responsible for relations with
the TT Club and HSBC
Insurance Brokers. Jean
pre viously worked for
GAC South Africa in Cape
Town.
Pakistan
Henrik Mattila has been appointed as Deputy
Man ag ing Dir ec tor of
GAC Paki stan with effect
from May 15, 2005.
Fredrik Nyström, formerly an account ant
at GAC in Jebel Ali, joined
GAC Pakistan as Financial
Manager on June 1,
2005.
Andhika GAC Indonesia
Capt. Boris Nughara as Busi ness Manager
respons ible for the liner,
tanker, tram per and container
busi ness sectors.
– Hi. I'm the new simulation of you, and I'm here to tell you
we won't be needing you anymore."
Marketing
Kristofer Andrén as
Marketing Manager – Shipping
Services, responsible
for Belarus, the Czech
Re pub lic, Denmark, Estonia,
Fin land, Ger many,
Ice land, Lat via, Lithu ania,
Nor way, Po land, West and North west Rus sia,
Slo va kia and Swe den.
Based at GAC’s Stock holm offi ce, Kristofer
will take over from Roger Ander son, GAC’s
long-stan ding Marketing Manager for the
area, when he retires in the summer.
Sami Younis as Marketing Manager – Shipping
Services, respons ible
for Austria, Bosnia-Herzegovina,
Croatia, France,
Italy, Liechtenstein, Mona
co, Portugal, Serbia-
Mon te negro, Slovenia,
Spain and Switzerland.
Based in London, Sami took over in late
June from Claes Kjellberg, who retires this
summer. Prior to this appointment, Sami was
a broker with GAC Bunker Fuels London.
P&I
Adam Greaves as Regi onal Adviser/Consultant,
P&I (Protection
& Indemnity) Claims for
the Middle East. Adam
under takes his new role
in addition to his current
responsi bil i ties as GAC
Dubai’s Senior Claims
Man a ger, P&I. GAC’s P&I net work in cludes
repre sentation of Inter national Group Clubs
throughout the Middle East, West Africa, the
Eastern Mediterranean and the Indian Subcon
ti nent, pro vid ing ser vi ces such as 24/7
claims hand ling, mar ine surveys and damage
reports.
GAC World Online
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GAC World can be downloaded
as a pdf fi le from the GAC website,
www.gacworld.com, where you can
also fi nd previous issues of the magazine.

My Town
The Triumphant City
Cairo
Sherine Sherif’s Guide to
Though born and raised in Alexandria,
GAC Egypt’s Bunkering Manager
Sherine Sherif has made Cairo her
home for the past four years. Here,
she offers some tips for visitors to this
fascinating city.
”Historically known as ’al-Qahirah’ (the
Triumphant City), Cairo is one of the world’s
largest urban areas and has much to offer visitors.
It is a cosmopolitan city, full of life and
seems to be on the move 24 hours a day.
Sight-seeing
No trip to Cairo would be complete without a
visit to the Gizah Pyramids – the last remaining
wonder of the ancient world. By visiting the
Pyramids in chronological order, you can see
how their design evolved over the ages.
Memphis, the fi rst capital of ancient Egypt,
is home to a colossal statue of King Ramsis II
as well as the famous Alabaster Sphinx. Not
far away is the Necropolis of Saqqara where
you can see the ruins of the Step Pyramids of
Zoser, the fi rst ever built.
Don’t miss a trip to the Egyptian Museum,
home to some of the world’s most spectacular
antiquities, including the golden treasures
of Tutankhamen.
A trip to The Citadel and Mosques of
Mohamed Ali takes you on an oriental adventure
through part of the medieval Islamic
quarter.
Cairo is also a city of culture, with a wide
array of art galleries and music halls, including
the Cairo Opera House.
Where to stay
Cairo has a wide range of elegant hotels with
very good prices and excellent service.
If you are coming for tourism, the best
place to stay is near the Nile in the centre of
town. But if you are coming on business it is
best to stay close to the companies you will be
visiting in order to avoid the heavy traffi c.
Sherine Sherif with her eight-year-old son, Yahia,
at the Egyptian resort of Sharm El Shiekh.
When not to come
It is better to avoid Cairo between June and
August, as the weather will be extremely hot.
During other months, the weather is usually
very pleasant and we enjoy warm weather and
year-round sunshine.
Best way of getting around
The best bet is probably to hire an air-conditioned
car with a local driver who knows his
way around the city.
Don’t
Don’t try to drive yourself in Cairo - the traffi
c is always very heavy and a local driver is
advisable. Egyptians have their very own way
of driving.
Best shopping
Cairo is a shopper’s paradise. The city offers an
incredible selection, ranging from the famous
Khan el-Khalili souk (bazaar) to modern airconditioned
centres.
All the bounty of the East can be found.
Particularly good buys are spices, perfumes,
gold, silver, carpets, brass and copperware,
leatherwork, glass, ceramics and Egyptian
cotton.
If you decide to go to the souk
in Cairo, you will certainly need
your bargaining skills!
19
Where to eat
Dining on the Nile is a delightful way to spend
an evening. Cruising restaurants offer international
cuisine, often combined with entertainment
like belly dancers and whirling dervishes
– all as you gently fl oat along the river enjoying
some breathtaking views of the city.
Or, you could get a taste of Egypt’s oriental
atmosphere at the Naguib Mahfouz
Restaurant and Café in Khan el-Khalili, where
you can enjoy delicious local specialities and
oriental music against a backdrop of beautiful
Islamic designs.
The Citadel view restaurants and Lakeside
cafés at El Azhar Park are good for lunch or
dinner. This park offers some spectacular
views of historic Cairo’s architectural treasures,
and draws both tourists and city dwellers
to this once-neglected area.
Best thing about the place
Egyptian people are very friendly and generous,
and will always do their best to make you
feel at home. Also, Cairo is a safe city, even
when walking around at night.”

“ After China, the Indian Subcontinent is perhaps
the area that offers the greatest potential for
international trade growth.”
Christer Sjödoff refl ects on the future of the Indian Subcontinent on page 4.
Wherever You Go
XciteU
– Global Focus
on Customer Relationship Management
In January this year, GAC launched its “XciteU” Customer Relationship
Management (CRM) Programme, including a series of measures to
ensure that customers remain at the centre of the GAC World.
Damien O’Donoghue Mark Delaney John Faulds Daniel Nordberg
CRM involves listening and understanding customers,
anti ci pating their needs, and responding
in a way that ex cites them.
Damien O’Donoghue, the Group’s CRM
Pro gramme Manager, says there is a real commitment
to this initiative.
“It is being addressed whole-heartedly
throughout GAC,” he adds. “This is underlined
by our President’s assertion that the
entire Group must understand, embrace and
actively apply the principles of CRM to every
aspect of our business.”
Tools for the job
The numerous CRM programmes already
underway around the world also vouch for
the Group’s commitment to CRM.
These programmes aim to equip a large
proportion of GAC’s 6,000 employees with
the tools and expertise to apply CRM to their
work.
In addition to Damien and the four Group
Vice Presidents – Lars Peter Heisselberg (Shipping),
Bill Hill (Logistics), Christer Nordblad
(Marine) and Jan Farnelid (Human Resources)
– key members of the XciteU team driving the
initiative around the GAC world are:
• Mark Delaney from GAC Marine,
Abu Dhabi
• John Faulds, from GAC’s Global
Logistics Team
• Daniel Nordberg, from GAC’s
Corporate Head Offi ce in Jebel Ali
Ultimate success
As Damien says, the ultimate success of
the programme will be determined by the
responses of GAC’s customers, who will be
the best judges of its effectiveness.
“CRM will encourage our people to look
at our organisation through the eyes of our
customers, and in this way we aim to continuously
improve the services and the value we
offer them.”