Ports Give Out Mixed Messages on Investment Priorities

By Trelleborg Marine Systems, PRNE
Sunday, November 21, 2010

SINGAPORE, November 22, 2010 - Ports appear to face a conflicting range of priorities when it
comes to specifying and purchasing new mooring and berthing equipment, a new
industry survey reveals.

An independent study of almost 200 port owners/operators,
consulting engineers and contractors, conducted for Trelleborg Marine
Systems, reveals that a fifth (20%) prioritise whole life costs when
procuring equipment for their port development.

However, further analysis of the data reveals that port owners
appear to be under investing in maintenance - a core element of measuring
whole life costs. Indeed, the research shows that more than a third of
operators have noticed that maintenance levels have decreased as a result of
budget pressures over the last two years.

Richard Hepworth, managing director, Trelleborg Marine
Systems, says: "Despite all the best intentions, the reality is that port
owners are not always prioritising investment in the things that will lower
downtime, reduce costs and improve efficiency of their operations over the
long term.

"In the current climate, the financial pressures on ports to
lower costs are considerable. But the industry must resist the temptation to
do business with low grade suppliers delivering cheap, unreliable mission
critical equipment. This can only be achieved if ports, and other decision
makers in the supply chain, put short term savings to one side and focus on
the bigger picture," adds Hepworth.

Despite the views of the majority of respondents, more than a
quarter of those polled admit to not knowing which criteria to put first when
procuring mooring and berthing equipment.

In addition, just 5% said they value suppliers' technical
support, ahead of other factors, while just 2% and 1%, respectively,
appreciate the importance of aftersales care and product warranties offered
by marine equipment providers.

Richard Hepworth concludes: "If decision makers were to give
whole life costs greater precedence, this will naturally steer them towards
quality products, backed by good manufacturer guarantees and strong technical
support. This will also help address the crippling levels of unscheduled
downtime suffered by ports, harbors and terminals across the globe."

About Trelleborg Marine Systems and Trelleborg Group

Trelleborg Marine Systems specialises in products and
solutions for the safe berthing and mooring of ships within ports and
harbours, on terminals and in waterways around the world. The company
encompasses brands including Fentek, Seaward, Trellex and Harbour Marine.
www.trelleborg.com/marine

Trelleborg is a global industrial group whose leading
positions are based on advanced polymer technology and in-depth applications
know-how. Trelleborg develops high-performance solutions that seal, damp and
protect in demanding industrial environments. The Trelleborg Group had annual
sales during 2009 of approximately SEK 27 billion, with about 20,000
employees in over 40 countries. The Group comprises four business areas:
Trelleborg Engineered Systems, Trelleborg Automotive, Trelleborg Sealing
Solutions and Trelleborg Wheel Systems. The Trelleborg share has been listed
on the Stockholm Stock Exchange since 1964 and is listed on the OMX Nordic
List, Large Cap. www.trelleborg.com.

Louise Wheble, louise.wheble at iasb2b.com, Tel +44(0)1625-578578

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