CONVERSATION WITH Søren Toft FR

Yes, we can talk about it. First of all, it is a tragedy what is happening. That is the first thing to mention. We think about the people and all the entities there. So far we are delighted to see that they have not been affected, but it is truly a tragedy. At the port of Sudan, there are incredible delays. There were delays already in the past, but this is increasing. So it is a problem, and delays have multiplied by two, three, four times. I couldn't tell you from memory, but I would simply say three to four weeks of waiting time.

We are proud to call more than 21,000 people our colleagues. MSC has always seen Africa as very important on a global scale. With the acquisition of AGL, we have significantly strengthened that vision. There were already close ties between the two companies. We have a full commitment from AGL to continue developing their footprint, and with MSC as the owner, we can also increase investment engagement in Africa, whether on land, ports, and everything that follows. That is truly the reason for this acquisition. We also believe in the industrialization of Africa next. So for us, it was a very important step. AGL will continue to operate as an independent actor, serving the entire market, all transport lines in many cases. It is important that it maintains that integrity and support to remain a value-added actor. With the support of MSC, these commitments can be strengthened in the future.

First of all, it's not always that one plus one equals two. We had every interest in ensuring we preserved as much as possible. On the other hand, AGL is a very talented entity in Africa. So for us, it was important to preserve their independence, preserve their own entrepreneurial spirit in order to continue growing. That was the main objective for us. Of course, there are other things. AGL is a major operator in the market, so we just help them be more efficient so that port activities accelerate, not just for MSC but for the entire market in the context of Africa's industrialization. That is truly the logic behind this effort. We look for synergies where we can find them; it's not just a logic, but we have to do it.

We can have more projects. In Matadi, several projects. That is proof of our commitment and belief in the development of Africa. Of course, in addition to MSC concessions, we have taken several AGL concessions, but we see more opportunities. That is really what it is. We didn't have a presence there in the past, but with these projects in Matadi, we have agencies on the ground where MSC was not yet represented. So that is part of our growth in Africa. Everyone says they are committed in Africa, everyone says we are committed. But commitment to Africa means you have to think long-term, not just about the next quarter's profit. You have to be willing to invest funds in projects that will last 10, 15, 30, 40 years. That is truly the vision we have. Demographic growth is undeniable. Over the last two decades, Africa added a population equivalent to the European Union from 2000 to 2020, and we will see another billion people in a few decades. So there will be many opportunities on this continent, and we must ensure that these opportunities bring employment for all Africans, and that solutions to Africa's problems are found here in Africa, not abroad.

For us, the solution is not necessarily in what we say, but in what we do. The investments we make, the concessions we renew, the projects we maintain, the expansion we support, the engagement and contribution we can bring. Of course, we will work with the AfCFTA, but it has to function or else it has no interest and we just talk for the sake of talking. Perhaps that is a blunt way to say it, but I think for MSC, our contribution will be through investment and the long-term vision we have.

We understand that many of us are parents. We want to be responsible entrepreneurs, so decarbonization is part of our agenda. It goes without saying. There is no magic solution. Unfortunately, today you can easily build a ship with a green engine, but the problem is the availability of fuels on all transport routes. More or less, we are investing in ships with hybrid engines because we don't want to risk going to a fuel station and finding no fuel. So we do it in a hybrid way. Each company has its vision. We have different approaches, but what we can say with certainty is that due to the scarcity of biofuels, we will have many hybrid approaches. You will have ships that will use methanol, natural gas, depending on fuel availability. At MSC, we have chosen the natural gas path. We know fossil fuels are not the solution, but it already reduces by 20%. If we use biomethane in addition, it reduces up to 40%. Then we will do methanol and other things. So the real challenge is fuel availability. Also, we have a lack of regulation. There is no global regulation, no global carbon price. There is no true... The goal is available but not in quantities that allow full decarbonization. Depending on our clients, if they want to transport with green energies, but you have to know that the biofuel we have in our sector, if we want to put it that way, maybe it is wrong to choose biofuel for shipping because it is better to use it in aviation for climate reasons, but we do it for our clients.

I think over the next decade, two decades, there are a few themes for us as a company present in 155 countries. First, there will always be a fire to put out. The thing we will have to face in the next two decades is the macroeconomic and macropolitical situation. We see rises in protectionism globally. We have the war in Ukraine and how it affects other parts of the globe. That will be a recurring theme. We will be affected. If there is a conflict somewhere, we have to manage it. The second thing we talked about is decarbonization, because decarbonization is not just a button to push. It's one, two, three, four decades of change. For example, today we have 7 ships. If we have to scrap them and build new ones, that becomes a problem. The other thing we will have to manage, and are already managing, is digitalization. There is a lot of talk about artificial intelligence and everything that goes with it, but the shift from manual work to digital work will be important things to manage for a company.

Loyal, involved people. That's our case because we can't be everywhere. But you also have to accept, whether in sports or business, that if you want to do what I do, it takes time. You can't succeed at this in 40 hours a week. So we spend twice that. You have to understand the details of what's happening. You can't stay in distant offices. You not only have to make decisions, but also understand the problem in depth. To make strategic decisions, you have to know the situation, not just trends. That's what we do. But anyway, how to manage a company... If you don't want to be just the person who overviews or you are in the details, you have to do both. You have to be able to quickly navigate from one viewpoint to understand what everyone is doing in the details. It's difficult, but anyway, I've spent 30 years in this industry, so I have enough experience. I try to continue getting my hands dirty daily. You have to understand the depths of what's happening to make effective decisions.

We have a great strength, a great offer to our clients in Africa, but we are far from finished. We have not managed against them; we acquired AGL to grow AGL, to continue developing AGL. That is exactly what we intend to do. As we said, we don't only have one piece. We now have MSC, we have TIL, and a number of other things we would like to extend across the continent. So AGL is eminently an important piece of the puzzle. We are delighted to see them operating the way they do, but we want to collaborate with our other partners to have more productivity and more impact for our clients.

As a closing speech, anyway, I don't think I have anything major to add. For us, Africa is an important part of our global company. It is not necessarily the easiest place to do business, so you have to be patient and have a long-term vision. But in any case, it is very promising. There are many opportunities, and there are many excellent people working daily for us. So that is what I like to remember, and it is the reason I spend a day and a half here to meet great people and ensure we can extend our operations. Many great people achieve their objectives despite circumstances and necessary difficulties.