CALL FOR EXPRESSIONS OF INTEREST (CEI) OPERATION OF A CONTAINER AND GENERAL CARGO TERMINAL IN THE PORT OF SETE

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1 Etablissement Public Régional CALL FOR EXPRESSIONS OF INTEREST (CEI) OPERATION OF A CONTAINER AND GENERAL CARGO TERMINAL IN THE PORT OF SETE I- Background Issues A) Presentation of the Languedoc-Roussillon Region Merging of two regions: On 1 st January 2016, the Languedoc Roussillon region will merge with the Midi- Pyrénées region to create one large region, which will benefit from the pooling of numerous economic levels. By merging, the two territories will become the second largest region in France, with a surface area larger than 13 European countries. It will become the country s fifth most populated region, with more than five million people, including an active population of 2.4 million. Thanks to its dynamism, its population grows each year by 0.9% (against 0.5% on average for mainland France), making it France s second most dynamic region. The new territorial reform will strengthen not only the role of the region in terms of economic development, but also its urban planning. The Port of Sète is consequently in an excellent position to expand its import and export activities. Sète will also become the commercial port of the two new urban metropolises created in January 2015: Greater Montpellier with its 570,000 inhabitants and Greater Toulouse with its 906,500 inhabitants. These cities are responsible, amongst other remits, for economic development in their respective areas.

2 B) Presentation of the Sud de France Regional Port Since 1 st January 2007, the transfer of the management Port of Sète to the Languedoc-Roussillon region has enabled deployment of a structural policy to accompany the transformation of the port area as a whole in order to develop its logistics performance at the service of the regional economy. On 1 st January 2008, the Languedoc-Roussillon region created the Etablissement Public Regional Sète Port Sud de France as a commercial and industrial public institution responsible for the operation and management of the Port of Sète. It manages the commercial, fishing and leisure activities at the port and generates an annual turnover of 16M with a workforce of 85. Investments: 200M were invested in the Port of Sète from 2010 to 2014, comprising 100M from the Languedoc Roussillon region / Port Sud de France and 100M from private investment. From 2015 to 2020, an additional 200M will be invested from the same public / private sources. Investments on infrastructure are the responsibility of the Languedoc-Roussillon region, while the cost of superstructures is borne by Port Sud de France. Finally, Port Sud de France is ISO 9001 and certified, especially for its hire of port equipment and management of public space.

3 C) Activity of the Commercial Port of Sète: a multipurpose logistics platform Ideally positioned in Southern Europe on the northern facade of the Mediterranean Sea, the Commercial Port of Sète is a general port that handles passengers, rolling cargo, dry and liquid bulk as well as general cargo and containers. It is the 9 th largest port in France, handling 3.3 million tons of goods and 850 calls in 2014, and it is France s second Mediterranean deep water port. The Commercial Port of Sète operates the following activities: - Agro-food bulk: import and export of fertilisers, grain export, crushing oilseeds for biofuel production and trading of raw materials for animal feed (cake) - Industrial bulk: in the bulk terminal, the port receives dry bulk (coke, minerals, ores, coal, etc.) and liquid bulk (oils, molasses, wine, etc.). The port also supplies the local market with refined petroleum products through the British Petroleum depot at Frontignan - Various goods, including: Containers, new vehicles, used vehicles, fruit and vegetables, wood pulp, logs, heavy lift, wind turbines, livestock, etc. Rolling cargo: serving West Africa, Morocco and Turkey - Passengers: 170,000 passengers a year travel to Morocco and 25,000 cruise passengers disembark in Sète Today, the Commercial Port of Sète represents 950 direct jobs related to the port and services industries for a financial impact of some 238M to the benefit of the local economy. D) Port of Sète, a multimodal port Beyond its modernisation driven by ambitious investment from the Languedoc- Roussillon Regional Council, the Commercial Port of Sète relies on an efficient multimodal infrastructure: A dense motorway network: A9 to the Rhone valley and Spain, A75 to the Massif Central and Northern Europe, and A61 to the Midi-Pyrénées region). Sète is located 35km from Montpellier, 95km from Perpignan, 183km from Toulouse and 278km from Lyon. A river system via the Rhône canal at Sète accepting units up to 1,500 tonnes (capacity of 80 to 100 TEU by barge) and connected to a wide-gauge network on the Rhône-Saône. In 2018, the load capacity will increase to 2,500 tonnes with ongoing levelling work of the canal gauge from the Rhône to Sète.

4 A railway network directly connected to the national network and the region s own railway lines since 1 st January A combined transport site is planned for near the future container terminal. E) Hinterland of the Port of Sète Most of the goods passing through Sète come from the South-West of France covering the Languedoc Roussillon and the Midi-Pyrénées regions, and part of the Massif Central. The estimated potential of the port of Sète is between 50 and 60,000 TEU s/year. According to a study conducted in October 2014, the average containerised flow is 835 TEU s per week in both directions, with 480 TEU s for export and 355 TEU s for import. These volumes do not include the potential additional volume from the Massif Central, which is now significant due to the connection of the A9 motorway to the A75 motorway at the Béziers Nord junction. Therefore, the Port of Sète can constitute a natural gateway for shippers in this area. Today, most of the transport flow is handled by the ports of Fos and Barcelona while the pre-and post-routing savings could enable a substantial gain for all regional shippers.

5 II- Purpose of this Call for Expression of Interest (CEI) The Etablissement Public Regional Sète Port Sud de France is planning to provide a private operator with six (6) hectares of dockside land in the immediate vicinity of the future dock H, which will be completed in July 2016, for the operation of a terminal primarily dedicated to containers, but where various other goods can be handled. This CEI aims to identify the expectations of the various parties that may be interested. It will help to determine the terms and conditions of a call for projects that will be launched in the first quarter of Responses to this CEI should: - Define more precisely the traffic that could be handled in this terminal - Define the operating conditions of this terminal - Identify the scalability of the economic conditions of this terminal - Identify any additional arrangements envisaged by the operator - Identify the expectations of the various parties that may be interested

6 III- Areas affected by the CEI in the port environment A) Areas covered by this CEI - Future Quay H (yellow on the map) A deep-water quay of 467m in length with an operating capacity of 6t/m² on a strip of 35m and an additional operating load / storage capacity of 10t/m². Quay H has two berths The characteristics for the container vessels are 260m in length and 13.50m of alongside draught (which may be increased to 14.50m later). The delivery of this dock is scheduled for July As part of the CEI, dock H will remain public and its operation or occupation cannot be privatised. - Dockside surfaces (yellow on the map) Dockside surfaces of almost 60,000m², served on the north by a railway complex, surfaced and lit (former new imported vehicles yard), will be made available to the operator, by an agreement that needs to be defined. It is a fenced and controlled access plot compliant with the current ISPS standards. B) Environment Infrastructure and buildings Public quay E (blue on the map) This is a 450m dock with a Ro-Ro station (22m wide) of which 340m are primarily assigned to containers, with two stations (E1 and E2) for vessel lengths up to 240m and 11m of alongside draught. (200 m at 11,70m) Current container yard (blue on the map) Dockside surfaces near the refrigeration terminal of over 17,000m 2 served by two railway complexes for a nominal storage capacity of 20,000 TEU s / year. It is a fenced and controlled access storage area with a load capacity of 6 tons/m² with 110 reefer plugs. It is an area for the storage of hazardous materials (hazardous material transportation pipelines). Refrigeration warehouse (purple on the map)

7 Presentation of the fruit terminal In 2010, a private company built new a positive and negative cold refrigeration warehouse in the Port of Sète for depositing and storing perishable foods (fruit, vegetables, fish and meat) at the dockside of the Colbert Dock (quay E), which takes into account the global development of off-season traffic reefer containers and conventional food products traffic, and the gradual saturation of the seaports of northern Europe. These facilities include: - A 23,000m² dockside warehouse under controlled temperature consisting of three storage and preservation cells - A total storage capacity of 15,000 pallets for reconditioning and preparing of orders including 5,500 in 10 cold rooms - 9 cold rooms (-2 to + 14 C) adapted to ensure the continuity of the cold chain - 1 cold room (-25 C) suitable for the storage of frozen products - 33 loading doors for trucks - 27 gates for unloading reefer containers reefer plugs - A 450m quay with 12m of alongside draught - Two container cranes including one over-panamax - A dockside rail connection - A processing capacity of 500,000 pallets / year and 20,000 TEUs Phytosanitary inspection on arrival of the ships is possible with the presence of inspectors from the Ministry of Agriculture specially seconded to Sète. PIF - PEC administrative building for inspections Port Sud de France has built a common administrative building: CEP (Community of Entry Point for Phytosanitary Controls) and BIP (Border Inspection Point for the control of animal products for human consumption); located 400m from the fruit terminal, made available to the administrative authorities, allowing on-site regulatory inspections to be implemented rapidly.

8 Equipment on dock E Gantries and cranes on rails: EUROCRANE container gantry crane - Year built: Manufacturer: EUROCRANE - Commissioned in Sète: Activity: containers / heavy lift - Lifting capacity: 60t 70t by hook; 2x25t / 2x30t by spreader - Total weight: 875t - Water range: 41.5m - Ground range: 44m - Width: 20m - Height under spreader: 49m (34m on dock / 15m under dock) - Supply type: 20kV - Power installed: - Control: automaton - Average rate: 25 containers/h

9 LIEBHERR container gantry crane - Year built: Manufacturer: LIEBHERR - Commissioned in Sète: Activity: containers / heavy lifts - Lifting capacity: 39t by hook; 34t by spreader - Total weight: 450t - Water range: Ground range: Width: 27m - Height under spreader: - Supply Type: 5,5kV - Power installed: 1400kW - Regulation: Ward Leonard - Average rate: 20 containers/h Mobile crane: (with spreader) Liebherr LHM Year built: Manufacturer: LIEBHERR - Commissioned in Sète: Type: right lattice-work boom - Boom connection: hydraulic - Activity: containers / heavy lifts / dry bulk - Lifting force: 35t at 48m by skip; 120t at 11m by hook -> 40t at 48m - Total weight: 167t - Width: 10.5m - Height under skip: 20m - Control: automaton - Average rate: 20 containers/h C) Cargo Community System (CCS) computerised exchange platform In 2014, the Port of Sète also adopted the computer system AP+, which pools all operators in the sector (harbour, port authorities, customs, consignees of ships, freight forwarders, exporters and importers, etc.). This community system enables each player in the industry to ensure its own traceability and management of logistics and administrative flows. It is now possible to follow the progression and management of containers and general cargo in the port area from beginning to end. D) Truck parking area To streamline and optimise the truck flow and parking, the Port of Sète has built 88 parking spaces at the east entrance connected to a computer recording system (with information transmission by optical fibre).

10 IV - Possible projects Depending on the type of project chosen, a Temporary Occupation Agreement of the public port area and a Private Equipment Authorisation with Public Service Obligation may be considered for a maximum period of 35 years, depending on the level of investment by the private operator. The supply of equipment in the future dock H can be made according to different options: 1) Exclusively private facilities Supply of equipment in the future dock H can be achieved exclusively by private investment. 2) Exclusively public facilities The operator can use the public facilities of the Port of Commerce of Sète as defined in Section III above with the possible transfer of a container crane and / or the use of a mobile crane. 3) Combination of public and private investment Transfer of a public mobile crane to quay H and / or use of the mobile crane with private gantries in quay H is a possible option. Whatever the option, the port equipment for roll on / roll off handling, necessary for the operation of the terminal container and general cargo, will be, in all cases, at the operator's expense. IV- Response application content The response application will include the following: A) Name, title, references and contact information of the author(s) of the response A response application can be submitted in the name of or on behalf of one or more persons or parties. Interested operators can be either: - Port handling operators; - Transport providers, particularly maritime; - Operators of multimodal chains with transport operations from start to finish including those related to port operations. B) Description, terms and conditions of operating the terminal

11 The response application will include a technical and commercial description of the proposed operation. Features and facilities of the terminal. The response application will present the requirements for additional equipment, infrastructure and resources for the terminal. The value of the investments planned. The response application will also describe: Targeted traffic Projected shipping lines Characteristics of the targeted ships Frequency of calls Scalability of traffic projected over time Any special goods, such as hazardous materials Additional services. The response application will specify any additional services that may be offered. Quality of service and marketing conditions. The response application will describe in particular: - Procedures planned for the marketing of services - Quality of services and resources deployed - Essential criteria constituting the quality of a container shipping or diverse cargo line C) Legal structure As several legal formulas are envisaged for the implementation and operation of the area, the response application will present the strategic thoughts of companies with regards to the public/private configuration that could best meet the project s requirements and goals. D) Various remarks In the response application, the candidate may share remarks, expectations or any recommendations not listed above. V- Application submission The response applications must be drawn up in French and signed by the representative of the interested companies. The response applications will be submitted in paper format before 30 September 2015 at 12 pm to the following address: Etablissement Public Régional Port Sud de France 1 Quai Philippe Régy BP 10853

12 34201 Sète CEDEX VI- Additional information For any additional information required to complete their applications, candidates should submit requests to the following address at least fifteen (15) days before the submission deadline: Etablissement Public Régional Port Sud de France 1 Quai Philippe Régy BP Sète CEDEX Or Mr Arnaud RIEUTORT Tel. +33(0) fax: +33(0) rieutort.arnaud@portsuddefrance-sete.fr Schedule: - CEI publication: 1 st May CEI submissions: 30 Sept Call for projects publication: 1 st January Call for projects submission: 31 st March 2016