CALL FOR PROPOSALS FOR MAKING AREAS AVAILABLE AT THE TRADING PORT OF SÈTE WITH A VIEW TO OPERATING A CONTAINER AND GENERAL CARGO YARD.

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1 CALL FOR PROPOSALS FOR MAKING AREAS AVAILABLE AT THE TRADING PORT OF SÈTE WITH A VIEW TO OPERATING A CONTAINER AND GENERAL CARGO YARD Specifications

2 Preamble Ownership of the ports of Sète and Frontignan was transferred from the State to the Languedoc-Roussillon Region on 1 st January The Region has entrusted the management and operation of commercial and fishing activities to the Port Sud de France Public Regional Establishment. Port Sud de France wishes to develop container business within the Trading Port of Sète. Under this framework, a new 470 m long deep sea quay entailing an investment outlay of 45 million Euros will be delivered during the summer of Two open storage areas, one covering 58,716 m² and the other covering 17,721 m², are located in the immediate vicinity of this Quay H. This call for proposals will allow some or all of these areas to be assigned with a view to operating a yard dedicated as a matter of priority to containers activity, but where other general cargo can be processed. I - The areas covered by this call for proposals The operator will be able to adopt a position regarding making some or all of the two open storage areas described above available with a view to operating a yard dedicated as a matter of priority to containers, but where other general cargo can be processed. A) The open storage areas covered by the call for proposals The 58,716 m² open storage area (marked in green on the map) This open storage area is located in the immediate vicinity of the future Quay H described hereinbelow. It is a 58,716 m² open storage area served by several railways tracks on the west side, and is sealed and has lighting (formerly it was a yard for handling imported new vehicles). The open storage area s current operating load is one that enables storage of the vehicles, as well as vehicle traffic (1 t/m²). The operator will be able to invest and carry out the works to enable the storage of containers with an estimated loading capacity of 8 t/m², subject to resizing the platform structure for that purpose (a soil study conducted in 2009 can be forwarded if necessary).

3 The 17,721 m² open storage area (marked in green on the map) This is a 17,721 m² open storage area served by several double railway tracks, providing a nominal storage capacity of 20,000 TEUs/year. The whole open storage area is fenced and has controlled access, with a storage area and a load-bearing capacity of 6 t/m², including 140 reefer plugs. It is located in the immediate vicinity of the Trading Port of Sète s refrigerated warehouse. A) The quays in the immediate vicinity The future Quay H (marked in blue/brown on the map) This is a deep sea quay, 467 m long, with a loading capacity of 6 t/m² within a 35 m strip (marked in blue on the map), and then a loading/storage capacity of 10 t/m² beyond that (marked in brown on the map). Quay H offers two berthing points and a double Ro-Ro ramp. Under the framework of this call for proposals, calls for regular lines at the quay have priority. Moreover, this quay is likely to accomodate two ships at the same time. However, it is specified that Quay H, as well as its 26,200 m 2 open storage area at the back of the quay (marked in brown on the map), shall remain public areas, and operation and occupancy of them cannot therefore be privatised. Quay H will be provided with a power supply sufficient to enable four (4) gantry cranes and one (1) mobile crane to operate. The permissible characteristics for the container carriers are m for the permitted draught (bearing in mind that the water depth is m and may be dredged to a depth of m at a later date). The spacing between the rails for the gantry cranes to travel along is 27 m. Delivery of Quay H is scheduled for summer The operator may be able to operate Quay H via a private equipment authorisation, the duration of which will be determined depending on the amount of the investment outlays made. Public Quay E (marked in blue on the map) This is a 450 m quay fitted with a Ro-Ro ramp (22 m wide), some of which (340 m), is assigned as a matter of priority to containers, with two dedicated berths on the dockside (E1 and E2) The permissible characteristics for container ships are:

4 - 225 m long, - And a permissible draught of 11 m (including 200 m with a permissible draught of m). The spacing between the rails for the gantry cranes to travel along is 27 m. II The environment in the vicinity of the areas covered by this call for proposals As a reminder, the Trading Port of Sète has an entrance open 24 hours a day that is directly linked to: - The secondary road (D600), suitably sized for heavy-lift conveyors, - The motorway network (A9), the on-ramp of which is 8 km from the port. The main entrance has 3 in lanes and two out lanes. The ISPS regulations apply to the whole Trading Port Of Sète, which is also under Customs control (bonded area). A) Infrastructure and buildings The reefer warehouse (in pink on the map) Port Sud de France has reefer facilities at the Port of Sète for the storage and warehousing of perishable foodstuffs (fruit, vegetables, fish and meat) with controlled temperature storage at the quayside at the Bassin Colbert (Quay E). These installations include: - A quayside controlled temperature warehouse with a surface area of 23,000 m² including three storage and preserving units, - A processing capacity of 500,000 pallets per year, - A total storage capacity of 15,000 pallets for repackaging and preparing orders, including 5,500 pallets in 10 cold rooms, - 10 cold rooms measuring 300 m² each: o 9 cold rooms with temperatures of -2 to +14 C that are suitable for ensuring the continuity of the cold chain, o 1 cold room at -25 C suitable for storing frozen products, - 33 loading gates for trucks, - 27 gates for unstuffing reefer containers. The BIP (Border Inspection Point)/CEP (European Community Entry Point) administrative building for inspection purposes (marked in yellow on the map) 400 m away from the reefer warehouse, Port Sud de France has built a joint administrative building for the CEP (for phytosanitary inspections) and the BIP (for inspecting products of animal origin intended for human consumption, made

5 available to the administrative authorities, as a well as which, in situ, make it possible to carry out the inspections required by law as quickly as possible. It is possible to perform phytosanitary inspections when ships arrive, with inspectors from the Ministry of Agriculture assigned specially to Sète in attendance. Rail connection A railway serves the back of the 58,716 m² and 17,721 m² open storage areas which is continued immediately up the line by four (4) 400 mm rail sidings. These are connected to a series of secure port railway lines that cover 48 km. A lorry parking area and a facility for haulier drivers The haulier drivers parking area in the immediate vicinity of the Trading Port Eastern entrance offers a capacity of 120 spaces. A building for welcoming drivers will be built in 2016, which in particular will include toilets, showers and a break room. Besides, a regional road centre for halier drivers is located nearby, less than 2 km from the Commercial Port s entrance. An approved weighing bridge (marked in red on the map) An approved weighing bridge has been installed in the immediate vicinity of the container yard (marked in red on the map). A Cargo Community System (CCS) computerised data exchange platform In 2014, the Port of Sète equipped itself with an AP+ IT system that enables work to be done with all of the operators in the sector (harbour master's office, port authorities, Customs, ships agents, shipping lines, forwarding agents, exporters and importers, etc.). This Community System enables each actor in the sector (to the extent it is concerned) to ensure the traceability and management of logistics and administrative flows of goods. It is now possible to follow the progress and management of containers and conventional goods within the port on a daily basis.

6 MAP OF THE AREAS AFFECTED BY THIS CALL FOR PROPOSALS

7

8 B) The existing equipment that can handle containers Travelling gantry cranes: Eurocrane container gantry crane - Year of construction and commissioning in Sète: Manufacturer: Eurocrane - Activity: Containers/heavy items - Lifting force: 70 t at the hook, 2 x 25 t/2 x 30 t at the spreader (20 and 40 foot containers) - Total weight: 875 t - Effective reach in relation to the rail axis on the water side: 44 m - Effective reach in relation to the rail axis on the land side: 15 m - Total travel: 86 m - Overall width: 20 m - Spreader height: 34 m - Power supply type: 20 kv - Control: Automatic controller - Average rate: 20 to 30 containers/hr Liebherr gantry crane - Year of construction and commissioning in Sète: Manufacturer: Liebherr - Activity: Containers/heavy items - Lifting force: 39 t at the hook; 34 t at the spreader - Total weight: 450 t - Effective reach in relation to the rail axis on the water side: 35 m - Effective reach in relation to the rail axis on the land side: 11 m - Overall width: 27 m - Spreader height: 24 m with the spreader at 0 /21 m with the spreader at 90 - Power supply type: 5.5 kv - Control: Ward Leonard unit - Average rate: 20 to 30 containers/hr Mobile crane: (with twin lift spreader) Liebherr LHM Year of construction and commissioning in Sète: Manufacturer: Liebherr - Type: Straight latticework boom - Boom linkage: Hydraulic - Activity: Containers, heavy items, bulk solids - Lifting force: Clamshell; 35 t at 48 m, Hook; 120 t at 11 m -> 40 t at 48 m - Total weight: 167 t - Overall width: 10.5 m - Clamshell height: 20 m - Control: Automatic controller - Average rate: 20 to 30 containers/hr

9 III Technical details: Goods handling at the open storage areas made available At the 58,716 m² and 17,721 m² areas, the goods will be handled using cranes belonging to the operator or its stevedore. Networks The Port Sud de France Public Regional Establishment has appended a map showing the existing networks at the site made available (stormwater gutters, settling tanks/silt removers). The Port Sud de France Public Regional Establishment will ensure the supply of water, electricity, telephone/internet utilities to the site made available, but all additional installation costs, as well as consumption costs, will be fully reinvoiced and passed on to the operator who is the beneficiary of the occupation agreement regarding the port s public property. Environmental data The operator shall undertake to comply with regulatory obligations in terms of the environment that relate to its activity. In particular, it shall ensure that its professional waste is managed using suitable collection and disposal methods. Moreover, it will take care not to discharge any dirty water into the environment. IV Port equipment: options that may be envisaged The operator may freely determine the port equipment required for its operating its business. The options detailed below could be envisaged: A) The equipment on Quay H The equipment for the future Quay H could be implemented according to various options: Exclusively private equipment: The port equipment for the future Quay H could be implemented exclusively by private investment. Exclusively public equipment: The operator could use the Trading Port of Sète s mobile crane, the characteristics of which are provided in Article II-B above. Furthermore, transferring a container gantry crane from Quay E to Quay H could be considered.

10 Combination of public and private investments The transfer of a public gantry crane to Quay H and/or use of the mobile shore crane combined with private gantry cranes on Quay H is an option that could be envisaged. Whatever option is selected, horizontal hanling equipment required for the operator s activity shall remain its responsibility. B) Use of the existing equipment on Quay E Depending on the project presented, the operator could operate on Quay E and use the existing equipment on this quay. V Desired characteristics for the projects presented The operators shall freely determine the following details: The commercial and mooring policy for ships from the various shipping companies, The operating method for the storage yards and the equipment used, The number of gantry cranes or gantries located on the quay, More generally speaking, the planned investment volume for the project. The operators are free to come up with proposals they deem to be appropriate regarding these various points, depending on their own strategies and their own experience. On the other hand, the operators are asked to make a clear, firm commitment regarding the minimum volume of traffic handled at the yard (the implementation conditions for this will be negotiated via the occupancy agreement). An operator s proposal may not be less than: Minimum traffic 12 months after the yard begins operating: - In the case of mixed traffic (containers and general cargo): Containers*: 10,000 TEUs per year, reaching 30,000 TEUs per year after 5 years General cargo : 100,000 tons per year, reaching 200,000 tonnes per year after 5 years (NB: the aforementioned tonnage only relate to additional traffic for the Trading Port of Sète) - If there is only container traffic: 20,000 TEUs per year, reaching 50,000 TEUs per year after 5 years. Any project that presents traffic consisting solely of only general cargo will be rejected. NB: cereal cargo = all maritime traffic (excluding containers).

11 * Based on one (1) container = 10 tons. VI Establishing contractual relations and financial conditions Depending on the options adopted, a Temporary Occupation Agreement for the port s public property will be concluded, and possibly a private equipment authorisation. The terms of these agreements will depend on the details provided in the tender file and on the negotiations, and particularly: - The duration, - The investment outlays made by the private operator, - The traffic guarantee, - The pricing conditions, comprised of an occupancy fee linked to the operator's traffic commitment and to the amount of the investments outlays envisaged on the one hand, and the port fees and equipment fees on the other hand. (NB: the operator s proposal cannot be less than 3 (excl. tax)/m² per year for the 58,716 m² open storage area and 5 (excl. tax)/m² per year for the 17,721 m² open storage area). Appendices: - Networks plan

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