Scapa Flow Container Terminal (SFCT)

Transcription

1 Scapa Flow Container Terminal (SFCT) Capt. Nigel Mills Director of Harbours Orkney Islands Council Prof. Alfred Baird Transport Research Inst. Napier University COASTLINK/SUSTACCESS CONFERENCE Perth, September, 2006

2 Presentation outline Trends in container transhipment The concept of transhipment via Scapa Flow Logic behind selection of ex Naval Base as preferred site Present position, impacts and compliance with government policy

3 Trends: World container traffic Million TEU Globalization of industry Increase in containerisation of general cargo

4 Trends: Increase in container ship size Mainline ships Length: m Breadth: 30-56m Draft: m Capacity: 2,000-14,000 TEU Feeder ships Length: m Breadth: 18-25m Draft: 8-11m Capacity: 250-1,500 TEU

5 Trends: Transhipment is the fastest growing sector of the container port market World economic, container and transhipment growth, Output Growth Container Growth Transhipment Growth Percentage Growth 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% *

6 Year World container port traffic and transhipment incidence, Total (M. TEU) Port-to-port (M. TEU) Transhipment (M. TEU) Transhipment Incidence % % % % % % % % % 2005 (est) % Increase /05 Source: Drewry

7 Ports with 50% and above transhipment incidence and volumes, 2004 Port Trans. Incidence Volume (M Teu) Port Trans. Incidence Volume (M Teu) Freeport 98.0% 1.1 Taranto 86.0% 0.7 T. Pelepas 96.0% 3.3 Algeciras 85.0% 2.5 Gioia Tauro 95.0% 3.1 Panama 81.0% 1.9 Salalah 95.0% 2.1 Colombo 72.0% 1.6 Singapore 91.0% 19.4 Sharjah 70.0% 1.4 Port Said E 90.0% 0.7 Piraeus 57.0% 0.9 Cagliari 90.0% 0.5 Las Palmas 56.8% 0.6 Malta 90.0% 1.4 Kaohsiung 54.6% 5.3 Damietta 87.1% 1.0 Dubai 50.0% 3.2 Kingston 86.0% 1.0 Port Klang 50.0% 2.6

8 Trends: Offshore transhipment terminals (Freeport, Bahamas )

9 Trends: Offshore transhipment terminals Salalah, Oman Malta Freeport Taranto, Italy

10 Trends: Offshore transhipment terminals (Port Tanjung Pelepas, Malaysia )

11 Trends: Container port demand for transhipment in north Europe, UK N.Continent East UK ports Million teu N.Continent West Hamburg and Bremerhaven Rotterdam Antwerp Le Havre (Source: Drewry) Continental ports account for 95% of north European transhipment (UK ports 5% + falling)

12 The concept of transhipment via Scapa Flow Low-cost transfer of containers between deep-sea mainline ships and short-sea feeder ships and vice-versa Focus on transatlantic (deep-sea) and north Europe, Baltic, Scandinavian markets (feeder & intra-europe) Approximately deep-sea and short-sea shipping lines serve these markets Expect over 95% transhipment at Scapa Flow N. Europe transhipment market size = 10 million TEU today, and 17 million TEU by 2015 Market growing between 10-14% per annum Scapa Flow target is between 0.5m 1.0m TEU/per annum (i.e. 3%-6% of the transhipment market)

13 Strategic location of Orkney Crossroads between the Atlantic Ocean and North Sea

14 Scapa Flow in the past the UK s main northern naval base. at the entrance to the Atlantic

15 Scapa Flow is directly on the Ocean AND closer to transhipment/feeder markets Existing hubs are a long way from the ocean and distant from regions served by transhipment/feeder Baltic/Scandinavia transhipment markets SCAPA FLOW LE HAVRE- HAMBURG RANGE MAIN PORTS UK/Ireland/West Nordic Atlantic transhipment markets ATLANTIC OCEAN USHANT West France/Iberia transhipment markets

16 Scapa Flow will form part of existing Transatlantic service schedules with zero ship deviation time. Complementing existing schedules INBOUND AND OUTBOUND BREMERHAVEN/ HAMBURG SCAPA FLOW SCAPA FLOW TO NEW YORK 3,091 NM FELIXSTOWE/ THAMESPORT ANTWERP/ ROTTERDAM LE HAVRE BREST TO NEW YORK 3,022 NM FEEDERS MAINLINE ROTATION

17 Potential clients include Scapa Flow Scapa Flow SAMSKIP HAMBURG-SUD Scapa Flow Actual routing after Hamburg Scapa Scapa Flow Flow HAPAG LLOYD EVERGREEN/HATSU/ITALIA MARINE

18 Potential clients include Scapa Flow NORTHERN SHIPPING CO Scapa Flow EIMSKIP Scapa Flow MOL ATS SERVICE Scapa Flow Scapa Flow NEW WORLD ALLIANCE APX SERVICE CSAV NORASIA-CSCL-GOLD STAR..plus other Transatlantic, westabout and regional/feeder services

19 UK/Ireland/West Nordic Atlantic Feeder Markets Mainline deviation and average spoke port distance (British Isles and Nordic Atlantic feeder ports) 3,000 2,500 2,000 1,500 1,000 Nautical Miles SFCT (Transatlantic) Gothenburg Hamburg Bremerhaven Rotterdam Antwerp Felixstowe Le Havre Southampton Average current hubs Average Spoke Port Distance Mainline Ship Deviation Distance Feeder ship and mainline ship deviation cost per TEU (British Isles/Nordic Atlantic transhipment market) US$ per TEU 50 0 SFCT (Transatlantic) Gothenburg Hamburg Bremerhaven Rotterdam Antwerp Felixstowe Le Havre Southampton Average current hubs Mainline ship (4,000 TEU) deviation cost Average UK+Atlantic feeder cost

20 Baltic & Scandinavia Feeder Markets Mainline deviation and average spoke port distance (Scandinavia and Baltic feeder ports) 2,500 2,000 1,500 1, Nautical Miles 0 SFCT (Transatlantic) Gothenburg Hamburg Bremerhaven Rotterdam Antwerp Felixstowe Le Havre Southampton Average current hubs Average Spoke Port Distance Mainline Ship Deviation Distance 250 Feeder ship cost and mainline ship cost per teu (Scandinavia/Baltic transhipment market) US$ per TEU 50 0 SFCT (Transatlantic) Gothenburg Hamburg Bremerhaven Rotterdam Antwerp Felixstowe Le Havre Southampton Average current hubs Mainline ship (4,000 TEU) deviation cost Average Scand/Baltic feeder cost

21 West France/Iberia Feeder Markets Mainline deviation and average spoke port distance (Atlantic Arc/Iberia feeder ports) 3,500 3,000 2,500 2,000 1,500 1, Nautical Miles SFCT (Transatlantic) Gothenburg Hamburg Bremerhaven Rotterdam Antwerp Felixstowe Le Havre Southampton Average current hubs Average Spoke Distance Mainline Ship Deviation Distance Feeder ship cost and mainline ship cost per TEU (Atlantic Arc/Iberia transhipment market) US$ per TEU SFCT (Transatlantic) Gothenburg Hamburg Bremerhaven Rotterdam Antwerp Felixstowe Le Havre Southampton Average current hubs Mainline ship (4,000 TEU) deviation cost Average Atlantic Arc/Iberia feeder cost

22 Ship Cost Savings via Scapa Flow Average mainline(4,000teu) plus feeder ship cost savings per TEU via SFCT compared with current hubs, by transhipment region $84.4 US$ per TEU $53.8 $ Brit Isles+ Nordic Atlantic Scandinavia/Baltic Atlantic Arc/Iberia Estimated feeder plus mainline ship cost savings (US$) via SFCT Port Container British Isles/Scandinavia/Atlantic Arc/ Throughput Volume W. Nordic Baltic Iberia (TEU) (TEU) Atlantic Feeder market split 45% 40% 15% Volume (TEU) 650, , , ,000 48,750 Average saving per TEU $84.4 $53.8 $23.8 Total cost saving Total aggregate annual cost saving $12,336,592 $6,988,046 $1,159,354 $20,483,992

23 Mainline Services (1) To Montreal SFCT SFCT NORTH EUROPE CANADA Hamburg Antwerp From Montreal OOCL Montreal-North Europe (GEX2) service via SFCT

24 To Newark From Charleston SFCT Mainline Services (2) NORTH EUROPE US EAST COAST Bremerhaven Felixstowe Rotterdam To Newark MAERSK Transatlantic TA1 service via SFCT

25 Mainline Services (3) To Charleston SFCT NORTH EUROPE US GULF COAST Antwerp Rotterdam Bremerhaven From Houston Le Havre Hatsu Marine Europe-USEC-Gulf of Mexico Service (EUG) service via SFCT

26 From Caucedo SFCT Mainline Services (4) NORTH EUROPE CARIB, CENTRAL AND SOUTH AMERICA Hamburg Tilbury Antwerp Rotterdam To Caucedo CMA-CGM EUROSAL Sling 1 via SFCT

27 To Charleston SFCT Mainline Services (5) NORTH EUROPE AUSTRALASIA Bremerhaven Tilbury Rotterdam Zeebrugge From Philadelphia MAERSK Transatlantic TA6 (Oceania Extension) service via SFCT

28 Mainline Services (6) To New York SFCT NORTH EUROPE US WEST COAST & NORTH ASIA Bremerhaven Thamesport Rotterdam From New York Le Havre Antwerp Evergreen North Asia-USEC-Europe pendulum (NUE) service via SFCT

29 To Newark To New York SFCT Mainline Services (7) NORTH EUROPE ROUND THE WORLD (RTW) Hamburg Felixstowe Rotterdam From Port Said CSAV-Norasia-CSCL-Gold Star Line, RTW Service

30 Feeder and Intra-Europe Services (1) SFCT IRISH SEA EXPRESS FEEDER SERVICE Belfast Dublin Liverpool Bristol 1 Vessel Fixed-day weekly

31 Feeder and Intra-Europe Services (2) SFCT NORTH SEA EXPRESS FEEDER SERVICE Grangemouth Teesport Thamesport Rotterdam 1 Vessel Fixed-day weekly

32 Feeder and Intra-Europe Services (3) SFCT IBERIA EXPRESS FEEDER SERVICE Liverpool To Montoir and Bilbao 1 Vessel Fixed-day weekly

33 Feeder and Intra-Europe Services (4, 5, 6.) To West Nordic region SFCT To Norway and Barents Sea BALTIC/SCANDINAVIA EXPRESS FEEDER SERVICES To Oslo Gothenburg Helsingborg Aarhus (& Baltic ports)

34 EIMSKIP SAMSKIP II Zero deviation for existing feeder operators SAMSKIP I ATLANTSSKIP SFCT SFCT SFCT SFCT

35 Carrier advantages via Scapa Flow Zero mainline Transatlantic ship deviation time Shorter average feeder distances/lower feeder cost Transit time savings for transhipment markets SFCT functions best as last port out or first port in within existing schedules, before/after German port call Competitive for Canada, USEC, USGC, Caribbean & Latin America, USWC and destinations via Panama (e.g. ANZ/Asia) Estimated $20.5m ship cost savings per 650,000 TEU throughput, plus terminal productivity advantages Transhipment is the fastest growing port sector (10%+ pa) SFCT is also ideal for intra-europe traffic

36 Logic Behind Selection of ex Naval Base as Preferred Site Brownfield port site Much of the terminal land already exists Low relative capital cost Adequate deep-water close to site Potential for rapid development Land available for logistics trade zone Scope for future expansion

37 Former Scapa Flow Naval Base Churchill s Golden Wharf, Lyness

38 Scapa Flow Harbour Today Former Naval Base/Proposed Container Terminal Site Entrance Channel Flotta Oil Terminal Ship-to-Ship Tanker Transfer Area Atlantic Ocean 1,000m approx North Sea

39 Scapa Flow Container Terminal 550m quay/5 quay cranes Logistics FT Zone Existing Ro-Ro berth Terminal Area Existing quay New Quay Front 16.5m depth/25 hectares 650,000 TEU capacity Cost approx US$190 million Logistics/Free Trade Zone Bunker fuel tanks Rapid development (2009) Scope for expansion

40 Possible Wharf & Bridge Structure

41 Proposed Vessel Routing Scapa Flow Scapa Flow Naval Base Pentland Firth

42 Present position vis-à-vis private operator and MoU Container market tested for interest in concept Focus on ex Naval Base/low-cost terminal Detailed Business Plan prepared Hili Company (Malta)/OIC signed MoU Next 3 months: Engineering study to firm up capital costs Harbour Revision Order (HRO) Environmental Impact Assessment (EIA) Applications for public funding (TEN-T/RSA etc.) Finalise operating agreement between Hili/OIC

43 Industry impacts Access to global and intra-europe low-cost connections on Scotland s doorstep Creates a new type of major UK port Interception of immense (non-uk) trade value: 0.75m TEU = 32.8bn goods value Scottish manuf. exports (2004) = 22.8bn Potential for logistics/added-value services SFCT will: Vastly expand trade via Scotland Help Scotland develop logistics capabilities Make Scotland more attractive for FDI Strengthen Scotland s indigenous industries

44 Local impacts Over 100 direct jobs initially (excl construct.) Expect up to 400 direct jobs between years 5-10 Safeguards existing jobs/support services Indirect jobs will be similar to direct job impacts Logistics/trade zone is a further opportunity Dynamic socio-economic impacts on Orkney: Infrastructure (roads, airport, ferries etc.) Services (schools, hospitals, housing, leisure etc.) Investment (all above, plus new enterprise/trade) Population (growth rather than static/loss)

45 Link between container volume growth and direct employment (Gioia Tauro) Containers 000 TEU Employees STAFF ORIGIN: 99.0% Calabria/1.0% Other regions jobs per mteu

46 Policy Perspective (Scottish Planning/Transport Policy) National Planning Framework Scapa Flow port is a deep-water opportunity Scapa Flow offers scope for developing new transhipment facilities linked to world shipping routes National Transport Strategy Strategic hubs such as Scapa Flow allows Scotland to tap into the huge growth in containerisation Container shipping is viewed as a critical transport mode capable of significantly strengthening Scotland s international connectivity SFCT is a strategic transport infrastructure project of national / international importance

47 Policy Perspective (UK Ports Policy) Recognises container port capacity needed Preference for brownfield sites / local support No land or sea access problems for SFCT Policy recognises that transhipment offers UK an opportunity, but that- Current UK major ports do not compete effectively in the transhipment market SFCT therefore offers the UK a new kind of major port with focus on transhipment

48 Policy Perspective (EU TEN-T) Motorways of the Sea is an EU TEN-T priority Scapa Flow (SFCT) will aid enlargement of EU-25 Reduces peripherality, fosters economic and social cohesion Provides an opportunity for modal shift from land to sea transport (i.e. via feedering) Highly innovative (ground-breaking in N. Europe) Helps improve links with neighbouring countries (e.g. Iceland, Norway, and Russia) Offers environmental benefits ( t-kms, energy, safety etc) Takes pressure off heavily congested transport networks Improves EU competitiveness Helps EU develop a sustainable transport network

49 SCAPA FLOW CONTAINER TERMINAL THANK YOU DEPARTMENT OF HARBOURS ORKNEY ISLANDS COUNCIL