The Operating Concept Peter Beamish, MA MICE Technical Director, Royal HaskoningDHV

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1 TEN-T Project 2011-IT S Implementation study to prepare a Public Private Partnership (PPP) to improve the capacity of the port of Venice and related logistics system Venice Offshore Onshore Port System The Operating Concept Peter Beamish, MA MICE Technical Director, Royal HaskoningDHV DIMITRIOS PACHAKIS, ALESSANDRA LIBARDO, PAOLO MENEGAZZO AIOM 16 & 17 October 2015, Genoa Italy

2 The Background There is a gap in growth rates developing between the North European and South European container ports. The container throughput of all NAPA (Northern Adriatic Ports Association) ports in 2014 was only ¼ of Rotterdam s The gap has been attributed (Newton, et al., 2011 ) to: i) nautical accessibility, ii) operational efficiency, and iii) inland connections Venice port has limited water depth. (The channel is currently dredged to 11m. Large container vessels (post panamax and larger) have draughts of 13 to 16m) Since the 1980s, Venice would like to remove oil tankers from the lagoon

3 The Background

4 Particular to Venice s unique location Constraints Regulatory and environmental constraints on the development of navigation channels within Venice Lagoon Port cannot handle large container vessels Gradual change of cargoes in the port Opportunities Availability of land Proximity to Central Europe Advanced Logistics infrastructure Well developed export-oriented hinterland

5 The Overall Onshore-Offshore Concept Provide offshore terminal capable of handling: oil tankers, thus removing them from the lagoon large container vessels

6 The Overall Onshore-Offshore Concept for containers Offshore platform 8 miles off the Malamocco Entrance Natural depth of 20 m Barge link comprised of purpose-designed barge carriers Onshore Terminal with rail, barge and gate connections

7 Planning Considerations Barge link to river ports

8 Planning Considerations Challenges Lack of off-shore yard space: limits storage capacity limits the number of equipment offshore Coordination between offshore and onshore operations Contingencies: Weather Fog Waves Malamocco Entrance

9 Royal HaskoningDHV Study Objectives Develop a state of the art layout and an operational concept for the whole transfer system Support the Port Authority to build a robust and attractive business case for a competent operator. Provide a clear and achievable route to implementation. Tasks Vessel Forecasting Study Offshore and Onshore Terminal Planning and Layouts OPEX and CAPEX Model Proof of Concept Simulation Visualization of the terminals

10 Vessel Forecast Scenarios Evergreen 6000TEU Vessels CMA CGM 7000TEU Vessels

11 Offshore - Onshore Terminal System Operating Principles Operating flexibility and equipment availability Continuous flow of containers between the two terminals Storage buffers at each end to modulate peaks Batch processing of containers (barges) Barge transporter spends very little time at port At high throughput, imports are stored on a floating buffer.

12 Offshore Terminal Operating Concept

13 Offshore Terminal Layout

14 Offshore Terminal Operating Concept

15 Offshore Terminal Horizontal Transport and Stacking Equipment Equipment Type: Automated Straddle Carrier Advantages No requirements for rails and power supply in the yard, just pavement Already proven technology, operating since 2005 Low capital investment in infrastructure and equipment Leaves the apron area under the STS portal free for other operations Easy phasing (only equipment) No electricity consumption Source: Durrant-Whyte et al., 2007

16 Barge Transfer Link Mother vessel (Mama) transports two barges Barges unloaded and loaded while Mama Vessel transports other barges Vessels and Barges designed by BMT Titron

17 Onshore Terminal Located at Montesyndial, in a disused industrial site.

18 Onshore Terminal Layout

19 Onshore Terminal Layout

20 Simulation Computer simulation was carried out of the offshore terminal and the barge link. Main objectives were: Verify the number of Barge Carriers and Barges necessary Verify the maximum number of Auto Strads required Verify that the storage in the offshore yard is sufficient Confirm that the productivity of the deep sea STS cranes and the barge cranes are not delayed by the operations of the horizontal transport Monitor the container transit time from offshore berth to onshore berth

21 Barge Transfer simulation, using Flexsim

22 Barge Transfer Link Several scenarios simulated Simulation considered a failure if: Mainline vessel at offshore terminal suffers significant delays; Recovery from a contingency event takes more than 7 days Simulated system fails to reach a steady state after 3 months of operation Too many containers have to be stored in the offshore terminal.

23 Barge Transfer Link Number verification by discrete event simulation two (2) no. barge carriers (SSBTs) twenty (20) no. barges, out of which two will be spare

24 Container Moves Complete (%) Container Transit Times, import 100% 90% 80% 70% 60% 50% Import Cumulative Distribution% Shows the time an import container takes to reach the onshore terminal from being unloaded from the vessel, and therefore becomes available for pick up by a truck or to be loaded onto a train 40% 30% 20% 10% 0% Journey Time (hrs)

25 Container Moves Complete (%) Container Transit Times, export Useful as it indicates the lead time required for an export container to be loaded onto the next deep sea vessel 100% 90% 80% Export Cumulative Distribution% 70% 60% 50% 40% 30% 20% 10% 0% Journey Time (hrs)

26 Summary Offshore Terminal: Automated Straddle Carriers working with remotely operated Ship-To-Shore and Barge Cranes. Onshore Terminal: Electric-RTGs for yard stacking and Tractor Trailer Units (TTUs) for horizontal transport, remotely operated Ship-To-Shore and Barge Cranes. Barge Transfer Link: verified through Discrete-Event Simulation and shown to have good productivity and the capability to operate well with regular and peak conditions.

27 Outcomes Τhe functional requirements for a potential operator in terms of equipment and operations are met in a realistic, flexible and economically feasible manner. Through extensive study of the available options and using sophisticated tools from operations modelling and simulation, the study managed to devise layout and equipment arrangements for the offshore and onshore ports that met the VPA requirements and achieved more that 25% reduction in the overall cost per TEU of the project, including equipment Capital Expenditures (CAPEX) and Operational Expenditures (OPEX).

28 Overall Conclusions Benefits to an operator: State of the art, and environmentally friendly Standardized equipment, low technology risk Ease of initial implementation and phasing Flexibility to accommodate both feeder and barge operations in the same storage area and with the same equipment, allowing for variations in the mix of throughput between feeders and deep sea containers. Low initial capital investment

29 Overall Conclusions Wider benefits: The terminal could create 1,925 direct jobs Revitalise a disused industrial area, and benefit the wider economy Become an alternative route for containers between Central Europe and Asia, which currently use Northern European ports

30 TEN-T Project 2011-IT S Implementation study to prepare a Public Private Partnership (PPP) to improve the capacity of the port of Venice and related logistics system Venice Offshore Onshore Port System The Operating Concept PETER BEAMISH DIMITRIOS PACHAKIS, ALESSANDRA LIBARDO, PAOLO MENEGAZZO AIOM 16 & 17 October 2015, Genoa Italy

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