development of greenfield ports · basic design phase 1 site investigations capex/opex ± 20%...

Development of Greenfield Ports

Ir. Marko PootM. Sc. Mechanical Engineering - Materials handling and Transport engineering - Delft University of TechnologyDirector of Engineering Materials Handling Consultants (MHC)Member of Port Consultants Rotterdam (PCR)Member of PIANC Working Group 184 – Design principles of dry bulk marine terminalsContact: [email protected]

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Materials Handling Consultants (MHC)

Independent consultancy and engineering firm,Specializing in the development and design of ports, materials handling and logistical systems and process automation.

The projects include terminal and port development for:

• Containers• Dry Bulk (Coal, Iron ore etc)• Grains• Liquid Bulk• Livestock• Break-Bulk and General Cargo

MHC is based in Rotterdam and is a shareholder and partner of Port Consultants Rotterdam (PCR).

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K.P. van der Mandelelaan 90F

P.O. Box 4500 – 3006 AM ROTTERDAMTHE NETHERLANDSTel. +(31)-10-452-7952

Fax. +(31)-10-212-3297E-mail: [email protected]

Port Consultants Rotterdam

Port Consultants Rotterdam (PCR) is a Rotterdam based independent consultancy firm in the field of strategy, management, infrastructure and logistic development in ports and hinterland.

S E R V I C E S

Port strategy Masterplanning

Maritime economics Financial and PPP

Project management Terminal planning

Port operations Nautical advice

Dredging & marine Hinterland logistics

Inland waterways Materials handling

Procurement

Supervision

Design & Engineering

CORE VALUESCommitted to the highest ethical and professional standards

Aiming for quality and a pro-active and constructive approach

Seeks to exceed client expectation and build lasting relationships

Driving innovation and creativity to an optimum solution for the client

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Expansion of the Port of Rotterdam

Client: Rotterdam Port Authority

Services provided:• Development of masterplan• Assisting with EIA studies• Cost estimate• Business case study

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Development of Sokhna Port

Client: SPDC

Services provided:• Development of masterplan• Design of terminals• Port operations

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Design of Lekki Port in Nigeria

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Services provided:• Functional requirements• Design and specifications of:

• onshore port infrastructure• terminal areas

Marine works by DMC

Business Case Study Greenfield Port

Client: Classified

Services provided:• Market study• Masterplan• Conceptual design• CAPEX/OPEX• Business case study

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Masterplan Agribulk Terminal Belize

Client: Oxalis

Services provided:• Masterplan• Conceptual design• CAPEX• Artist impressions

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The Greenfield Port

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The next slides show some typical steps / actions for a complete development of a green- or brownfield port.

Important aspect of a greenfield project is the selection of the right location for:• Site Conditions• Market Conditions• Available infrastructure

Environmental data, such as bathymetry, wave climate etc. are often not available, however nowadays these data can be found in public sources and are suitable for a first selection of possible locations.

Step 1 – Identification of business opportunities

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Strategy

Conceptual Design

CAPEX/OPEX ± 30-40%

Stakeholders

Masterplan

Location study

Market forecast

Business Case

Finance

Institutional

Preliminary design

E(S)IA/Permits

Yes/No

Basic Design Phase 1 Site investigations

CAPEX/OPEX ± 20%

Tendering

Construction

Output:• Trade and traffic forecast• Design vessels• Required number of berths and size of terminal

areas

Input:• Trade and traffic statistics• Interviews with shipping agents, liners, existing

terminal operators and other relevant parties• Infrastructure developments

Procurement strategy

Site investigations

Question: What could we get?

Activity: Use market data and analyze existing port

activities and future cargo flows and calculate the

required infrastructure for the handling of the cargo

Step 2 – Outlining Port Strategy

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Strategy

Conceptual Design


Stakeholders

Masterplan

Location study

Market forecast

Business Case

Finance

Institutional

Preliminary design

E(S)IA/Permits

Yes/No


CAPEX/OPEX ± 20%

Tendering

Construction

Output:• Port Strategy (port profile: hub or feeder port,

competitiveness in relation to other ports etc.)

Input:• Meetings with stakeholders

Site investigations


Question: What do we want?Activity: Discussions with the client how they would like to develop the port

Step 3 – Conceptual Design

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Strategy

Conceptual Design


Stakeholders

Masterplan

Location study

Market forecast

Business Case

Finance

Institutional

Preliminary design

E(S)IA/Permits

Yes/No


CAPEX/OPEX ± 20%

Tendering

Construction

Site investigations


Output:• Conceptual design alternatives (for instance an

island alternative, a landbacked alternative, various layout orientations of the berths etc.)

• Multi Criteria Analysis

Input:• Metocean study• Existing environmental data• Functional requirements

Question: What could it look like?Activity: Preparation of alternative layouts based on the expected cargo

Step 4 – Masterplan

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Strategy

Conceptual Design


Stakeholders

Masterplan

Location study

Market forecast

Business Case

Finance

Institutional

Preliminary design

E(S)IA/Permits

Yes/No


CAPEX/OPEX ± 20%

Tendering

Construction

Site investigations


Input:• Preferred conceptual design alternative

Output:• Phased masterplan• Requirements for site investigations

Question: What will we choose?Activity: Multi Criteria Analysis of the alternatives and preparation of the phased masterplan

Step 5 – Preliminary Design and CAPEX/OPEX

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Strategy

Conceptual Design


Stakeholders

Masterplan

Location study

Market forecast

Site investigations

Business Case

Finance

Institutional

Preliminary design

E(S)IA/Permits

Yes/No


CAPEX/OPEX ± 20%

Tendering

Construction


Question: How does it look like and how much does it cost?Activity: Preparation of a preliminary design and a cost estimate

Input:• Masterplan• Site investigations and other studies

Output:• Preliminary design• CAPEX/OPEX Estimate of Phase 1

Step 6 – Business Case

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Strategy

Conceptual Design


Stakeholders

Masterplan

Location study

Market forecast

Site investigations

Business Case

Finance

Institutional

Preliminary design

E(S)IA/Permits

Yes/No


CAPEX/OPEX ± 20%

Tendering

Construction


Question: How should the business model look like?Activity: Combine all information of previous steps into a business plan including a financial and institutional model to describe the business case

Input:• Preliminary design• CAPEX/OPEX

Output:• Institutional model• Finance scheme• Business plan

Step 7 – Tender Strategy

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Strategy

Conceptual Design


Stakeholders

Masterplan

Location study

Market forecast

Site investigations

Business Case

Finance

Institutional

Preliminary design

E(S)IA/Permits

Yes/No


CAPEX/OPEX ± 20%

Tendering


Construction

Question: How will we tender?Activity: Define a tender strategy together with the different stakeholders

Input:• Business Case• Phased masterplan• Preliminary design

Output:• Tender strategy (BOT, EPC etc)

Step 8 – Basic Design (1st Phase)

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Strategy

Conceptual Design


Stakeholders

Masterplan

Location study

Market forecast

Site investigations

Business Case

Finance

Institutional

Preliminary design

E(S)IA/Permits

Yes/No


CAPEX/OPEX ± 20%

Tendering


Construction

Question: How should the first phase of the port look?Activity: Finalize the design

Input:• Preliminary design• Procurement strategy• Additional site investigations / Studies

Output:• Basic Design• CAPEX/OPEX

Step 9 – Tendering

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Strategy

Conceptual Design


Stakeholders

Masterplan

Location study

Market forecast

Site investigations

Business Case

Finance

Institutional

Preliminary design

E(S)IA/Permits

Yes/No


CAPEX/OPEX ± 20%

Tendering


Construction

Question: Who is going to build it?Activity: Prepare tender documents and tender the project

Input:• Tender strategy• Basic Design• CAPEX/OPEX

Output:• Tender documents• Selection of a contractor / Operator• Contracts

Step 10 – Construction

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Strategy

Conceptual Design


Stakeholders

Masterplan

Location study

Market forecast

Site investigations

Business Case

Finance

Institutional

Preliminary design

E(S)IA/Permits

Yes/No


CAPEX/OPEX ± 20%

Tendering


Construction

Question: How to control the project?Activity: Project management (supervision, contract management etc.)

Site Investigations to be performed

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1. Bathymetric survey or side-scan sonar survey

2. Topographic survey

3. Meteorological survey

4. Oceanographic and hydraulic surveys

5. Geotechnical survey (subsoil investigation)

6. Analysis of water properties

7. Environmental & Social Impact Assessment study

Design Studies to be performed

1. Detailed dynamic mooring analyses to determine limiting in-berth wave conditions

2. Ship Navigation study

3. Marine operability assessment

4. Assessment of breakwater requirements or other measure to improve operability

5. Assess effects of any measures on the surrounding area

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Institutional Options

Port type Infrastructure Superstructure Labour Other functions

Landlord port Public Private Private Mainly public

Service port Public Public Public Mainly public

Tool port Public Public Private Mainly private

Private port Private Private Private Mainly private

In general four types of port management models are distinguished for the distribution of the responsibilities:

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Lessons Learned from Maasvlakte II

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Main issues for developing a port:

• Uncertainties!!!

• The development of a new port area may take decades

• The infrastructure we construct will have a technical life-span of more than 50 years

• And in the mean time the world and port business is changing constantly at a tremendous pace

• We are shooting at a fast moving target

• Will our strategy and our resulting Masterplan be robust enough to cope with different futures?

Lessons Learned from Maasvlakte II

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Design philosophy:

• Flexibility, flexibility and flexibility to cope with the expected changes in port business during the development period of the project.

• Make the choices that have to be made right now, leave the rest to be decided in a later stage.

• For that reason do not make The Masterplan but a series of Successive Masterplans

• A yearly Masterplan cycle.

• Phased development:

• Start constructing the sea wall, the infrastructure and the reclamation for the first clients.

• Further phased reclamation and infrastructure development based on client demand.

Points of Attention

1. An accurate and thorough market forecast is essential

2. Involve Public sector for development of basic port infrastructure

3. The business case must be right for all parties

4. Define in an early stage the institutional setting for the port development

5. Do not see a port as a standalone service

6. For container terminals: Focus more on the content (cargo) than on moving boxes

7. Added value activities, do something with cargo

8. Take time for the development

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Key characteristics of a competitive port

1. Excellent hinterland connections

2. Limited downtime

3. Limited waiting time

4. Flexible design

5. High service level

6. Strategic location

7. Competitive tariffs

8. Monitoring competitiveness

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development of greenfield ports · basic design phase 1 site investigations capex/opex ± 20%...

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