CASE STUDY

LNG SKIKDA’S PROJECT

ü PROJECT NAME: NEW LNG SKIKDA PROJECT ü ORIGINS: United States of America, European Economic Community, Korea, Turkey

and Far East ü DESTINATION: Skikda (36°52’34’’ North, 6°54’33’’ East) – Algeria ü CARGO VOLUME: 500 000 freight tons ü DURATION: 2007 - 2015 ü ORDER BY Algeria State

DESCRIPTION Algeria decided to increase the volume exported of natural Gas. Two LNG were already in production and they expected to double the quantities. For such capacity, the Algerian Ministry of Energy awarded KBR, American Major Company. The project is named New LNG Skikda located at 30 km from Skikda seaport. The Engineering Procurement Construction (EPC) contract was signed on 2007 for an overall amount of 8 Billions $ and a volume of 500000 freight tons. Three years of planning, engineering, meeting, quotations, eight years to complete the project. It was the biggest industrial project in Algeria for century 21 that GoFast’s teams performed. REQUEST FOR INFORMATION (RFI) Beginning of 2007, Kellogg Brown & Root LLC (KBR), American Company, approached various forwarders able to perform a worldwide door-to-door transportation, including custom formalities at both ends and having a real capability to manage the very specific Algerian rules and customs. To provide a successfully answer to the RFI, GoFast involved its subsidiaries of Houston, France, and Algeria: Houston as American coordinator, Paris as European coordinator and GoFast Skikda as local coordinator.

       

 

CASE STUDY

The RFI had to measure the capacity of the forwarder to supply the following supports: - Management of the orders of transport from all the countries suppliers, - Choice of transportation adapted at the request of the customer, - Choice of the seaport or airport of departure and arrival. Feasibility studies were realized in Algeria concerning the means of transportation, road survey, bridge structure in relation with the heavy lift and oversize cargo. KBR issues for the local part all have easily received a GoFast’s response due to their huge experience and collaboration with companies’ countered oil, especially with SAIPEM. GoFast provided all requested information: For the offshore portion: - HSE certificate - KPI support - Financial turnover – Financial guarantee to bid – Chart organization shipping lines expected regarding breakbulk and container shipments – Chartering companies– Airlines to Algeria – Logistic hub for consolidation in Marseille – Logistic Hub in Houston - Insurance guarantee. For the onshore portion: - Forwarder agreement – Custom broker agreement - KPI support – Chart organization At date the volume to be transported was estimated at 500.000 freight tons. REQUEST FOR QUOTATION (RFQ) After several meetings, KBR being confident in the ability of GoFast to supply the logistic support of such project and to perform it sent the RFQ some months later. The RFQ mentioned the following quantities to be transported: - Containers = 4500 teus, - Breakbulk (general cargo) = 300.000 freight tons, - Breakbulk (heavy or over size cargo) = 120.000 freight tons, heaviest piece 700 weight tons, - Air shipment = 40 weight tons, Mains Suppliers countries: United States of America, European Economic Community, Korea, Turkey and Far East. GoFast indicated the seaport’s use of SKIKDA for the reception of the sea shipments and the airports of Annaba or Algiers according to the size of the packages.

       

 

CASE STUDY

Contract was awarded to GoFast on June 2008 but the first shipment started at the end of 2007 and the final transport was delivered on December 2015. Therefore, GoFast provided a performance bond of an amount equal to 10% of the total frame agreement and increased the insurance guarantee up to 5 million US dollars. The frame contract included the transportation price list consisting in 400 offshore items and 95 onshore items. Offshore and onshore GoFast’s organization: GoFast Houston was responsible for the offshore shipping scope to the logistics hub in Houston by road or by rail, Marseille port by sea or by air, Skikda port by sea or by air to Annaba airport, Algiers by air. GoFast Paris was in charge of the communication and coordination between Houston, Skikda and Algiers’ teams; responsible for the offshore shipping scope to the logistics hub in Marseille from EEC by road or by sea or by air, Skikda port by sea or by air (Annaba Airport), Algiers by air. GoFast Skikda ensured responsible for the inbound information: - Weekly status report, - Daily custom clearance report, - Providing port supply workers and port survey handling and storage, - Local logistic transportation and custom clearance operations. The team around a project manager included – four custom officers – four custom agents in support – eight timekeepers alongside the quay – six security guard – two port surveyor – administrative staff with eight employees – four employees for the transit operations Customized service proposed by GoFast: (insérer photos Helifirst + mise en avant de ce service sur-mesure) In the period 2005 to 2008, it was observed an increase of the insecurity in Algeria. Therefore, our customer in his HSE obligations requested GoFast to ensure with a maximum of security the weekly transfer of their American staffs between Annaba airport and their site of residence and their way back. .

       

 

CASE STUDY

GoFast had the solution and satisfied them by proposing an “unpublished” mean of transportation in Algeria in a long leasing contract. Helifirst, a French subsidiary of GoFast realized the implementation of a helicopter Ecureuil, AS 355N of 5 passengers’ seats. Algerian space is prohibited for the private flights or domestic private flights. GoFast had to get from the Algerian Ministry of Air Transportation, the authorization of imported temporary his helicopter in Algeria and to park it on Annaba tarmac, not far away of regular flights. GoFast obtained green light for use it as domestic air transportation with his own pilot during the duration of the contract. SCOPE OF TRANSPORTATION The overall scope consisted of ocean freight to Skikda seaport using interim storage and respective consolidation before shipment to Skikda port via Houston and Marseille hub. Otherwise cargo shipped directly from countries through regular shipping lines concerning console box or Full Container loaded (FCL) or Shipper Own Container (SOC) or breakbulk (BB) and chartered geared vessels when was necessary. At least the total contract performed by GoFast included:

ü Total volume moved 850.000 freight tons - including 7500 teus Carrier Own Container (COC) and SOC - including 700.000 freight tons of BB - BB included 380 heavy lifts and/or oversize packages for 108.000 freight tons

total. Total movements for road transportation purpose realized was 32.000 between seaport and job site. The price list increasing during the contract increased at 850 offshore and 230 onshore items The concept Starting in 2007, GoFast Paris with his Algerian team took attaches with Algerian authorities to obtain opportunities concerning the exemption of the local taxes as well as the fluidity concerning the operations of customs clearance in order to avoid any delay with delivery operations to the seaport up to the job site. At the same time, GoFast submitted its road routing and scheduling to the local authorities for the validation of the road and the bridge’s resistance capacity on the road connecting the seaport with delivery site.

       

 

CASE STUDY

THE BIGGEST CHALLENGE The heaviest parcel named “AIR EXCHANGER“, weighed 700 tons. For such cargo GoFast chartered “JUMBO Vessel“ geared 2 X 650 WT combinable with a draft not over 11 meters which was the maximum acceptable at Skikda seaport. For the inland transportation, GOFAST positioned a special truck called “SPMT S” (Self Propelled Modular Transporters) along the ship and under tackles for the hooking operation with direct delivery. This particular trailer is the solution for the haulage activity of loads in restricted area or in transporting to site on short distance when local heavy lift trailer are not suitable. SPMT S had a HIGH capacity up to 50 tons per each axle line and allowed to cross the bridge (located at the left of the seaport) by dividing the distribution of the pressure on the ground with all of the axles, which in this case was lowered in 5 WT / SQ. GoFast imported temporary the SPMT S (dismantled) 2 months before the Vessel estimated arrival in order to have the SMPT S ready to move at expected date. The max speed was 5 km/h and a full day was necessary to arrive at job site located at 30 km from the seaport. Execution and Performance GoFast’s team showed during 5 years her capacity of reactivity regarding customer’s requests. Always in action and tuned to KBR, teams knew how to face to local conditions particularly in summer and during holidays periods. The contract was realized undamaged notable and reached its ambitious goals