Cargo Handling Terminal Management Concession

Cargo Handling Terminal Management Concession

Port of Valletta, Malta

Process Document for Persons Interested

in Submitting an Expression of Interest

Important Notice:

Terms and Conditions to prospective Persons (“Persons” means any physical or legal person including consortia and companies in formation) making use of this document

This document has been prepared by the Malta Maritime Authority (MMA) for the limited and specific purpose of allowing interested Persons to determine whether or not to submit an Expression of Interest to pursue the opportunity to manage the Cargo Handling Terminal Operations in the Port of Valletta under a Concession Agreement.

The review, reproduction, publication, distribution, disclosure, use, copying or other dissemination of this document, or its contents, or the taking of any action in reliance on the same, does not require MMA’s prior consent.

This document and the information contained herein reflect the prevailing conditions and views as at the date written which are, accordingly, subject to change without notice. In preparing this document MMA relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or material, which was otherwise, obtained or reviewed by MMA.

This document is not intended to form the sole basis of any business decision and should not be considered as a recommendation by MMA to participate in the opportunity. Bidders should make their own independent assessment of the opportunity after making investigations, as it deems necessary in order to determine their interest.

This document does not constitute any offer to sell or any solicitation by or on behalf of MMA or any of its directors, officers, managers, employees, agents, advisors, consultants or representatives or any other person whatever in any jurisdiction where it is unlawful for such entities or person to make any such offer or solicitation. Persons or entities into whose possession this document may come are required to inform themselves about and to observe such restrictions.

The MMA and its officers, employees, agents, advisors, consultants and representatives do not warrant the information or opinions contained herein and specifically do not warrant, expressly or implicitly, the accuracy completeness or correctness of the same.

The MMA and its directors, officers, employees, agents, advisors, consultants and representatives each respectively accept no responsibility for any loss arising from the use of or reliance on this document or its contents in any manner whatsoever save for any contractual obligations entered into respecting the same.

Acceptance by Persons of receipt of this document constitutes its agreement to and acceptance of, the terms set forth in this Important Notice.

Invitation for Expressions of Interest

The Malta Maritime Authority invites interested Persons to submit Expressions of Interest in participating in a public tender process leading to the award of a cargo handling terminal management concession in the port to replace the existing contractual arrangements when these expire in June 2006.

Expressions of Interest should be sent by registered mail/post or by hand delivery to following address:

The Chairman

Malta Maritime Authority

Ports Directorate

Marine Pinto

Valletta VLT 01, Malta

Telephone:00356 2122 2203

Fax:00356 2122 2208

Envelopes to be sealed and marked “Expression of Interest: Cargo Handling Terminal Management Concession: Port of Valletta” should reach the Chairman not later than noon on Friday, 16th September 2005.

A. Background

The Government of Malta wants to institute reforms to reverse the decline in traffic and develop new activity in the Port of Valletta. These reforms include restructuring institutional arrangement in the port, establishing more flexible working arrangements for port services and creating an environment that attracts new customers. Independently of this reform process, Government will issue a call for tenders for cargo handling services in the Port of Valletta to replace the existing contractual arrangements with The Cargo Handling Company Ltd. which are due to expire in June 2006.

B. Cargo Handling Facilities in the Port of Valetta

Cargo handling is conducted in two major areas in the GrandHarbour: Deep Water Quay and Laboratory/Magazine Wharves. There is also a small amount of cargo handling on the inner harbour berths.

Deep Water Quay (DWQ) primarily services ro/ro traffic, but is also used for general cargo and, subject to availability, to berth cruise ships when space at the cruise terminal on Pinto Wharves is unavailable. The quay is 562 meters length, with 7 to 9½ metres depth alongside. Ro/ro ramps access is provided at DWQ berth No. 5 and at theWine Verandah, located at the northeastern end of the quay.

LaboratoryWharf on the western side of the harbour is used to handle small to midsize containerships and ro/ro vessels. MagazineWharf is primarily used to handle bulk carriers calling at the grain terminal. Up to Panamax size bulk carriers can come alongside MagazineWharf. The combined straight length of Magazine/Laboratory Wharf is 443 metres, with 12 to 13.4 metres depth alongside. An Lshape extension on LaboratoryWharf adds another 189 metres length, with depth alongside of 7.3 metres. Behind LaboratoryWharf is a small container handling yard with approximately 9,000 M2 space. An additional 10,400 M2 is available for car storage.

Cargo Handling Facilities in the
Port of Valetta

Berth / Length / Draft / Year
Built / Principal Usage
(metres) / (metres)
Deep Water Quay
DWQ 1 – 3 / 350 / 9.5 / 1961 / General cargo, liquid bulk
DWQ 4 / 138 / 8 / 1961 / RoRo, general cargo
DWQ 5 / 74 / 7 / 1961 / RoRo, general cargo
Magazine & LaboratoryWharf
MagazineWharf / 225 / 13.4 / Grain, general cargo
LaboratoryWharf / 218 / 12 / 1970s / RoRo, container, grain
Laboratory Wharf S1 / 117 / 7.3 / 1970s / RoRo, container
Laboratory Wharf S2 / 72 / 7.3 / 1970s / Small container
Berths in the InnerHarbor
FlagstoneWharf / 217 / 11.7 / 1980 / Petroleum
TimberWharf / 115 / 6-11 / Tug base
LightersWharf / 120 / 0.9 - 6 / Small craft
CoalWharf Inner / 150 / 6.5 / 1970s / Ship repair yard
CoalWharf Outer / 153 / 4 / Water barges/bulk cargo
FuelWharf / 150 / 10 / 1980 / Cement, edible oil
Raz Hanzir Dolphins / 80 / 7 / Liquid bulk
Source: Malta Maritime Authority

Several small berths in the inner harbour are utilized for handling various types of cargo. FlagstoneWharf is used by bunkering vessels and for berthing tankers delivering oil to the power station. This is a 217 metre wharf with 11.7 metres depth alongside. Lighters/Timber Wharf is used for berthing tugs and other small craft. This is a 120 metre wharf with up to 6 metres water depth. The outer portion of CoalWharf, extending 153 metres, is utilized for water barges and bulk cargo. Water depth alongside is only 4 metres. The inner portion of CoalWharf is utilized by a private ship repair yard. FuelWharf is utilized for handling cement and there is a mobile cement unloader and two silos on the wharf. This wharf is 150 metres length and has 10 metres water depth alongside.

MMA owns a variety of cargo handling equipment that is on loan to The Cargo Handling Company (TCHC). This equipment includes 10 tractors, about two dozen trailers, 3 cranes and 14 forklift trucks. The equipment is generally old and in poor condition. The new contractor is expected to replace this equipment with new equipment and to invest in such equipment as may be agreed with MMA.

Equipment on Loan toCargo Handling Company(as of July 2004)

Quantity / Year
Delivered

Tractors

Traction units / 10 / 1991

Trailers

Trailers / 17 / 1991
Straight frame semi-trailer 6 ton capacity / 4 / 1966
40 ft trailers 13 tons capacity / 2 / 1990
20 ft trailers / 4 / 1990

Lifting Equipment

Super roller bearing chain blocks / 2
Traveling trolley / 2
Fork lift trucks / 4 / 1982
Fork lift trucks / 2 / 1990
Fork lift trucks / 2 / 1991
Fork lift trucks / 6 / 1991

Lifting Cranes

Container crane / 1 / 1976
Ship-to-shore container crane / 1 / 1976
Ship-to-shore container crane / 1 / 1992
Source: Agreement between MMA and TCHCL

Cargo handling operations in the Port of Valletta involve a variety of entities in a complex relationship that has evolved over many years. Responsibility for control of the port is entrusted to the Malta Maritime Authority, an agency within the Ministry for Competitiveness and Communications and the port authority for ports in Malta. Cargo handling operations on the quay are, at present, performed by The Cargo Handling Company, which is wholly owned by the General Workers Union. This company’s concession will cease in June 2006. Stevedoring is directly contracted by representatives of the shipping companies. Only port workers registered under the Port Workers’ Scheme can be employed for cargo handling or stevedoring operations. The Government has declared its intention to reform the systems that operate in the VallettaPort and it is probable that such reform will be in place before the new contractor takes over operations.

C.Traffic Flows through the Port

Traffic in the port has been generally static over the past decade particularly when compared to the years prior 1990. Amongst the factors that have contributed to this situation is the substitution of containerised shipping for conventional break-bulk service and the competing role of Malta Freeport Terminals in handling domestic containerized traffic since 1989. Traffic volumes between 2000 and 2004 are represented hereunder. A detailed analysis of these trends will be included in the Information Memorandum that will be prepared for the short-listed bidders.

Five Year Trend in Cargo Volume
in the Port of Valletta
Year / Containers / Trailers / Breakbulk / Dry Bulk / Wet Bulk 1/
(TEU) / (TEU) / (000 tonnes) / (000 tonnes) / (000 tonnes)
2000 / 12,116 / 19,432 / 135 / 609 / 4,316
2001 / 7,853 / 18,962 / 130 / 666 / 4,319
2002 / 8,512 / 17,290 / 179 / 719 / 4,186
2003 / 11,144 / 18,792 / 152 / 738 / 4,144
2004 / 15,186 / 21,358 / 255 / 517 / 4,100
1/ Excluding bunkers
Source: Malta Maritime Authority

D.Experienced Operators

The Port of Valletta has a number of potential advantages which if properly exploited and managed may create new business for the terminal operator which should add to the present operations. MMA believes that in view of the need to ensure that prospective terminal operators have the right skills, only Persons (individuals, companies or consortia) who can show a proven track record of experiences in port management need express an interest.

1. Duration of Contract

The contract will be for a minimum period of ten (10) years which period may be extended by agreement between MMA and the new terminal operator/s.

1. Expressions of Interest

Expressions of Interest are invited from Persons who want to be considered for inclusion in the tender process leading to the award of the concession.

Interested Persons are expected to submit an Expression of Interest in English containing the following minimum information:

1. Size and profitability of their core business operation
2. Experience in similar operations
3. Name, qualifications and references of their partners in the bidding consortium.

In the case of consortia or companies in formation the information is to pertain to the leading partner.

Bidders should note that:

1. The Government of Malta and the Malta Maritime Authority expressly reserve the right to exclude or include any bidder, to vary or terminate the tender process and to accept or reject any offer at its sole and absolute discretion at any time.

1. Each potential bidder will bear all the costs of its own investigation and evaluation of the port of Valletta, including the fees and disbursements of its own advisors.

1. All communications and enquiries on any matters should be submitted to the Chairman, MMA at the address provided. Other MMA officials or shareholders should not be contacted under any circumstances.

1. Following the receipt of Expressions of Interest the Government of Malta and the Malta Maritime Authority retains the right to short list the selected bidders. Selected bidders would receive an Invitation to Tender against a fee of Lm1,500 to be paid by the bidder to the Malta Maritime Authority.

Appendix: The GrandHarbour Photos

Magazine / Laboratory Wharves - GrandHarbour a

Magazine / Laboratory Wharves - GrandHarbour b

Aerial Photo Valletta

Aerial Photo Valletta b

Aerial Photo Valletta c

AerialPhotoGrandHarbour

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