The Board of Directors of the Port Authority of Valencia selects the TIL offer for the new north extension terminal

According to the proposal presented, the new terminal will be the most modern in the world and 98% of its machinery will be electric.

The terminal, which will have a high degree of automation, will promote the creation of a cluster of service companies around it with the creation of high employment and qualification means.

Valencia, September 27th, 2019.- The Board of Directors of the Port Authority of Valencia (PAV) held today has approved the selection of the offer presented by Terminal Investment Limited, proposed by the Qualification Board of the public tender for construction and operation, under administrative concession, of the new container terminal of the North Expansion of the port of Valencia. This selection, which has been approved by 9 favorable votes and only 1 unfavorable, is another step in the process for granting the new concession.

He also stressed that “we are very proud of the offer presented because it will become the most modern terminal in the world. There is not a single terminal in the world that operates with the parameters of environmental commitments of the offer presented, in which they indicate that 98% of all the machinery used will be electric. In addition, the high degree of automation they propose will involve the creation of a technological cluster around it with the consequent creation of high-skilled employment.”

In addition, the president also wanted to highlight that “the port has always been very sensitive to environmental issues. In fact, we voluntarily submit to European audits and certificates and we are the first Port of Spain in number of environmental certifications and international reference in the field. That is why we are working so that in 2025 the generation of energy is balanced with our consumption derived from our activities”

In this regard, Aurelio Martínez has also influenced the Environmental Impact Statement of the northern extension. As explained, the environmental assessment law of 2013 contemplates that it will only be necessary to carry out this procedure when there are modifications that may involve a significant increase in the following cases: emissions to the atmosphere, discharges, waste, natural resources, impact on protected areas from natural network or cultural heritage. “The May 2018 technical report prepared by the Port Authority and State Ports indicates that it is not necessary since none of these assumptions are met. In addition, the north expansion project will consume less materials, specifically 1.5 million tons less than the previous location and, in addition, the modifications occur within the interior of the port” 

Characteristics of the offer presented by TIL

  • The offer of Terminal International Limited (TIL) meets all the conditions established in the Tender Documents and has obtained 98.5 points out of 100 in the valuation made by the Technical Commission.
  • TIL opts for a 50-year concession by means of the complete development in three consecutive phases of the spaces offered for the new terminal which, in accordance with the forecasts for the availability of the land by the APV, will allow the commissioning of:
    • 1st Phase: 86 Ha. of surface and 1,100 m of berthing line at the beginning of 1ºT. 2025
    • 2nd Phase: continuation of the work of the previous phase up to 108 Ha. of surface and up to 1,500 m. of docking line, at the beginning of 4ºT. 2025
    • 3rd Phase: complete up to 136 hectares of surface and up to 1,970 m. Docking line, at the beginning of 3ºT. from 2026
  • The projected capacity of the terminal is:
    • 1st Phase: 2,387,000 TEUs / year
    • 2nd Phase: 3,361,000 TEUs / year
    • 3rd Phase: 4,792,000 TEUs / year
  • With the full development of the spaces made available for the new terminal, TIL chooses to abandon its current concession, in accordance with the provisions set forth in the Bidding Documents. It plans to transfer to the new terminal the entire volume of its operations in the current terminal once the 2nd Phase is completed, and liquidate and close the current installation at the end of 2026 or early 2027 and, in any case, within the term of 4 years after the start of operations in the new facility.
  • With the new TIL container terminal in the North Expansion, Valenciaport will have a capacity of 12.5 million TEUs from 2027.
  • TIL undertakes a minimum traffic of full containers of 1,917,000 TEUs / year from the 4th year of the start of the operation, of which 575,000 TEUs / year will be full containers of import / export and 1,342,000 TEUs / year They will be full of transit. With this offer TIL comes to double its minimum traffic commitment with the port of Valencia, which reinforces the loyalty of operations in Valencia and the opportunity to continue growing at the pace of the market.
  • In its traffic forecasts, TIL estimates to move 3,935,000 TEUs in maritime traffic in the 4th year since the beginning of operations, and thereafter a growth of 3% annually. It will be a terminal open to general traffic.
  • Innovation and development. It provides a high degree of automation. It adopts a design, technologies and equipment of last generation, with a fully electrified installation, which allows to serve the largest container ships in service, with high performance in both maritime and land operations.
  • Bet on intermodality. In its offer, TIL makes an important commitment to rail intermodality, and offers to develop a rail terminal in its concession, equipped with 6 tracks of 1000 m in length, with the capacity to move 305,000 TEUs / year by rail, which means that the Rail haulage to the terminal may have a fee of more than 20%.
  • The investment of TIL’s first establishment in the new terminal amounts to € 1,021 million during the period 2020-2026, of which € 320 million corresponds to Civil Works and Construction, € 615 million corresponds to cargo handling equipment, and € 86 million correspond to automation and IT.
  • Green Terminal. From an environmental point of view, TIL’s offer has been designed to minimize equivalent CO2 emissions and energy consumption. For this, it has planned:
    • On the one hand, the electrical supply to ships and that 98% of the machinery uses electrical power, committing to sign a contract with the electricity supplier that guarantees that 100% of its energy comes from 100% from renewable sources.
    • On the other, the automation of equipment and operations, the use of advanced traffic prediction systems, the design of buildings with energy efficiency criteria, and the external lighting system with LED type luminaires will minimize energy consumption.
  • From the point of view of human resources, the creation of stable employment and economic growth, TIL’s offer states:
    • The maintenance of all the jobs of its current terminal and the incorporation of necessary ad-hoc personnel both in the development and construction of the new terminal, as well as in the management, operation and maintenance of the same.
    • The hiring of port personnel of the Port Employment Center to hire the necessary port hands.
  • Its commitment to align with the Spanish Social Economy Strategy, specifying a set of concrete measures in four lines of action: health and well-being; equal opportunities; equality policies; temporal and spatial flexibility; and professional development and competence.
  • Specific training and training activities, related to the innovative aspects of the new terminal associated with digitalization, automation and energy transition, relying on local educational and research entities and compromising collaboration in training activities for new professionals.

In terms of employment, it should be noted that the implementation of a terminal with a high degree of automation leads to the creation of a cluster of service companies around the terminal with the creation of high and medium qualification employment.

In total, the creation of some 3.000 jobs is estimated, including the construction and subsequent operation phases of the terminal.